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Advance Auto Parts (AAP) Outpaces Stock Market Gains: What You Should Know
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Advance Auto Parts (AAP - Free Report) closed at $125.75 in the latest trading session, marking a +1.6% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.05%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 6.02%.
Heading into today, shares of the auto parts retailer had gained 2.55% over the past month, outpacing the Retail-Wholesale sector's gain of 1.63% and the S&P 500's gain of 1.18% in that time.
Advance Auto Parts will be looking to display strength as it nears its next earnings release. In that report, analysts expect Advance Auto Parts to post earnings of $2.59 per share. This would mark a year-over-year decline of 27.45%. 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 $10.63 per share and revenue of $11.44 billion. These totals would mark changes of -18.48% and +2.53%, respectively, from last year.
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.
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.
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 0.05% higher. Advance Auto Parts currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Advance Auto Parts is holding a Forward P/E ratio of 11.64. This represents a discount compared to its industry's average Forward P/E of 25.39.
Investors should also note that AAP has a PEG ratio of 1.02 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 1.77 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 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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) Outpaces Stock Market Gains: What You Should Know
Advance Auto Parts (AAP - Free Report) closed at $125.75 in the latest trading session, marking a +1.6% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.05%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 6.02%.
Heading into today, shares of the auto parts retailer had gained 2.55% over the past month, outpacing the Retail-Wholesale sector's gain of 1.63% and the S&P 500's gain of 1.18% in that time.
Advance Auto Parts will be looking to display strength as it nears its next earnings release. In that report, analysts expect Advance Auto Parts to post earnings of $2.59 per share. This would mark a year-over-year decline of 27.45%. 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 $10.63 per share and revenue of $11.44 billion. These totals would mark changes of -18.48% and +2.53%, respectively, from last year.
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.
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.
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 0.05% higher. Advance Auto Parts currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Advance Auto Parts is holding a Forward P/E ratio of 11.64. This represents a discount compared to its industry's average Forward P/E of 25.39.
Investors should also note that AAP has a PEG ratio of 1.02 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 1.77 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 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.