On May 26, 2023, Seth Basham, an analyst at Wedbush, revealed his latest update on Advance Auto Parts (NYSE:AAP). Despite previously rating the company as Outperform, Basham has now downgraded his rating to Neutral. Additionally, he has lowered the price target from $145 to $115 due to several concerns.
One of Basham’s main worries is the company’s margins. He believes that Advance Auto Parts’ further investments in its Pro segment are a red flag, as this segment has lower margins and higher inventory levels than its peers. This could potentially impact the company’s profitability in the long run.
Furthermore, Basham has pointed out that Advance Auto Parts has been underperforming compared to its peers. This could be attributed to the increasing financial leverage and low earnings quality of the company. As a result, Basham has decided to adjust his rating and price target to reflect these concerns.
Overall, it seems that Basham is taking a cautious approach when it comes to Advance Auto Parts. While he is not completely bearish on the company, he is urging investors to be mindful of the risks associated with its current strategy.
AAP Stock Performance and Analysis on May 26, 2023 in the Retail Trade Sector
On May 26, 2023, the AAP stock opened at 110.85, which was lower than the previous day’s close of 111.62. The day’s range was between 109.81 and 111.95, with a volume of 638,561 shares traded. The market capitalization of the company was $7.0 billion.
AAP’s earnings growth in the last year was -13.58%, and this year it was -18.36%. However, the earnings growth for the next five years is expected to be +3.28%. The revenue growth for the last year was +1.43%. The P/E ratio was 13.5, and the price/sales and price/book ratios were 0.80 and 2.60, respectively.
In comparison to other companies in the Retail Trade sector, AAP’s stock performance was mixed. Autozone Inc’s stock performance remained stable with a slight decrease of 0.00%, while O’Reilly Automotive’s stock performance decreased by 1.33%.
AAP’s next reporting date is May 31, 2023, with an EPS forecast of $2.56 for this quarter.
AAP is a company in the Specialty Stores industry, with its corporate headquarters located in Raleigh, North Carolina.
Overall, AAP’s stock performance on May 26, 2023, was not impressive, with a lower opening price than the previous day’s close and mixed performance compared to other companies in the Retail Trade sector. However, the company’s expected earnings growth in the next five years is positive, which could potentially lead to an increase in stock value in the future.
AAP Stock Performance and Analysis: Strong Presence in the Automotive Aftermarket Parts Industry
Advance Auto Parts Inc (AAP) is a leading retailer of automotive aftermarket parts and accessories in the United States. The company has been in operation for over 90 years and has a strong presence in the industry. On May 26, 2023, AAP’s stock performance was closely monitored by investors and analysts alike. According to CNN Money, the 20 analysts offering 12-month price forecasts for AAP had a median target of 142.00, with a high estimate of 180.00 and a low estimate of 103.00. AAP’s current consensus rating among 27 polled investment analysts is to hold stock in the company. AAP’s current quarter earnings per share are $2.56, with sales of $3.4 billion. The upcoming earnings report will provide more insight into the company’s financial performance and may influence investor sentiment in the coming weeks.
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