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Advance Auto Parts (AAP) Stock Sinks As Market Gains: What You Should Know
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Advance Auto Parts (AAP - Free Report) closed the most recent trading day at $71.55, moving -1.66% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.61%.
Coming into today, shares of the auto parts retailer had gained 8.13% in the past month. In that same time, the Retail-Wholesale sector gained 3.9%, while the S&P 500 gained 4.86%.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. The company is expected to report EPS of $1.59, down 57.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 0.26% from the prior-year quarter.
AAP's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $11.22 billion. These results would represent year-over-year changes of -53.99% and +0.62%, respectively.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 12.13 right now. Its industry sports an average Forward P/E of 25.71, 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 1.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.69 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Advance Auto Parts (AAP) Stock Sinks As Market Gains: What You Should Know
Advance Auto Parts (AAP - Free Report) closed the most recent trading day at $71.55, moving -1.66% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.61%.
Coming into today, shares of the auto parts retailer had gained 8.13% in the past month. In that same time, the Retail-Wholesale sector gained 3.9%, while the S&P 500 gained 4.86%.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. The company is expected to report EPS of $1.59, down 57.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 0.26% from the prior-year quarter.
AAP's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $11.22 billion. These results would represent year-over-year changes of -53.99% and +0.62%, respectively.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 12.13 right now. Its industry sports an average Forward P/E of 25.71, 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 1.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.69 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.