In the latest trading session, Advanced Auto Parts (AAP) closed at $148.62, up +0.77% from the previous day. The move lagged the S&P 500’s daily gain of 1.19%. The Dow rose 0.76% and tech stock Nasdaq rose 0.29%.
Entering today, the auto parts retailer’s shares rose 2.94% last month. At the same time, the retail and wholesale sector rose his 8.04% and the S&P 500 rose his 4.06%.
Advance Auto Parts is looking to show some strength as it approaches its next earnings release. On that day, Advance Auto Parts is expected to report earnings of $2.43 per share for him, representing a 17.39% year-over-year growth. Our latest consensus forecast calls for quarterly revenue of $2.43 billion, up 1.34% from the same period last year.
Investors should also be aware of recent changes to Advance Auto Parts analyst forecasts. These recent revisions tend to reflect the evolving nature of near-term business trends. As such, the positive estimate revision reflects analysts’ optimism about the company’s business and profitability.
Based on our research, we believe these revisions to estimates are directly related to inventory movements closer to the team. We developed Zack Rank to take advantage of this phenomenon. Our system takes into account these quote changes to provide a clear and actionable valuation model.
The Zacks Rank system from No. 1 (strong buy) to No. 5 (strong sell) has produced an average annualized +25% return for the top stock since 1988, an impressive external audit of outperformance has a track record of Over the past 30 days, our consensus EPS forecast has fallen 1.99%. Advance Auto Parts currently boasts a Zachs rank of #5 (strong sell).
Valuations are also important, so investors should be aware that Advance Auto Parts currently has a forward P/E ratio of 11.11. This is a bargain compared to the industry average futures P/E of 20.18.
We can also see that the current PEG ratio for AAP is 0.89. 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. Auto-retail and wholesale-parts stocks hold their PEG ratio at an average of 1.67 based on yesterday’s closing prices.
The Automotive-Retail and Wholesale-Parts industry is part of the Retail-Wholesale sector. The Zacks Industry Rank for this group is 235, placing it in the bottom 7% of all industries over 250.
The Zacks Industry Rank lists the average Zacks Rank of individual companies within each of these sectors from highest to lowest. Our research shows that industries rated in the top 50% are two to one times better than those in the bottom half.
Be sure to follow all these stock volatility indicators and more at Zacks.com.
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Advance Auto Parts, Inc. (AAP) : Free Inventory Analysis Report
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The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.
