Advance Auto Parts Stock: A Deep Dive Into Analyst Perspectives (12 Ratings)

Throughout the last three months, 12 analysts have evaluated Advance Auto Parts AAP, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have set 12-month price targets for Advance Auto Parts, revealing an average target of $56.17, a high estimate of $73.00, and a low estimate of $38.00. Highlighting a 12.23% decrease, the current average has fallen from the previous average price target of $64.00.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Advance Auto Parts by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Advance Auto Parts. This information provides 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.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Advance Auto Parts's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Advance Auto Parts analyst ratings.

About Advance Auto Parts

Advance Auto Parts is a leading auto parts retailer in North America with more than 5,000 store and branch locations. About 60% of the firm's sales are geared toward the professional channel, with the remaining 40% going to the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units conducive to various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub and spoke distribution model critical to meeting customer needs.

Advance Auto Parts's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Advance Auto Parts's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -0.11% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Advance Auto Parts's net margin is impressive, surpassing industry averages. With a net margin of 1.68%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Advance Auto Parts's ROE excels beyond industry benchmarks, reaching 1.73%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Advance Auto Parts's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.37%, the company showcases efficient use of assets and strong financial health.

Debt Management: Advance Auto Parts's debt-to-equity ratio is below the industry average. With a ratio of 1.52, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.