Advance Auto Parts AAP underwent analysis by 15 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 15 | 0 | 0 |
| Last 30D | 0 | 0 | 3 | 0 | 0 |
| 1M Ago | 0 | 0 | 4 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 8 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $46.87, along with a high estimate of $67.00 and a low estimate of $38.00. A decline of 16.09% from the prior average price target is evident in the current average.
Decoding Analyst Ratings: A Detailed Look
The perception of Advance Auto Parts by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael Lasser | UBS | Raises | Neutral | $44.00 | $42.00 |
| Scott Ciccarelli | Truist Securities | Lowers | Hold | $39.00 | $41.00 |
| Kate McShane | Goldman Sachs | Lowers | Neutral | $43.00 | $60.00 |
| Steven Shemesh | RBC Capital | Lowers | Sector Perform | $46.00 | $52.00 |
| Scott Ciccarelli | Truist Securities | Lowers | Hold | $41.00 | $46.00 |
| Greg Melich | Evercore ISI Group | Lowers | In-Line | $67.00 | $71.00 |
| Scott Stember | Roth MKM | Announces | Neutral | $40.00 | - |
| Zachary Fadem | Wells Fargo | Lowers | Equal-Weight | $40.00 | $50.00 |
| David Bellinger | Mizuho | Lowers | Neutral | $38.00 | $45.00 |
| David Bellinger | Mizuho | Lowers | Neutral | $45.00 | $64.00 |
| Christopher Horvers | JP Morgan | Lowers | Neutral | $43.00 | $55.00 |
| Michael Lasser | UBS | Lowers | Neutral | $56.00 | $64.00 |
| Scott Ciccarelli | Truist Securities | Lowers | Hold | $46.00 | $63.00 |
| Greg Melich | Evercore ISI Group | Lowers | In-Line | $60.00 | $64.00 |
| Max Rakhlenko | TD Cowen | Lowers | Hold | $55.00 | $65.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Advance Auto Parts. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Advance Auto Parts compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Advance Auto Parts's stock. This comparison reveals trends in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Advance Auto Parts's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Advance Auto Parts analyst ratings.
Delving into Advance Auto Parts's Background
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: A Financial Overview
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Challenges: Advance Auto Parts's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.11%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.68%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Advance Auto Parts's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.73%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Advance Auto Parts's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.37%, the company may encounter challenges in delivering satisfactory returns from its assets.
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.
Analyst Ratings: What Are They?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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