Why Advance Auto Parts Is Tuesday's Biggest Earnings Winner

Marco Green
November 14, 2017

Sell-side analyst recommendations point to a short term price target of $100.45 on the company shares.

Receive Advance Auto Parts Inc News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Advance Auto Parts Inc with MarketBeat.com's FREE daily email newsletter. As per Thursday, May 5, the company rating was downgraded by Raymond James. It is used to find out how fast a business is expanding. Alliancebernstein L.P. cut its position by shedding 3,756 shares a decrease of 2.9% from 06/30/2017 to 09/30/2017. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided by overall revenue.

September 12 investment analysts at Jefferies Group LLC maintained a company rating of "Buy" with a current price target of $130.00. Fortunately, there is way to use the speed and magnitude of these price changes to predict future performance, thanks to what are known as momentum indicators. Relative Strength Index (RSI-14) for Advance Auto Parts Inc. (AAP) is at 39.81. It's commonly accepted that a Book to Market ratio greater than one indicates that the shares might be undervalued. The biggest holder now is Nicholas F. Taubman who owns 2,324,574 shares (3.15% of those outstanding), whilst Darren R. Jackson holds 140,699 (0.19% of shares outstanding) and Mr. Thomas R. Greco holds 114,630 (0.16% of shares outstanding). Analysts have a mean recommendation of 2.70 on this stock (A rating of less than 2 means buy, "hold" within the 3 range, "sell" within the 4 range, and "strong sell" within the 5 range). Float is the proportion of issued also outstanding shares that can be liberally traded, nothing like locked-up insider holdings or restricted employee shares. Consensus earnings estimates are far from flawless, but they are watched by many investors and play an important role in measuring the appropriate valuation for a stock. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The company reported $1.58 earnings per share (EPS) for the quarter, missing the Zacks' consensus estimate of $1.65 by ($0.07). (AAP) on Tuesday reported third-quarter earnings of $96 million. Royal Bank Of Canada cut their price objective on Advance Auto Parts from $125.00 to $102.00 and set a "sector perform" rating for the company in a report on Wednesday, August 16th. It is the "top line" or "gross income" figure from which costs are subtracted to determine net income.

Revenue, however, missed estimates of US$2.21bn at US$2.18bn, compared to US$2.24bn past year. Comparatively, AAP posted earnings of $1.29 per share in the same quarter, a year earlier.

Comparable sales fell 3.4% during the quarter vs. -2.0% expected. Current price places the company's stock -32.82% away from its 200-day simple moving average, -9.23%, away from the 50-day average and also -1.21% away from 20-day average. The stock is performing -51.35% year to date. The stock has declined 43 percent in the last 12 months.

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