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Advance Auto Parts (AAP) Gains But Lags Market: What You Should Know
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In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $154.02, marking a +0.56% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.
Coming into today, shares of the auto parts retailer had gained 4.48% in the past month. In that same time, the Retail-Wholesale sector lost 3.03%, while the S&P 500 lost 4.61%.
Investors will be hoping for strength from Advance Auto Parts as it approaches its next earnings release. 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.
Investors might also notice recent changes to analyst estimates for Advance Auto Parts. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.21% lower. Advance Auto Parts is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 11.31 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.51.
We can also see that AAP currently has a PEG ratio of 0.9. 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 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 industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.
To follow AAP in the coming trading sessions, be sure to utilize Zacks.com.
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Advance Auto Parts (AAP) Gains But Lags Market: What You Should Know
In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $154.02, marking a +0.56% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.
Coming into today, shares of the auto parts retailer had gained 4.48% in the past month. In that same time, the Retail-Wholesale sector lost 3.03%, while the S&P 500 lost 4.61%.
Investors will be hoping for strength from Advance Auto Parts as it approaches its next earnings release. 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.
Investors might also notice recent changes to analyst estimates for Advance Auto Parts. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.21% lower. Advance Auto Parts is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 11.31 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.51.
We can also see that AAP currently has a PEG ratio of 0.9. 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 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 industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% 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.
To follow AAP in the coming trading sessions, be sure to utilize Zacks.com.