Critical Insights From Advance Auto Parts Analyst Ratings: What You Need To Know

Advance Auto Parts AAP has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $68.0, a high estimate of $78.00, and a low estimate of $60.00. Marking an increase of 28.91%, the current average surpasses the previous average price target of $52.75.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive Advance Auto Parts is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Advance Auto Parts. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Advance Auto Parts compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Advance Auto Parts's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Advance Auto Parts's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Advance Auto Parts analyst ratings.

Get to Know Advance Auto Parts Better

Advance Auto Parts is one of the industry's retailers of aftermarket automotive parts, tools, and accessories to do-it-yourself customers and third-party vehicle repair facilities in North America. Advance operated 5,086 stores as of the end of 2022, in addition to servicing 1,311 independently owned Carquest stores. The company's Worldpac chain is a distributor of imported original equipment parts.

Advance Auto Parts: A Financial Overview

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Challenges: Advance Auto Parts's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -0.36%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -2.45%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Advance Auto Parts's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -2.34% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Advance Auto Parts's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.49% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Advance Auto Parts's debt-to-equity ratio is below the industry average. With a ratio of 1.59, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.