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Advance Auto Parts (AAP) Gains As Market Dips: What You Should Know
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Advance Auto Parts (AAP - Free Report) closed at $71.20 in the latest trading session, marking a +0.91% move from the prior day. This change outpaced the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq lost 1.17%.
Coming into today, shares of the auto parts retailer had gained 0.63% in the past month. In that same time, the Retail-Wholesale sector gained 5.69%, while the S&P 500 gained 2.35%.
Investors will be hoping for strength from Advance Auto Parts as it approaches its next earnings release, which is expected to be August 23, 2023. In that report, analysts expect Advance Auto Parts to post earnings of $1.59 per share. This would mark a year-over-year decline of 57.49%. Our most recent consensus estimate is calling for quarterly revenue of $2.67 billion, up 0.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $11.22 billion, which would represent changes of -54.14% and +0.62%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Advance Auto Parts. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. Advance Auto Parts is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Advance Auto Parts's current valuation metrics, including its Forward P/E ratio of 11.8. Its industry sports an average Forward P/E of 24.71, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
Meanwhile, AAP's PEG ratio is currently 1.03. 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 1.68 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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.
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 As Market Dips: What You Should Know
Advance Auto Parts (AAP - Free Report) closed at $71.20 in the latest trading session, marking a +0.91% move from the prior day. This change outpaced the S&P 500's 0.7% loss on the day. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq lost 1.17%.
Coming into today, shares of the auto parts retailer had gained 0.63% in the past month. In that same time, the Retail-Wholesale sector gained 5.69%, while the S&P 500 gained 2.35%.
Investors will be hoping for strength from Advance Auto Parts as it approaches its next earnings release, which is expected to be August 23, 2023. In that report, analysts expect Advance Auto Parts to post earnings of $1.59 per share. This would mark a year-over-year decline of 57.49%. Our most recent consensus estimate is calling for quarterly revenue of $2.67 billion, up 0.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $11.22 billion, which would represent changes of -54.14% and +0.62%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Advance Auto Parts. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. Advance Auto Parts is holding a Zacks Rank of #5 (Strong Sell) right now.
Investors should also note Advance Auto Parts's current valuation metrics, including its Forward P/E ratio of 11.8. Its industry sports an average Forward P/E of 24.71, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
Meanwhile, AAP's PEG ratio is currently 1.03. 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 1.68 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.