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.

Investment analysts gave a few price targets for AAP. The highest price target was 215, implying potential capital gains of 95.08 percent. The most pessimistic price target was 90, implying potential capital losses of -18.34 percent. It is crucial to not blindly accept any price targets or stock ratings, because many analysts have it in their best interest to give positive coverage of certain stocks.

Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change of -8.99 percent. This can be compared with the average change in earnings estimates over the past 3 months, which is -18.34 percent. Meanwhile, fiscal year estimates have been revised downwards by -5.7 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of -15.25 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the 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, while 11 analysts made negative revisions to their fiscal year's estimates.

The growth rate of AAP's earnings is estimated by analysts to be 15.01 percent. Another measure frequently examined by investors is the PEG ratio. Investors like to see smaller values for the PEG ratio, because that is often interpreted as the company being fairly priced relative to its growth rate. 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. AAP has a PEG ratio of 1.33.

AAP has traded between a high of 177.83 and a low of 99.13 over the past year. Currently the stock is 11.18 percent higher than its low, and below the high by 38.03 percent. 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 stock has a market capitalization of $8.15 billion. AAP is estimated to release their earnings results for the quarter on 0000-00-00, days from today.