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

Advance Auto Parts (AAP) closed the most recent trading day at $151.47, moving -0.13% from the previous trading session. This move lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.

Prior to today's trading, shares of the auto parts retailer had lost 0.39% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.05% and the S&P 500's gain of 5.64% in that time.

Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. On that day, Advance Auto Parts is projected to report earnings of $2.43 per share, which would represent year-over-year growth of 17.39%. Our most recent consensus estimate is calling for quarterly revenue of $2.43 billion, up 1.34% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Advance Auto Parts. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.93% lower within the past month. Advance Auto Parts is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 11.53 right now. Its industry sports an average Forward P/E of 20.79, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.

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. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 245, putting it in the bottom 3% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AAP in the coming trading sessions, be sure to utilize Zacks.com.

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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report

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