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Advance Auto Parts (AAP) Stock Sinks As Market Gains: What You Should Know

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In the latest market close, Advance Auto Parts (AAP - Free Report) reached $64.26, with a -0.26% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.96% for the day. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 1.3%.

The auto parts retailer's shares have seen an increase of 4.93% over the last month, surpassing the Retail-Wholesale sector's gain of 4.23% and the S&P 500's gain of 3.69%.

The investment community will be closely monitoring the performance of Advance Auto Parts in its forthcoming earnings report. The company's upcoming EPS is projected at $0.24, signifying a 91.67% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.47 billion, indicating a 0.2% decline compared to the corresponding quarter of the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advance Auto Parts. Such recent modifications usually signify the changing landscape of 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.1% lower within the past month. Right now, Advance Auto Parts possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 17.16 right now. This denotes a discount relative to the industry's average Forward P/E of 24.67.

Meanwhile, AAP's PEG ratio is currently 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Automotive - Retail and Wholesale - Parts industry was having an average PEG ratio of 1.52.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 107, this industry ranks in the top 43% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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