8 Analysts Have This To Say About Advance Auto Parts

Ratings for Advance Auto Parts AAP were provided by 8 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $41.25, a high estimate of $55.00, and a low estimate of $34.00. A decline of 7.55% from the prior average price target is evident in the current average.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Advance Auto Parts. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Advance Auto Parts. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Advance Auto Parts compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Advance Auto Parts's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Advance Auto Parts's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with 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 4,000 store and branch locations. About 50% of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for 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.

Decline in Revenue: Over the 3M period, Advance Auto Parts faced challenges, resulting in a decline of approximately -0.91% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Advance Auto Parts's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -20.78%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Advance Auto Parts's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -17.4%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Advance Auto Parts's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -3.57%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.7.

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.

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.

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