In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $126.83, marking a -1.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 4.87%.
Prior to today's trading, shares of the auto parts retailer had gained 15.68% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.37% and the S&P 500's gain of 3.31% in that time.
Advance Auto Parts will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.58, down 27.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.43 billion, up 1.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.63 per share and revenue of $11.43 billion. These totals would mark changes of -18.48% and +2.5%, respectively, from last year.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. Advance Auto Parts is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 12.06. For comparison, its industry has an average Forward P/E of 24.67, which means Advance Auto Parts is trading at a discount to the group.
Investors should also note that AAP has a PEG ratio of 1.06 right now. 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $126.83, marking a -1.08% move from the previous day. This move lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 4.87%.
Prior to today's trading, shares of the auto parts retailer had gained 15.68% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.37% and the S&P 500's gain of 3.31% in that time.
Advance Auto Parts will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.58, down 27.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.43 billion, up 1.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.63 per share and revenue of $11.43 billion. These totals would mark changes of -18.48% and +2.5%, respectively, from last year.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. Advance Auto Parts is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 12.06. For comparison, its industry has an average Forward P/E of 24.67, which means Advance Auto Parts is trading at a discount to the group.
Investors should also note that AAP has a PEG ratio of 1.06 right now. 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.71 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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