Advance Auto Parts (AAP) ended the recent trading session at $65.44, showing a -0.97% swing from the previous day’s closing price. This move trailed the S&P 500’s daily gain of 0.08%. Elsewhere, the Dow saw a 0.26% drop, while the tech-heavy Nasdaq appreciated by 0.36%.
The auto parts retailer’s stock has risen 8.47% in the past month, leading the Retail Wholesale sector’s gain of 0.71% and the S&P 500’s gain of 2.4%.
The investment community will be paying close attention to Advance Auto Parts’ earnings performance in its next release. The company is expected to report EPS of $0.24, indicating a 91.67% downward movement from the corresponding quarter of the previous year. Our most recent consensus estimate calls for quarterly revenue of $2.47 billion, down 0.2% from the year-ago period.
Additionally, investors should keep an eye on some recent revisions to analyst forecasts for Advance Auto Parts. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, positive revisions in ratings convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in valuations have a direct relationship with upcoming stock price performance. To use this, we created the Zacks Rank, a proprietary model that integrates these rating changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. More than the last 30 days, the Zacks Consensus EPS estimate saw a decrease of 0.08%. Currently, Advance Auto Parts carries a Zacks Rank of #3 (Hold).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 17.07. This represents a discount compared to its industry’s average Forward P/E of 24.06.
It should be further noted that AAP currently holds a PEG ratio of 1.22. 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. As the market closed yesterday, the Automotive – Wholesale and Wholesale – Parts industry had an average PEG ratio of 1.49.
The Automotive – Wholesale and Wholesale – Parts industry is part of the Wholesale-Wholesale sector. Currently, this industry has a Zacks Industry Rank of 65, placing it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the vitality of our specific industry groups by computing the average Zacks Rank of the individual stocks included in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, at Zacks.com.
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Advance Auto Parts, Inc. (AAP): Free Analysis Report
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