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Advance Auto Parts (AAP) Dips More Than Broader Markets: What You Should Know
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Advance Auto Parts (AAP - Free Report) closed at $69.73 in the latest trading session, marking a -1.94% move from the prior day. This change lagged the S&P 500's 1.16% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 1.14%.
Prior to today's trading, shares of the auto parts retailer had gained 2.35% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.34% and the S&P 500's loss of 0.27% in that time.
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. On that day, Advance Auto Parts is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 55.88%. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 0.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $11.23 billion, which would represent changes of -54.14% and +0.64%, respectively, from the prior year.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.29% lower. Advance Auto Parts is currently a Zacks Rank #4 (Sell).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 11.89. Its industry sports an average Forward P/E of 25.16, 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 1.04 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 1.71 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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) Dips More Than Broader Markets: What You Should Know
Advance Auto Parts (AAP - Free Report) closed at $69.73 in the latest trading session, marking a -1.94% move from the prior day. This change lagged the S&P 500's 1.16% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 1.14%.
Prior to today's trading, shares of the auto parts retailer had gained 2.35% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.34% and the S&P 500's loss of 0.27% in that time.
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. On that day, Advance Auto Parts is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 55.88%. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 0.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $11.23 billion, which would represent changes of -54.14% and +0.64%, respectively, from the prior year.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.29% lower. Advance Auto Parts is currently a Zacks Rank #4 (Sell).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 11.89. Its industry sports an average Forward P/E of 25.16, 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 1.04 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 1.71 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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.