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Advance Auto Parts (AAP) Stock Moves -0.11%: What You Should Know

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Advance Auto Parts (AAP - Free Report) closed at $167.64 in the latest trading session, marking a -0.11% move from the prior day. This change was narrower than the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.12%.

Coming into today, shares of the auto parts retailer had lost 3.18% in the past month. In that same time, the Retail-Wholesale sector lost 3.44%, while the S&P 500 lost 3.29%.

Advance Auto Parts will be looking to display strength as it nears its next earnings release. On that day, Advance Auto Parts is projected to report earnings of $3.31 per share, which would represent year-over-year growth of 3.12%. Meanwhile, our latest consensus estimate is calling for revenue of $2.65 billion, up 1.19% from the prior-year quarter.

AAP's full-year Zacks Consensus Estimates are calling for earnings of $13.01 per share and revenue of $11.12 billion. These results would represent year-over-year changes of +8.24% and +1.09%, respectively.

Investors might also notice 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. Advance Auto Parts is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Advance Auto Parts is holding a Forward P/E ratio of 12.9. This valuation marks a discount compared to its industry's average Forward P/E of 16.3.

Also, we should mention that AAP has a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.63 as of yesterday's close.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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