The Supreme Court on Friday struck down a crucial batch of President Trump’s tariffs – but there are still plenty of high levies on certain industries that will stay in place.Tariffs imposed under the International Emergency Economic Powers Act (IEEPA) to crack down on trade imbalances and fentanyl smuggling surpassed Trump’s presidential authority, the Supreme Court ruled in a 6-3 decision.The ruling does not, however, discard tariffs enacted by the Trump administration using Section 232 of the Trade Expan ...

Shares of Advance Auto Parts (NYSE: AAP) shifted into reverse after its earnings report on Feb. 13. The stock fell 1.5% going into the weekend. While the auto parts company has seen its stock price leap over 40% so far this year, it's still down a long way from its all-time high of $241.91, set in 2021. The automotive parts supplier's comeback appears to be gaining momentum. Advance operates 4,305 stores, primarily within the United States, with additional locations in Canada, Puerto Rico, and the U.S. V ...

Core Viewpoint - Advance Auto Parts (AAP) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report, supported by a strong history of performance in this regard [1]. Earnings Performance - The company has consistently surpassed earnings estimates, with an average surprise of 20.64% over the last two quarters [2]. - In the last reported quarter, AAP achieved earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, resulting in a surprise of 24.32% [3]. - For the previous quarter, AAP was expected to report earnings of $0.59 per share but delivered $0.69 per share, yielding a surprise of 16.95% [3]. Earnings Estimates and Predictions - Recent estimates for AAP have been trending upward, indicating positive sentiment among analysts [6]. - The Zacks Earnings ESP (Expected Surprise Prediction) for AAP is currently positive at +1.22%, suggesting bullish expectations for near-term earnings [8]. - AAP's Zacks Rank is 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high likelihood of another earnings beat [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The next earnings report for AAP is anticipated to be released on February 13, 2026 [8].

Core Insights - Advance Auto Parts (NYSE: AAP) is set to release its fourth-quarter earnings soon, with the stock experiencing a significant rise of 5.4% today and an impressive increase of 51.9% in 2026 alone [1][2]. Company Performance - The company is identified as a deep value stock for 2026, with operational metrics lagging behind competitors like O'Reilly Automotive and AutoZone. Improvement in these metrics could lead to a substantial increase in stock price [2]. - Advance Auto Parts has a poor track record in the auto parts retailing business, which is critical for its success [4]. Management Strategy - CEO Shane O'Kelly is implementing a comprehensive restructuring plan, which includes closing over 700 locations and opening new stores in leading market areas. This strategy aims to enhance the availability of stock-keeping units (SKUs) and improve same-day delivery [5]. Market Conditions - Investors are hoping for improved profit margins and positive guidance for 2026 in the upcoming earnings report. However, the overall market for auto parts is weak, as indicated by companies like 3M and RPM International reporting weak sales [6].

Core Viewpoint - Advance Auto Parts is experiencing a positive market response, with its stock price increasing by 5.2% today and over 28% year-to-date, indicating a growing interest in its value proposition [1]. Group 1: Company Performance - The investment case for Advance Auto Parts hinges on the expectation that management can enhance operational performance to align more closely with competitors like AutoZone and O'Reilly Automotive [2]. - The company's EBITDA margin is significantly lower than its peers, contributing to its low price-to-sales ratio [2]. Group 2: Market Outlook - The overall market outlook for the auto aftermarket is weak, as indicated by 3M's forecast for 2026; however, the situation is viewed as a self-help opportunity for Advance Auto Parts [3]. - CEO Shane O'Kelly's strategic restructuring efforts are seen as a potential catalyst for improving profit margins and unlocking considerable upside for the stock [3]. Group 3: Strategic Initiatives - O'Kelly's restructuring plan includes the closure of over 700 locations and the opening of new stores in strategic areas where Advance Auto has a competitive advantage [4]. - The introduction of larger market hub stores aims to address inventory management challenges, enabling same-day availability of parts for customers [4]. - A new loyalty program targeting DIY customers has been launched, aimed at enhancing customer retention and loyalty [5]. Group 4: Investment Considerations - Despite the positive developments, Advance Auto Parts was not included in a recent list of the top 10 stocks recommended for investment, suggesting a cautious approach for potential investors [6].

Group 1 - American Axle & Manufacturing (AXL) shares increased by 9.8% to close at $7.05, with notable trading volume compared to typical sessions, and a 4.7% gain over the past four weeks [1][2] - The company's driveline segment is performing strongly, supporting margins, and recent contract wins in both electric and internal combustion engine markets position American Axle to defend and potentially expand consolidated margins [2] - The upcoming quarterly report is expected to show a loss of $0.12 per share, a year-over-year change of -100%, while revenues are projected at $1.41 billion, reflecting a 2.1% increase from the previous year [3] Group 2 - The consensus EPS estimate for American Axle has remained unchanged over the last 30 days, indicating that stock price movements may not continue without trends in earnings estimate revisions [4] - American Axle holds a Zacks Rank of 3 (Hold), indicating a neutral outlook within the Zacks Automotive - Original Equipment industry [5] - Another company in the same industry, Hyliion Holdings Corp. (HYLN), also holds a Zacks Rank of 3 (Hold), with a consensus EPS estimate of -$0.08 remaining unchanged [6]

Core Viewpoint - O'Reilly Automotive is a leading player in the aftermarket auto parts industry, demonstrating strong historical performance despite not being at the forefront of technological innovation or rapid growth [1]. Financial Performance - In 2025, O'Reilly shares increased by 15.4%, slightly below the S&P 500's 16.4% return [2]. - The company has achieved a compound annual growth rate of net income of 11.9% from 2014 to 2024, indicating consistent profitability [8]. - Earnings per share are projected to grow by 8.8% in 2025 and 11.4% in 2026, reflecting ongoing financial strength [11]. Market Position and Strategy - O'Reilly is set to report its 33rd consecutive year of positive same-store sales growth in 2025, showcasing its resilience in various economic conditions [6]. - The company plans to open 200 to 210 net new locations by the end of 2025, with a target of 230 new locations in 2026, capitalizing on the fragmented nature of the industry [7]. - O'Reilly does not pay dividends but has been actively repurchasing shares, spending $1.6 billion on buybacks in the first nine months of 2025, and reducing the diluted outstanding share count by 44% over the last decade [9][10]. Valuation and Market Sentiment - Since late 2020, O'Reilly shares have appreciated by 201%, significantly outperforming the S&P 500, although this has been aided by a 56% increase in the price-to-earnings (P/E) ratio, which currently stands at 31.7 [12]. - While earnings growth is expected to continue, market sentiment can significantly influence investor returns, as valuation changes may overshadow profit growth [13].

Core Insights - AutoZone Inc. reported first-quarter earnings that fell short of analyst expectations, leading to a 6% decline in share price intra-day [1] Financial Performance - The company posted earnings of $31.04 per share for the quarter ended November 22, 2025, which was below the consensus estimate of $32.87 [2] - Revenue increased by 8.2% year-over-year to $4.63 billion, slightly missing expectations of $4.64 billion [2] - Same-store sales rose by 5.5%, with U.S. same-store sales up by 4.8% [2] Profitability and Expenses - Gross margin decreased by 203 basis points to 51.0%, primarily due to a 212-basis-point non-cash LIFO adjustment [3] - Operating expenses accounted for 34.0% of sales, an increase from 33.3% a year earlier, as the company continued to invest in strategic expansion [3] Expansion Activities - AutoZone opened 53 new stores during the quarter, including 39 in the U.S., 12 in Mexico, and 2 in Brazil, bringing the total number of locations to 7,710 [3]

Core Viewpoint - O'Reilly Automotive's stock split 15-for-1 this summer does not alter the total value of investors' positions, but the stock has shown varying performance over different time frames [1]. Summary by Time Frame 1-Year Investors - Investors who purchased O'Reilly shares a year ago have seen a gain of 19.2%, with the stock rising nearly 30% by late September after the June split, although it faced a decline in October [3]. - Compared to the S&P 500's increase of 12.9% over the same period, O'Reilly stockholders outperformed the market by 6.3 percentage points [3]. 3-Year Investors - For those who invested three years ago, O'Reilly shares have appreciated by 75.5%, surpassing the S&P 500's 68.8% increase by 6.7 percentage points [5]. - The stock has had periods of both underperformance and outperformance relative to the S&P 500 over the past three years [5]. 5-Year and Longer Investors - Over the past five years, O'Reilly stock has significantly outperformed the S&P 500, with returns of 229% compared to the S&P's 86% [7]. - A 10-year investment in O'Reilly has yielded a return of 473%, exceeding the S&P 500's 229% return by more than 244 percentage points [7].

Core Viewpoint - The market anticipates AutoZone (AZO) to report a year-over-year decline in earnings despite higher revenues in its upcoming earnings report for the quarter ended November 2025 [1] Earnings Expectations - AutoZone is expected to post quarterly earnings of $32.35 per share, reflecting a year-over-year change of -0.5% [3] - Revenues are projected to reach $4.64 billion, which is an increase of 8.3% from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 0.59% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for AutoZone is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.26% [12] Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of a potential earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - AutoZone currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, AutoZone was expected to post earnings of $50.52 per share but delivered $48.71, resulting in a surprise of -3.58% [13] - The company has not beaten consensus EPS estimates in any of the last four quarters [14] Conclusion - While AutoZone is viewed as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [17]