In the latest quarter, 11 analysts provided ratings for Advance Auto Parts AAP, showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 10 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 9 | 1 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $46.09, a high estimate of $50.00, and a low estimate of $35.00. Witnessing a positive shift, the current average has risen by 17.91% from the previous average price target of $39.09.
Deciphering Analyst Ratings: An In-Depth Analysis
The standing of Advance Auto Parts among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Greg Melich | Evercore ISI Group | Raises | In-Line | $50.00 | $45.00 |
| Sam Hudson | Redburn Atlantic | Raises | Neutral | $45.00 | $28.00 |
| Scott Stember | Roth Capital | Raises | Neutral | $50.00 | $40.00 |
| Michael Lasser | UBS | Raises | Neutral | $50.00 | $36.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $47.00 | $45.00 |
| Elizabeth Suzuki | B of A Securities | Raises | Underperform | $39.00 | $33.00 |
| Kate McShane | Goldman Sachs | Raises | Neutral | $48.00 | $43.00 |
| Tristan Thomas-Martin | BMO Capital | Raises | Market Perform | $50.00 | $40.00 |
| Simeon Gutman | Morgan Stanley | Raises | Equal-Weight | $48.00 | $45.00 |
| Greg Melich | Evercore ISI Group | Raises | In-Line | $45.00 | $35.00 |
| Zachary Fadem | Wells Fargo | Lowers | Equal-Weight | $35.00 | $40.00 |
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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Advance Auto Parts's market position. Stay informed and make well-informed 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 half 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.
A Deep Dive into Advance Auto Parts's Financials
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Challenges: Advance Auto Parts's revenue growth over 3M faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -6.82%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Advance Auto Parts's net margin is impressive, surpassing industry averages. With a net margin of 0.93%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.1%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Advance Auto Parts's ROA excels beyond industry benchmarks, reaching 0.22%. This signifies efficient management of assets and strong financial health.
Debt Management: Advance Auto Parts's debt-to-equity ratio is below the industry average at 1.67, reflecting a lower dependency on debt financing and a more conservative financial approach.
What Are Analyst Ratings?
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.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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