Analyst Ratings for Advance Auto Parts Inc. (AAP)

Updated: 2017-07-28

Advance Auto Parts Inc. (NYSE:AAP) was awarded an average rating of Overweight from investment analysts following the stock. About 30 days ago, AAP was issued an average rating of Overweight.

27 analysts issued ratings on the stock, where 13 gave AAP a buy rating, 1 issued an overweight rating, 10 gave a hold rating, 1 gave an underweight rating, and 2 gave a sell rating. Today, there are 1 more analysts optimistic about the company future as compared with 90 days ago. Over the same time period, there has been an increase of 0 in the number of analysts with a negative outlook on the stock.

Several price targets were given for AAP by the analysts covering the stock. The most optimistic analyst gave a price target of 215, which equates to a potential upside of 95.08 percent. The most pessimistic analyst gave a price target of 90, implying potential capital losses of -18.34 percent. It is advisable to not rely only on price targets or ratings, as these can be biased for some stocks.

Analysts have revised their earnings estimates downwards for this quarter, by about -8.99 percent on average, compared to last month. That number becomes -18.34 percent if we expand the time horizon to include the past 3 months instead of just one. On the other hand, earnings estimates for the fiscal year have been revised downwards by -5.7 percent, as compared to a month ago. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes -15.25 percent.

Another thing investors often look at is the level of agreement among analysts' revisions. Over the past month, 0 analysts increased their quarterly estimates, while 11 analysts revised their estimates downwards. During this time, 0 analysts made positive revisions in their estimates for this fiscal year's earnings, compared to 11 analysts that revised their FY estimates downwards.

The growth rate of AAP's earnings is estimated by analysts to be 15.01 percent. It's possible to gain additional insight about growth valuation of a company by looking at the PEG ratio. A lower PEG ratio is favorable, as that can indicate whether the high price level of a stock is warranted by high growth. PEG ratios below 1 are often considered desirable, though it could be better to see where the ratio stands relative to peers in the industry. The PEG ratio of AAP is 1.33.

AAP has traded between a high of 177.83 and a low of 99.13 over the past year. The current market price is above the trailing year's low by 11.18 percent, and 38.03 percent below the high. AAP has a P/E ratio of 20. Investors typically compare the P/E ratio to a company's peers in the industry. The AAP value stock report compares AAP to some of its peers using value stock charts. The market cap of AAP is $8.15 billion. AAP will post this quarters earnings in days, on 0000-00-00.