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Advance Auto Parts (AAP) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $125.47, marking a -0.05% move from the previous day. This change lagged the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 2.14%.
Heading into today, shares of the auto parts retailer had gained 3.22% over the past month, lagging the Retail-Wholesale sector's gain of 4.29% and the S&P 500's gain of 5.1% in that time.
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 $2.59, down 27.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.43 billion, up 1.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.65 per share and revenue of $11.44 billion. These totals would mark changes of -18.33% and +2.53%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Advance Auto Parts. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.09% higher. Advance Auto Parts is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Advance Auto Parts's current valuation metrics, including its Forward P/E ratio of 11.79. Its industry sports an average Forward P/E of 24.84, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
Investors should also note that AAP has a PEG ratio of 1.03 right now. 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 1.72 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Advance Auto Parts (AAP) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Advance Auto Parts (AAP - Free Report) closed at $125.47, marking a -0.05% move from the previous day. This change lagged the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, added 2.14%.
Heading into today, shares of the auto parts retailer had gained 3.22% over the past month, lagging the Retail-Wholesale sector's gain of 4.29% and the S&P 500's gain of 5.1% in that time.
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 $2.59, down 27.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.43 billion, up 1.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.65 per share and revenue of $11.44 billion. These totals would mark changes of -18.33% and +2.53%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Advance Auto Parts. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.09% higher. Advance Auto Parts is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Advance Auto Parts's current valuation metrics, including its Forward P/E ratio of 11.79. Its industry sports an average Forward P/E of 24.84, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
Investors should also note that AAP has a PEG ratio of 1.03 right now. 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 1.72 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.