Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued ...

The Zacks Automotive - Retail and Wholesale - Partsindustry is set to benefit from the rising average age of the vehicles that require frequent servicing and replacement of auto parts.Players like AutoZone, Inc. (AZO) , Genuine Parts Company (GPC) and Advance Auto Parts, Inc. (AAP) are entering into new markets through strategic acquisitions and expansion of mega hubs to grow their market share and are investing in digital platforms to reach a broader audience, driving higher profitability.Industry Overview ...

Core Viewpoint - Advance Auto Parts (AAP) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook driven by rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For Advance Auto Parts, the increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to higher stock prices as investors respond positively [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7][9]. - The upgrade of Advance Auto Parts to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Details - Advance Auto Parts is projected to earn $1.58 per share for the fiscal year ending December 2025, reflecting a substantial year-over-year increase of 644.8% [8]. - Over the past three months, the Zacks Consensus Estimate for the company has risen by 1.8%, indicating a positive trend in earnings expectations [8].

Core Viewpoint - Advance Auto Parts is positioning itself for sustainable growth by simplifying its structure and increasing store count, targeting 30 new stores in 2025 and an additional 100 by the end of 2027, representing nearly a 3% increase in store presence [1] Group 1: Financial Performance and Projections - The stock is currently trading at $34.86, down 4.80% with a 52-week range of $33.08 to $79.85, and a dividend yield of 2.87% [2] - Analysts predict a return to growth in the next fiscal year with adjusted earnings expected to grow at a double-digit CAGR through the middle of the next decade [3] - The company has faced challenges with growth and operational quality, leading to an 85% cut in dividends, which were previously increased aggressively starting in 2020 [2] Group 2: Market Sentiment and Insider Activity - Insider buying activity has increased, with notable purchases from the CEO and a director, indicating confidence in the company's future [4] - Institutional investors have consistently bought the stock since Q4 2023, owning nearly 90% of the stock, providing a solid support base [5] - Analysts have a Hold rating on the stock, with a price target reset that suggests a potential 20% upside [5] Group 3: Short Interest and Market Dynamics - Short interest remains high, down from peaks in 2021 and 2022, but could lead to a short-covering rally if growth resumes [6] - The stock is trading at a 15-year low, indicating deep value, with signs of a potential market reversal [7] - A rebound could see the stock reclaim highs set in 2024, representing a potential 100% upside, although resistance is noted near $45.75 [8]

It has been about a month since the last earnings report for Advance Auto Parts (AAP) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Advance Auto Parts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Si ...

Appoints Tony Iskander as Interim Chief Financial Officer and TreasurerPromotes Naomi Cramer to Chief Retail Operations and Talent Officer PHOENIX, March 17, 2025 (GLOBE NEWSWIRE) -- Leslie's, Inc. (("Leslie's", "we", "our", "its", or "Company", NASDAQ:LESL), the largest and most trusted direct-to-customer brand in the U.S. pool and spa care industry serving residential customers and pool professionals nationwide, today announced a series of senior leadership changes as part of the Company's ongoing work t ...

At Investors' Edge, we specialise in identifying undervalued companies with strong fundamentals and great growth potential. Our rigorous value investing approach combines thorough fundamental analysis with a focus on companies trading significantly below their intrinsic value.We prioritise businesses with robust cash flows, strong balance sheets, and competent management teams while maintaining a long-term investment horizon that allows our thesis to materialise. Through disciplined research and patience, w ...

JPMorgan analyst Christopher Horvers reiterated the Neutral rating on Advance Auto Parts Inc. AAP, with a price forecast of $41.Yesterday, the company reported fourth-quarter adjusted earnings per share of $1.18 loss, which is in line with the analyst consensus estimate. Quarterly sales of $2 billion (down 0.9% year over year) outpaced the street view of $1.93 billion. Comparable store sales for the fourth quarter decreased 1.0%.The analyst maintains a Neutral rating, noting Advance Auto Parts is losing mar ...

Core Viewpoint - Advance Auto Parts (AAP) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Advance Auto Parts is projected at $1.57 per share for the fiscal year ending December 2025, reflecting a substantial year-over-year increase of 641.4% [9]. - Over the past three months, the Zacks Consensus Estimate for Advance Auto Parts has risen by 11.8%, indicating a positive shift in analysts' expectations [9]. Zacks Rating System - The Zacks rating system is based solely on a company's earnings picture, tracking changes in earnings estimates from sell-side analysts [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [8]. Market Implications - The upgrade to Zacks Rank 2 places Advance Auto Parts in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [11]. - Rising earnings estimates and the corresponding rating upgrade imply an improvement in the underlying business of Advance Auto Parts, which could lead to an increase in stock price as investors respond positively [6].

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, is highlighted as a smart strategy, especially for unprofitable or early-stage growth companies [1][3] - Companies with low price-to-sales ratios, such as Advance Auto Parts, PagSeguro Digital, Gibraltar Industries, The Greenbrier Companies, and ChampionX Corporation, are identified as having potential for higher returns [2] Price-to-Sales Ratio - The price-to-sales ratio indicates how much investors pay for each dollar of revenue generated by a company, making it a useful metric for assessing value when earnings are minimal or non-existent [3][4] - A price-to-sales ratio below 1 suggests that investors are paying less than a dollar for a dollar's worth of revenue, indicating a good bargain [4] Comparison with Other Metrics - The price-to-sales ratio is often preferred over the price-to-earnings ratio due to the difficulty of manipulating sales figures compared to earnings [5] - However, it is advised to analyze other ratios such as Price/Earnings, Price/Book, and Debt/Equity in conjunction with the price-to-sales ratio for a comprehensive investment decision [6] Screening Parameters - Screening parameters for identifying suitable investments include a price-to-sales ratio less than the median for the industry, a price-to-earnings ratio below the industry median, and a price-to-book ratio that is also lower than the industry median [7][8] - A company with a debt-to-equity ratio below the industry median is preferred, as lower debt levels contribute to a stable price-to-sales ratio [8] Company Profiles - **Advance Auto Parts (AAP)**: Engaged in the U.S. automotive aftermarket, focusing on operational efficiency and supply chain optimization. AAP has a Zacks Rank of 2 and a Value Score of A [10][11] - **PagSeguro Digital (PAGS)**: Provides financial technology solutions for micro-merchants and small businesses, with a disciplined capital allocation strategy. PAGS has a Value Score of A and a Zacks Rank of 2 [12][13] - **Gibraltar Industries (ROCK)**: Manufactures products for the industrial and buildings market, benefiting from operational improvements and a focus on high-demand agricultural facilities. ROCK has a Value Score of B and a Zacks Rank of 2 [14][15] - **The Greenbrier Companies, Inc. (GBX)**: A supplier of equipment and services to global freight transportation markets, with strong revenue visibility and a Zacks Rank of 1 [16][17] - **ChampionX Corporation (CHX)**: Specializes in chemistry solutions and advanced equipment for the energy sector, focusing on digitalization and sustainability. CHX has a Value Score of B and a Zacks Rank of 2 [17][18]