Investors in Advance Auto Parts, Inc. (AAP) need to pay close attention to the stock based on moves in the options market lately. That is because the June 20, 2025 $90.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It cou ...

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Advance Auto Parts (AAP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.Advance Auto Parts is one of 209 companies in the Retai ...

Markets hate uncertainty, which has been the norm in 2025. Tariffs, interest rates, and inflation are driving analysts’ expectations. However, that can become an opportunity for nimble investors with some cash on the sidelines. With earnings season wrapping up, some analysts have discovered they were too bearish on a company. That causes them to upgrade the stock, which usually comes with a higher price target. But some analysts don’t stop with one upgrade. They sometimes upgrade a stock by two rating level ...

An analyst upgrade was the foot on Advance Auto Parts (AAP 4.57%) stock's gas pedal on Tuesday. The company's shares motored nearly 5% higher in price as a result, speeding well past the benchmark S&P 500 index's 0.6% increase.A new neutralThe pundit behind the change was Sam Hudson of U.K.-based Redburn Atlantic. He shifted his recommendation to neutral from his previous sell and lifted his Advance price target. This is now $45 per share, well up from Hudson's previous fair value estimation of $28. Accordi ...

Core Viewpoint - The stock market is currently facing uncertainty and volatility, particularly due to trade tariffs impacting the U.S. economy, yet Advance Auto Parts has managed to adapt and show resilience in this challenging environment [1][2]. Company Performance - Advance Auto Parts stock experienced a significant rally of 41.7% following the announcement of its latest quarterly earnings, despite the earnings figures not justifying such a reaction [3][4]. - All performance metrics for Advance Auto Parts, including revenue, gross profit margins, and operating income, were down over the past 12 months, yet management's performance exceeded bearish expectations during tariff uncertainties [4][6]. Management Strategy - Unlike many competitors in the retail sector, Advance Auto Parts maintained its financial guidance and forecasts, signaling confidence to investors [5][6]. - The company reported a net outflow of $156 million from operations, a significant change from the net inflow of $3 million in the same quarter last year, attributed to a $114 million investment in inventories to secure pre-tariff prices [8][9]. Competitive Advantage - This strategic investment in inventory may provide Advance Auto Parts with a pricing power advantage over competitors, allowing it to offer better prices to consumers as tariff costs rise [10]. - Analysts, including Michael Lasser from UBS Group, have responded positively to the company's management actions, raising the valuation target for Advance Auto Parts stock from $36 to $50 per share [11][12]. Market Sentiment - The short interest in Advance Auto Parts stock has declined by 3.8% over the past month, indicating that bearish sentiment may be priced in, suggesting potential for the stock to perform well in the automotive parts sector [13].

Advance Auto Parts, Inc. AAP posted better-than-expected first-quarter financial results on Thursday.Advance Auto Parts posted quarterly adjusted earnings per share of 22 cents loss, beating the analyst consensus estimate of 82 cents loss. Quarterly sales of $2.583 billion (down 6.8% year over year) outpaced the Street view of $2.499 billion. Comparable store sales for the first quarter 2025 decreased 0.6%."The recently implemented tariffs have created a highly dynamic economic environment. Despite this, th ...

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Advance Auto Parts (AAP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.Advance Auto Parts is one of 207 companies in the Retail-Wholesale group. The Ret ...

Core Viewpoint - Advance Auto Parts Inc. reported a double beat on earnings, resulting in a stock price increase of over 50%, while maintaining its full-year forecast despite tariff uncertainties [1][6]. Financial Performance - The company reported a revenue of $2.58 billion, which was down year-over-year but exceeded analysts' expectations of $2.51 billion [2]. - The earnings per share (EPS) loss was 22 cents, significantly better than the forecasted loss of 77 cents [2]. - Full-year adjusted EPS guidance is set between $1.50 and $2.50, with net sales from continuing operations projected at $8.4 billion to $8.6 billion [6]. Market Dynamics - Comparable store sales decreased by approximately 0.6%, which was better than the anticipated decline of 2% [3]. - The stock's price surge may be influenced by short interest, which has decreased by over 3% in the past month but was still around 17% before the earnings report [7][8]. Tariff Impact - The company has a global supply chain affected by tariffs, particularly from Mexico, Canada, and China, but believes that the impact on consumer behavior will favor auto parts sales as consumers may opt to maintain their current vehicles [4]. Stock Valuation - The stock was trading at over 66 times earnings post-earnings report, up from around 48 times, indicating a potentially overvalued situation [10]. - Analysts have set a 12-month price target of $44.50, suggesting a downside risk of approximately 9.94% from the current price [9].

Advance Auto Parts (AAP 57.84%) reported its fiscal first-quarter 2025 earnings on May 22, with net sales of $2.6 billion representing a 7% decrease compared to the same period last year. Management completed a rapid store footprint optimization during the period, delivered a near-breakeven adjusted operating margin, and remains focused on supply chain cost leverage, procurement savings, and pro channel strength through 2025 and beyond. It also reaffirmed its full-year guidance for 0.5% to 1.5% of comp sale ...

If you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.I last covered Advance Auto Parts (NYSE: AAP ) last August. At that time, I had a neutral outlook saying that while the stock might have appeared cheap, the turnaround wasn't gaining traction . That's been a decentIan leads the investing group Ian's Insider Corner . Features of the ...