Advance Auto Parts(AAP) Zacks Investment Research·2024-02-22 00:16Core Viewpoint - Advance Auto Parts (AAP) is experiencing a decline in stock price and is expected to report significantly lower earnings in the upcoming earnings release, indicating potential challenges ahead for the company [1][2]. Company Performance - The stock closed at 0.24 per share, representing a year-over-year decline of 91.67% [1]. - Revenue is estimated to be $2.47 billion, indicating a 0.2% decrease compared to the same quarter of the previous year [1]. Analyst Estimates - Recent changes to analyst estimates for Advance Auto Parts indicate a decrease of 2.98% in the Zacks Consensus EPS estimate over the last 30 days [2]. - The company currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook from analysts [2]. Valuation Metrics - Advance Auto Parts has a Forward P/E ratio of 16.46, which is lower than the industry average of 24.56, indicating it is trading at a discount [3]. - The company has a PEG ratio of 1.18, compared to the industry average PEG ratio of 1.49, suggesting a more favorable valuation relative to expected earnings growth [3]. Industry Context - The Automotive - Retail and Wholesale - Parts industry is ranked 185 in the Zacks Industry Rank, placing it within the bottom 27% of over 250 industries [3]. - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive landscape within the sector [4].