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Advance Auto Parts (AAP) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $152.19, marking a -0.71% move from the previous day. This change lagged the S&P 500's 0.34% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 8.98%.
Prior to today's trading, shares of the auto parts retailer had gained 6.85% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.11% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. The company is expected to report EPS of $2.44, up 17.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 1.15% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Advance Auto Parts. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.21% lower within the past month. Advance Auto Parts is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Advance Auto Parts is holding a Forward P/E ratio of 11.31. For comparison, its industry has an average Forward P/E of 21.05, which means Advance Auto Parts is trading at a discount to the group.
Also, we should mention that AAP has a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Advance Auto Parts (AAP) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $152.19, marking a -0.71% move from the previous day. This change lagged the S&P 500's 0.34% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 8.98%.
Prior to today's trading, shares of the auto parts retailer had gained 6.85% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.11% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. The company is expected to report EPS of $2.44, up 17.87% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 1.15% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Advance Auto Parts. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.21% lower within the past month. Advance Auto Parts is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Advance Auto Parts is holding a Forward P/E ratio of 11.31. For comparison, its industry has an average Forward P/E of 21.05, which means Advance Auto Parts is trading at a discount to the group.
Also, we should mention that AAP has a PEG ratio of 0.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.