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4 Reasons to Add Advance Auto Parts to Your Portfolio Now

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Advance Auto Parts, Inc.’s (AAP - Free Report) stock looks promising at this point. In the past six months, the company has seen its shares rise 14%.

If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock which looks poised to maintain the momentum forward.

Let’s delve deeper into factors that are working in favor of this automotive retailer.

Solid Rank & VGM Score: Advance Auto Parts currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential for investors.

An Outperformer: Advance Auto Parts has outperformed the industry it belongs to in the past year. The company’s shares have surged 55.2% compared with the 24.6% increase recorded by the industry.



Estimates Moving North: The Zacks Consensus Estimate for current-year earnings has improved in the past month. Over this period, earnings estimates have inched up 0.3% to $7.11. In the past month, the Zacks Consensus Estimate for current-quarter earnings has remained unchanged at $1.15.
 
Favorable Industry Outlook

The Zacks Automotive - Retail And Wholesale - Parts industry is a five-stock group within the broader Zacks Auto sector. The industry currently carries a Zacks Industry Rank #15, which places it in the top 6% of more than 250 Zacks industries.

At present, the Auto Retail & Wholesale Parts industry enjoys some advantages, such as favorable macroeconomic conditions and higher demand for automobiles. Also, occasional model launches and introduction of more complicated and high-tech vehicles have compelled consumers to opt for more professional assistance.

A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and CarGurus, Inc. (CARG - Free Report) . While Allison Transmission and Fox Factory currently sport a Zacks Rank #1, CarGurus carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 2.3%.

Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 15.6%.

CarGurus has an expected long-term growth rate of 5%. Over the past year, shares of the company have rallied 3.8%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>