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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 $148.62, marking a +0.77% move from the previous day. This move lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.29%.
Coming into today, shares of the auto parts retailer had gained 2.94% in the past month. In that same time, the Retail-Wholesale sector gained 8.04%, while the S&P 500 gained 4.06%.
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 $2.43 per share, which would represent year-over-year growth of 17.39%. Our most recent consensus estimate is calling for quarterly revenue of $2.43 billion, up 1.34% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Advance Auto Parts. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.99% lower. Advance Auto Parts is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 11.11 right now. This represents a discount compared to its industry's average Forward P/E of 20.18.
We can also see that AAP currently has a PEG ratio of 0.89. 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) Gains But Lags Market: What You Should Know
In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $148.62, marking a +0.77% move from the previous day. This move lagged the S&P 500's daily gain of 1.19%. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.29%.
Coming into today, shares of the auto parts retailer had gained 2.94% in the past month. In that same time, the Retail-Wholesale sector gained 8.04%, while the S&P 500 gained 4.06%.
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 $2.43 per share, which would represent year-over-year growth of 17.39%. Our most recent consensus estimate is calling for quarterly revenue of $2.43 billion, up 1.34% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Advance Auto Parts. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.99% lower. Advance Auto Parts is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 11.11 right now. This represents a discount compared to its industry's average Forward P/E of 20.18.
We can also see that AAP currently has a PEG ratio of 0.89. 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.