Advance Auto Parts (NYSE:AAP) is one of the best Auto Parts stocks according to Hedge Funds. On January 21, Aaron Reed from Northcoast Research indicated his optimism around Advance Auto Parts (NYSE:AAP). He upgraded his rating on the stock from Neutral to Buy, and estimated a price target of $55, which yields an upside of over 14%. Reed’s rating is based on his expectations of strong demand trends during 2026, following the ongoing performance enhancements. Copyright: urfingus / 123RF Stock Photo On t ...

Investment management company Curreen Capital released its fourth-quarter 2025 Investor letter. A copy of the letter can be downloaded here. Curreen Capital Partners reported robust results in 2025, retuning 10.5% in Q4 and 30.97% for the full year. The firm focuses on investing in "ugly ducklings", i.e., companies that are good, well-managed, and trading at an attractive price. The firm was consistent with its investment plan, and the "ugly duckling" holdings performed well and exhibited solid results. Pl ...

Advance Auto Parts, Inc. (NYSE:AAP) is included among the 14 Best Mid-Cap Dividend Stocks to Buy Now. Morgan Stanley Updates View on Advance Auto Parts (AAP) in 2026 Retail Outlook On January 15, Morgan Stanley analyst Simeon Gutman cut his price target on Advance Auto Parts, Inc. (NYSE:AAP) to $45 from $55, while keeping an Equal Weight rating on the stock. The update came as part of the firm’s 2026 outlook for hardline, broadline, and food retail names. Advance Auto has been in the middle of a major r ...

Core Viewpoint - Advance Auto Parts (NYSE: AAP) has experienced significant stock volatility in 2026, with sharp declines followed by notable recoveries due to analyst actions [1]. Group 1: Analyst Upgrades and Price Targets - Northcoast Research analyst Aaron Reed upgraded Advance Auto Parts from "neutral" to "buy," setting a price target of $55, indicating over 20% upside potential [2]. - The upgrade is based on the belief that the company's restructuring strategy will enhance its stock prospects, appealing to deep value investors [2]. Group 2: Company Performance and Strategy - The company's turnaround strategy aims to match the operational performance of competitors like AutoZone and O'Reilly Automotive, but achieving this has been challenging for over a decade [3]. - CEO Shane O'Kelly's plans include closing over 700 locations while opening new ones in strong geographic areas, along with creating larger "market hub" stores to improve same-day delivery for professional users [4]. Group 3: Market Conditions and Risks - Despite potential improvements, there are concerns about the company's underperforming track record and recent comments from 3M regarding a weak auto aftermarket, which may impact Advance Auto Parts' upcoming earnings report [5]. - The stock's volatility is influenced by recent analyst actions, and while the major upgrade suggests significant upside, risks remain associated with the company's restructuring efforts [6].

Upgrades Summary - Susquehanna upgraded Arm (ARM) to Positive from Neutral with an unchanged price target of $150, citing recent downgrades from competitors and significant underperformance as an "excellent setup" for investors [2] - BNP Paribas upgraded Seagate (STX) to Outperform from Neutral with a price target of $380, expressing greater conviction that "robust" data center storage demand could lead to a longer upcycle than initially expected [2] - Raymond James upgraded Ulta Beauty (ULTA) to Strong Buy from Outperform with a price target increase to $790 from $605, anticipating "outsized growth" in fiscal 2026 following heavy investments [2] - Northcoast upgraded Advance Auto Parts (AAP) to Buy from Neutral with a price target of $55, highlighting "healthy" demand trends and performance improvements into 2026, along with a strategic decision to sell Worldpac and focus on core retail [2] - BofA upgraded Oklo (OKLO) to Buy from Neutral with a price target raised to $127 from $111, following a binding agreement with Meta (META) to develop a phased 1.2 GW advanced nuclear campus [2]

Core Viewpoint - Shares of Advance Auto Parts are experiencing a decline due to a broader market sell-off linked to renewed trade war fears and a lowered price target from a Wall Street analyst [1][4][6] Group 1: Market Context - The S&P 500 index fell by 1.8% amid concerns over President Trump's trade policies, including proposed tariffs on eight European countries, which could provoke retaliatory measures from Europe [3] - Advance Auto Parts, like other auto parts stocks, is exposed to tariff risks, primarily sourcing products from China, Canada, and Mexico [4] Group 2: Company Performance - Despite being a laggard in its sector, Advance Auto Parts reported a comparable sales growth of 3% in the third quarter and raised its full-year bottom-line guidance [5] - The aftermarket auto parts sector typically performs well during economic downturns, which may benefit Advance Auto Parts if a recession occurs [5] Group 3: Analyst Insights - TD Cowen analyst Max Rakhlenko reduced the price target for Advance Auto Parts from $62 to $46, reflecting recent stock pullbacks and adjustments in the hardlines sector [4] - Investors are encouraged to focus on the company's turnaround efforts, with an update expected in early February when fourth-quarter results are released [7]

Core Viewpoint - The main reason to consider buying Advance Auto Parts stock is the potential for the company to improve its performance to match competitors like AutoZone and O'Reilly Automotive, which could lead to strong value for the stock. Although past attempts have not yielded lasting results, the latest turnaround plan shows promise with early signs of improvement [1]. Group 1: Company Strategy and Restructuring - Under the leadership of CEO Shane O'Kelly, who was appointed in September 2023, Advance Auto Parts has closed over 700 locations to refocus operations in areas where it holds a "No. 1 or No. 2 position based on store density" [3]. - The company plans to open 100 new stores by 2027, in addition to the 30 already opened in 2025 [3]. - The new strategy includes opening "market hub" stores that carry 3 to 4 times the stock-keeping units (SKUs) compared to typical Advance stores, and enhancing same-day delivery of auto parts, which is particularly important in the professional market [4]. Group 2: Financial Performance and Valuation - Advance Auto Parts stock is considered exceptionally cheap on a price-to-sales basis, but this is due to its inability to generate EBITDA margins in line with its peers [2]. - There has been a slight uptick in profit margin, indicating that the current restructuring efforts may be effective [5]. - The stock is viewed as suitable for deep-value investors who are willing to take on some risk for significant upside potential [5].

Core Insights - Advance Auto Parts has launched a new oil and fluids brand named 'ARGOS' aimed at addressing customer demand for quality and affordability [1] Company Overview - The introduction of the ARGOS brand reflects Advance Auto Parts' commitment to enhancing its product offerings in the automotive aftermarket [1] - The new brand is designed to provide customers with high-quality oil and fluid products at competitive prices, catering to a growing market segment [1] Market Demand - The launch of ARGOS is a strategic response to increasing consumer demand for reliable and cost-effective automotive maintenance products [1] - The initiative is expected to strengthen Advance Auto Parts' position in the automotive parts and accessories market [1]

Group 1: Core Insights - The article provides a market analysis focusing on AutoZone Inc and O'Reilly Automotive Inc, highlighting their performance and market positioning [1] Group 2: Company Performance - AutoZone Inc has shown strong revenue growth, with a reported increase of 10% year-over-year, reaching $12.5 billion in sales [1] - O'Reilly Automotive Inc also reported robust financial results, with a revenue increase of 8% year-over-year, totaling $11.2 billion [1] Group 3: Market Trends - The automotive aftermarket industry is experiencing a positive trend, driven by increased vehicle maintenance and repair needs, which is benefiting both AutoZone and O'Reilly [1] - The demand for auto parts is expected to continue growing, supported by an aging vehicle fleet in the U.S. [1]

Group 1: Market Overview - The consumer discretionary sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - An asset is considered oversold when the Relative Strength Index (RSI) is below 30, which helps traders gauge short-term performance [1] Group 2: Company Highlights - Best Buy Co Inc (NYSE:BBY) reported better-than-expected third-quarter results with a 2.7% growth in comparable sales, despite a stock decline of around 12% over the past month and an RSI of 24.4 [6][3] - Harley-Davidson announced new executive appointments aimed at enhancing engagement with riders and dealers, with a stock decline of approximately 14% over the past month and an RSI of 27.9 [6][4] - Advance Auto Parts Inc (NYSE:AAP) saw a significant stock drop of about 25% in the last month, with an RSI of 29.2, following a price target reduction by an analyst [6][5]