Advance Auto Parts (AAP) closed at $121.95 in the latest trading session, marking a -0.74% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 5.74%.
Coming into today, shares of the auto parts retailer had lost 0.6% in the past month. In that same time, the Retail-Wholesale sector gained 3.51%, while the S&P 500 gained 0.85%.
Advance Auto Parts will be looking to display strength as it nears its next earnings release, which is expected to be May 31, 2023. On that day, Advance Auto Parts is projected to report earnings of $2.59 per share, which would represent a year-over-year decline of 27.45%. Our most recent consensus estimate is calling for quarterly revenue of $3.43 billion, up 1.56% from the year-ago period.
AAP's full-year Zacks Consensus Estimates are calling for earnings of $10.64 per share and revenue of $11.44 billion. These results would represent year-over-year changes of -18.4% and +2.53%, respectively.
Investors should also note any recent changes to analyst estimates for Advance Auto Parts. These revisions help to show the ever-changing nature 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. Advance Auto Parts is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 11.55. For comparison, its industry has an average Forward P/E of 25.92, which means Advance Auto Parts is trading at a discount to the group.
Investors should also note that AAP has a PEG ratio of 1.01 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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, on Zacks.com.
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