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Advance Auto Parts (AAP) Gains But Lags Market: What You Should Know
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Advance Auto Parts (AAP - Free Report) closed at $152.19 in the latest trading session, marking a +0.26% move from the prior day. The stock lagged the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 1.11%, while the tech-heavy Nasdaq added 11.35%.
Heading into today, shares of the auto parts retailer had gained 0.51% over the past month, lagging the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 4.49% in that time.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. This is expected to be February 28, 2023. In that report, analysts expect Advance Auto Parts to post earnings of $2.43 per share. This would mark year-over-year growth of 17.39%. Meanwhile, our latest consensus estimate is calling for revenue of $2.43 billion, up 1.34% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Advance Auto Parts. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection has moved 2.93% lower. Advance Auto Parts is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 21.35, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
We can also see that AAP currently has a PEG ratio of 1.01. 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 1.76 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 242, putting it in the bottom 4% 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
Advance Auto Parts (AAP - Free Report) closed at $152.19 in the latest trading session, marking a +0.26% move from the prior day. The stock lagged the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 1.11%, while the tech-heavy Nasdaq added 11.35%.
Heading into today, shares of the auto parts retailer had gained 0.51% over the past month, lagging the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 4.49% in that time.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. This is expected to be February 28, 2023. In that report, analysts expect Advance Auto Parts to post earnings of $2.43 per share. This would mark year-over-year growth of 17.39%. Meanwhile, our latest consensus estimate is calling for revenue of $2.43 billion, up 1.34% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Advance Auto Parts. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.
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. Within the past 30 days, our consensus EPS projection has moved 2.93% lower. Advance Auto Parts is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 11.54. Its industry sports an average Forward P/E of 21.35, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
We can also see that AAP currently has a PEG ratio of 1.01. 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 1.76 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 242, putting it in the bottom 4% 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.