We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Advance Auto Parts (AAP) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Advance Auto Parts (AAP - Free Report) closed at $145.02 in the latest trading session, marking a +1.21% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.41%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 6.67%.
Coming into today, shares of the auto parts retailer had lost 4.87% in the past month. In that same time, the Retail-Wholesale sector lost 4.26%, while the S&P 500 lost 4.4%.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. In that report, analysts expect Advance Auto Parts to post earnings of $2.44 per share. This would mark year-over-year growth of 17.87%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 1.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.60 per share and revenue of $11.11 billion, which would represent changes of +4.83% and +0.98%, respectively, from the prior year.
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. 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Advance Auto Parts is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Advance Auto Parts is currently trading at a Forward P/E ratio of 11.37. For comparison, its industry has an average Forward P/E of 18.36, which means Advance Auto Parts is trading at a discount to the group.
We can also see that AAP currently has a PEG ratio of 0.91. 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 industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Advance Auto Parts (AAP) Gains As Market Dips: What You Should Know
Advance Auto Parts (AAP - Free Report) closed at $145.02 in the latest trading session, marking a +1.21% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.41%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 6.67%.
Coming into today, shares of the auto parts retailer had lost 4.87% in the past month. In that same time, the Retail-Wholesale sector lost 4.26%, while the S&P 500 lost 4.4%.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. In that report, analysts expect Advance Auto Parts to post earnings of $2.44 per share. This would mark year-over-year growth of 17.87%. Our most recent consensus estimate is calling for quarterly revenue of $2.42 billion, up 1.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.60 per share and revenue of $11.11 billion, which would represent changes of +4.83% and +0.98%, respectively, from the prior year.
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. 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. 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.
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. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Advance Auto Parts is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Advance Auto Parts is currently trading at a Forward P/E ratio of 11.37. For comparison, its industry has an average Forward P/E of 18.36, which means Advance Auto Parts is trading at a discount to the group.
We can also see that AAP currently has a PEG ratio of 0.91. 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 industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.