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10600.0
|
2023-10-10 00:00:00 UTC
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TD Cowen Initiates Coverage of Advance Auto Parts (AAP) with Market Perform Recommendation
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AAP
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https://www.nasdaq.com/articles/td-cowen-initiates-coverage-of-advance-auto-parts-aap-with-market-perform-recommendation
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nan
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nan
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Fintel reports that on October 10, 2023, TD Cowen initiated coverage of Advance Auto Parts (NYSE:AAP) with a Market Perform recommendation.
Analyst Price Forecast Suggests 42.41% Upside
As of October 4, 2023, the average one-year price target for Advance Auto Parts is 73.14. The forecasts range from a low of 50.50 to a high of $102.90. The average price target represents an increase of 42.41% from its latest reported closing price of 51.36.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
What is the Fund Sentiment?
There are 1068 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 165 owner(s) or 13.38% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 43.23%. Total shares owned by institutions decreased in the last three months by 6.33% to 59,498K shares.
The put/call ratio of AAP is 0.56, indicating a bullish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 3,078.62% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,843K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 1,833K shares, representing an increase of 0.52%. The firm decreased its portfolio allocation in AAP by 46.38% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.86% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
D. E. Shaw holds 1,662K shares representing 2.79% ownership of the company. In it's prior filing, the firm reported owning 34K shares, representing an increase of 97.97%. The firm increased its portfolio allocation in AAP by 2,610.73% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on October 10, 2023, TD Cowen initiated coverage of Advance Auto Parts (NYSE:AAP) with a Market Perform recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 43.23%.
|
Fintel reports that on October 10, 2023, TD Cowen initiated coverage of Advance Auto Parts (NYSE:AAP) with a Market Perform recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 43.23%.
|
Fintel reports that on October 10, 2023, TD Cowen initiated coverage of Advance Auto Parts (NYSE:AAP) with a Market Perform recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 43.23%.
|
Fintel reports that on October 10, 2023, TD Cowen initiated coverage of Advance Auto Parts (NYSE:AAP) with a Market Perform recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 43.23%.
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10601.0
|
2023-10-05 00:00:00 UTC
|
Truist Securities Maintains Advance Auto Parts (AAP) Hold Recommendation
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AAP
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https://www.nasdaq.com/articles/truist-securities-maintains-advance-auto-parts-aap-hold-recommendation-1
|
nan
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nan
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Fintel reports that on October 5, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation.
Analyst Price Forecast Suggests 39.63% Upside
As of October 4, 2023, the average one-year price target for Advance Auto Parts is 73.14. The forecasts range from a low of 50.50 to a high of $102.90. The average price target represents an increase of 39.63% from its latest reported closing price of 52.38.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
What is the Fund Sentiment?
There are 1069 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 165 owner(s) or 13.37% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 42.86%. Total shares owned by institutions decreased in the last three months by 6.13% to 59,624K shares.
The put/call ratio of AAP is 0.59, indicating a bullish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 3,078.62% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,843K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 1,833K shares, representing an increase of 0.52%. The firm decreased its portfolio allocation in AAP by 46.38% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.86% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
D. E. Shaw holds 1,662K shares representing 2.79% ownership of the company. In it's prior filing, the firm reported owning 34K shares, representing an increase of 97.97%. The firm increased its portfolio allocation in AAP by 3,342.78% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on October 5, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 42.86%.
|
Fintel reports that on October 5, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 42.86%.
|
Fintel reports that on October 5, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 42.86%.
|
Fintel reports that on October 5, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 42.86%.
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10602.0
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2023-10-05 00:00:00 UTC
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November 24th Options Now Available For Advance Auto Parts (AAP)
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AAP
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https://www.nasdaq.com/articles/november-24th-options-now-available-for-advance-auto-parts-aap
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nan
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nan
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the November 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 24th contracts and identified one put and one call contract of particular interest.
The put contract at the $51.00 strike price has a current bid of $3.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $51.00, but will also collect the premium, putting the cost basis of the shares at $47.20 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $51.67/share today.
Because the $51.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 7.45% return on the cash commitment, or 54.35% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $51.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $52.00 strike price has a current bid of $4.10. If an investor was to purchase shares of AAP stock at the current price level of $51.67/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $52.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.57% if the stock gets called away at the November 24th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $52.00 strike highlighted in red:
Considering the fact that the $52.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 7.93% boost of extra return to the investor, or 57.88% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $51.67) to be 56%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
The Online Investor
TU shares outstanding history
Top Ten Hedge Funds Holding MDB
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $52.00 strike highlighted in red: Considering the fact that the $52.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the November 24th expiration.
|
Below is a chart showing AAP's trailing twelve month trading history, with the $52.00 strike highlighted in red: Considering the fact that the $52.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the November 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 24th contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAP's trailing twelve month trading history, with the $52.00 strike highlighted in red: Considering the fact that the $52.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the November 24th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 24th contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 24th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAP's trailing twelve month trading history, with the $52.00 strike highlighted in red: Considering the fact that the $52.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the November 24th expiration.
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10603.0
|
2023-10-03 00:00:00 UTC
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RSI Alert: Advance Auto Parts (AAP) Now Oversold
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AAP
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https://www.nasdaq.com/articles/rsi-alert%3A-advance-auto-parts-aap-now-oversold
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $53.28 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 32.5. A bullish investor could look at AAP's 29.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares:
Looking at the chart above, AAP's low point in its 52 week range is $53.26 per share, with $194.35 as the 52 week high point — that compares with a last trade of $53.55.
Find out what 9 other oversold stocks you need to know about »
Also see:
MSGS Historical Stock Prices
VASC Videos
DCT Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
A bullish investor could look at AAP's 29.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $53.26 per share, with $194.35 as the 52 week high point — that compares with a last trade of $53.55. In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $53.28 per share.
|
A bullish investor could look at AAP's 29.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $53.26 per share, with $194.35 as the 52 week high point — that compares with a last trade of $53.55. In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $53.28 per share.
|
In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $53.28 per share. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $53.26 per share, with $194.35 as the 52 week high point — that compares with a last trade of $53.55. A bullish investor could look at AAP's 29.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.
|
In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.5, after changing hands as low as $53.28 per share. A bullish investor could look at AAP's 29.5 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $53.26 per share, with $194.35 as the 52 week high point — that compares with a last trade of $53.55.
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10604.0
|
2023-10-03 00:00:00 UTC
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First Week of March 2024 Options Trading For Advance Auto Parts (AAP)
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AAP
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https://www.nasdaq.com/articles/first-week-of-march-2024-options-trading-for-advance-auto-parts-aap
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nan
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nan
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the March 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 164 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new March 2024 contracts and identified one put and one call contract of particular interest.
The put contract at the $52.50 strike price has a current bid of $6.30. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $52.50, but will also collect the premium, putting the cost basis of the shares at $46.20 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $53.66/share today.
Because the $52.50 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 12.00% return on the cash commitment, or 26.71% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $52.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $57.50 strike price has a current bid of $6.00. If an investor was to purchase shares of AAP stock at the current price level of $53.66/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $57.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 18.34% if the stock gets called away at the March 2024 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $57.50 strike highlighted in red:
Considering the fact that the $57.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 11.18% boost of extra return to the investor, or 24.89% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $53.66) to be 56%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Cheap Consumer Stocks
Top Ten Hedge Funds Holding TPL
MX shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $57.50 strike highlighted in red: Considering the fact that the $57.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the March 2024 expiration.
|
Below is a chart showing AAP's trailing twelve month trading history, with the $57.50 strike highlighted in red: Considering the fact that the $57.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the March 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new March 2024 contracts and identified one put and one call contract of particular interest.
|
Below is a chart showing AAP's trailing twelve month trading history, with the $57.50 strike highlighted in red: Considering the fact that the $57.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the March 2024 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new March 2024 contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new March 2024 contracts and identified one put and one call contract of particular interest. Below is a chart showing AAP's trailing twelve month trading history, with the $57.50 strike highlighted in red: Considering the fact that the $57.50 strike represents an approximate 7% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the March 2024 expiration.
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10605.0
|
2023-10-03 00:00:00 UTC
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Why Shares in Advance Auto Parts Slumped in September
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AAP
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https://www.nasdaq.com/articles/why-shares-in-advance-auto-parts-slumped-in-september
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nan
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nan
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What happened
Shares in auto parts retailer Advance Auto Parts (NYSE: AAP) fell 18.7% in September, according to data provided by S&P Global Market Intelligence. There are two reasons for the fall. First, in September, S & P Global Ratings cut the company's debt rating to "junk" status. Second, one of its major rivals, AutoZone (NYSE: AZO), gave earnings that could be construed negatively for Advance Auto Parts.
The credit rating downgrade included criticism of Advance's "misguided" approach of holding pricing to maintain profit margin. It's an action seen as leading to market share erosion and, ultimately, weak sales growth. In addition, it didn't do much for Advance's consistently poor margin performance anyway.
Turning to the connection to AutoZone's earnings, it's somewhat nuanced, so bear with me. Going back to Advance's second-quarter earnings (which ended in mid-July), management lauded the slight improvement in sales it had seen in the last four weeks of the quarter (mid-June to mid-July), which led to low-single-digit year-over-year (YOY) growth in the first four weeks of the third quarter (mid-July to mid-August).
This was put down to the initiatives such as "inventory investments we made along with year-to-date improvements in supply chain fill rates and store on-hand rates," according to Advance's outgoing CEO Tom Greco on the earnings call.
However, fast-forward to AutoZone's fourth-quarter earnings report (which ends on Aug. 26), and AutoZone's management also talked about a slower first half of the quarter (sales were flat on the same period in 2022) to a 3.4% YOY improvement in the second half of the quarter (end of July to end of August). Given that this period largely coincides with the period when Advance generated low-single-digit growth, it suggests that Advance's improvement came down to an improved market backdrop driven by more extreme weather -- cars need servicing more in extreme heat or cold -- rather than initiatives taken by Advance's management.
Image source: Getty Images.
So what
Advance has serially underperformed its two major rivals, AutoZone and O'Reilly Automotive, over the years, and new CEO Shane O'Kelly has his work cut out if he wants to improve matters, particularly if Advance wants to get anywhere near the kind of 20% operating margins and cash flow generation enjoyed by its peers.
According to Interim Executive Chair Gene Lee on the lastearnings call Advance should "start seeing incremental improvement, pretty quickly here," and he doesn't see Advance's improvement strategy taking "less than one year."
Now what
Suppose S & P Global Ratings' criticism is correct, and the sales improvement turns out to be merely the result of an improving sales environment rather than anything to do with investments made by Advance. In that case, it looks likely that a comprehensive review of the business needs to be made. Cautious investors will want to wait for that before buying in.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares in auto parts retailer Advance Auto Parts (NYSE: AAP) fell 18.7% in September, according to data provided by S&P Global Market Intelligence. Second, one of its major rivals, AutoZone (NYSE: AZO), gave earnings that could be construed negatively for Advance Auto Parts. The credit rating downgrade included criticism of Advance's "misguided" approach of holding pricing to maintain profit margin.
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What happened Shares in auto parts retailer Advance Auto Parts (NYSE: AAP) fell 18.7% in September, according to data provided by S&P Global Market Intelligence. Given that this period largely coincides with the period when Advance generated low-single-digit growth, it suggests that Advance's improvement came down to an improved market backdrop driven by more extreme weather -- cars need servicing more in extreme heat or cold -- rather than initiatives taken by Advance's management. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them!
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What happened Shares in auto parts retailer Advance Auto Parts (NYSE: AAP) fell 18.7% in September, according to data provided by S&P Global Market Intelligence. Going back to Advance's second-quarter earnings (which ended in mid-July), management lauded the slight improvement in sales it had seen in the last four weeks of the quarter (mid-June to mid-July), which led to low-single-digit year-over-year (YOY) growth in the first four weeks of the third quarter (mid-July to mid-August). Given that this period largely coincides with the period when Advance generated low-single-digit growth, it suggests that Advance's improvement came down to an improved market backdrop driven by more extreme weather -- cars need servicing more in extreme heat or cold -- rather than initiatives taken by Advance's management.
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What happened Shares in auto parts retailer Advance Auto Parts (NYSE: AAP) fell 18.7% in September, according to data provided by S&P Global Market Intelligence. Second, one of its major rivals, AutoZone (NYSE: AZO), gave earnings that could be construed negatively for Advance Auto Parts. Now what Suppose S & P Global Ratings' criticism is correct, and the sales improvement turns out to be merely the result of an improving sales environment rather than anything to do with investments made by Advance.
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10606.0
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2023-10-02 00:00:00 UTC
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ACM Research and Advance Auto Parts have been highlighted as Zacks Bull and Bear of the Day
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AAP
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https://www.nasdaq.com/articles/acm-research-and-advance-auto-parts-have-been-highlighted-as-zacks-bull-and-bear-of-the
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For Immediate Release
Chicago, IL – October 2, 2023 – Zacks Equity Research shares ACM Research ACMR as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Novo Nordisk NVO, Eli Lilly LLY and Pfizer PFE.
Here is a synopsis of all five stocks.
Bull of the Day:
ACM Research, a Zacks Rank #1 (Strong Buy), develops cleaning equipment that assists semiconductor companies in removing particles, contaminants, and other random defects during the manufacturing process. ACMR shares are widely outperforming the market this year with the backing of a leading industry group. The stock is hitting a series of 52-week highs and displaying relative strength as buying pressure accumulates in this market leader.
The technology company is part of the Zacks Semiconductor Equipment – Material Services industry group, which ranks in the top 1% out of more than 250 Zacks Ranked Industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform the market over the next 3 to 6 months. This industry has been steadily outperforming the market in 2023:
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Company Description
ACM Research produces and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield of integrated semiconductor chips. Its technology delivers megasonic energy at a microscopic level, providing cleaning for 2D and 3D patterned wavers.
The company’s cleaning process uses less sulfuric acid and hydrogen peroxide, providing more efficient performance for advanced metal plating. ACM Research sells its products under the Ultra C brand name through direct sales forces and third-party representatives.
Earnings Trends and Future Estimates
ACMR has built up an impressive earnings history, surpassing earnings estimates in each of the last eight quarters. Back in August, the Fremont, California-based company reported second-quarter earnings of $0.48/share, a staggering 380% surprise over the $0.10/share consensus estimate. Earnings grew 118% year-over-year, while revenues of $144.58 million improved 38.5% from the year-ago quarter. ACMR has delivered a trailing four-quarter average earnings surprise of 210.26%.
Analysts covering ACMR are in agreement and have been increasing their earnings estimates as of late. For the current fiscal year, analysts have increased earnings estimates by 36.26% in the past 60 days. The 2023 Zacks Consensus EPS Estimate now stands at $1.24/share, reflecting potential growth of 49.4% relative to the prior year. Revenues are projected to surge 44.39% to $561.4 million.
Let’s Get Technical
ACMR shares have advanced nearly 135% this year. This is the kind of stock we want to include in our portfolio – one that is trending well and receiving positive earnings estimate revisions.
The stock has been making a series of higher highs. With both strong fundamentals and technicals, ACMR is poised to continue its outperformance.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. As we know, ACM Research has recently witnessed positive revisions. As long as this trend remains intact (and ACMR continues to deliver earnings beats), the stock will likely continue its bullish run this year.
Bottom Line
The future looks bright for this highly-ranked, leading stock. Momentum has picked up in recent months, even as the general market experienced a pullback.
Backed by a leading industry group and impressive history of earnings beats, it’s not difficult to see why this company is a compelling investment. Robust fundamentals combined with an appealing technical trend certainly justify adding shares to the mix.
Bear of the Day:
Advance Auto Parts provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, utility vehicles, and trucks. The company offers a variety of products such as brakes and brake pads, engines and related parts, antifreeze and washer fluids, wiper blades, and tire repair accessories.
Furthermore, Advance Auto Parts provides services such as battery installation, electrical system testing, and engine light scanning. The company serves do-it-yourself customers and professional installers through its website as well as retail stores in the United States, the U.S. Virgin Islands, Canada, and throughout the Caribbean.
The Zacks Rundown
Advance Auto Parts, a Zacks Rank #5 (Strong Sell), is a component of the Zacks Automotive – Retail and Wholesale – Parts industry group, which ranks in the bottom 12% out of more than 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the course of the year.
Candidates in the bottom tiers of industries can often be solid potential short candidates. While individual stocks have the ability to outperform even when included in a poorly-performing industry group, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
Despite the underperformance this year, stocks in this group remain relatively overvalued.
As a part of this group, AAP stock has experienced considerable volatility in 2023. Shares recently hit a 52-week low following a disappointing earnings report and represent a compelling short or hedge opportunity.
Recent Earnings Misses and Deteriorating Outlook
AAP has fallen short of earnings estimates in three of the last three quarters. The auto parts company most recently reported second-quarter earnings back in August of $1.43/share, missing the $1.72/share consensus EPS estimate by 16.86%. Earnings plunged 61.8% from the same quarter in the prior year.
Advance Auto Parts has missed earnings estimates by an average of 21.03% over the past four quarters. Consistently falling short of earnings estimates is a recipe for underperformance, and AAP is no exception.
The company has been on the receiving end of negative earnings estimate revisions as of late. For the current quarter, analysts have decreased estimates by 28.36% in the past 60 days. The third-quarter Zacks Consensus EPS Estimate now stands at $1.44/share, translating to negative growth of -49.3% relative to the same quarter last year.
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
AAP stock is in a sustained downtrend. Notice how shares have plunged below both the 50-day and 200-day moving averages signaled by the blue and red lines, respectively. The stock is making a series of lower lows, with no respite from the selling in sight. Also note how both moving averages have rolled over and are sloping down – another good sign for the bears.
While not the most accurate indicator, AAP stock has also experienced what is known as a ‘death cross’, wherein the stock’s 50-day moving average crosses below its 200-day moving average. Advance Auto Parts would have to make a serious move to the upside and show increasing earnings estimate revisions to warrant taking any long positions in the stock. AAP shares have fallen more than 64% in the past year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to go into overdrive anytime soon. The fact that AAP stock is included in one of the worst-performing industry groups provides yet another headwind to a long list of concerns. A history of earnings misses will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend.
Shares continue to experience substantial volatility and have widely underperformed this year. With negative earnings estimate revisions continuing to pile up, this stock should be avoided as there are plenty of better alternatives in the current market environment.
Additional content:
3 Stocks to Focus on as Demand for Obesity Drugs Booms
The market for obesity and weight management drugs is attracting a lot of interest lately in the United States. Patients are gradually understanding the benefits of obesity drugs like Novo Nordisk’s Wegovy. Meanwhile, Eli Lilly’s Mounjaro (tirzepatide) — already approved for diabetes — could be the second drug for treating obesity, if it is approved for the indication by the FDA this year.
The obesity drugs are designed in such a way that they suppress appetite so you eat less and eventually lose weight.
According to the World Health Organization, over one billion people worldwide are obese. Obese people have a body mass index (BMI) above 30 while a BMI between 25 and 30 is considered overweight. Obesity has become a global health problem as it can cause other diseases like heart disease, diabetes and stroke. This resulted in an exponential increase in demand for these obesity medicines. Also, social media has somewhat hyped the benefits of these medications.
According to a Morgan Stanley report, the market for obesity drugs could reach $77 billion by 2030. Though supply issues may affect sales growth of these drugs in the near term, with the obesity market gaining popularity, analysts are expecting sales to increase. Pharma companies are rushing to enter the market
Here, we discuss three large drugmakers expected to gain the largest share of this fiercely growing market.
Novo Nordisk
Novo Nordisk’s popular GLP-1 receptor agonist, Wegovy (semaglutide – 2.5 mg), is an anti-obesity injection. Wegovy is seeing strong prescription trends and is generating impressive revenues and profits for Novo Nordisk. In clinical studies, patients taking Wegovy have experienced an average loss of 15% of their body weight over a 68-week period. Wegovy sales were up 363% at a constant exchange rate (“CER”) in the first half of 2023.
In August, Novo Nordisk reported positive data from the phase III SELECT study, which evaluated Wegovy (semaglutide 2.4 mg) as an adjunctive treatment for preventing cardiovascular (“CV”) diseases in adults with overweight or obesity. Data from the study showed that Wegovy reduced the risk of major adverse CV events by 20%. Obesity is one of the major risk factors responsible for CV diseases. A weight-loss drug like Wegovy, which also has CV benefits, is expected to see increase in sales and demand.
In addition, the CV benefit could probably make Wegovy eligible for insurance coverage. Currently, obesity drugs like Wegovy are considered lifestyle drugs and not eligible for coverage under Medicare health plans.
Novo Nordisk is also evaluating a once-daily oral formulation of semaglutide for obesity indication in late-stage studies, with a potential FDA filing expected later this year. Novo Nordisk is also developing PYY 1875 for weight management in phase II studies.
In August, Novo Nordisk also announced plans to acquire Canada’s private company Inversago Pharma, which makes CB1 receptor blocker therapies for obesity, diabetes and other serious metabolic diseases. CB1 is a cannabinoid receptor that plays an important role in appetite regulation and other cardiometabolic pathways. Inversago Pharma’s lead pipeline candidate, INV-202, an oral CB1 inverse agonist, demonstrated weight loss potential in an early-stage study.
Eli Lilly
Lilly reported strong data from obesity studies of its new drug Mounjaro (tirzepatide), a dual GIP and GLP-1 receptor agonist. Mounjaro is already approved for type II diabetes and is generating impressive sales. Mounjaro sales totaled $1.55 billion in the first half of 2023.
Mounjaro showed a superior weight-loss reduction in clinical studies for the obesity indication. Regulatory applications have already been filed for Mounjaro for the obesity indication in the United States and EU. In the United States, the FDA has assigned priority review to the regulatory filing, with a decision expected by year-end.
In addition, Lilly’s pipeline also includes retatrutide (GGG tri-agonist) and orforglipron, which are being developed, in late-stage studies, for type II diabetes and obesity.
In August, Lilly acquired private biotech Versanis, which is expected to strengthen its position in the obesity market. Versanis’ lead pipeline candidate is bimagrumab, a monoclonal antibody being developed in a phase IIb study alone and in combination with semaglutide in adults who are overweight or obese. Bimagrumab has the potential to show better quality weight loss by reducing fat mass while preserving muscle mass in people who are obese or have obesity-related complications.
Pfizer
Pfizer also has candidates for obesity in its pipeline even though it is behind competition. Pfizer is currently evaluating its oral, small molecule GLP-1-RA candidate danuglipron in a phase II study in patients with obesity and type II diabetes. Data from the phase II study is expected by the end of the year. If this study is successful, it will enable Pfizer to finalize the phase III plan.
While Pfizer and Eli Lilly sport a Zacks Rank #1 (Strong Buy), Novo Nordisk has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Novo Nordisk A/S (NVO) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
ACM Research, Inc. (ACMR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – October 2, 2023 – Zacks Equity Research shares ACM Research ACMR as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. As a part of this group, AAP stock has experienced considerable volatility in 2023. Recent Earnings Misses and Deteriorating Outlook AAP has fallen short of earnings estimates in three of the last three quarters.
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Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report ACM Research, Inc. (ACMR) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – October 2, 2023 – Zacks Equity Research shares ACM Research ACMR as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. As a part of this group, AAP stock has experienced considerable volatility in 2023.
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Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report Novo Nordisk A/S (NVO) : Free Stock Analysis Report Eli Lilly and Company (LLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report ACM Research, Inc. (ACMR) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – October 2, 2023 – Zacks Equity Research shares ACM Research ACMR as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. As a part of this group, AAP stock has experienced considerable volatility in 2023.
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Recent Earnings Misses and Deteriorating Outlook AAP has fallen short of earnings estimates in three of the last three quarters. For Immediate Release Chicago, IL – October 2, 2023 – Zacks Equity Research shares ACM Research ACMR as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. As a part of this group, AAP stock has experienced considerable volatility in 2023.
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10607.0
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2023-10-02 00:00:00 UTC
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Bear of the Day: Advance Auto Parts (AAP)
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https://www.nasdaq.com/articles/bear-of-the-day%3A-advance-auto-parts-aap-1
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Advance Auto Parts AAP provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, utility vehicles, and trucks. The company offers a variety of products such as brakes and brake pads, engines and related parts, antifreeze and washer fluids, wiper blades, and tire repair accessories.
Furthermore, Advance Auto Parts provides services such as battery installation, electrical system testing, and engine light scanning. The company serves do-it-yourself customers and professional installers through its website as well as retail stores in the United States, the U.S. Virgin Islands, Canada, and throughout the Caribbean.
The Zacks Rundown
Advance Auto Parts, a Zacks Rank #5 (Strong Sell), is a component of the Zacks Automotive – Retail and Wholesale – Parts industry group, which ranks in the bottom 12% out of more than 250 Zacks Ranked Industries. As such, we expect this industry group as a whole to underperform the market over the next 3 to 6 months, just as it has over the course of the year:
Image Source: Zacks Investment Research
Candidates in the bottom tiers of industries can often be solid potential short candidates. While individual stocks have the ability to outperform even when included in a poorly-performing industry group, the inclusion in a weaker group serves as a headwind for any potential rallies and the journey forward is that much more difficult.
Despite the underperformance this year, stocks in this group remain relatively overvalued:
Image Source: Zacks Investment Research
As a part of this group, AAP stock has experienced considerable volatility in 2023. Shares recently hit a 52-week low following a disappointing earnings report and represent a compelling short or hedge opportunity.
Recent Earnings Misses and Deteriorating Outlook
AAP has fallen short of earnings estimates in three of the last three quarters. The auto parts company most recently reported second-quarter earnings back in August of $1.43/share, missing the $1.72/share consensus EPS estimate by 16.86%. Earnings plunged 61.8% from the same quarter in the prior year.
Advance Auto Parts has missed earnings estimates by an average of 21.03% over the past four quarters. Consistently falling short of earnings estimates is a recipe for underperformance, and AAP is no exception.
The company has been on the receiving end of negative earnings estimate revisions as of late. For the current quarter, analysts have decreased estimates by 28.36% in the past 60 days. The third-quarter Zacks Consensus EPS Estimate now stands at $1.44/share, translating to negative growth of -49.3% relative to the same quarter last year.
Image Source: Zacks Investment Research
Falling earnings estimates are a huge red flag and need to be respected. Negative growth year-over-year is the type of trend that bears like to see.
Technical Outlook
As illustrated below, AAP stock is in a sustained downtrend. Notice how shares have plunged below both the 50-day and 200-day moving averages signaled by the blue and red lines, respectively. The stock is making a series of lower lows, with no respite from the selling in sight. Also note how both moving averages have rolled over and are sloping down – another good sign for the bears.
Image Source: StockCharts
While not the most accurate indicator, AAP stock has also experienced what is known as a ‘death cross’, wherein the stock’s 50-day moving average crosses below its 200-day moving average. Advance Auto Parts would have to make a serious move to the upside and show increasing earnings estimate revisions to warrant taking any long positions in the stock. AAP shares have fallen more than 64% in the past year alone.
Final Thoughts
A deteriorating fundamental and technical backdrop show that this stock is not set to go into overdrive anytime soon. The fact that AAP stock is included in one of the worst-performing industry groups provides yet another headwind to a long list of concerns. A history of earnings misses will likely serve as a ceiling to any potential rallies, nurturing the stock’s downtrend.
Shares continue to experience substantial volatility and have widely underperformed this year. With negative earnings estimate revisions continuing to pile up, this stock should be avoided as there are plenty of better alternatives in the current market environment.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts AAP provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, utility vehicles, and trucks. Image Source: Zacks Investment Research As a part of this group, AAP stock has experienced considerable volatility in 2023. Recent Earnings Misses and Deteriorating Outlook AAP has fallen short of earnings estimates in three of the last three quarters.
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Image Source: Zacks Investment Research As a part of this group, AAP stock has experienced considerable volatility in 2023. Recent Earnings Misses and Deteriorating Outlook AAP has fallen short of earnings estimates in three of the last three quarters. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Image Source: StockCharts While not the most accurate indicator, AAP stock has also experienced what is known as a ‘death cross’, wherein the stock’s 50-day moving average crosses below its 200-day moving average. Advance Auto Parts AAP provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, utility vehicles, and trucks. Image Source: Zacks Investment Research As a part of this group, AAP stock has experienced considerable volatility in 2023.
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Image Source: Zacks Investment Research As a part of this group, AAP stock has experienced considerable volatility in 2023. Recent Earnings Misses and Deteriorating Outlook AAP has fallen short of earnings estimates in three of the last three quarters. Advance Auto Parts AAP provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, utility vehicles, and trucks.
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10608.0
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2023-09-25 00:00:00 UTC
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After Hours Most Active for Sep 25, 2023 : OKE, APO^A, ET, XPEV, BAC, FINV, MCHI, ARM, CSCO, CMCSA, QQQ, AAPL
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AAP
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https://www.nasdaq.com/articles/after-hours-most-active-for-sep-25-2023-%3A-oke-apo%5Ea-et-xpev-bac-finv-mchi-arm-csco-cmcsa
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The NASDAQ 100 After Hours Indicator is up 13.01 to 14,781.91. The total After hours volume is currently 63,813,936 shares traded.
The following are the most active stocks for the after hours session:
ONEOK, Inc. (OKE) is +0.01 at $66.55, with 19,749,458 shares traded. OKE's current last sale is 91.16% of the target price of $73.
Apollo Global Management, Inc. (APO^A) is unchanged at $56.25, with 3,816,895 shares traded.
Energy Transfer L.P. (ET) is -0.02 at $13.99, with 3,668,019 shares traded. ET's current last sale is 82.29% of the target price of $17.
XPeng Inc. (XPEV) is +0.11 at $16.80, with 3,072,662 shares traded. XPEV's current last sale is 98.53% of the target price of $17.05.
Bank of America Corporation (BAC) is +0.01 at $27.61, with 1,936,137 shares traded. BAC's current last sale is 78.89% of the target price of $35.
FinVolution Group (FINV) is unchanged at $5.00, with 1,855,555 shares traded. As reported by Zacks, the current mean recommendation for FINV is in the "strong buy range".
iShares MSCI China ETF (MCHI) is -0.0345 at $43.38, with 1,662,357 shares traded. This represents a 23.86% increase from its 52 Week Low.
Arm Holdings plc (ARM) is -0.14 at $54.30, with 1,625,772 shares traded. ARM's current last sale is 118.04% of the target price of $46.
Cisco Systems, Inc. (CSCO) is unchanged at $53.48, with 1,352,499 shares traded. CSCO's current last sale is 92.21% of the target price of $58.
Comcast Corporation (CMCSA) is unchanged at $44.87, with 1,323,937 shares traded. As reported by Zacks, the current mean recommendation for CMCSA is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.35 at $359.96, with 1,301,962 shares traded. This represents a 41.57% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.12 at $176.20, with 1,151,926 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2024. The consensus EPS forecast is $1.56. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple Inc. (AAPL) is +0.12 at $176.20, with 1,151,926 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". As reported by Zacks, the current mean recommendation for FINV is in the "strong buy range".
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.12 at $176.20, with 1,151,926 shares traded. Comcast Corporation (CMCSA) is unchanged at $44.87, with 1,323,937 shares traded.
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Apple Inc. (AAPL) is +0.12 at $176.20, with 1,151,926 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 63,813,936 shares traded.
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Apple Inc. (AAPL) is +0.12 at $176.20, with 1,151,926 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is up 13.01 to 14,781.91.
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10609.0
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2023-09-22 00:00:00 UTC
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Why Is Advance Auto Parts (AAP) Down 14.2% Since Last Earnings Report?
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AAP
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https://www.nasdaq.com/articles/why-is-advance-auto-parts-aap-down-14.2-since-last-earnings-report
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). Shares have lost about 14.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Advance Auto Parts due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Advance Auto Q2 Earnings Miss, Sales Top Estimates
Advance Auto delivered adjusted earnings of $1.43 per share for second-quarter 2023, down 62% from the year-ago quarter's figure. The reported figure also fell short of the Zacks Consensus Estimate of $1.72 per share. Advance Auto generated net revenues of $2,686 million, which topped the Zacks Consensus Estimate of $2,671 million on lower-than-expected comps decline. Comparable store sales dropped 0.6%. We projected a decline 0.7%. The top line increased 0.8% year over year.
Operating income plunged 33.3% year over year to $134.4 million. SG&A expenses totaled $1,013.7 million for second-quarter 2023, up 3% year over year.
Financial Position
Advance Auto had cash and cash equivalents of $277.1 million as of Jul 15, 2023, compared with $269.3 million on Dec 31, 2023. Total long-term debt was $1,785.1 million as of Jul 15, 2023, up from $1,188.3 million on Dec 31, 2022. From January through the second quarter of 2023, net cash used by operating activities and negative FCF totaled $164.6 million and $309.4 million, respectively.
AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023.
Store Update
As of Jul 15, 2023, AAP operated 4,790 stores and 319 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 1,307 independently owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.
Revised Guidance 2023
Advance Auto estimates 2023 net sales in the band of $11.25-$11.35 billion, up from the previous guided range of $11.2-$11.3 billion. Comparable store sales are projected within a range of negative 0.5% to positive 0.5%. Adjusted operating income margin is envisioned in the range of 4-4.3%, down from 5-5.3% guided earlier.
Advance Auto expects 2023 capex in the range of $200-$250 million, down from $250-$300 million. The company projects FCF in the band of $150-$250 million, down from the prior guidance of $200-$300 million. Earnings are forecast between $4.50-$5.10 per share, down from the prior estimate of $6-$6.50 per share. AAP aims to open 40 to 60 new stores this year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -26.51% due to these changes.
VGM Scores
At this time, Advance Auto Parts has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Advance Auto Parts has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023. Store Update As of Jul 15, 2023, AAP operated 4,790 stores and 319 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. It has been about a month since the last earnings report for Advance Auto Parts (AAP). AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023.
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023. Store Update As of Jul 15, 2023, AAP operated 4,790 stores and 319 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands.
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023. Store Update As of Jul 15, 2023, AAP operated 4,790 stores and 319 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands.
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10610.0
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2023-09-21 00:00:00 UTC
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AAP November 3rd Options Begin Trading
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AAP
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https://www.nasdaq.com/articles/aap-november-3rd-options-begin-trading
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 3rd contracts and identified one put and one call contract of particular interest.
The put contract at the $59.00 strike price has a current bid of $2.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $59.00, but will also collect the premium, putting the cost basis of the shares at $56.20 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $59.35/share today.
Because the $59.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.75% return on the cash commitment, or 40.28% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $59.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $60.00 strike price has a current bid of $2.90. If an investor was to purchase shares of AAP stock at the current price level of $59.35/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $60.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.98% if the stock gets called away at the November 3rd expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red:
Considering the fact that the $60.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.89% boost of extra return to the investor, or 41.48% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $59.35) to be 56%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 3rd expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 3rd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 3rd contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 3rd expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 3rd contracts and identified one put and one call contract of particular interest.
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10611.0
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2023-09-20 00:00:00 UTC
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Why Auto Parts Retailers Are Heading in Different Directions
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AAP
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https://www.nasdaq.com/articles/why-auto-parts-retailers-are-heading-in-different-directions
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Tesla has more than doubled this year. Meanwhile, Ford and General Motors are barely in the green. This wide disparity in stock performances isn't unique to auto manufacturers. Year-to-date returns on auto parts retailers are all also over the road.
Typically, stocks that belong to the same industry group move in the same general direction. This is because they have exposure to the same macroeconomic and business-specific trends. As such, their financial results are usually similar — but this hasn't been the case for the auto parts chains.
Yes, the group is dealing with the same economic dynamics. Inflation is lowering disposable income, leaving consumers less money to spend on car parts and repairs. While some continue to view auto maintenance as essential spending, others are putting it off in the face of higher gas and food prices. Fortunately, the tank's only half empty for auto parts retailers. They are also benefiting from a pair of powerful tailwinds.
First, new car prices are near record highs while used car prices are falling rapidly. This incentivizes car buyers to opt for a used set of wheels, which naturally require more replacement parts and repairs. Second, the average age of vehicles on the road hit an all-time high of 12.5 years this summer. With Americans stretching 'old faithful' to the max rather than taking on a high-interest new car loan, it's an advantage for auto parts retailers.
So there are a mix of factors that are hitting the brakes and stepping on the gas for U.S. auto parts shops. Some are maximizing the positives and minimizing the negatives better than others. Along with some company-specific issues, this is why we are seeing such a divergence in their 2023 stock movements.
ORLY: +10% YTD
O'Reilly Automotive, Inc. (NASDAQ: ORLY) is outpacing auto parts peers in 2023 mainly because its profits are accelerating. The retailer topped Wall Street estimates in both Q1 and Q2 in delivering 15% and 16% earnings per share (EPS) growth respectively. After opening 42 new stores last quarter, it is on track to open as many as 190 locations this year. The key distinction is that it is focused on the most profitable geographies. Since there are varying degrees of demand and profitability across the U.S., expanding wisely is proving to be a winning strategy.
At the same time, stores are being effectively integrated into O'Reilly's e-commerce channel through services like curbside pickup. The company is also looking outside the U.S. for growth after acquiring Mexico-based Mayasa Auto Parts, its first international buyout. This has it in the driver's seat to post a 31st straight year of record revenue — and its stock price heading to $1,000.
AAP: -59% YTD
Advance Auto Parts, Inc. (NYSE: AAP) is having another rough year. Now down 75% from its January 2022 peak, the stock got crushed after management lowered its 2023 profit outlook and slashed its dividend by more than 80%. The company's major misstep was reducing prices in an attempt to win over consumers at the expense of competitors. It is a sound strategy in theory but has only led to anemic sales growth and weaker profits. Advance Auto Parts has failed to hitch a ride on the aging vehicle tailwind because costs are rising, and DIY and DIFM customers are finding better deals elsewhere. The company has become a poster child for lack of execution, which has resulted in a leadership overhaul. New CEO Shane O'Kelly faces easier comps in 2024 but will need to orchestrate a major realignment to straighten things out.
AZO: +3% YTD
After big gains in 2021 and 2022, AutoZone, Inc. (NYSE: AZO) is tapping the brakes this year and potentially consolidating for the next leg up. There's no reason to believe the retailer won't continue to trend higher. It has topped Street earnings estimates for 12 consecutive quarters and is seizing the opportunity to cater to used car owners.
Going forward, its most compelling growth opportunity is the commercial side of the business. Management is positioning the company to grab a bigger piece of the commercial market by building 'mega-hub' outlets offering a broader selection of aftermarket parts for delivery vans, trailers and commercial fleets — including those going electric. This is a big part of why analyst price targets started hitting $3,000 last week.
GPC: -14% YTD
Genuine Parts Company (NYSE: GPC) is struggling to win over investors this year after its stock hit an all-time high in December 2022 and the valuation became stretched. The NAPA auto parts distributor beat EPS expectations in Q1 and Q2 to extend its streak to 13 quarters. Earlier this year, management raised the dividend to stretch that streak to 68 years. And yet, the dividend aristocrat continues to trend lower.
Part of the problem is that Genuine Parts is grappling with cost inflation more than competitors. Supply chain disruptions continue to be an overhang. Increased labor and commodity costs are also weighing on margins. Taking on $1 billion to acquire Kaman Distribution Group last year has also added to expenses and created leverage that has turned off some shareholders.
Slowing sales and profit growth are proving to be a tough sell, even with the impressive EPS and dividend streaks. At some point, GPC will get too cheap. But with the stock still commanding a premium valuation, buyers aren't yet willing to come along for the recovery ride.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc. (NYSE: AAP) is having another rough year. Advance Auto Parts has failed to hitch a ride on the aging vehicle tailwind because costs are rising, and DIY and DIFM customers are finding better deals elsewhere. Genuine Parts Company (NYSE: GPC) is struggling to win over investors this year after its stock hit an all-time high in December 2022 and the valuation became stretched.
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Advance Auto Parts, Inc. (NYSE: AAP) is having another rough year. Second, the average age of vehicles on the road hit an all-time high of 12.5 years this summer. Genuine Parts Company (NYSE: GPC) is struggling to win over investors this year after its stock hit an all-time high in December 2022 and the valuation became stretched.
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Advance Auto Parts, Inc. (NYSE: AAP) is having another rough year. Advance Auto Parts has failed to hitch a ride on the aging vehicle tailwind because costs are rising, and DIY and DIFM customers are finding better deals elsewhere. Genuine Parts Company (NYSE: GPC) is struggling to win over investors this year after its stock hit an all-time high in December 2022 and the valuation became stretched.
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Advance Auto Parts, Inc. (NYSE: AAP) is having another rough year. First, new car prices are near record highs while used car prices are falling rapidly. Genuine Parts Company (NYSE: GPC) is struggling to win over investors this year after its stock hit an all-time high in December 2022 and the valuation became stretched.
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10612.0
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2023-09-20 00:00:00 UTC
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5 Struggling Stocks to Buy at a Discount
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AAP
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https://www.nasdaq.com/articles/5-struggling-stocks-to-buy-at-a-discount-9
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nan
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Stocks that historically underperform the average returns of the S&P 500 tend to keep coming up short. Therefore, investors must always remain cautious when buying struggling stocks. Betting on turnarounds often results in losses.
For struggling stocks to succeed, I believe that companies need some things. First, I'd like to see at least some semblance of a competitive advantage. I also want expectations from the market to simply be way too pessimistic. And I want a reasonable explanation for why better days could be ahead.
When asking my followers on social media, PayPal Holdings (NASDAQ: PYPL) came out as the runaway winner for struggling stocks to buy at a discount, and I agree that it has potential. But before we get to PayPal, I want to explain why other ideas like Dollar General (NYSE: DG), Sea Limited (NYSE: SE), Driven Brands (NASDAQ: DRVN), and Advance Auto Parts (NYSE: AAP) all make the cut as well.
1. Dollar General
Discount retailer Dollar General has a competitive advantage: over 19,000 locations around the country. Some consumers will still shop at other discount retailers or big-box stores. But the convenience of always having a Dollar General nearby allows it to consistently capture at least a portion of consumer spending even in bad times.
As my Motley Fool colleague James Brumley points out, it's possible that Dollar General got a little sloppy in recent years as it focused on opening lots of new stores. That's why this year, it's focusing on fixing inventory problems, staffing, and more.
These moves will be costly in the near term with management projecting up to a 34% year-over-year drop in earnings per share (EPS) this year.
With profits dropping this much, it's no wonder that Dollar General stock has dropped to four-year lows. That said, investors should zoom out: The company's trailing-12-month revenue is still at an all-time high. Its profit margin in the first half of its fiscal 2023 was 7%, which is respectable. And it's addressing the problems that could help results bounce back sooner rather than later.
Trading at a price-to-earnings (P/E) valuation of less than 13, Dollar General stock has never been cheaper. Therefore, I believe today's price is a safe place to buy into a company that consistently grew EPS at a double-digit pace over the past decade.
DG PE ratio data by YCharts.
2. Sea Limited
Sea Limited is a company from Singapore that specializes in e-commerce, video games, and fintech. The company doesn't necessarily have a definitive edge in any of these areas; these spaces are competitive. However, Sea does have one important advantage: The business is self-funding.
When interest rates were near zero, many fast-growing companies operated at losses to scale up quickly. And they paid for this growth with debt, promising to become profitable someday when necessary.
Well, interest rates shot higher, and it indeed became necessary. But few companies actually made the switch to profitability. Perhaps the most notable exception was Sea, which went from steep losses to net profits in a single quarter.
SE EPS diluted (quarterly) data by YCharts.
Now that Sea's business is fully funding operations, shareholders don't have to worry about incremental financing to pay the bills, which could otherwise dilute shareholder value. Moreover, the company is still growing at a respectable rate even while paying for it from its own checkbook.
In the second quarter, revenue for Sea's e-commerce segment was up 28% year over year, and revenue for its fintech arm was up a whopping 53%. The lone laggard was its video game business.
But shareholders just got good news on that front: Previously, India had banned its most popular video game, but now the ban is lifted, giving hope that Sea's video game unit can return to growth as well.
Growing and profitable, Sea looks like it's in good position to bounce back.
3. Driven Brands
Driven Brands is on a mission to roll up various car maintenance brands into a single company to gain efficiencies of scale and national brand recognition. This can lead to competitive advantages. It's a growth-by-acquisition model peppered with growth by organic expansion for good measure.
Driven Brands' strategy is fairly capital intensive. Therefore, there's risk with this idea. But I believe the pessimism regarding its present struggles is overblown and that the stock is cheap enough to make a calculated-risk investment today.
Image source: Getty Images.
Investors are pessimistic with Driven Brands stock because of its car wash segment. In the second quarter, same-store sales for that business fell 4% year over year, and management noted how competition is heating up. Consider that this business segment is its most profitable, with a second-quarter margin of 26.5% for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Competition in the car-wash space motivated management to lower its full-year 2023 revenue guidance by a paltry 2%. Consequently, the stock got cut nearly in half. I think everyone can agree that this might be a slight overreaction from the market.
For the year, Driven Brands still expects $535 million in adjusted EBITDA. For perspective, its enterprise value is just $6.2 billion, or only 11.5 times its expected adjusted EBITDA. And it's targeting $850 million in adjusted EBITDA in 2026, which could provide good upside for investors today.
Expect to hear more of its plans at its investor and analyst day presentation on Sept. 20.
4. Advance Auto Parts
Christopher Niemczewski of investment company Marshfield Associates said the most brutal thing I've ever heard when it comes to auto-parts retailer Advance Auto Parts. Forbes quoted Niemczewski as saying, "We still can't figure out what they're doing wrong, and they can't, either."
This being the case, it was clearly time for new leadership at Advance. And that's exactly what this struggling stock just got.
One of the problems plaguing Advance is its supply chain. So the board of directors astutely chose Shane O'Kelly for its CEO position. He specializes in supply chain management, having most recently held the CEO position at HD Supply. He might indeed be up to the challenge of finally figuring out what Advance is doing wrong in relation to its peers -- hopefully he'll let Niemczewski know, too.
The kitchen sink has been thrown at Advance stock. In recent months, management lowered guidance, the company decreased its dividend, Advance was removed from the S&P 500, and S&P Global Ratings downgraded its debt. It's hard to fathom what more could happen to make investors feel lower than they do right now.
As bad as things are, consider that Advance still expects to earn between $4.50 and $5.10 per share this year. If O'Kelly can bring his operational know-how and quickly remedy the company's shortcomings, this could be the lowest of the lows for Advance's profits, with only upside from here.
Long term, many investors don't like the auto-parts space, but I remain a believer. According to S&P Global Mobility, cars on U.S. roads have never been older. As reported by Yahoo! Finance, the average vehicle on the road is 12.5 years old, which gives Advance a huge potential customer base.
5. PayPal
Over the long term, stocks tend to go up and down based on their profits, specifically their EPS. This is true of fintech pioneer PayPal's stock as well. But an interesting divergence is happening right now, as the chart below shows.
PYPL data by YCharts.
For a time, PayPal's EPS fell, and the stock consequently fell, too. Now, its EPS is recovering, but the stock price hasn't stopped falling. This suggests that the market simply doesn't believe in PayPal's recovery.
I think it's time to finally believe in PayPal's eventual recovery. Like Advance, the company just hired a new CEO in Alex Chriss, who is experienced at working with enterprise customers. And I believe that's significant.
For years, PayPal's leadership has talked about leveraging its consumer data. As of the second quarter, it had over 400 million consumer accounts and has processed 24 billion transactions in the last year. It wants to find ways to grow its enterprise business, and Chriss' expertise in this area will help. Leveraging this consumer data will likely be part of the strategy.
Fortunately, recent advancements in artificial intelligence (AI) might make PayPal's dream a reality. In short, the company's dataset is amazing, but it takes something powerful to decipher it, which is where AI comes in. As outgoing CEO Dan Schulman recently said, "The AI modeling can be extraordinarily powerful as we think about the next generation of checkout and other things we can do in our value proposition."
Buying PayPal stock today is a bet on the next generation of its checkout. And I think it could play a part in market-beating upside for the stock from here.
As a closing reminder, all of these stocks are down, and for a good reason. So to be clear, investors today are betting on turnarounds that might not happen. But there is good reason to hope for each, and that's why I think they could be good buys today.
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Jon Quast has positions in Advance Auto Parts, Dollar General, Driven Brands, and PayPal and has the following options: short September 2023 $75 calls on Advance Auto Parts. The Motley Fool has positions in and recommends PayPal and Sea Limited. The Motley Fool recommends the following options: short December 2023 $67.50 puts on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But before we get to PayPal, I want to explain why other ideas like Dollar General (NYSE: DG), Sea Limited (NYSE: SE), Driven Brands (NASDAQ: DRVN), and Advance Auto Parts (NYSE: AAP) all make the cut as well. When asking my followers on social media, PayPal Holdings (NASDAQ: PYPL) came out as the runaway winner for struggling stocks to buy at a discount, and I agree that it has potential. As my Motley Fool colleague James Brumley points out, it's possible that Dollar General got a little sloppy in recent years as it focused on opening lots of new stores.
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But before we get to PayPal, I want to explain why other ideas like Dollar General (NYSE: DG), Sea Limited (NYSE: SE), Driven Brands (NASDAQ: DRVN), and Advance Auto Parts (NYSE: AAP) all make the cut as well. Dollar General Discount retailer Dollar General has a competitive advantage: over 19,000 locations around the country. See the 10 stocks *Stock Advisor returns as of September 11, 2023 Jon Quast has positions in Advance Auto Parts, Dollar General, Driven Brands, and PayPal and has the following options: short September 2023 $75 calls on Advance Auto Parts.
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But before we get to PayPal, I want to explain why other ideas like Dollar General (NYSE: DG), Sea Limited (NYSE: SE), Driven Brands (NASDAQ: DRVN), and Advance Auto Parts (NYSE: AAP) all make the cut as well. 10 stocks we like better than PayPal When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of September 11, 2023 Jon Quast has positions in Advance Auto Parts, Dollar General, Driven Brands, and PayPal and has the following options: short September 2023 $75 calls on Advance Auto Parts.
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But before we get to PayPal, I want to explain why other ideas like Dollar General (NYSE: DG), Sea Limited (NYSE: SE), Driven Brands (NASDAQ: DRVN), and Advance Auto Parts (NYSE: AAP) all make the cut as well. But there is good reason to hope for each, and that's why I think they could be good buys today. That's right -- they think these 10 stocks are even better buys.
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10613.0
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2023-09-19 00:00:00 UTC
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Hold-It-Forever AutoZone Pulls into Buy Zone
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AAP
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https://www.nasdaq.com/articles/hold-it-forever-autozone-pulls-into-buy-zone
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nan
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nan
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If you are looking at the AutoZone (NYSE: AZO) chart and thinking it's time to sell some of this stock, think again. While the 200% increase versus 2020's bottom suggests it's time to take some profits off the table, any price weakness may also be considered a buying opportunity. AutoZone is a buy-now-and-hold-forever stock of the highest caliber and has several tailwinds to support its market. The price action in AZO stock is pulling back following the Q4 release, and it may fall further. The takeaway for today is that this stock is in a sustained uptrend driven by results, growth, and share repurchases that show no signs of stopping.
AutoZone's Executive Transition Is Ultra-Smooth
AutoZone announced its executive transition this summer and chose to go the internal route. The decision was sound and paid off, given the Q4 results and outlook for international expansion. The results also included two more promotions that cemented the current acting COO in his role and lifted another VP to the position of CFO. Philip Daniele, CEO-elect, says the promotion sets the two as equals and together form his senior management team. His role will become official in January when the board of directors meets.
The Q4 results are promising and align with the long-term outlook. The company reported $5.69 billion in net revenue, which is up 6.4% compared to last year and beat the consensus estimate by 150 basis points. The gains were driven by a weaker-than-expected comp in the US, about 1.7%, offset by strength in the International segment. The International segment grew by 34%, with strength in Brazil and Mexico, leading emerging markets.
The bottom results are better and support the robust outlook for share repurchases. The company's operating expenses increased by 30 basis points YOY but not enough to offset the 118 basis point improvement in gross margin. One-offs impacted gross margin, but merchandise margins primarily drive improvement. Store growth may slow in 2024 because the company will focus on operational quality, but it is not expected to cease. Margin improvement is expected to continue and lead to another year of double-digit earnings growth.
AutoZone: A Top Shelf Name In Autoparts
AutoZone trades at a significant premium to competitor Advance Auto Parts (NYSE: AAP) but is outperforming in every way. While AutoZone does not pay dividends, it doesn't matter because it repurchases shares. The company bought back 403,000 shares for about $1 billion during the quarter and has $1.8 billion left under the current authorization. That's worth about 2% and 4% of the market cap, respectively, and the board will likely up the authorization as this one is depleted.
AutoZone uses debt to leverage its repurchases, but the current load is light. Total debt is up YOY but less than 50% of total assets, with ample cash flow to sustain growth and payments without additional EPS growth next year. The share count is down more than 6.6% compared to last year and is driving value for shareholders.
Analysts And Institutions Own AutoZone
The sell-siders own AutoZone and see it moving higher. The analysts rate it a Moderate Buy with a target of about 7.5% above $2470, and the price target is up significantly compared to last year. The caveat is that the institutions, which own approximately 90% of the stock, started selling in Q3. Their activity ramped in Q3 following a top in Q2 and may cap upside potential in the near term. However, institutional selling aligns with profit-taking after the 200% run-up and is not a serious threat to investors.
The stock is still trading above critical support and showing signs of support in early trading. Support is at the 150-day EMA consistent with long-term investors, including institutional buying. If the market can sustain this level, shares of AZO should continue to move sideways and may retest the all-time high soon. If not, this stock could retest firmer support levels near $2,300 before rebounding.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AutoZone: A Top Shelf Name In Autoparts AutoZone trades at a significant premium to competitor Advance Auto Parts (NYSE: AAP) but is outperforming in every way. While the 200% increase versus 2020's bottom suggests it's time to take some profits off the table, any price weakness may also be considered a buying opportunity. The takeaway for today is that this stock is in a sustained uptrend driven by results, growth, and share repurchases that show no signs of stopping.
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AutoZone: A Top Shelf Name In Autoparts AutoZone trades at a significant premium to competitor Advance Auto Parts (NYSE: AAP) but is outperforming in every way. The takeaway for today is that this stock is in a sustained uptrend driven by results, growth, and share repurchases that show no signs of stopping. The company's operating expenses increased by 30 basis points YOY but not enough to offset the 118 basis point improvement in gross margin.
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AutoZone: A Top Shelf Name In Autoparts AutoZone trades at a significant premium to competitor Advance Auto Parts (NYSE: AAP) but is outperforming in every way. AutoZone is a buy-now-and-hold-forever stock of the highest caliber and has several tailwinds to support its market. The takeaway for today is that this stock is in a sustained uptrend driven by results, growth, and share repurchases that show no signs of stopping.
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AutoZone: A Top Shelf Name In Autoparts AutoZone trades at a significant premium to competitor Advance Auto Parts (NYSE: AAP) but is outperforming in every way. If you are looking at the AutoZone (NYSE: AZO) chart and thinking it's time to sell some of this stock, think again. Margin improvement is expected to continue and lead to another year of double-digit earnings growth.
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10614.0
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2023-09-18 00:00:00 UTC
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Here's What Investors Need to Hear From Advance Auto Parts Before They Buy the Stock
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AAP
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https://www.nasdaq.com/articles/heres-what-investors-need-to-hear-from-advance-auto-parts-before-they-buy-the-stock
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nan
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nan
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Investors in Advance Auto Parts (NYSE: AAP) were left disappointed after S&P Global Ratings downgraded the company's debt to "junk" status, noting its sales underperformance relative to peers like AutoZone and O'Reilly Automotive in the last year and a half. In addition, S&P Global believes Advance Auto's "misguided" strategy of trying to hold pricing has led to market share erosion.
The news caused another leg down in a stock that's now down more than 60% this year as I write. Is it now time to go bargain-hunting for the stock, or is it one to avoid?
S&P Global's downgrade
S&P Global's viewpoint seems at odds with Advance Auto Parts management's, and the difference of opinion may cause investors to exercise caution over the stock. The rating agency is critical of the strategy to keep profit margins high by holding prices, and believes Advance Auto has suffered a weakening in its "competitive standing."
That's no minor issue in the auto parts market, not least for the pro market that tends to demand reasonably priced parts available in-store for immediate use. As you can see below, the strategy has yet to do anything for Advance Auto Parts' revenue growth compared to its peers.
AAP Revenue (TTM) data by YCharts
Neither did it do anything for its operating margin progression.
AAP Operating Margin (TTM) data by YCharts
Change is coming
Management acknowledges that it needs to improve performance. A new CEO, Shane O'Kelly, has recently been appointed, with former CEO Tom Greco staying on as an advisor. Management is conducting an operational and strategic review of the business, with O'Kelly's input included -- more on that in a moment.
First, it's worth noting that Greco's 2016-2023 tenure was unsuccessful. He failed to close the gap in operational performance with AutoZone and O'Reilly Automotive, despite significant effort and the input of activist investor Starboard Value. So it's hardly surprising that the debt rating agency downgraded its debt. The chart below shows how Advance's financial debt to earnings before interest, taxation, depreciation, and amortization (EBITDA) has risen over the last 18 months.
AAP Financial Debt to EBITDA (TTM) data by YCharts
What changes are coming
The debt rating agency's downgrade points to fundamental issues at the company. In contrast, Advance's management appears to be taking a more moderate view on matters. For example, on the lastearnings callin August, Greco lauded the investments made to improve inventory availability and pricing, and noted a sales improvement in the last four weeks of the quarter and into the current third quarter.
Meanwhile, Interim Executive Chair of the Board of Directors Gene Lee told investors the new strategy was an event of "less than one year," continuing, "I mean, I think that we should start seeing incremental improvement pretty quickly here."
Image source: Getty Images.
A value stock?
It seems unlikely that years of underperformance versus peers will be turned around by a strategy taking place in less than one year. Greco was CEO for seven years, yet Advance Auto Parts continues to lag significantly behind its peers in profit margins, inventory management, and cash conversion.
In addition, management is still discussing better inventory management and in-store parts availability. Moreover, six weeks of sales improvement is scant evidence of any fundamental turnaround in its business -- not least as it comes after a period of sustained underperformance compared to its peers.
Management appears to be taking the view that it's already on the right track, and the strategic review may well turn out to be limited in scope. As such, it makes more sense to see the results of the strategic review of the business before considering buying in because it's far from clear Advance Auto Parts is on the path to generating value for investors.
10 stocks we like better than Advance Auto Parts
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 11, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in Advance Auto Parts (NYSE: AAP) were left disappointed after S&P Global Ratings downgraded the company's debt to "junk" status, noting its sales underperformance relative to peers like AutoZone and O'Reilly Automotive in the last year and a half. AAP Revenue (TTM) data by YCharts Neither did it do anything for its operating margin progression. AAP Operating Margin (TTM) data by YCharts Change is coming Management acknowledges that it needs to improve performance.
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Investors in Advance Auto Parts (NYSE: AAP) were left disappointed after S&P Global Ratings downgraded the company's debt to "junk" status, noting its sales underperformance relative to peers like AutoZone and O'Reilly Automotive in the last year and a half. AAP Financial Debt to EBITDA (TTM) data by YCharts What changes are coming The debt rating agency's downgrade points to fundamental issues at the company. AAP Revenue (TTM) data by YCharts Neither did it do anything for its operating margin progression.
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Investors in Advance Auto Parts (NYSE: AAP) were left disappointed after S&P Global Ratings downgraded the company's debt to "junk" status, noting its sales underperformance relative to peers like AutoZone and O'Reilly Automotive in the last year and a half. AAP Revenue (TTM) data by YCharts Neither did it do anything for its operating margin progression. AAP Operating Margin (TTM) data by YCharts Change is coming Management acknowledges that it needs to improve performance.
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Investors in Advance Auto Parts (NYSE: AAP) were left disappointed after S&P Global Ratings downgraded the company's debt to "junk" status, noting its sales underperformance relative to peers like AutoZone and O'Reilly Automotive in the last year and a half. AAP Revenue (TTM) data by YCharts Neither did it do anything for its operating margin progression. AAP Operating Margin (TTM) data by YCharts Change is coming Management acknowledges that it needs to improve performance.
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10615.0
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2023-09-15 00:00:00 UTC
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The 7 Most Undervalued Stocks in the Market Right Now: September 2023
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AAP
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https://www.nasdaq.com/articles/the-7-most-undervalued-stocks-in-the-market-right-now%3A-september-2023
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
With markets remaining choppy and sentiment still cautious, many quality stocks are trading at tempting valuations. Recent indiscriminate selling has knocked down the valuations of profitable, growing companies to levels that don’t accurately reflect their long-term potential. Savvy investors can exploit this disconnect by identifying and buying shares in temporarily-mispriced businesses.
Though broader macroeconomic challenges persist, these companies operate successful business models that should drive significant shareholder value creation over the long term. Some industry leaders have simply been oversold due to this risk-off environment. Others face short-term headwinds, but have levers to pull to reaccelerate their growth. And some are great businesses unfairly tarnished by association with struggling sectors.
Of course, further market declines may pressure stocks lower still in the near term. But buying companies with strong fundamentals at these levels enables outsized returns once the tide eventually turns. Here are the seven most undervalued stocks to look into:
Carl Zeiss Meditec (CZMWF)
Source: Dmytro Zinkevych / Shutterstock.com
Carl Zeiss Meditec (OTCMKTS:CZMWF) is down almost 40% from its 52-week highs despite reporting robust Q3 results. The microsurgery company’s revenue grew 12.9% year-over-year on a currency-adjusted basis to €1.51 billion. This broad-based growth was driven by its Ophthalmic Devices and Microsurgery segments.
Carl Zeiss continues to benefit from powerful demographic trends, including an aging global populations and the rising prevalence of eye diseases. The company estimates the cataract surgery market will sustain mid-single digit growth, while premium intraocular lenses represent a massive opportunity growing at 10%+ annually. With its advanced technology in lasers, intraocular lenses and visualization systems, Carl Zeiss is well positioned to capitalize on these strong tailwinds.
Even with the healthy revenue growth, and temporary factors like China lockdowns, supply chain issues fading away and rebounding margins this quarter, the stock is yet to rebound. At current valuations around 24-times forward earnings, the stock seems to price in an excessively negative scenario, in my opinion. As macro conditions eventually stabilize, Carl Zeiss’ long-term growth story should regain momentum. Analysts expect the top-line growth here to hover near double digits for the foreseeable future. Accordingly, the average analyst expects 40% upside in one year.
JinkoSolar (JKS)
Source: Lutsenko_Oleksandr / Shutterstock.com
As one of the largest solar module suppliers globally, JinkoSolar (NYSE:JKS) operates an integrated production network spanning silicon wafers to solar modules. However, negative market sentiment due to Chinese regulatory risks has driven JKS stock down over 60% from 2022 highs, now trading at just 3-times forward earnings. This seems like a huge overreaction, creating a compelling bargain buy for long-term investors.
First things first, the company’s revenue growth is above 50%, as of the latest quarter. JinkoSolar beat analyst estimates for revenue by a massive $210 million, and beat on its earnings per share number ($5.78 compared to estimates of $3.52)! JKS has demonstrated outstanding execution, even amidst challenging conditions. The company also reported 65.6% sequential growth in net income, driven by a 36% jump in solar module shipments. Its next-gen N-type modules already comprise 58% of shipments, underscoring its technology leadership. JKS expects N-type to reach 60-65% of shipments in the coming quarters.
With fully integrated operations spanning silicon ingots to solar modules, JKS enjoys significant cost advantages relative to non-integrated peers. Its global manufacturing footprint extends throughout China, Southeast Asia, and the U.S. This footprint allows JinkoSolar the flexibility to navigate regulatory risks and tariffs. Currently, the company sees no impact from the recent U.S. ban on Chinese solar imports.
Looking ahead, JinkoSolar issued upbeat guidance expecting full-year module shipments of 70-75 GW, implying over 25% growth. Its mass production capabilities for next-gen high-efficiency N-type modules should support continued market share gains. Trading at just 0.09-times sales and 3-times forward earnings, JKS stock is undoubtedly among the most undervalued solar stocks now. This creates a very compelling risk-reward proposition for investors who can look past short-term volatility.
Advance Auto Parts (AAP)
Source: James R. Martin / Shutterstock
Advance Auto Parts (NYSE:AAP) operates a network of over 4,790 auto parts stores, catering to both retail do-it-yourself customers and professional installers. The company has faced margin headwinds this year from elevated inflation and investments to improve parts availability. This led to a 66%+ decline in AAP stock price from 52-week highs. However, I believe the market has overreacted, and AAP stock looks like among the most undervalued options among its peers right now.
In Q2 results, Advanced Auto Parts delivered positive net sales growth despite comparable store sales dipping 0.6%. Importantly, sales trends improved sequentially, with comparable store sales slightly increasing over the last four weeks. The company is seeing traction from initiatives to boost parts availability and maintain competitive pricing. Supply chain investments are also helping improve inventory close rates.
Looking ahead, powerful secular tailwinds should drive accelerating demand for auto parts. The average age of vehicles on U.S. roads is at a record high today. Plus, high inflation means fewer consumers can afford new car purchases, necessitating higher spending on maintenance and repairs.
Meanwhile, Advanced Auto Parts is continuing its pivot towards higher-margin-owned brands, which should support gross margin improvement over time. The company does face near-term headwinds from elevated costs and its pricing strategy. However, Advanced Auto Parts has targeted significant improvements through supply chain optimization, cost savings, and asset productivity. While growth in 2023 will likely be muted, the long-term growth story remains intact. The current undervaluation with AAP stock provides an attractive entry point for investors.
Farmers and Merchants Bank of Long Beach (FMBL)
Source: shutterstock.com/marozhka studio
Farmers and Merchants Bank of Long Beach (OTCMKTS:FMBL) is a community bank operating in California since 1907. The outlook for regional banks has weakened considerably amidst economic uncertainty, sending FMBL stock down close to 36% from 52-week highs. However, this excessive pessimism has created a buying opportunity in this high-quality regional bank.
Despite the tough operating environment, I expect a strong recovery over the long-run. For now, the rising rate environment will impact near-term profitability. And unfortunately, there is little to analyze with this stock, due to its size.
However, as per Gurufocus’ model, they believe FMBL’s fair price will be at $8,000 by the end of this year and believe the stock is significantly undervalued.
Regardless, FMBL maintains a rock-solid balance sheet. As per its latest Q2 release, “…Farmers & Merchants Bank’s total risk-based capital ratio was 16.93%; its tier 1 risk-based capital ratio was 15.68%, with a common equity tier 1 capital ratio of 15.68%, and a tier 1 leverage ratio of 10.86%. The minimum ratios for capital adequacy for a well-capitalized bank are 10.00%, 8.00%, 6.50% and 5.00%, respectively.” Thus, while many regional banks are struggling, FMBL seems well-positioned to weather near-term headwinds.
Trading at just 0.48-times on a price-to-tangible-book value basis, and 7-times forward earnings, FMBL stock is undoubtedly cheap for a profitable bank of its caliber. The stock also offers an attractive dividend yield of 2.2%. While risks exist in this uncertain environment, the risk-reward now seems skewed positively for long-term investors, adding exposure at current levels.
Insulet Corporation (PODD)
Source: Roman Zaiets / Shutterstock.com
Shares of Insulet Corporation (NASDAQ:PODD) have plunged by nearly 47% since May despite the medical device company beating estimates and delivering stellar top and bottom line growth in its most recent quarter. Insulet is the maker of the Omnipod system for diabetes management. The stock’s steep decline reflects worries that new diabetes drugs like Eli Lilly’s (NYSE:LLY) Mounjaro could have a major negative impact on Insulet’s insulin pump business.
However, I believe these competitive concerns are overexaggerated. Insulet just reported record revenue in Q2, up 32.4% year-over-year. Its flagship Omnipod 5 product saw U.S. sales surge 41%. The company is also expanding Omnipod 5’s rollout internationally. Though new medication options may modestly dampen pump demand, Insulet still has an incredible opportunity to grow over the long-term, as its diabetes tech platform continues taking market share.
Even if we assume the company takes a significant hit from new competition, Insulet’s current valuation reflects an overly dire scenario. Shares trade at just 55-times forward earnings with a price-to-sales ratio of 8-times. That suggests the market expects minimal growth, an unlikely outcome given Omnipod 5’s early success and the still highly underpenetrated insulin pump market. Insulet also has a pristine balance sheet to lean on during any temporary slowdown.
Innovative Industrial Properties (IIPR)
Source: Shutterstock
Innovative Industrial Properties (NYSE:IIPR) has faced its own struggles over the past two years. Shares are down almost 70% from its peak. The cannabis industry-focused REIT has dealt with tenant struggles, including some missed rental payments. Investors worried about the shaky financial health of IIPR’s cannabis tenants have clearly been dumping this stock.
However, the worst seems behind for Innovative Industrial Properties. Collections have improved, after the company negotiated lease amendments with distressed tenants. IIPR is also being more conservative with capital deployment in the current environment. Additionally, its existing properties support an attractive dividend, which was recently increased by 11% year-over-year.
With tailwinds from broader cannabis legalization still ahead, IIPR’s experienced management team is positioned to drive growth for years to come. The REIT collects very high yields on its properties, given cannabis companies’ limited access to traditional financing. Once capital markets normalize, demand for IIPR’s specialized facilities should reignite.
After substantial multiple compression, Innovative Industrial Properties trades at just 11-times forward FFO, a massive discount to historical valuations. The stock appears positioned for a gradual turnaround as financial conditions improve industry-wide.
FMC Corporation (FMC)
Source: Shutterstock
FMC Corporation (NYSE:FMC), a diversified chemical company, has also endured steep valuation multiple contraction in 2023. Shares are down 40% year-to-date and trade near 5-year lows. The stock swoon reflects FMC’s expectation for a 9% revenue decline this year, driven by reduced pesticide demand. However, this headwind is temporary.
Wall Street analysts forecast FMC will deliver 7.7% revenue growth in 2024 as agricultural markets stabilize. Over the long term, FMC should achieve around 5% annual growth thanks to its robust product pipeline and strategic pivot toward higher-value offerings. Margin expansion will also likely accompany revenue growth.
Despite the difficult operating environment, FMC continues generating solid cash flows. Its dividend yield sits at an attractive 3% after 5 straight years of payout hikes. At only 12-times forward earnings, FMC stock reflects undue pessimism about its future prospects. The company has successfully navigated prior industry downturns. Once macro conditions improve, FMC’s discounted valuation sets up a substantial upside. The consensus price target is at $110, implying over 47% upside in one year’s time.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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The post The 7 Most Undervalued Stocks in the Market Right Now: September 2023 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) Source: James R. Martin / Shutterstock Advance Auto Parts (NYSE:AAP) operates a network of over 4,790 auto parts stores, catering to both retail do-it-yourself customers and professional installers. This led to a 66%+ decline in AAP stock price from 52-week highs. However, I believe the market has overreacted, and AAP stock looks like among the most undervalued options among its peers right now.
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Advance Auto Parts (AAP) Source: James R. Martin / Shutterstock Advance Auto Parts (NYSE:AAP) operates a network of over 4,790 auto parts stores, catering to both retail do-it-yourself customers and professional installers. This led to a 66%+ decline in AAP stock price from 52-week highs. However, I believe the market has overreacted, and AAP stock looks like among the most undervalued options among its peers right now.
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Advance Auto Parts (AAP) Source: James R. Martin / Shutterstock Advance Auto Parts (NYSE:AAP) operates a network of over 4,790 auto parts stores, catering to both retail do-it-yourself customers and professional installers. This led to a 66%+ decline in AAP stock price from 52-week highs. However, I believe the market has overreacted, and AAP stock looks like among the most undervalued options among its peers right now.
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Advance Auto Parts (AAP) Source: James R. Martin / Shutterstock Advance Auto Parts (NYSE:AAP) operates a network of over 4,790 auto parts stores, catering to both retail do-it-yourself customers and professional installers. This led to a 66%+ decline in AAP stock price from 52-week highs. However, I believe the market has overreacted, and AAP stock looks like among the most undervalued options among its peers right now.
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10616.0
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2023-09-15 00:00:00 UTC
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Is Advance Auto Parts Stock a Buy?
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AAP
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https://www.nasdaq.com/articles/is-advance-auto-parts-stock-a-buy-0
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nan
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nan
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While technology companies, particularly those with exposure to artificial intelligence, have received all the attention lately, some investors might be looking at more under-the-radar names to find some worthy ideas. Maybe Advance Auto Parts (NYSE: AAP) has caught your eye recently.
This aftermarket auto parts retailer currently trades at a price-to-earnings ratio of just 10. That depressed valuation shouldn't be surprising, given that the stock has tanked 65% in the past five years.
Value-focused investors who are considering buying shares right now should think twice, however. Here's why it's probably best to stay away from Advance Auto Parts.
A troubled history
To see a stock that has dropped so much in the past five years, especially in comparison to the 55% gain of the S&P 500, is alarming for sure. This type of terrible performance typically only happens if the business is posting weak financial results, which is exactly what Advance Auto Parts has been doing.
During the five-year period between 2017 and 2022, the company's revenue only increased at a 3.5% annualized pace, with net income rising at a paltry 1.1% clip. These poor results occurred mainly during the involvement of Starboard Value, a prominent activist investment firm that tried to fix the issues. Starboard took a stake in Advance Auto Parts in late 2015 with the goal of expanding margins to get them in line with peers. This project failed to result in the intended changes, and the investor completely exited its position in 2021.
And just in the most recent quarter, Advance Auto Parts' same-store sales declined 0.6%. Management also downgraded the guidance for the full-year operating margin, now expecting it to come in between 4% and 4.3%. The company cut its dividend, and the leadership team announced a strategic review to assess the direction of the business. It's no wonder the stock is down 61% this year alone.
An inferior industry player
Advance Auto Parts' struggles are even more disappointing when analyzing its more successful peers in the industry, Autozone and O'Reilly Automotive. In the last five years, the former's stock price has soared 231%, while the latter's has jumped 166%. They are clearly doing something right.
Autozone and O'Reilly have seen their revenue increase at compound annual rates of 8.3% and 9.9%, respectively, in their last five fiscal years. And both have been able to grow diluted earnings per share at an even faster rate, greater than 21% per year. This strong fundamental performance is key to why their share prices have gone up so much. Moreover, both of these industry heavyweights possess financial and operational prowess, as their stellar profit margins and ability to generate free cash flow indicate.
This industry doesn't require game-changing or disruptive capabilities to succeed, so there isn't a need for a true visionary of a leader who has grand ambitions about introducing new products or services to the market. That's certainly characteristic of the internet sector.
On the contrary, this is auto parts retailing, a boring and stable industry that relies more on operational excellence than being innovative. This basic reality should make one scratch their head at Advance Auto Parts' shortcomings. Perhaps the company's problem has simply been that its management team has failed over and over again. A new CEO, Shane O'Kelly, has now taken over the leadership position. The rational thing to do would be to just copy what the two thriving rivals are doing. And then maybe the business will start to head in the right direction. But there's too much uncertainty with this outcome, and it's reasonable to assume that the bad times will keep on rolling.
There's a lot to dislike about Advance Auto Parts. And as a result, I think investors would be better off if they just avoided the stock altogether. But if there's still an interest in investing in this industry, Autozone and O'Reilly, which have clearly shown that they can reward shareholders, should definitely be on your radar.
10 stocks we like better than Advance Auto Parts
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of September 11, 2023
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Maybe Advance Auto Parts (NYSE: AAP) has caught your eye recently. While technology companies, particularly those with exposure to artificial intelligence, have received all the attention lately, some investors might be looking at more under-the-radar names to find some worthy ideas. During the five-year period between 2017 and 2022, the company's revenue only increased at a 3.5% annualized pace, with net income rising at a paltry 1.1% clip.
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Maybe Advance Auto Parts (NYSE: AAP) has caught your eye recently. And just in the most recent quarter, Advance Auto Parts' same-store sales declined 0.6%. An inferior industry player Advance Auto Parts' struggles are even more disappointing when analyzing its more successful peers in the industry, Autozone and O'Reilly Automotive.
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Maybe Advance Auto Parts (NYSE: AAP) has caught your eye recently. 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them!
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Maybe Advance Auto Parts (NYSE: AAP) has caught your eye recently. Here's why it's probably best to stay away from Advance Auto Parts. It's no wonder the stock is down 61% this year alone.
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10617.0
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2023-09-15 00:00:00 UTC
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Friday 9/15 Insider Buying Report: AAP, VIRT
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AAP
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https://www.nasdaq.com/articles/friday-9-15-insider-buying-report%3A-aap-virt
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nan
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nan
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As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. So let's look at two noteworthy recent insider buys.
At Advance Auto Parts, a filing with the SEC revealed that on Wednesday, Director Eugene I. Lee Jr. bought 8,670 shares of AAP, at a cost of $57.65 each, for a total investment of $499,818. So far Lee Jr. is in the green, up about 6.0% on their purchase based on today's trading high of $61.10. Advance Auto Parts is trading up about 1.2% on the day Friday. Before this latest buy, Lee Jr. made one other purchase in the past twelve months, buying $500,160 shares at a cost of $65.51 a piece.
And also on Wednesday, Co-President & Co-COO Joseph Molluso purchased $257,481 worth of Virtu Financial, purchasing 15,000 shares at a cost of $17.17 each. This buy marks the first one filed by Molluso in the past year. Virtu Financial is trading off about 1.5% on the day Friday. So far Molluso is in the green, up about 4.7% on their buy based on today's trading high of $17.98.
VIDEO: Friday 9/15 Insider Buying Report: AAP, VIRT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At Advance Auto Parts, a filing with the SEC revealed that on Wednesday, Director Eugene I. Lee Jr. bought 8,670 shares of AAP, at a cost of $57.65 each, for a total investment of $499,818. VIDEO: Friday 9/15 Insider Buying Report: AAP, VIRT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. So far Lee Jr. is in the green, up about 6.0% on their purchase based on today's trading high of $61.10.
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At Advance Auto Parts, a filing with the SEC revealed that on Wednesday, Director Eugene I. Lee Jr. bought 8,670 shares of AAP, at a cost of $57.65 each, for a total investment of $499,818. VIDEO: Friday 9/15 Insider Buying Report: AAP, VIRT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. So far Lee Jr. is in the green, up about 6.0% on their purchase based on today's trading high of $61.10.
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VIDEO: Friday 9/15 Insider Buying Report: AAP, VIRT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. At Advance Auto Parts, a filing with the SEC revealed that on Wednesday, Director Eugene I. Lee Jr. bought 8,670 shares of AAP, at a cost of $57.65 each, for a total investment of $499,818. Before this latest buy, Lee Jr. made one other purchase in the past twelve months, buying $500,160 shares at a cost of $65.51 a piece.
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At Advance Auto Parts, a filing with the SEC revealed that on Wednesday, Director Eugene I. Lee Jr. bought 8,670 shares of AAP, at a cost of $57.65 each, for a total investment of $499,818. VIDEO: Friday 9/15 Insider Buying Report: AAP, VIRT The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money.
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10618.0
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2023-09-15 00:00:00 UTC
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3 Great Dividend Stocks You Can Buy for Less Than $50
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AAP
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https://www.nasdaq.com/articles/3-great-dividend-stocks-you-can-buy-for-less-than-%2450-7
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nan
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nan
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Historically, stocks that sell for less than $50 a share tend not to be an ideal pond to fish in for dividend growth investments. However, the three businesses in this article are the exception to this hypothesis.
Consider Kroger (NYSE: KR) and Rollins (NYSE: ROL). Executing five 2-for-1 stock splits and eight 1.5-for-1 stock splits, respectively, the companies have low share prices despite posting total returns that have outpaced the S&P 500 index since the 1990s. Meanwhile, Kenvue (NYSE: KVUE) was recently spun off from healthcare behemoth Johnson & Johnson, leaving the newly public company with a temporarily puny share price.
Thanks to these events, these three businesses may prove that great dividend stocks are available for less than $50 -- even if they are somewhat rare finds.
Here's what makes them fantastic bedrock investments to hold forever.
1. The market's uncertainty on Kroger could be your opportunity
As the second-largest grocer in the U.S. (behind only Walmart), Kroger may sound like a dull pick, even for dividend growth investors. However, several unfolding developments potentially give the grocer some market-beating catalysts.
First, Kroger's pending $25 billion acquisition of Albertsons and its 2,200 grocery stores would nearly double its store count to about 4,500 locations after a planned divestiture and sale of some stores to C&S Wholesale Grocers. Should this merger be completed in 2024, it would combine the 27th and 31st-largest retail brands in 2022, creating a powerhouse grocer with roughly half the sales of Walmart's grocery operations. Aiming for the deal to boost earnings per share (EPS) immediately, management also expects the purchase to generate about $1 billion in cost synergies over the first four years.
Second, Kroger's other businesses -- precision marketing, personal finance (rewards cards and gift cards), insights, real estate, and ventures -- reached $1.2 billion in operating profit in 2022. These high-margin sales are critical for Kroger and they have already grown to account for an impressive portion of its $3 billion average operating profit during the past five years. The company is launching a new in-house advertising platform in the second quarter, so these alternative profit streams are poised for further growth as brands jockey to reach the 60 million households that shop at Kroger annually.
Best yet, the company's 2.3% dividend is well above its average since 2019.
Data source: YCharts.
Furthermore, its enterprise-value-to-free-cash-flow (EV/FCF) ratio is well below its average over the same time, highlighting the market's uncertainty around the company. However, armed with the immense potential of a successful merger with Albertsons, a business with high-margin alternative profit streams, and 15 consecutive years of dividend growth, Kroger is a fascinating bedrock stock with added upside.
2. Rollins: A serial acquirer in a recession-proof industry
Through its 800 owned and franchised locations, Rollins offers its residential and commercial customers pest control services ranging from rodents and wildlife to insects and termites. As boring as this sounds for an investment proposition, the serial acquirer has seen its total return more than quintuple over the past decade.
Making 115 acquisitions since the start of 2020 (including nine in the second quarter of 2023 alone), Rollins is masterful at deploying the immense amounts of free cash flow (FCF) -- cash flow after expenses for capital maintenance and improvements -- it generates. Actively consolidating its fragmented industry, Rollins has delivered a cash return on invested capital (ROIC) of 33%, highlighting how incredibly well it drives FCF creation via its many acquisitions.
Cash ROIC measures a company's FCF generation compared to its debt and equity, meaning that higher figures show outsized returns on capital deployed. High ROICs are vital for investors, as stocks in the top quintile of highest ROICs have outperformed their peers. Rollins ranks in the top 50 among the S&P 500 when sorting by this metric, showing that the odds are in its favor to keep beating the market.
Best yet for investors, the pest control market is virtually recession-proof, as the company saw sales grow by 5% and 7% across the Great Recession and the pandemic, respectively. While the company trades at a lofty 38 times FCF, its 8% and 20% annualized growth rates for revenue and FCF over the past decade show its ability to live up to a premium valuation. After dropping 20% from its 52-week highs, Rollins' 1.4% dividend yield is its highest since 2014, indicating that now may be a great time to dollar-cost average (DCA) into this steady-Eddie.
3. Kenvue: A 3.8% dividend and a multitude of No. 1 brands
Home to seven global No.1 brands in their product category, recently spun-off Kenvue is a powerhouse of internationally recognizable brands such as Tylenol, Nicorette, Zyrtec, Neutrogena, Listerine, Johnson's, and Band-Aid. Despite these robust brands (not to mention 36 others that are No. 1 in their specific regions), the market has seemingly cast aside Kenvue after its spinoff from Johnson & Johnson.
Now down 21% from its all-time highs, the company is an under-the-radar dividend play for investors. Kenvue paid a yield of 3.8% after announcing its first quarterly dividend of $0.2, but many financial websites still show Kenvue with a dividend yield of 0.9%, as it has only made its first quarterly payment. These weird little discrepancies often make recently spun-off companies attractive, as the market occasionally ignores or doesn't understand them.
However, the folks running the S&P 500 announced in late August that Kenvue would be replacing Advance Auto Parts in its index. This is of interest to investors because it means institutions that operate tracking funds that mirror the S&P 500 index must buy the shares, potentially providing the company with a lift over the next year or two.
This short-term catalyst pairs nicely with the longevity of the company's array of brands and the recession-proof nature of the consumer health industry. Trading at about 15 times forward FCF, Kenvue's 3.8% dividend should handsomely reward shareholders as it inches sales up by 3% to 5% annually -- making this bedrock business a great, hidden dividend buy for less than $50.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rollins and Walmart. The Motley Fool recommends Johnson & Johnson and Kroger. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company is launching a new in-house advertising platform in the second quarter, so these alternative profit streams are poised for further growth as brands jockey to reach the 60 million households that shop at Kroger annually. However, armed with the immense potential of a successful merger with Albertsons, a business with high-margin alternative profit streams, and 15 consecutive years of dividend growth, Kroger is a fascinating bedrock stock with added upside. Actively consolidating its fragmented industry, Rollins has delivered a cash return on invested capital (ROIC) of 33%, highlighting how incredibly well it drives FCF creation via its many acquisitions.
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However, armed with the immense potential of a successful merger with Albertsons, a business with high-margin alternative profit streams, and 15 consecutive years of dividend growth, Kroger is a fascinating bedrock stock with added upside. Actively consolidating its fragmented industry, Rollins has delivered a cash return on invested capital (ROIC) of 33%, highlighting how incredibly well it drives FCF creation via its many acquisitions. The Motley Fool recommends Johnson & Johnson and Kroger.
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The market's uncertainty on Kroger could be your opportunity As the second-largest grocer in the U.S. (behind only Walmart), Kroger may sound like a dull pick, even for dividend growth investors. However, armed with the immense potential of a successful merger with Albertsons, a business with high-margin alternative profit streams, and 15 consecutive years of dividend growth, Kroger is a fascinating bedrock stock with added upside. Trading at about 15 times forward FCF, Kenvue's 3.8% dividend should handsomely reward shareholders as it inches sales up by 3% to 5% annually -- making this bedrock business a great, hidden dividend buy for less than $50.
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Best yet, the company's 2.3% dividend is well above its average since 2019. 1 brands Home to seven global No.1 brands in their product category, recently spun-off Kenvue is a powerhouse of internationally recognizable brands such as Tylenol, Nicorette, Zyrtec, Neutrogena, Listerine, Johnson's, and Band-Aid. Trading at about 15 times forward FCF, Kenvue's 3.8% dividend should handsomely reward shareholders as it inches sales up by 3% to 5% annually -- making this bedrock business a great, hidden dividend buy for less than $50.
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10619.0
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2023-09-14 00:00:00 UTC
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November 17th Options Now Available For Advance Auto Parts (AAP)
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AAP
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https://www.nasdaq.com/articles/november-17th-options-now-available-for-advance-auto-parts-aap
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nan
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nan
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 17th contracts and identified one put and one call contract of particular interest.
The put contract at the $55.00 strike price has a current bid of $2.75. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $55.00, but will also collect the premium, putting the cost basis of the shares at $52.25 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $58.81/share today.
Because the $55.00 strike represents an approximate 6% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 5.00% return on the cash commitment, or 28.50% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $55.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $60.00 strike price has a current bid of $4.10. If an investor was to purchase shares of AAP stock at the current price level of $58.81/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $60.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.00% if the stock gets called away at the November 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red:
Considering the fact that the $60.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.97% boost of extra return to the investor, or 39.73% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $58.81) to be 56%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
USEG Videos
PER Options Chain
POOL Dividend Growth Rate
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 17th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 17th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 17th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 17th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAP's trailing twelve month trading history, with the $60.00 strike highlighted in red: Considering the fact that the $60.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the November 17th expiration.
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10620.0
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2023-09-14 00:00:00 UTC
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Will AutoZone (AZO) Sustain Its Beat Streak in Q4 Earnings?
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AAP
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https://www.nasdaq.com/articles/will-autozone-azo-sustain-its-beat-streak-in-q4-earnings
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nan
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nan
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AutoZone AZO is slated to release fourth-quarter fiscal 2023 results on Sep 19, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at $44.53 per share and $5.59 billion, respectively.
The Zacks Consensus Estimate for AZO’s fiscal fourth-quarter earnings per share has moved 16 cents south in the past seven days. The bottom-line projection, however, indicates year-over-year growth of 9.9%. The Zacks Consensus Estimate for quarterly revenues implies a 4.6% rise from the prior-year level.
The automotive parts retailer posted better-than-anticipated results in the last reported quarter. Earnings of $34.12 per share improved 17.5% from the prior-year figure and topped the Zacks Consensus Estimate of $30.84. Over the trailing four quarters, the company surpassed earnings estimates on all occasions, the average being 10.22%. This is depicted in the graph below:
AutoZone, Inc. Price and EPS Surprise
AutoZone, Inc. price-eps-surprise | AutoZone, Inc. Quote
What Does Our Model Say?
Our proven model predicts an earnings beat for AutoZone this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: AutoZone has an Earnings ESP of +3.57%. This is because the Most Accurate Estimate is pegged $1.59 higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: AutoZone currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Things to Note
Sales growth in both retail DIY (‘Do-It-Yourself) and commercial DIFM (‘Do-It-For-Me) businesses is likely to have boosted the firm’s revenues during the to-be-reported quarter. AutoZone’s omni-channel efforts to improve customer shopping experiences are reaping profits. The company’s e-commerce efforts that are driving traffic to its website are likely to have positively impacted performance in the fourth quarter of fiscal 2023. We expect comps to grow 3.2% during the quarter under discussion, higher than 1.9% in the fiscal third quarter of 2023. Our projection for domestic store sales is pegged at $4.9 billion, implying an uptick of around 5% year over year.
Store expansion initiatives, fast delivery and high-quality products are also anticipated to have positively impacted the company’s top line in the fiscal fourth quarter. We expect the total store count at the end of the to-be-reported quarter to be 7,135, calling for a jump from the year-ago period’s 6,943.
However, doubling down on expansion with the opening of new distribution centers, mega hubs and stores might have strained near-term financials and operating margins. Further, AutoZone’s technology investments to improve the electronic catalog might have limited cash inflows in the to-be-reported quarter.
Peer Releases
O’Reilly Automotive, Inc. ORLY reported second-quarter 2023 results on Jul 26. Its adjusted earnings per share of $10.22 beat the Zacks Consensus Estimate of $10.05. The bottom line increased from $8.78 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4,069 million, beating the Zacks Consensus Estimate of $3,990 million. The top line increased 11% year over year. The total store count was 6,071 as of Jun 30, 2023.
ORLY had cash and cash equivalents of $57.9 million at the end of the reported quarter, down from $108.6 million recorded as of 2022-end. Its long-term debt was $4,873.7 million, higher than $4,371.6 million as of Dec 31, 2022.
Advance Auto Parts, Inc. AAP reported second-quarter 2023 results on Aug 23. Its adjusted earnings of $1.43 per share declined 62% from the year-ago quarter's figure. The reported figure also fell short of the Zacks Consensus Estimate of $1.72 per share. Advance Auto generated net revenues of $2,686 million, which topped the Zacks Consensus Estimate of $2,671 million and increased 0.8% year over year.
Advance Auto had cash and cash equivalents of $277.1 million as of Jul 15, 2023, compared with $269.3 million on Dec 31, 2023. Total long-term debt was $1,785.1 million as of Jul 15, 2023, up from $1,188.3 million on Dec 31, 2022.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
4 Oil Stocks with Massive Upsides
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In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
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O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
AutoZone, Inc. (AZO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc. AAP reported second-quarter 2023 results on Aug 23. Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for AZO’s fiscal fourth-quarter earnings per share has moved 16 cents south in the past seven days.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP reported second-quarter 2023 results on Aug 23. The automotive parts retailer registered quarterly revenues of $4,069 million, beating the Zacks Consensus Estimate of $3,990 million.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP reported second-quarter 2023 results on Aug 23. The automotive parts retailer registered quarterly revenues of $4,069 million, beating the Zacks Consensus Estimate of $3,990 million.
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Advance Auto Parts, Inc. AAP reported second-quarter 2023 results on Aug 23. Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report To read this article on Zacks.com click here. Earnings of $34.12 per share improved 17.5% from the prior-year figure and topped the Zacks Consensus Estimate of $30.84.
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10621.0
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2023-09-13 00:00:00 UTC
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Stocks Tread Water Before the Open as U.S. Inflation Data Looms
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AAP
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https://www.nasdaq.com/articles/stocks-tread-water-before-the-open-as-u.s.-inflation-data-looms
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nan
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nan
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September S&P 500 futures (ESU23) are down -0.02%, and September Nasdaq 100 E-Mini futures (NQU23) are down -0.04% this morning as market participants geared up for a key U.S. consumer inflation report that is anticipated to provide further insights into the Federal Reserve’s next steps.
In Tuesday’s trading session, Wall Street’s major averages closed lower. Oracle Corporation (ORCL) tumbled over -13% and was the top percentage loser on the benchmark S&P 500 after the IT services giant’s first-quarter report showed a slowdown in cloud revenue, while its quarterly sales fell short of expectations. Also, Advance Auto Parts Inc (AAP) slid more than -8% after S&P Global Ratings downgraded the auto parts retailer’s credit and debt ratings to “junk” status. In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. On the bullish side, WestRock Co (WRK) climbed more than +2% after agreeing to merge with Europe’s Smurfit Kappa to form a $20 billion packaging giant. Energy stocks also gained ground as the price of WTI crude rose over +1% to a nearly 10-month high.
“People are a little bit worried about energy prices picking up pretty aggressively in recent weeks, and that creates some concerns as we look forward to November when some investors worry Federal Reserve policymakers may raise rates again,” said Thomas Hayes, chairman at Great Hill Capital LLC.
Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at September’s monetary policy meeting and a 38.2% probability of a 25 basis point rate hike at the November meeting.
Today, all eyes are focused on the U.S. consumer inflation report in a couple of hours. Economists, on average, forecast that August U.S. CPI will come in at +0.6% m/m and +3.6% y/y, compared to the previous values of +0.2% m/m and +3.2% y/y.
Also, investors will likely focus on U.S. Core CPI data. Economists anticipate Core CPI to be +0.2% m/m and +4.3% y/y in August, compared to the previous figures of +0.2% m/m and +4.7% y/y.
U.S. Crude Oil Inventories data will be reported today as well. Economists estimate this figure to be -1.912M, compared to last week’s value of -6.307M.
In the bond markets, United States 10-year rates are at 4.307%, up +0.99%.
The Euro Stoxx 50 futures are down -0.61% this morning as investors digested disappointing U.K. growth numbers while gearing up for a crucial U.S. inflation report due later in the day. Losses in technology stocks are leading the overall market lower. Data from the Office for National Statistics revealed on Wednesday that the U.K.’s economy experienced an unexpectedly sharp contraction in July, with strikes in hospitals and schools, along with unusually rainy weather, exerting downward pressure on output. Meanwhile, market participants increased wagers on European Central Bank policy tightening at its meeting on Thursday following a Reuters report indicating the central bank’s anticipation of inflation remaining above 3% next year. In corporate news, Aviva Plc (AV-.LN) rose over +2% after the British insurer announced its withdrawal from the Singlife joint venture and the sale of its 25.9% stake in Singapore Life Holdings, along with two debt instruments to Sumitomo Life.
U.K.’s GDP, U.K.’s Industrial Production, U.K.’s Manufacturing Production, U.K.’s Monthly GDP 3M/3M Change, and Eurozone’s Industrial Production data were released today.
U.K. July GDP has been reported at -0.5% m/m and 0.0% y/y, weaker than expectations of -0.2% m/m and +0.4% y/y.
U.K. July Industrial Production stood at -0.7% m/m and +0.4% y/y, weaker than expectations of -0.6% m/m and +0.5% y/y.
U.K. July Manufacturing Production came in at -0.8% m/m and +3.0% y/y, stronger than expectations of -1.0% m/m and +2.7% y/y.
U.K. July Monthly GDP 3M/3M Change was at +0.2%, weaker than expectations of +0.3%.
Eurozone July Industrial Production arrived at -1.1% m/m and -2.2% y/y, weaker than expectations of -0.7% m/m and -0.3% y/y.
Asian stock markets today settled in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.45%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.21%.
China’s Shanghai Composite today closed lower as investors awaited further indications of stimulus measures to support the world’s second-largest economy while also bracing for key U.S. inflation data. A BofA Securities survey on Asia fund managers revealed that sentiment regarding China remains lackluster. “Easing expectations abound, but the sustained lack of a concerted action has pushed risk appetite to rock bottom,” the survey said. Meanwhile, information technology, semiconductor, and new energy stocks lost ground Wednesday. On the positive side, Chinese property developers outperformed after beleaguered developer Country Garden Holdings Co Ltd won creditor support to extend repayment on seven yuan bonds. Investor attention for the week is centered on the crucial data releases of Chinese retail sales and industrial production for August, due on Friday.
Japan’s Nikkei 225 Stock Index closed slightly lower today as investors exercised caution while awaiting crucial U.S. inflation data. Data on Wednesday showed that Japan’s annual wholesale inflation decelerated in August for an eighth consecutive month. Separately, a Reuters poll indicated that business confidence in the country’s largest firms decreased in early September, reflecting mounting apprehensions about a slowdown in China, one of Japan’s biggest export markets. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed up +1.54% to 16.48.
The Japanese August PPI stood at +0.3% m/m and +3.2% y/y, compared to expectations of +0.1% m/m and +3.2% y/y.
Pre-Market U.S. Stock Movers
Workhorse Group Inc (WKHS) surged over +22% in pre-market trading after the company announced that it had received IRS approval as a qualified manufacturer for the Commercial Clean Vehicle Credit under the terms of the Internal Revenue Code.
Rocket Pharmaceuticals Inc (RCKT) soared more than +18% in pre-market trading after announcing that alignment has been reached with the Food and Drug Administration on the global Phase 2 pivotal trial of RP-A501 for Danon Disease.
Ford Motor Company (F) rose over +1% in pre-market trading after UBS initiated coverage of the stock with a Buy rating.
Squarespace Inc (SQSP) slid more than -3% in pre-market trading after the company priced a secondary underwritten public offering of 5 million shares of its Class A common stock.
Eiger Biopharmaceuticals Inc (EIGR) plunged over -34% in pre-market trading after the company said it would stop its late-stage trial of peginterferon lambda in patients with chronic hepatitis D.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Wednesday - September 13th
Burford (BUR), Cracker Barrel Old (CBRL), Semtech (SMTC), Rev Group (REVG), IBEX (IBEX), Radiant (RLGT), Selectquote (SLQT).
More Stock Market News from Barchart
Stocks Retreat as Tech Stocks Fall on Weakness in Oracle and Apple
1 Stock to Buy Now for the Aluminum Price Recovery
3 AI Chip Stocks to Buy Instead of the Arm IPO
Should You Buy Nio Stock on the Dip?
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, Advance Auto Parts Inc (AAP) slid more than -8% after S&P Global Ratings downgraded the auto parts retailer’s credit and debt ratings to “junk” status. In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. Oracle Corporation (ORCL) tumbled over -13% and was the top percentage loser on the benchmark S&P 500 after the IT services giant’s first-quarter report showed a slowdown in cloud revenue, while its quarterly sales fell short of expectations.
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Also, Advance Auto Parts Inc (AAP) slid more than -8% after S&P Global Ratings downgraded the auto parts retailer’s credit and debt ratings to “junk” status. In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. Meanwhile, U.S. rate futures have priced in a 7.0% probability of a 25 basis point rate increase at September’s monetary policy meeting and a 38.2% probability of a 25 basis point rate hike at the November meeting.
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Also, Advance Auto Parts Inc (AAP) slid more than -8% after S&P Global Ratings downgraded the auto parts retailer’s credit and debt ratings to “junk” status. In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. U.K.’s GDP, U.K.’s Industrial Production, U.K.’s Manufacturing Production, U.K.’s Monthly GDP 3M/3M Change, and Eurozone’s Industrial Production data were released today.
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Also, Advance Auto Parts Inc (AAP) slid more than -8% after S&P Global Ratings downgraded the auto parts retailer’s credit and debt ratings to “junk” status. In addition, Apple Inc (AAPL) fell over -1% after the tech giant unveiled the new iPhone 15 product line and the next generation of Apple Watch. Japan’s Nikkei 225 Stock Index closed slightly lower today as investors exercised caution while awaiting crucial U.S. inflation data.
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10622.0
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2023-09-12 00:00:00 UTC
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Why Advance Auto Parts Stock Dived Today
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-stock-dived-today
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nan
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nan
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What happened
A credit rating downgrade is a tough blow for any company. After one was meted out to Advance Auto Parts (NYSE: AAP) on Tuesday, the company's share price sank by over 8%. That was notably worse than the S&P 500 index's dip of 0.6%.
So what
That downgrade came from ever-influential credit evaluator S&P Global Ratings. That company has tagged both Advance's issuer credit and unsecured debt with BBB- ratings, one peg below its former estimation of BB+ for the pair. That takes the auto retailer down from S&P Global Ratings' lowest rating of what it considers to be investment-grade debt, to the top tier of speculative grade.
In the press release announcing the downgrade, S&P Global Ratings laid out its reasons for the move. In its opinion, the retailer has not effectively improved its product availability and its inventory. The agency also characterized as "misguided" Advance's attempts to boost its profit margins and pointed out that its sales have been stagnant across the past 18 months. Some competitors, meanwhile, have seen double-digit rises.
S&P Global Ratings wrote in the press release that Advance's "strategic execution challenges have led to persistent underperformance, diminishing its competitive position and pressuring credit protection metrics."
Now what
This is only the latest hit Advance has had to absorb. S&P Global Ratings' criticism about stagnating revenue is accurate; while the company's profitability has eroded lately, its free cash flow (FCF) flipped into the red, and it just brought in a new CEO, Shane O'Kelly. This is a business that needs some good news; investors will be hoping this arrives sooner than later.
10 stocks we like better than Advance Auto Parts
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of September 11, 2023
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After one was meted out to Advance Auto Parts (NYSE: AAP) on Tuesday, the company's share price sank by over 8%. The agency also characterized as "misguided" Advance's attempts to boost its profit margins and pointed out that its sales have been stagnant across the past 18 months. S&P Global Ratings wrote in the press release that Advance's "strategic execution challenges have led to persistent underperformance, diminishing its competitive position and pressuring credit protection metrics."
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After one was meted out to Advance Auto Parts (NYSE: AAP) on Tuesday, the company's share price sank by over 8%. What happened A credit rating downgrade is a tough blow for any company. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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After one was meted out to Advance Auto Parts (NYSE: AAP) on Tuesday, the company's share price sank by over 8%. S&P Global Ratings wrote in the press release that Advance's "strategic execution challenges have led to persistent underperformance, diminishing its competitive position and pressuring credit protection metrics." 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen.
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After one was meted out to Advance Auto Parts (NYSE: AAP) on Tuesday, the company's share price sank by over 8%. So what That downgrade came from ever-influential credit evaluator S&P Global Ratings. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them!
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10623.0
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2023-09-12 00:00:00 UTC
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US STOCKS-Wall Street ends lower as Oracle tumbles on weak forecast
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AAP
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-lower-as-oracle-tumbles-on-weak-forecast
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nan
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nan
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By Noel Randewich and Ankika Biswas
Sept 12 (Reuters) - Wall Street stocks ended lower on Tuesday as Oracle shares tumbled more than 13% after a weak forecast and surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week.
Oracle ORCL.N shares dived to their lowest since June after the cloud-services provider forecast current-quarter revenue below targets and narrowly missed first-quarter expectations.
Cloud-computing heavyweights Amazon.com AMZN.O and Microsoft MSFT.O each fell more than 1%, pressured by Oracle's weak forecast and by a rise in U.S. Treasury yields.
Oil prices jumped more than 1%, building on a recent rally and stoking worries that sticky inflation could mean U.S. interest rates stay higher longer in the aftermath of strong economic data.
"People are a little bit worried about energy prices picking up pretty aggressively in recent weeks and that creates some concerns as we look forward to November" when some investors worry Federal Reserve policy makers may raise rates again, said Thomas Hayes, chairman at Great Hill Capital LLC.
Investors are awaiting August consumer price index data due on Wednesday and producer prices reading scheduled for Thursday to gauge the outlook for U.S. interest rates ahead of the Fed's meeting on Sept. 20.
Interest rate traders see a 93% chance of rates remaining at the current levels in September but just a 56% likelihood of a pause at the November meeting, according to the CME FedWatch Tool.
"All the all the inputs that we get between now and the November meeting will be important, especially those related to inflation. So that thrusts a lot of importance on tomorrow's CPI report," said Art Hogan, chief market strategist at B Riley Wealth.
Investors will also monitor the European Central Bank's policy decision on Thursday, when it is seen holding rates after nine consecutive hikes.
Apple AAPL.O dropped 1.8% after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. The stock was also hurt by a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%.
The S&P 500 declined 0.57% to end the session at 4,461.91 points.
The Nasdaq declined 1.04% to 13,773.62 points, while Dow Jones Industrial Average declined 0.05% to 34,645.99 points.
Of the 11 S&P 500 sector indexes, eight declined, led lower by information technology .SPLRCT, down 1.75%, followed by a 1.06% loss in communication services .SPLRCL. The energy index .SPNY added 2.31%.
Volume on U.S. exchanges was relatively light, with 9.4 billion shares traded, compared to an average of 9.9 billion shares over the previous 20 sessions.
The most traded stock in the S&P 500 was Tesla TSLA.OQ, with $36.7 billion worth of shares exchanged during the session. The electric car maker declined 2.23%.
WestRock WRK.N jumped 2.8% after agreeing to merge with Europe's Smurfit Kappa SKG.I to create the world's largest listed paper and packaging company, worth nearly $20 billion.
Advance Auto Parts AAP.N dropped about 8% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+).
Zions Bancorp ZION.Ojumped 6.8% after the U.S. regional lender posted a slight increase in its monthly net interest income growth.
Declining stocks outnumbered rising ones within the S&P 500 .AD.SPX by a 1.4-to-one ratio.
The S&P 500 posted 12 new highs and 14 new lows; the Nasdaq recorded 48 new highs and 184 new lows.
(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Arun Koyyur, Vinay Dwivedi and David Gregorio)
((noel.randewich@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O dropped 1.8% after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. Advance Auto Parts AAP.N dropped about 8% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). Oracle ORCL.N shares dived to their lowest since June after the cloud-services provider forecast current-quarter revenue below targets and narrowly missed first-quarter expectations.
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Apple AAPL.O dropped 1.8% after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. Advance Auto Parts AAP.N dropped about 8% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - Wall Street stocks ended lower on Tuesday as Oracle shares tumbled more than 13% after a weak forecast and surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week.
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Apple AAPL.O dropped 1.8% after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. Advance Auto Parts AAP.N dropped about 8% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - Wall Street stocks ended lower on Tuesday as Oracle shares tumbled more than 13% after a weak forecast and surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week.
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Apple AAPL.O dropped 1.8% after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. Advance Auto Parts AAP.N dropped about 8% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - Wall Street stocks ended lower on Tuesday as Oracle shares tumbled more than 13% after a weak forecast and surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week.
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10624.0
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2023-09-12 00:00:00 UTC
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US STOCKS-Wall Street ends lower on weak Oracle forecast, jitters about high oil prices
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AAP
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https://www.nasdaq.com/articles/us-stocks-wall-street-ends-lower-on-weak-oracle-forecast-jitters-about-high-oil-prices
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nan
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nan
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By Noel Randewich and Ankika Biswas
Sept 12 (Reuters) - Wall Street stocks ended lower on Tuesday as surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped after a downbeat forecast.
Oracle ORCL.Nshares tumbled to their lowest since June after the cloud-services provider forecast current-quarter revenue below targets and narrowly missed first-quarter expectations.
Cloud-computing heavyweights Amazon.com AMZN.O and Microsoft > also fell, pressured by Oracle's weak forecast and by a rise in U.S. Treasury yields.
Oil prices jumped more than 1%, building on a recent rally and stoking worries that sticky inflation could mean U.S. interest rates stay higher longer in the aftermath of strong economic data.
"People are a little bit worried about energy prices picking up pretty aggressively in recent weeks and that creates some concerns as we look forward to November" when some investors worry Federal Reserve policy makers may raise rates again, said Thomas Hayes, chairman at Great Hill Capital LLC.
Investors are awaiting August consumer price index data due on Wednesday and producer prices reading scheduled for Thursday to gauge the outlook for U.S. interest rates ahead of the Fed's meeting on Sept. 20.
Interest rate traders see a 93% chance of rates remaining at the current levels in September but just a 56% likelihood of a pause at the November meeting, according to the CME FedWatch Tool.
"All the all the inputs that we get between now and the November meeting will be important, especially those related to inflation. So that thrusts a lot of importance on tomorrow's CPI report," said Art Hogan, chief market strategist at B Riley Wealth.
Investors will also monitor the European Central Bank's policy decision on Thursday, when it is seen holding rates after nine consecutive hikes.
Apple AAPL.O dropped after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. The stock was also hurt by a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%.
According to preliminary data, the S&P 500 .SPX lost 25.52 points, or 0.57%, to end at 4,461.94 points, while the Nasdaq Composite .IXIC lost 144.28 points, or 1.04%, to 13,773.62. The Dow Jones Industrial Average .DJI fell 14.37 points, or 0.04%, to 34,649.35.
WestRock WRK.Njumped after agreeing to merge with Europe's Smurfit Kappa SKG.I to create the world's largest listed paper and packaging company, worth nearly $20 billion.
Advance Auto Parts AAP.Ndropped after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+).
Zions Bancorp ZION.Ojumped after the U.S. regional lender posted a slight increase in its monthly net interest income growth.
(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Arun Koyyur, Vinay Dwivedi and David Gregorio)
((noel.randewich@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O dropped after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. Advance Auto Parts AAP.Ndropped after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). Oracle ORCL.Nshares tumbled to their lowest since June after the cloud-services provider forecast current-quarter revenue below targets and narrowly missed first-quarter expectations.
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Apple AAPL.O dropped after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. Advance Auto Parts AAP.Ndropped after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - Wall Street stocks ended lower on Tuesday as surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped after a downbeat forecast.
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Apple AAPL.O dropped after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. Advance Auto Parts AAP.Ndropped after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - Wall Street stocks ended lower on Tuesday as surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped after a downbeat forecast.
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Apple AAPL.O dropped after unveiling new iPhones, while not increasing prices as it faces a global smartphone slump. Advance Auto Parts AAP.Ndropped after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - Wall Street stocks ended lower on Tuesday as surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped after a downbeat forecast.
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10625.0
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2023-09-12 00:00:00 UTC
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Notable Tuesday Option Activity: MSFT, AAP, ASTS
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AAP
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-msft-aap-asts
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nan
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Microsoft Corporation (Symbol: MSFT), where a total volume of 194,983 contracts has been traded thus far today, a contract volume which is representative of approximately 19.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 100% of MSFT's average daily trading volume over the past month, of 19.5 million shares. Particularly high volume was seen for the $335 strike call option expiring September 15, 2023, with 11,160 contracts trading so far today, representing approximately 1.1 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $335 strike highlighted in orange:
Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 32,509 contracts, representing approximately 3.3 million underlying shares or approximately 94.6% of AAP's average daily trading volume over the past month, of 3.4 million shares. Particularly high volume was seen for the $56 strike put option expiring September 15, 2023, with 5,313 contracts trading so far today, representing approximately 531,300 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $56 strike highlighted in orange:
And AST SpaceMobile Inc (Symbol: ASTS) saw options trading volume of 16,086 contracts, representing approximately 1.6 million underlying shares or approximately 92.7% of ASTS's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $7.50 strike put option expiring September 15, 2023, with 3,000 contracts trading so far today, representing approximately 300,000 underlying shares of ASTS. Below is a chart showing ASTS's trailing twelve month trading history, with the $7.50 strike highlighted in orange:
For the various different available expirations for MSFT options, AAP options, or ASTS options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Technology Stocks Hedge Funds Are Buying
NVIV YTD Return
Top Ten Hedge Funds Holding AXON
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $56 strike put option expiring September 15, 2023, with 5,313 contracts trading so far today, representing approximately 531,300 underlying shares of AAP. Below is a chart showing MSFT's trailing twelve month trading history, with the $335 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 32,509 contracts, representing approximately 3.3 million underlying shares or approximately 94.6% of AAP's average daily trading volume over the past month, of 3.4 million shares. Below is a chart showing AAP's trailing twelve month trading history, with the $56 strike highlighted in orange: And AST SpaceMobile Inc (Symbol: ASTS) saw options trading volume of 16,086 contracts, representing approximately 1.6 million underlying shares or approximately 92.7% of ASTS's average daily trading volume over the past month, of 1.7 million shares.
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Below is a chart showing MSFT's trailing twelve month trading history, with the $335 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 32,509 contracts, representing approximately 3.3 million underlying shares or approximately 94.6% of AAP's average daily trading volume over the past month, of 3.4 million shares. Below is a chart showing AAP's trailing twelve month trading history, with the $56 strike highlighted in orange: And AST SpaceMobile Inc (Symbol: ASTS) saw options trading volume of 16,086 contracts, representing approximately 1.6 million underlying shares or approximately 92.7% of ASTS's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $56 strike put option expiring September 15, 2023, with 5,313 contracts trading so far today, representing approximately 531,300 underlying shares of AAP.
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Below is a chart showing MSFT's trailing twelve month trading history, with the $335 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 32,509 contracts, representing approximately 3.3 million underlying shares or approximately 94.6% of AAP's average daily trading volume over the past month, of 3.4 million shares. Below is a chart showing AAP's trailing twelve month trading history, with the $56 strike highlighted in orange: And AST SpaceMobile Inc (Symbol: ASTS) saw options trading volume of 16,086 contracts, representing approximately 1.6 million underlying shares or approximately 92.7% of ASTS's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $56 strike put option expiring September 15, 2023, with 5,313 contracts trading so far today, representing approximately 531,300 underlying shares of AAP.
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Below is a chart showing MSFT's trailing twelve month trading history, with the $335 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 32,509 contracts, representing approximately 3.3 million underlying shares or approximately 94.6% of AAP's average daily trading volume over the past month, of 3.4 million shares. Particularly high volume was seen for the $56 strike put option expiring September 15, 2023, with 5,313 contracts trading so far today, representing approximately 531,300 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $56 strike highlighted in orange: And AST SpaceMobile Inc (Symbol: ASTS) saw options trading volume of 16,086 contracts, representing approximately 1.6 million underlying shares or approximately 92.7% of ASTS's average daily trading volume over the past month, of 1.7 million shares.
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10626.0
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2023-09-12 00:00:00 UTC
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US STOCKS-S&P 500 dips as oil prices fan inflation fear, Oracle slumps on weak forecast
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AAP
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https://www.nasdaq.com/articles/us-stocks-sp-500-dips-as-oil-prices-fan-inflation-fear-oracle-slumps-on-weak-forecast
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nan
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nan
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By Noel Randewich and Ankika Biswas
Sept 12 (Reuters) - The S&P 500 and Nasdaq fell on Tuesday as a jump in oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped after its downbeat forecast and results.
Oil prices jumped more than 1%, building on a recent rally and stoking worries that sticky inflation could mean U.S. interest rates stay higher longer in the aftermath of strong economic data.
"People are a little bit worried about energy prices picking up pretty aggressively in recent weeks and that creates some concerns as we look forward to November" when some investors worry Federal Reserve policy makers may raise rates again, said Thomas Hayes, chairman at Great Hill Capital LLC.
Investors are awaiting August consumer price index data due on Wednesday and producer prices reading scheduled for Thursday to gauge the outlook for U.S. interest rates ahead of the Fed's meeting on Sept. 20.
Interest rate traders see a 93% chance of rates remaining at the current levels in September but just a 56% likelihood of a pause at the November meeting, according to the CME FedWatch Tool.
"All the all the inputs that we get between now and the November meeting will be important, especially those related to inflation. So that thrusts a lot of importance on tomorrow's CPI report," said Art Hogan, chief market strategist at B Riley Wealth.
Investors will also monitor the European Central Bank's policy decision on Thursday, when it is seen holding rates after nine consecutive hikes.
Cloud-services provider Oracle ORCL.N dropped 14% to its lowest intra-day level in three months, after forecasting current-quarter revenue below targets and narrowly missing first-quarter expectations.
Cloud-computing heavyweights Amazon.com AMZN.O and Microsoft MSFT.O fell by about 1%, pressured by Oracle's weak forecast and by a rise in U.S. Treasury yields.
While higher oil prices fanned inflation fears, they lifted energy stocks .SPNY by 1.3% to lead gains among major S&P 500 sector indexes. O/R
Apple AAPL.O was down 1.4%, hurt by a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%.
Also, Apple unveiled a new iPhone on Tuesday amid uncertainty about market access in China and intensifying competition.
The S&P 500 was down 0.25% at 4,476.45 points.
The Nasdaq declined 0.64% to 13,828.41 points, while the Dow Jones Industrial Average was up 0.30% at 34,767.56 points.
The most traded stock in the S&P 500 was Tesla Inc TSLA.OQ, with $28.3 billion worth of shares exchanged during the session. The electric car maker's shares declined 1.67%.
WestRock WRK.N jumped 3.7% on agreeing to merge with Europe's Smurfit Kappa SKG.I to create the world's largest listed paper and packaging company, worth nearly $20 billion.
Advance Auto Parts AAP.N lost 5.7% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+).
Zions Bancorp ZION.Ojumped 7.5% after the U.S. regional lender posted a slight increase in its monthly net interest income growth.
Advancing issues outnumbered falling ones within the S&P 500 .AD.SPX by a 1.2-to-one ratio.
The S&P 500 posted 12 new highs and 14 new lows; the Nasdaq recorded 43 new highs and 161 new lows.
(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru, and by Noel Randewich in Oakland, Calif.; Editing by Arun Koyyur, Vinay Dwivedi and David Gregorio)
((noel.randewich@tr.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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O/R Apple AAPL.O was down 1.4%, hurt by a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%. Advance Auto Parts AAP.N lost 5.7% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). Oil prices jumped more than 1%, building on a recent rally and stoking worries that sticky inflation could mean U.S. interest rates stay higher longer in the aftermath of strong economic data.
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O/R Apple AAPL.O was down 1.4%, hurt by a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%. Advance Auto Parts AAP.N lost 5.7% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - The S&P 500 and Nasdaq fell on Tuesday as a jump in oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped after its downbeat forecast and results.
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O/R Apple AAPL.O was down 1.4%, hurt by a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%. Advance Auto Parts AAP.N lost 5.7% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - The S&P 500 and Nasdaq fell on Tuesday as a jump in oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped after its downbeat forecast and results.
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O/R Apple AAPL.O was down 1.4%, hurt by a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%. Advance Auto Parts AAP.N lost 5.7% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Noel Randewich and Ankika Biswas Sept 12 (Reuters) - The S&P 500 and Nasdaq fell on Tuesday as a jump in oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped after its downbeat forecast and results.
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10627.0
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2023-09-12 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq dip as oil prices fan inflation fears
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AAP
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-dip-as-oil-prices-fan-inflation-fears
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nan
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nan
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By Ankika Biswas and Shristi Achar A
Sept 12 (Reuters) - The S&P 500 and Nasdaq fell on Tuesday as a jump in oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped on downbeat forecast and results.
Oil prices jumped more than 1% on Tuesday, building on a recent rally and stoking worries over sticky inflation in the aftermath of strong economic data, clouding the chances of an end to U.S. monetary policy tightening.
"People are a little bit worried about energy prices picking up pretty aggressively in recent weeks and that creates some concerns as we look forward to November," said Thomas Hayes, chairman at Great Hill Capital LLC.
Investors now keenly await August consumer prices data due on Wednesday and producer prices reading scheduled for Thursday to gauge the outlook for U.S. interest rates ahead of the Federal Reserve's monetary policy outcome on Sept. 20.
"If inflation keeps on increasing like this, which is what's anticipated, the Fed might hold interest rates higher for longer," said Michael Matousek, head trader at U.S. Global Investors Inc.
Traders still see a 93% chance of rates remaining at the current levels in September and a near 56% likelihood of a pause in November, as per the CME FedWatch Tool.
Investors will also monitor the European Central Bank's policy decision on Thursday, where it is seen holding rates after nine consecutive hikes.
Weighing down the S&P 500, cloud-services provider Oracle ORCL.N dropped 11.3% to its lowest intra-day level in three months, after forecasting current-quarter revenue below targets and narrowly missing first-quarter expectations.
While higher oil prices fanned inflation fears, they lifted energy stocks .SPNY by 2% to lead gains among major S&P 500 sector indexes. O/R
Megacaps Amazon.com AMZN.O, Microsoft MSFT.O and Meta platforms dropped between 1.3% and 1.6%, respectively, also pressured by a rise in U.S. Treasury yields.
Apple AAPL.O lost 1.4% on a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%.
Investors also awaited new iPhone 15 lineup launch amid uncertainty over market access in China and intensifying competition.
At 11:37 a.m. ET, the Dow Jones Industrial Average .DJI was up 21.31 points, or 0.06%, at 34,685.03, the S&P 500 .SPX was down 15.17 points, or 0.34%, at 4,472.29, and the Nasdaq Composite .IXIC was down 89.58 points, or 0.64%, at 13,828.31.
WestRock WRK.N jumped 4.3% on agreeing to merge with Europe's Smurfit Kappa SKG.I to create the world's largest listed paper and packaging company worth nearly $20 billion.
Advance Auto Parts AAP.N lost 6.4% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+).
Zions Bancorp ZION.Ojumped 6.5% after the U.S. regional lender posted a slight increase in its monthly net interest income growth.
Advancing issues outnumbered decliners by a 1.05-to-1 ratio on the NYSE and by a 1.06-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and 13 new lows, while the Nasdaq recorded 32 new highs and 135 new lows.
(Reporting by Ankika Biswas and Shristi Achar A in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)
((Ankika.Biswas@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apple AAPL.O lost 1.4% on a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%. Advance Auto Parts AAP.N lost 6.4% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). Oil prices jumped more than 1% on Tuesday, building on a recent rally and stoking worries over sticky inflation in the aftermath of strong economic data, clouding the chances of an end to U.S. monetary policy tightening.
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Advance Auto Parts AAP.N lost 6.4% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). Apple AAPL.O lost 1.4% on a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%. By Ankika Biswas and Shristi Achar A Sept 12 (Reuters) - The S&P 500 and Nasdaq fell on Tuesday as a jump in oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped on downbeat forecast and results.
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Apple AAPL.O lost 1.4% on a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%. Advance Auto Parts AAP.N lost 6.4% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Ankika Biswas and Shristi Achar A Sept 12 (Reuters) - The S&P 500 and Nasdaq fell on Tuesday as a jump in oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped on downbeat forecast and results.
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Apple AAPL.O lost 1.4% on a report that China's Huawei Technologies has raised the second-half shipment target for its Mate 60 series smartphone by 20%. Advance Auto Parts AAP.N lost 6.4% after S&P Global downgraded the auto parts retailer's credit and debt ratings from investment grade (BBB-) to junk (BB+). By Ankika Biswas and Shristi Achar A Sept 12 (Reuters) - The S&P 500 and Nasdaq fell on Tuesday as a jump in oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week, while Oracle slumped on downbeat forecast and results.
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10628.0
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2023-09-11 00:00:00 UTC
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Interesting AAP Put And Call Options For January 2026
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AAP
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https://www.nasdaq.com/articles/interesting-aap-put-and-call-options-for-january-2026
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nan
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nan
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2026 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 858 days until expiration the newly trading contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new January 2026 contracts and identified one put and one call contract of particular interest.
The put contract at the $50.00 strike price has a current bid of $7.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $50.00, but will also collect the premium, putting the cost basis of the shares at $42.20 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $63.78/share today.
Because the $50.00 strike represents an approximate 22% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 15.60% return on the cash commitment, or 6.64% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $50.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $65.00 strike price has a current bid of $16.40. If an investor was to purchase shares of AAP stock at the current price level of $63.78/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $65.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 27.63% if the stock gets called away at the January 2026 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $65.00 strike highlighted in red:
Considering the fact that the $65.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 25.71% boost of extra return to the investor, or 10.94% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $63.78) to be 55%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Cheap Midcap Stocks
Top Ten Hedge Funds Holding SPIB
Funds Holding CPF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2026 expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new January 2026 contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new January 2026 contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new January 2026 contracts and identified one put and one call contract of particular interest. Below is a chart showing AAP's trailing twelve month trading history, with the $65.00 strike highlighted in red: Considering the fact that the $65.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2026 expiration.
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10629.0
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2023-09-09 00:00:00 UTC
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Evercore ISI Group Maintains Advance Auto Parts (AAP) In-Line Recommendation
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AAP
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https://www.nasdaq.com/articles/evercore-isi-group-maintains-advance-auto-parts-aap-in-line-recommendation-0
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nan
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nan
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Fintel reports that on September 8, 2023, Evercore ISI Group maintained coverage of Advance Auto Parts (NYSE:AAP) with a In-Line recommendation.
Analyst Price Forecast Suggests 19.02% Upside
As of August 31, 2023, the average one-year price target for Advance Auto Parts is 76.90. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 19.02% from its latest reported closing price of 64.61.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
What is the Fund Sentiment?
There are 1056 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 245 owner(s) or 18.83% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 50.04%. Total shares owned by institutions decreased in the last three months by 7.15% to 59,411K shares.
The put/call ratio of AAP is 0.60, indicating a bullish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 3,078.62% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,843K shares representing 3.10% ownership of the company. In it's prior filing, the firm reported owning 1,833K shares, representing an increase of 0.52%. The firm decreased its portfolio allocation in AAP by 46.38% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.86% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
D. E. Shaw holds 1,662K shares representing 2.79% ownership of the company. In it's prior filing, the firm reported owning 34K shares, representing an increase of 97.97%. The firm increased its portfolio allocation in AAP by 3,342.78% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM T-1 STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939 OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE
Advance Auto Parts Reports Second Quarter 2023 Results Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6% Operating Income of $134.4 Million; Operating Income Margin of 5.0% Separately Announces Leadership Appointments
Amendment No. 2 to the Credit Agreement Dated as of August
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on September 8, 2023, Evercore ISI Group maintained coverage of Advance Auto Parts (NYSE:AAP) with a In-Line recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 50.04%.
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Fintel reports that on September 8, 2023, Evercore ISI Group maintained coverage of Advance Auto Parts (NYSE:AAP) with a In-Line recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 50.04%.
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Fintel reports that on September 8, 2023, Evercore ISI Group maintained coverage of Advance Auto Parts (NYSE:AAP) with a In-Line recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 50.04%.
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Fintel reports that on September 8, 2023, Evercore ISI Group maintained coverage of Advance Auto Parts (NYSE:AAP) with a In-Line recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.09%, a decrease of 50.04%.
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10630.0
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2023-09-06 00:00:00 UTC
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WisdomTree U.S. MidCap Dividend Fund -- Insider Buying Index Registering 11.3%
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AAP
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https://www.nasdaq.com/articles/wisdomtree-u.s.-midcap-dividend-fund-insider-buying-index-registering-11.3
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nan
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nan
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A look at the weighted underlying holdings of the WisdomTree U.S. MidCap Dividend Fund (Symbol: DON) shows an impressive 11.3% of holdings on a weighted basis have experienced insider buying within the past six months.
Synovus Financial Corp (Symbol: SNV), which makes up 0.26% of the WisdomTree U.S. MidCap Dividend Fund (Symbol: DON), has seen 6 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $8,654,310 worth of SNV, making it the #147 largest holding. The table below details the recent insider buying activity observed at SNV:
SNV — last trade: $31.35 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
05/01/2023 Andrew J. Gregory Jr. EVP & Chief Financial Officer 2,000 $30.33 $60,660
05/04/2023 Kevin S. Blair President and CEO 4,600 $26.30 $120,980
05/04/2023 Diana M. Murphy Director 3,775 $26.44 $99,811
05/05/2023 Shellie Creson EVP and Chief Risk Officer 2,800 $28.33 $79,324
05/05/2023 Daniel Zachary Bishop EVP, Tech., Ops., & Sec. 1,000 $27.96 $27,960
05/05/2023 John H. Irby Director 3,575 $28.20 $100,815
And Advance Auto Parts Inc (Symbol: AAP), the #162 largest holding among components of the WisdomTree U.S. MidCap Dividend Fund (Symbol: DON), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $8,340,081 worth of AAP, which represents approximately 0.25% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below:
AAP — last trade: $67.56 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
06/07/2023 Jeffrey J. Jones II Director 1,525 $65.94 $100,558
06/07/2023 Eugene I. Lee Jr. Director 7,635 $65.51 $500,160
06/07/2023 John Francis Ferraro Director 1,525 $65.56 $99,979
06/07/2023 Carla Jean Bailo Director 500 $65.90 $32,950
06/12/2023 Douglas A. Pertz Director 6,145 $65.44 $402,145
06/09/2023 Joan M. Hilson Director 388 $64.26 $24,933
10 ETFs With Stocks That Insiders Are Buying »
Also see:
Preferred Stock List
DNN Historical Stock Prices
Institutional Holders of NVMI
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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1,000 $27.96 $27,960 05/05/2023 John H. Irby Director 3,575 $28.20 $100,815 And Advance Auto Parts Inc (Symbol: AAP), the #162 largest holding among components of the WisdomTree U.S. MidCap Dividend Fund (Symbol: DON), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $8,340,081 worth of AAP, which represents approximately 0.25% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below: AAP — last trade: $67.56 — Recent Insider Buys:
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1,000 $27.96 $27,960 05/05/2023 John H. Irby Director 3,575 $28.20 $100,815 And Advance Auto Parts Inc (Symbol: AAP), the #162 largest holding among components of the WisdomTree U.S. MidCap Dividend Fund (Symbol: DON), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $8,340,081 worth of AAP, which represents approximately 0.25% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below: AAP — last trade: $67.56 — Recent Insider Buys:
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1,000 $27.96 $27,960 05/05/2023 John H. Irby Director 3,575 $28.20 $100,815 And Advance Auto Parts Inc (Symbol: AAP), the #162 largest holding among components of the WisdomTree U.S. MidCap Dividend Fund (Symbol: DON), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $8,340,081 worth of AAP, which represents approximately 0.25% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below: AAP — last trade: $67.56 — Recent Insider Buys:
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1,000 $27.96 $27,960 05/05/2023 John H. Irby Director 3,575 $28.20 $100,815 And Advance Auto Parts Inc (Symbol: AAP), the #162 largest holding among components of the WisdomTree U.S. MidCap Dividend Fund (Symbol: DON), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $8,340,081 worth of AAP, which represents approximately 0.25% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below: AAP — last trade: $67.56 — Recent Insider Buys:
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10631.0
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2023-09-06 00:00:00 UTC
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Lifetime Investments: 7 Stocks That Promise Steady Growth for Decades
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AAP
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https://www.nasdaq.com/articles/lifetime-investments%3A-7-stocks-that-promise-steady-growth-for-decades
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In the stock market, where tumultuous waves can lead to substantial losses or lucrative gains, investors often seek blue-chip stocks that generate favorable and stable growth over the years. Notably, an ongoing intersection of market trends, company strategies, and external factors has brought an opportunity to seize the stocks primed for a long-term value ascension. Ths has led to the rise of stocks to buy and hold.
Once the stalwarts of various industries, these stocks faced temporary challenges that led them to struggle to deliver market-leading returns. However, a closer look reveals a different resilience, adaptability, and foresight narrative.
Here, the article explores the strategic plans of these companies that have employed them to weather economic uncertainty and set themselves on the growth path. Interestingly, from revitalizing customer relationships to embracing new technological paradigms, these companies are rewriting their fundamentals, making their current valuation state a launchpad for new highs.
Advance Auto Parts (AAP)
Source: shutterstock.com/Trygve Finkelsen
Advance Auto Parts (NYSE:AAP) aims to achieve long-term benefits by focusing on operational improvements, customer satisfaction, and competitive positioning. The company has taken significant steps to enhance its key performance indicators (KPIs). For instance, these improvements have led to a 50 basis point enhancement in on-hand rates regarding parts availability and supply chain fill rates. This makes it one of those stocks to buy and hold.
AAP has fine-tuned its pricing strategy to drive sustainable growth based on comprehensive research. AAP has adjusted its pricing targets by category, aligning with competitive benchmarks. The strategy has already yielded positive outcomes regarding transactions and unit performance.
Moreover, the company is focused on regaining its share of wallets with existing customers. It plans to achieve this through a back-to-basics approach, focusing on inventory optimization, parts availability, and competitive pricing. Despite these challenges, the company remains optimistic due to favorable industry drivers, including an increasing car park, an aging fleet, and moderate growth in miles driven.
Banner (BANR)
Source: shutterstock.com/marozhka studio
Banner’s (NASDAQ:BANR) strong core deposit base, net interest margin, and controlled core expenses contribute to a healthy return on average assets of 1.02%. The company’s consistent execution of its super community bank strategy focused on client relationships, loyalty, and soundness aids in new client growth and maintains core funding.
Notably, the increase in loans by 11% from the previous year reflects the effectiveness of their community bank model. Even though the economic environment remains uncertain, Banner’s credit metrics remain robust. It has low delinquent loans (0.28% of total loans) and a moderate risk profile. The company’s diversification in loan types, including residential, commercial, and agricultural loans, helps navigate changing market conditions. All in all, it’s one of those stocks to buy and hold.
Furthermore, Banner’s recognition as one of America’s best banks and its focus on environmental, social, and governance factors showcase its value proposition. Additionally, the bank’s recognition by reputable entities like Forbes, Newsweek, and S&P Global Market Intelligence further validates its business model and value proposition. The consistent recognition, accolades, and outstanding CRA rating highlight its positive reputation and responsible business practices.
Finally, the bank’s prudent underwriting practices, diverse loan portfolio, and robust review processes contribute to its credit stability.
Concentrix (CNXC)
Source: Funtap / Shutterstock.com
Concentrix (NASDAQ:CNXC) benefits from its strategic positioning in various verticals, including healthcare, travel, insurance, and technology sectors. It maintains strong performance in key segments. The trend toward client-driven provider consolidation favors Concentrix due to its comprehensive capabilities in end-to-end process support. Also, the company anticipates clients will accelerate these plans if softness continues, potentially benefiting Concentrix.
Fundamentally, Concentrix has diverse capabilities. It includes generative AI moderation services, transformational omnichannel CX delivery models, and improved customer acquisition using analytics and AI. The company is also pursuing a transformative combination with Webhelp, diversifying its revenue, client base, and global footprint. Notably, The expected accretive nature of this combination, along with projected cost synergies of $120 million by 2025, bolsters Concentrix’s long-term growth prospects.
Further, generative AI is another area of focus. The company is utilizing AI tools across its operations to enhance productivity and proficiency. Concentrix acknowledges the value of generative AI but anticipates a gradual approach to large-scale deployment due to data ownership, security, and customer engagement concerns. Therefore, Concentrix’s expertise and role in providing AI solutions ensure consistent and positive outcomes for clients.
Daqo New Energy (DQ)
Source: Proxima Studio / Shutterstock.com
Interestingly, the recent addition of the Inner Mongolia Phase 5A facility has boosted Daqo New Energy’s or Daqo’s (NYSE:DQ) annual polysilicon capacity to 205K metric tons. The projected Q3 polysilicon production volume of 55K to 57K metric tons represents a remarkable 21% to 26% YoY increase.
Furthermore, Daqo’s semiconductor-grade polysilicon project is set to start pilot production. It leverages fully digitized and automated systems to enhance operational efficiency, cost structure, and product quality.
Despite challenges like price volatility, Daqo’s robust financial position, characterized by no financial debt, positions it well to weather market fluctuations. Also, the company’s emphasis on high-quality N-type polysilicon aligns with industry trends as the solar energy sector continuously evolves and requires purer materials.
The rising demand for high-purity polysilicon, particularly N-type technology, allows Daqo to differentiate itself from competitors. Moreover, Daqo’s solid growth trajectory is further supported by the global expansion of solar photovoltaic (PV) energy and the ongoing reduction in PV production costs.
As solar energy adoption increases and more regions demand localized production, Daqo’s presence in strategic markets such as the U.S., Europe, and the Middle East positions it to capitalize on evolving market dynamics.
Foot Locker (FL)
Source: Dragana Gordic/shutterstock.com
Foot Locker (NYSE:FL) stands to benefit in the long term through its Lace Up strategy. Its Lace Up strategy aims to leverage its heritage and brand equity to tap into the growing sneaker market. In detail, the strategy focuses on four key imperatives: expanding sneaker culture, powering up the portfolio, deepening customer relationships, and becoming a best-in-class omnichannel retailer. This uniqueness is reflected in over 90% brand awareness and robust social media engagement.
First, by expanding sneaker culture, Foot Locker aims to serve more sneaker occasions, offer more choices, and drive greater distinction in its offerings. It plans to diversify its assortment through brands like On, HOKA, and Hey Dude and enhance its exclusive sales mix. Second, the power-up of the portfolio involves creating clear banners and optimizing real estate. This includes closing underperforming stores, transitioning Champs to focus on active athletes, and opening new store formats to express the category fully. This makes it one of those stocks to buy and hold.
Furthermore, Foot Locker seeks to deepen customer relationships by reimagining its loyalty program and building better CRM capabilities. It aims to increase loyalty penetration to 50% by 2026 and 70% in the long term. Lastly, Foot Locker plans to be a best-in-class omni-channel retailer by seamlessly improving its digital presence and integrating channels, aiming to reach 25% digital sales penetration by 2026.
Harley-Davidson (HOG)
Source: Shutterstock
Harley-Davidson (NYSE:HOG) focuses on profitable growth by prioritizing its most profitable motorcycle categories. These include touring bikes, trikes (+10% YoY), and cruisers (+22% YoY). Notably, the increase in gross margins reflects the emphasis on profitability over sheer unit growth.
Furthermore, Harley-Davidson’s selective expansion strategy aims to capitalize on brand strength and product capabilities. Partnerships with companies like Hero MotoCorp and QJ are helping the company enter geographies that matter. Simultaneously, it attracts new riders to the brand as pre-orders exceed expectations for products like the X440 in India.
Various programs like HD Membership and Rider Pass offer personalized benefits, rewards, and experiences, strengthening customer engagement and loyalty. Additionally, the ongoing transformation of dealerships and omnichannel capabilities aims to provide a superior in-person and online customer experience.
Similarly, Harley-Davidson’s venture into electric motorcycles with the LiveWire brand is also promising, as the company is expanding its lineup to make electric motorcycles more accessible to a broader segment of riders. Finally, the ST platform, including models like Del Mar, holds the potential to capture the growing interest in electric vehicles.
GoPro (GPRO)
Source: Larry George II / Shutterstock.com
GoPro’s (NASDAQ:GPRO) long-term prospects are bolstered by a comprehensive go-to-market strategy that involves restoring camera pricing to pre-pandemic levels, discontinuing subscription-related discounts at purchase, and reinvigorating its presence in global retail markets.
GoPro seeks to drive substantial volume and subscriber expansion by reintroducing entry-level cameras at attractive prices. This strategy has already generated promising results, with immediate demand surges across all regions after the pandemic. Moreover, the strategy includes expanding retail distribution to influential partners, amplifying marketing investments to pre-pandemic levels, and enhancing brand visibility through updated point-of-purchase displays.
Moreover, GoPro’s subscription business stands out, with a 27% YoY increase in subscribers, reaching 2.44 million (Q2 2023). Also, high attach rates for subscriptions from retail and GoPro.com customers emphasize the value customers find in the subscription offering.
Finally, GoPro is capitalizing on the digital imaging software realm by introducing an all-new desktop app for subscribers. This strategic move and the anticipated expansion of GoPro’s relevance as a software solution for a broader audience enhance the company’s value potential.
This concludes our list of stocks to buy and hold.
As of this writing, Yiannis Zourmpanos held a long position in DQ and GPRO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.
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The post Lifetime Investments: 7 Stocks That Promise Steady Growth for Decades appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) Source: shutterstock.com/Trygve Finkelsen Advance Auto Parts (NYSE:AAP) aims to achieve long-term benefits by focusing on operational improvements, customer satisfaction, and competitive positioning. AAP has fine-tuned its pricing strategy to drive sustainable growth based on comprehensive research. AAP has adjusted its pricing targets by category, aligning with competitive benchmarks.
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Advance Auto Parts (AAP) Source: shutterstock.com/Trygve Finkelsen Advance Auto Parts (NYSE:AAP) aims to achieve long-term benefits by focusing on operational improvements, customer satisfaction, and competitive positioning. AAP has fine-tuned its pricing strategy to drive sustainable growth based on comprehensive research. AAP has adjusted its pricing targets by category, aligning with competitive benchmarks.
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Advance Auto Parts (AAP) Source: shutterstock.com/Trygve Finkelsen Advance Auto Parts (NYSE:AAP) aims to achieve long-term benefits by focusing on operational improvements, customer satisfaction, and competitive positioning. AAP has fine-tuned its pricing strategy to drive sustainable growth based on comprehensive research. AAP has adjusted its pricing targets by category, aligning with competitive benchmarks.
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Advance Auto Parts (AAP) Source: shutterstock.com/Trygve Finkelsen Advance Auto Parts (NYSE:AAP) aims to achieve long-term benefits by focusing on operational improvements, customer satisfaction, and competitive positioning. AAP has fine-tuned its pricing strategy to drive sustainable growth based on comprehensive research. AAP has adjusted its pricing targets by category, aligning with competitive benchmarks.
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10632.0
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2023-08-31 00:00:00 UTC
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Revving Up for Success: Is Advance Auto Parts a Must-Buy Value Stock Now?
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AAP
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https://www.nasdaq.com/articles/revving-up-for-success%3A-is-advance-auto-parts-a-must-buy-value-stock-now
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nan
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Perception matters a lot in investing. Is a poorly performing company simply a bad investment to be avoided at all costs? Or is it a potential value opportunity, particularly when it has peers with metrics that management can target? That's the dilemma facing potential investors in Advance Auto Parts (NYSE: AAP) now.
Let's look at the challenges its new CEO will face as he takes over in September and whether the stock is a value play.
Time for a change
Alongside its disappointing set of second-quarter earnings, Advance Auto Parts announced the appointment of a new CEO, Shane O'Kelly, who will start in mid-September.
The former HD Supply CEO has a tough job ahead because departing CEO Tom Greco (who will stay on as an advisor) has not left the company in good shape. The stock is down 62% since Greco took over as CEO in August 2016 while peers O'Reilly Automotive and AutoZone are up 222% and 202%, respectively, over the same time frame.
Recognizing the company's problems, management is launching a "comprehensive operational and strategic review." Moreover, Interim Executive Chair Gene Lee told investors on theearnings callthat the board will "work with Shane and the management team to ensure Advance is taking the right steps to build a stronger, more resilient business."
Serial underperformance compared to peers
At this point, the appeal of Advance Auto Parts as a value play is easy to spot; after all, its valuation stands at a significant discount to its peers, O'Reilly Automotive and AutoZone. For example, here's a look at enterprise value (market cap plus net debt), or EV, to earnings before interest, taxation, depreciation, and amortization (EBITDA).
All the company has to do is improve the operational gap between it and its peers -- the strategic review will help -- and the stock should have a substantial upside. That's the value case for the stock.
AZO EV to EBITDA (Forward) data by YCharts
Better days ahead?
According to Greco and Lee, investors could see some improvement over the near term. For example, Citigroup analyst Steven Zaccone asked Lee on a recentearnings conference callwhether the strategic review would be "a one-year invest-to-grow margin strategy, or is this something that's more multi-year in nature?"
Lee replied: "I think it's less than one year. I mean, I think that we should start seeing incremental improvement pretty quickly here." He continued to laud actions taken to improve operations, notably at the store level, the supply chain, and sales. These initiatives, he said, are coming through and "we're going to start seeing improvement pretty quickly."
As such, investors might conclude that improvement is on the way, and Advance Auto Parts is an excellent value proposition based on the classic value investing principle that it can aim toward improving performance in line with its peers. Hopefully, that improvement will be helped by a new CEO's fresh input. However, it's not quite that simple.
Image source: Getty Images.
Red flags for Advance Auto Parts
O'Kelly has a tough job ahead of him. As previously discussed, Greco took over in 2016 with many, including activist investor Starboard Value, believing in a similar value case.
Unfortunately, seven years on and with Starboard's involvement come and gone, Advance's management is still discussing the need to improve store inventory availability. It's still talking about investments to improve comparable same-store sales growth and the need to focus on its most important products.
Meanwhile, analysts are still asking questions about the company's supply chain and cash-flow management. The company takes far longer to clear its inventory than O'Reilly and AutoZone, and its cash management significantly trails its peers -- it pays suppliers relatively quickly for inventory, and is slow to collect receivables from customers.
As such, Advance does a poor job of generating free cash flow from its assets.
AZO FCF to Assets (TTM) data by YCharts
A stock to buy
All these metrics are not simply numbers; they reflect the company's operations and speak to fundamental issues that must be addressed. As such, it's hard to see how Advance's problems will be solved in the near term and certainly not in less than one year.
Hopefully, O'Kelly's tenure will lead to a substantive improvement. There's an obvious value case for the stock. Still, it makes sense to wait until the review is over and he outlines a fundamental restructuring of the company's operations before buying. Companies don't usually deal with multi-year underperformance in a quarter or two. There's plenty of time to monitor the company before buying in.
10 stocks we like better than Advance Auto Parts
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's the dilemma facing potential investors in Advance Auto Parts (NYSE: AAP) now. Moreover, Interim Executive Chair Gene Lee told investors on theearnings callthat the board will "work with Shane and the management team to ensure Advance is taking the right steps to build a stronger, more resilient business." For example, Citigroup analyst Steven Zaccone asked Lee on a recentearnings conference callwhether the strategic review would be "a one-year invest-to-grow margin strategy, or is this something that's more multi-year in nature?"
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That's the dilemma facing potential investors in Advance Auto Parts (NYSE: AAP) now. Red flags for Advance Auto Parts O'Kelly has a tough job ahead of him. AZO FCF to Assets (TTM) data by YCharts A stock to buy All these metrics are not simply numbers; they reflect the company's operations and speak to fundamental issues that must be addressed.
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That's the dilemma facing potential investors in Advance Auto Parts (NYSE: AAP) now. As such, investors might conclude that improvement is on the way, and Advance Auto Parts is an excellent value proposition based on the classic value investing principle that it can aim toward improving performance in line with its peers. 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen.
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That's the dilemma facing potential investors in Advance Auto Parts (NYSE: AAP) now. According to Greco and Lee, investors could see some improvement over the near term. Red flags for Advance Auto Parts O'Kelly has a tough job ahead of him.
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10633.0
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2023-08-30 00:00:00 UTC
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Unusual Put Option Trade in Advance Auto Parts (AAP) Worth $2,152.00K
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AAP
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-advance-auto-parts-aap-worth-%242152.00k
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nan
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On August 30, 2023 at 15:31:45 ET an unusually large $2,152.00K block of Put contracts in Advance Auto Parts (AAP) was bought, with a strike price of $95.00 / share, expiring in 16 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.54 sigmas above the mean, placing it in the 93.68th percentile of all recent large trades made in AAP options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 1121 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 174 owner(s) or 13.44% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.11%, a decrease of 38.81%. Total shares owned by institutions decreased in the last three months by 5.54% to 60,564K shares.
The put/call ratio of AAP is 0.65, indicating a bullish outlook.
Analyst Price Forecast Suggests 21.11% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 21.11% from its latest reported closing price of 65.63.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
What are Other Shareholders Doing?
Price T Rowe Associates holds 2,050K shares representing 3.47% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 3,078.62% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,843K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 1,833K shares, representing an increase of 0.52%. The firm decreased its portfolio allocation in AAP by 46.38% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.88% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.84% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
D. E. Shaw holds 1,662K shares representing 2.81% ownership of the company. In it's prior filing, the firm reported owning 34K shares, representing an increase of 97.97%. The firm increased its portfolio allocation in AAP by 3,342.78% over the last quarter.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $65.63 / share, the stock's dividend yield is 1.52%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.79%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.08 (n=236).
The current dividend yield is 0.13 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.03. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM T-1 STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939 OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE
Advance Auto Parts Reports Second Quarter 2023 Results Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6% Operating Income of $134.4 Million; Operating Income Margin of 5.0% Separately Announces Leadership Appointments
Amendment No. 2 to the Credit Agreement Dated as of August
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On August 30, 2023 at 15:31:45 ET an unusually large $2,152.00K block of Put contracts in Advance Auto Parts (AAP) was bought, with a strike price of $95.00 / share, expiring in 16 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.54 sigmas above the mean, placing it in the 93.68th percentile of all recent large trades made in AAP options. Average portfolio weight of all funds dedicated to AAP is 0.11%, a decrease of 38.81%.
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On August 30, 2023 at 15:31:45 ET an unusually large $2,152.00K block of Put contracts in Advance Auto Parts (AAP) was bought, with a strike price of $95.00 / share, expiring in 16 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.54 sigmas above the mean, placing it in the 93.68th percentile of all recent large trades made in AAP options. Average portfolio weight of all funds dedicated to AAP is 0.11%, a decrease of 38.81%.
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On August 30, 2023 at 15:31:45 ET an unusually large $2,152.00K block of Put contracts in Advance Auto Parts (AAP) was bought, with a strike price of $95.00 / share, expiring in 16 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.54 sigmas above the mean, placing it in the 93.68th percentile of all recent large trades made in AAP options. Average portfolio weight of all funds dedicated to AAP is 0.11%, a decrease of 38.81%.
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On August 30, 2023 at 15:31:45 ET an unusually large $2,152.00K block of Put contracts in Advance Auto Parts (AAP) was bought, with a strike price of $95.00 / share, expiring in 16 day(s) (on September 15, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.54 sigmas above the mean, placing it in the 93.68th percentile of all recent large trades made in AAP options. Average portfolio weight of all funds dedicated to AAP is 0.11%, a decrease of 38.81%.
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10634.0
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2023-08-29 00:00:00 UTC
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Auto Roundup: STLA-AGI Partnership, AAP's Q2 Earnings Miss & More
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AAP
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https://www.nasdaq.com/articles/auto-roundup%3A-stla-agi-partnership-aaps-q2-earnings-miss-more
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nan
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nan
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With the electric vehicle (EV) revolution gathering pace with each passing day, legacy automakers are stepping up e-mobility investments, introducing new models and setting ambitious targets to electrify their fleet. Italian-American auto giant Stellantis STLA took a significant step forward in its electrification journey by partnering with AGI, a leading infrastructure solutions provider. Germany-based auto giant Volkswagen VWAGY opened pre-orders for the ID.7 electric sedan in Europe, starting at around $62,000.
Meanwhile, U.S. legacy automaker General Motors GM is set to close its Arizona IT Innovation Center at the end of October, leading to 940 job cuts.
On the earnings front, Advance Auto Parts AAP and Arcimoto FUV released second- quarter 2023 results last week. The auto parts retailer not just missed earnings estimates but also witnessed a sharp decline on a yearly basis. Discouragingly, it also slashed its full-year EPS forecast. Meanwhile, the maker of specialty electric three-wheeled vehicles, witnessed sales growth and narrower loss on a yearly basis.
Last Week’s Top Stories
Advance Auto delivered adjusted earnings of $1.43 per share for second-quarter 2023, down 62% from the year-ago quarter's figure. The reported figure also fell short of the Zacks Consensus Estimate of $1.72 per share. It generated net revenues of $2,686 million, which topped the Zacks Consensus Estimate of $2,671 million on lower-than-expected comps decline. Comparable store sales dropped 0.6%. We projected a decline of 0.7%. The top line increased 0.8% year over year.
Advance Auto estimates 2023 net sales in the band of $11.25-$11.35 billion, up from the previous guided range of $11.2-$11.3 billion. Comparable store sales are projected within a range of negative 0.5% to positive 0.5%. Adjusted operating income margin is envisioned in the range of 4-4.3%, down from 5-5.3% guided earlier. Earnings are forecast between $4.50 per share and $5.10 per share, down from the prior estimate of $6-$6.50 per share.
Stellantis joined forces with AGI to bolster the electrification of its vast U.S. dealership network, spanning more than 2,600 sites, by providing state-of-the-art electric vehicle supply equipment (EVSE) for charging.AGI, with its rich legacy of over 50 years in branded infrastructure implementation, has emerged as one of the most seasoned and adept providers of nationwide EVSE turnkey program execution. This partnership is poised to be a game-changer, ensuring that Stellantis’ dealerships are equipped with the best in EV charging infrastructure.
AGI's prowess in electrical engineering, project management, fabrication and maintenance will be indispensable for Stellantis’ dealers, propelling them toward EV readiness. This partnership further enriches Stellantis' U.S. portfolio of EV infrastructure and training partners. It aligns perfectly with Stellantis' ambitious "Dare Forward 2030" strategy, which targets 100% passenger car battery electric vehicle sales mix in Europe and a 50% mix in the United States by 2030.
General Motors is set to trim 940 workers after the closure of the Arizona IT Innovation Center. Per the email obtained by the Detroit Free Press, Stacy Lynett, vice president of Information and Digital Technology GM, wrote that the company decided to cease information and digital technology operations at the Arizona IT Innovation Center at the end of October. The move will help the company optimize its innovation center footprint and gain the efficiency and effectiveness it needs.
Lynett added that all information and digital technology jobs are being eliminated at the center to streamline operations and allow GM to focus on its growth areas. Laid-off employees can apply for other openings at the company and the company will provide outplacement support. Employees who have worked for at least one year will be eligible for a severance package.
Arcimoto’s second-quarter 2023 revenues were up 17% year over year to $1.76 million. First-half revenues surged 45% year over year to $3.1 million compared with $2.1 million in the corresponding period of 2022. In the quarter under review, the company incurred a net loss of around $13.2 million, translating to $1.71 per share, which narrowed from $17.4 million, or $8.80 per share, in the corresponding period of last year. Arcimoto produced 94 new fun utility vehicles (FUVs) in the first half of the year and reached a significant milestone by rolling out its 1,000th vehicle in June 2023.
Last week, Arcimoto joined forces with MATBOCK to provide electrical systems architecture and energy storage solutions for hybrid-electric tactical vehicles. This partnership empowers MATBOCK to focus on delivering innovative technology for specific U.S. Department of Defense operations. As part of its tactical electric vehicle program launched in 2022, MATBOCK is incorporating cutting-edge battery, propulsion and exportable power solutions. This collaboration not only underscores the integration of electric vehicle technology in military contexts but also aligns with Arcimoto's commitment to advancing green energy solutions.
Volkswagen’s ID.7 electric sedan, with up to 385 miles of WLTC range, is open for pre-orders for European customers. After ID.3, ID.4, ID.5, ID.6 and ID.Buzz electric van, ID.7 is the sixth largest member of the Volkswagen family. The upper mid-size electric sedan includes two versions, the Pro and Pro S and a teased GTX sporty trim with a dual-motor AWD system and enhanced performance.VWAGY calls ID.7 an “efficiency champion” because of its aerodynamic-optimizing design across the entire vehicle that enables average fuel consumption of 16.3 – 14.1 kWh per 100 km.
The vehicle has an augmented reality head-up display, a "Discover Pro Max" navigation system, Hudson alloy wheels with a diamond-cut finish and keyless locking. It is also equipped with standard assist systems for the launch, including Travel Assist, Lane Assist, Emergency Assist, Side Assist, Rear Traffic Alert and an exit warning system. European buyers can pre-order the ID.7 Pro for around $61,600. The placement of the electric motor, installed in the rear, leaves plenty of legroom for passengers, while the luggage compartment can hold a total volume of up to 532 liters.
VWAGY currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of some of the major auto players over the last week and six-month period.
Image Source: Zacks Investment Research
What's Next in the Auto Space?
Industry watchers will be keeping a close watch on August U.S. car sales, which will be coming out soon.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Arcimoto, Inc. (FUV) : Free Stock Analysis Report
Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report
Stellantis N.V. (STLA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the earnings front, Advance Auto Parts AAP and Arcimoto FUV released second- quarter 2023 results last week. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Arcimoto, Inc. (FUV) : Free Stock Analysis Report Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here. With the electric vehicle (EV) revolution gathering pace with each passing day, legacy automakers are stepping up e-mobility investments, introducing new models and setting ambitious targets to electrify their fleet.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Arcimoto, Inc. (FUV) : Free Stock Analysis Report Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here. On the earnings front, Advance Auto Parts AAP and Arcimoto FUV released second- quarter 2023 results last week. Italian-American auto giant Stellantis STLA took a significant step forward in its electrification journey by partnering with AGI, a leading infrastructure solutions provider.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Arcimoto, Inc. (FUV) : Free Stock Analysis Report Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here. On the earnings front, Advance Auto Parts AAP and Arcimoto FUV released second- quarter 2023 results last week. Stellantis joined forces with AGI to bolster the electrification of its vast U.S. dealership network, spanning more than 2,600 sites, by providing state-of-the-art electric vehicle supply equipment (EVSE) for charging.AGI, with its rich legacy of over 50 years in branded infrastructure implementation, has emerged as one of the most seasoned and adept providers of nationwide EVSE turnkey program execution.
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On the earnings front, Advance Auto Parts AAP and Arcimoto FUV released second- quarter 2023 results last week. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Arcimoto, Inc. (FUV) : Free Stock Analysis Report Volkswagen AG Unsponsored ADR (VWAGY) : Free Stock Analysis Report Stellantis N.V. (STLA) : Free Stock Analysis Report To read this article on Zacks.com click here. Arcimoto’s second-quarter 2023 revenues were up 17% year over year to $1.76 million.
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10635.0
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2023-08-28 00:00:00 UTC
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Consumer Sector Update for 08/28/2023: MCW, LQR, NTCO, AAP
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-08-28-2023%3A-mcw-lqr-ntco-aap
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nan
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nan
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Consumer stocks were higher late Monday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.2%.
In company news, Mister Car Wash (MCW) shares were up almost 7% after Piper Sandler upgraded the company's rating to overweight from neutral and raised its price target to $12 from $9.
LQR House (LQR) jumped almost 8% after saying its board has approved a share buyback plan of up to $2 million.
Natura & Co. (NTCO) said Monday in a regulatory filing that its board has authorized the company to explore strategic alternatives for The Body Shop, including a potential sale of the business. Natura shares rose 2.2%.
Advance Auto Parts (AAP) rose 2% after saying late Friday it filed a registration statement to the US Securities and Exchange Commission for a mixed shelf offering covering debt securities, guarantees of debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts, and units.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) rose 2% after saying late Friday it filed a registration statement to the US Securities and Exchange Commission for a mixed shelf offering covering debt securities, guarantees of debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts, and units. In company news, Mister Car Wash (MCW) shares were up almost 7% after Piper Sandler upgraded the company's rating to overweight from neutral and raised its price target to $12 from $9. Natura & Co. (NTCO) said Monday in a regulatory filing that its board has authorized the company to explore strategic alternatives for The Body Shop, including a potential sale of the business.
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Advance Auto Parts (AAP) rose 2% after saying late Friday it filed a registration statement to the US Securities and Exchange Commission for a mixed shelf offering covering debt securities, guarantees of debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts, and units. Consumer stocks were higher late Monday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.2%. Natura shares rose 2.2%.
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Advance Auto Parts (AAP) rose 2% after saying late Friday it filed a registration statement to the US Securities and Exchange Commission for a mixed shelf offering covering debt securities, guarantees of debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts, and units. Consumer stocks were higher late Monday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.2%. Natura & Co. (NTCO) said Monday in a regulatory filing that its board has authorized the company to explore strategic alternatives for The Body Shop, including a potential sale of the business.
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Advance Auto Parts (AAP) rose 2% after saying late Friday it filed a registration statement to the US Securities and Exchange Commission for a mixed shelf offering covering debt securities, guarantees of debt securities, common stock, preferred stock, depositary shares, warrants, stock purchase contracts, and units. Consumer stocks were higher late Monday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) increasing 0.3% and the Consumer Discretionary Select Sector SPDR Fund (XLY) rising 0.2%. In company news, Mister Car Wash (MCW) shares were up almost 7% after Piper Sandler upgraded the company's rating to overweight from neutral and raised its price target to $12 from $9.
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10636.0
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2023-08-28 00:00:00 UTC
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Noteworthy Monday Option Activity: CTLT, AAP, SBUX
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AAP
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-ctlt-aap-sbux
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Catalent Inc (Symbol: CTLT), where a total of 10,098 contracts have traded so far, representing approximately 1.0 million underlying shares. That amounts to about 53.4% of CTLT's average daily trading volume over the past month of 1.9 million shares. Especially high volume was seen for the $37.50 strike put option expiring September 15, 2023, with 2,150 contracts trading so far today, representing approximately 215,000 underlying shares of CTLT. Below is a chart showing CTLT's trailing twelve month trading history, with the $37.50 strike highlighted in orange:
Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 16,459 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 53.1% of AAP's average daily trading volume over the past month, of 3.1 million shares. Particularly high volume was seen for the $60 strike put option expiring September 15, 2023, with 3,234 contracts trading so far today, representing approximately 323,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $60 strike highlighted in orange:
And Starbucks Corp. (Symbol: SBUX) saw options trading volume of 28,518 contracts, representing approximately 2.9 million underlying shares or approximately 50.5% of SBUX's average daily trading volume over the past month, of 5.6 million shares. Especially high volume was seen for the $120 strike put option expiring October 20, 2023, with 3,520 contracts trading so far today, representing approximately 352,000 underlying shares of SBUX. Below is a chart showing SBUX's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for CTLT options, AAP options, or SBUX options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Top Ten Hedge Funds Holding GAPR
NMRK shares outstanding history
Norfolk Southern DMA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $60 strike put option expiring September 15, 2023, with 3,234 contracts trading so far today, representing approximately 323,400 underlying shares of AAP. Below is a chart showing CTLT's trailing twelve month trading history, with the $37.50 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 16,459 contracts thus far today. That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 53.1% of AAP's average daily trading volume over the past month, of 3.1 million shares.
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Particularly high volume was seen for the $60 strike put option expiring September 15, 2023, with 3,234 contracts trading so far today, representing approximately 323,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $60 strike highlighted in orange: And Starbucks Corp. (Symbol: SBUX) saw options trading volume of 28,518 contracts, representing approximately 2.9 million underlying shares or approximately 50.5% of SBUX's average daily trading volume over the past month, of 5.6 million shares. Below is a chart showing CTLT's trailing twelve month trading history, with the $37.50 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 16,459 contracts thus far today.
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That number of contracts represents approximately 1.6 million underlying shares, working out to a sizeable 53.1% of AAP's average daily trading volume over the past month, of 3.1 million shares. Below is a chart showing AAP's trailing twelve month trading history, with the $60 strike highlighted in orange: And Starbucks Corp. (Symbol: SBUX) saw options trading volume of 28,518 contracts, representing approximately 2.9 million underlying shares or approximately 50.5% of SBUX's average daily trading volume over the past month, of 5.6 million shares. Below is a chart showing CTLT's trailing twelve month trading history, with the $37.50 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 16,459 contracts thus far today.
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Below is a chart showing AAP's trailing twelve month trading history, with the $60 strike highlighted in orange: And Starbucks Corp. (Symbol: SBUX) saw options trading volume of 28,518 contracts, representing approximately 2.9 million underlying shares or approximately 50.5% of SBUX's average daily trading volume over the past month, of 5.6 million shares. Below is a chart showing SBUX's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for CTLT options, AAP options, or SBUX options, visit StockOptionsChannel.com. Below is a chart showing CTLT's trailing twelve month trading history, with the $37.50 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 16,459 contracts thus far today.
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10637.0
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2023-08-28 00:00:00 UTC
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Sum Up The Pieces: VOOV Could Be Worth $179
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AAP
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https://www.nasdaq.com/articles/sum-up-the-pieces%3A-voov-could-be-worth-%24179
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Vanguard S&P 500 Value ETF (Symbol: VOOV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $178.51 per unit.
With VOOV trading at a recent price near $153.67 per unit, that means that analysts see 16.16% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VOOV's underlying holdings with notable upside to their analyst target prices are HCA Healthcare Inc (Symbol: HCA), Advance Auto Parts Inc (Symbol: AAP), and Nasdaq Inc (Symbol: NDAQ). Although HCA has traded at a recent price of $273.28/share, the average analyst target is 16.89% higher at $319.45/share. Similarly, AAP has 16.46% upside from the recent share price of $64.08 if the average analyst target price of $74.62/share is reached, and analysts on average are expecting NDAQ to reach a target price of $61.40/share, which is 16.44% above the recent price of $52.73. Below is a twelve month price history chart comparing the stock performance of HCA, AAP, and NDAQ:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Vanguard S&P 500 Value ETF VOOV $153.67 $178.51 16.16%
HCA Healthcare Inc HCA $273.28 $319.45 16.89%
Advance Auto Parts Inc AAP $64.08 $74.62 16.46%
Nasdaq Inc NDAQ $52.73 $61.40 16.44%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Top Ten Hedge Funds Holding CEN
BG Dividend History
Funds Holding ZF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Vanguard S&P 500 Value ETF VOOV $153.67 $178.51 16.16% HCA Healthcare Inc HCA $273.28 $319.45 16.89% Advance Auto Parts Inc AAP $64.08 $74.62 16.46% Nasdaq Inc NDAQ $52.73 $61.40 16.44% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VOOV's underlying holdings with notable upside to their analyst target prices are HCA Healthcare Inc (Symbol: HCA), Advance Auto Parts Inc (Symbol: AAP), and Nasdaq Inc (Symbol: NDAQ). Similarly, AAP has 16.46% upside from the recent share price of $64.08 if the average analyst target price of $74.62/share is reached, and analysts on average are expecting NDAQ to reach a target price of $61.40/share, which is 16.44% above the recent price of $52.73.
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Three of VOOV's underlying holdings with notable upside to their analyst target prices are HCA Healthcare Inc (Symbol: HCA), Advance Auto Parts Inc (Symbol: AAP), and Nasdaq Inc (Symbol: NDAQ). Similarly, AAP has 16.46% upside from the recent share price of $64.08 if the average analyst target price of $74.62/share is reached, and analysts on average are expecting NDAQ to reach a target price of $61.40/share, which is 16.44% above the recent price of $52.73. Vanguard S&P 500 Value ETF VOOV $153.67 $178.51 16.16% HCA Healthcare Inc HCA $273.28 $319.45 16.89% Advance Auto Parts Inc AAP $64.08 $74.62 16.46% Nasdaq Inc NDAQ $52.73 $61.40 16.44% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAP has 16.46% upside from the recent share price of $64.08 if the average analyst target price of $74.62/share is reached, and analysts on average are expecting NDAQ to reach a target price of $61.40/share, which is 16.44% above the recent price of $52.73. Three of VOOV's underlying holdings with notable upside to their analyst target prices are HCA Healthcare Inc (Symbol: HCA), Advance Auto Parts Inc (Symbol: AAP), and Nasdaq Inc (Symbol: NDAQ). Below is a twelve month price history chart comparing the stock performance of HCA, AAP, and NDAQ: Below is a summary table of the current analyst target prices discussed above:
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Vanguard S&P 500 Value ETF VOOV $153.67 $178.51 16.16% HCA Healthcare Inc HCA $273.28 $319.45 16.89% Advance Auto Parts Inc AAP $64.08 $74.62 16.46% Nasdaq Inc NDAQ $52.73 $61.40 16.44% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of VOOV's underlying holdings with notable upside to their analyst target prices are HCA Healthcare Inc (Symbol: HCA), Advance Auto Parts Inc (Symbol: AAP), and Nasdaq Inc (Symbol: NDAQ). Similarly, AAP has 16.46% upside from the recent share price of $64.08 if the average analyst target price of $74.62/share is reached, and analysts on average are expecting NDAQ to reach a target price of $61.40/share, which is 16.44% above the recent price of $52.73.
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10638.0
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2023-08-25 00:00:00 UTC
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Stephens & Co. Maintains Advance Auto Parts (AAP) Equal-Weight Recommendation
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AAP
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https://www.nasdaq.com/articles/stephens-co.-maintains-advance-auto-parts-aap-equal-weight-recommendation-0
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nan
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nan
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Fintel reports that on August 25, 2023, Stephens & Co. maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 17.05% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 17.05% from its latest reported closing price of 67.91.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $67.91 / share, the stock's dividend yield is 1.47%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.08 (n=236).
The current dividend yield is 0.15 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.17. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
What is the Fund Sentiment?
There are 1141 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 153 owner(s) or 11.82% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%. Total shares owned by institutions decreased in the last three months by 3.59% to 62,094K shares.
The put/call ratio of AAP is 0.65, indicating a bullish outlook.
What are Other Shareholders Doing?
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 1,301.37% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
D. E. Shaw holds 1,662K shares representing 2.80% ownership of the company. In it's prior filing, the firm reported owning 34K shares, representing an increase of 97.97%. The firm increased its portfolio allocation in AAP by 3,342.78% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM T-1 STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939 OF A CORPORATION DESIGNATED TO ACT AS TRUSTEE
Advance Auto Parts Reports Second Quarter 2023 Results Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6% Operating Income of $134.4 Million; Operating Income Margin of 5.0% Separately Announces Leadership Appointments
Amendment No. 2 to the Credit Agreement Dated as of August
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 25, 2023, Stephens & Co. maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 25, 2023, Stephens & Co. maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 25, 2023, Stephens & Co. maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 25, 2023, Stephens & Co. maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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10639.0
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2023-08-25 00:00:00 UTC
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Why Advance Auto Parts Stock Keeps Dropping
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-stock-keeps-dropping
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nan
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nan
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What happened
Shares of Advance Auto Parts (NYSE: AAP) retreated for a second straight day Friday after reporting earnings on Wednesday. The news this week wasn't great. Revenues inched up less than 1%, gross-profit margins declined, and earnings per share (EPS) were cut nearly in half to just $1.43 per share. Little wonder, then, that Advanced Auto Parts announced it is switching CEOs and installing Shane O'Kelly in the office effective Sept. 11.
Wall Street doesn't seem convinced that a change in CEO will suffice to save this car parts dealer, however. Yesterday, five separate analysts cut their price targets on the stock, and this morning a sixth -- Stephens -- joined in with one of the lowest targets we've yet seen: $71 per share.
Advanced Auto Parts stock is retreating further on the news, down 6.2% as of 1:20 p.m. ET.
So what
What is it that Wall Street doesn't like about Advanced Auto Parts? Well, the earnings miss certainly didn't help. But what worries Stephens even more (according to a report by TheFly.com) is that Advanced Auto Parts is continuing to make "price investments" -- i.e., discounts -- that are having a deleterious effect upon profit margins such that even a 1% improvement in sales results in even worse earnings.
This echoes worries voiced by Truist bank yesterday, by the way, which announced the lowest price target on Advanced Auto Parts yet: $65.
Now what
And yet, you may have noticed that $71 -- or even $65 -- are actually both price targets above where Advanced Auto Parts stock trades today. For that matter, neither Stephens today nor Truist yesterday is saying that Advanced Auto Parts stock should actually be sold. Rather, both bankers are simply adopting a wait and see approach until there's some hard evidence that Advanced Auto Parts' new CEO can engineer a turnaround.
And that may be the right approach.
As Stephens observed this morning, Advanced Auto Parts' current valuation of less than 12 times earnings "could be compelling." All that's needed is for the company to stop shrinking profits and start growing again to turn Advanced Auto Parts into a valuable stock to own. In that regard, forecasts are encouraging. Currently, Wall Street is thinking Advanced Auto Parts could bounce back from $5.04 per share in earnings this year to earn as much as $5.88 next year -- 17% growth.
Combined with a modest 1.4% dividend yield, that growth rate could make Advanced Auto Parts quite attractive at under 12 times earnings. But first things first. First...we need to see the company grow at any rate at all.
10 stocks we like better than Advance Auto Parts
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Truist Financial. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Advance Auto Parts (NYSE: AAP) retreated for a second straight day Friday after reporting earnings on Wednesday. But what worries Stephens even more (according to a report by TheFly.com) is that Advanced Auto Parts is continuing to make "price investments" -- i.e., discounts -- that are having a deleterious effect upon profit margins such that even a 1% improvement in sales results in even worse earnings. This echoes worries voiced by Truist bank yesterday, by the way, which announced the lowest price target on Advanced Auto Parts yet: $65.
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What happened Shares of Advance Auto Parts (NYSE: AAP) retreated for a second straight day Friday after reporting earnings on Wednesday. This echoes worries voiced by Truist bank yesterday, by the way, which announced the lowest price target on Advanced Auto Parts yet: $65. For that matter, neither Stephens today nor Truist yesterday is saying that Advanced Auto Parts stock should actually be sold.
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What happened Shares of Advance Auto Parts (NYSE: AAP) retreated for a second straight day Friday after reporting earnings on Wednesday. Currently, Wall Street is thinking Advanced Auto Parts could bounce back from $5.04 per share in earnings this year to earn as much as $5.88 next year -- 17% growth. 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen.
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What happened Shares of Advance Auto Parts (NYSE: AAP) retreated for a second straight day Friday after reporting earnings on Wednesday. Advanced Auto Parts stock is retreating further on the news, down 6.2% as of 1:20 p.m. This echoes worries voiced by Truist bank yesterday, by the way, which announced the lowest price target on Advanced Auto Parts yet: $65.
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10640.0
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2023-08-25 00:00:00 UTC
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Friday Sector Laggards: Services, Financial
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AAP
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https://www.nasdaq.com/articles/friday-sector-laggards%3A-services-financial-0
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nan
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nan
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In afternoon trading on Friday, Services stocks are the worst performing sector, showing a 0.3% loss. Within that group, Advance Auto Parts Inc (Symbol: AAP) and Warner Bros Discovery Inc (Symbol: WBD) are two large stocks that are lagging, showing a loss of 6.2% and 4.3%, respectively. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 0.2% on the day, and up 20.68% year-to-date. Advance Auto Parts Inc, meanwhile, is down 56.79% year-to-date, and Warner Bros Discovery Inc is up 27.43% year-to-date. Combined, AAP and WBD make up approximately 0.6% of the underlying holdings of IYC.
The next worst performing sector is the Financial sector, higher by 0.1%. Among large Financial stocks, US Bancorp (Symbol: USB) and Boston Properties Inc (Symbol: BXP) are the most notable, showing a loss of 1.7% and 1.5%, respectively. One ETF closely tracking Financial stocks is the Financial Select Sector SPDR ETF (XLF), which is up 0.4% in midday trading, and down 0.14% on a year-to-date basis. US Bancorp, meanwhile, is down 18.31% year-to-date, and Boston Properties Inc, is down 1.30% year-to-date. USB makes up approximately 1.1% of the underlying holdings of XLF.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Friday. As you can see, eight sectors are up on the day, while one sector is down.
SECTOR % CHANGE
Energy +1.0%
Utilities +0.8%
Consumer Products +0.7%
Technology & Communications +0.7%
Industrial +0.7%
Healthcare +0.6%
Materials +0.4%
Financial +0.1%
Services -0.3%
10 ETFs With Stocks That Insiders Are Buying »
Also see:
Large Caps By Top Market Capitalization
Institutional Holders of HNGR
AWRE shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and Warner Bros Discovery Inc (Symbol: WBD) are two large stocks that are lagging, showing a loss of 6.2% and 4.3%, respectively. Combined, AAP and WBD make up approximately 0.6% of the underlying holdings of IYC. In afternoon trading on Friday, Services stocks are the worst performing sector, showing a 0.3% loss.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and Warner Bros Discovery Inc (Symbol: WBD) are two large stocks that are lagging, showing a loss of 6.2% and 4.3%, respectively. Combined, AAP and WBD make up approximately 0.6% of the underlying holdings of IYC. In afternoon trading on Friday, Services stocks are the worst performing sector, showing a 0.3% loss.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and Warner Bros Discovery Inc (Symbol: WBD) are two large stocks that are lagging, showing a loss of 6.2% and 4.3%, respectively. Combined, AAP and WBD make up approximately 0.6% of the underlying holdings of IYC. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 0.2% on the day, and up 20.68% year-to-date.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and Warner Bros Discovery Inc (Symbol: WBD) are two large stocks that are lagging, showing a loss of 6.2% and 4.3%, respectively. Combined, AAP and WBD make up approximately 0.6% of the underlying holdings of IYC. In afternoon trading on Friday, Services stocks are the worst performing sector, showing a 0.3% loss.
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10641.0
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2023-08-25 00:00:00 UTC
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Emergent BioSolutions (EBS) Down 12% in a Week: Here's Why
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AAP
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https://www.nasdaq.com/articles/emergent-biosolutions-ebs-down-12-in-a-week%3A-heres-why
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nan
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nan
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Since the past week, Emergent BioSolutions’ EBS shares have lost 11.5% against the industry’s 1.9% growth.
Image Source: Zacks Investment Research
The downside came after the S&P Global announced that Advance Auto Parts AAP will replace the company in the S&P SmallCap 600 index. Per S&P Global, Emergent no longer represents the small-cap market space, hence the substitution with Advance Auto Parts, which satisfies the index requirements. This change will be effective before the opening of trading from today, i.e., Aug 25, 2023.
Due to the removal from the index, several market participants, such as mutual funds and ETFs, which maintain positions on stock in the S&P SmallCap 600 index, are more likely to sell their positions in the company’s stock, which is no longer a part of this index. This will likely cause a downward pressure on the share price.
Moody’s Investors Service recently downgraded the company’s credit rating to Caa1 and issued a negative outlook on the stock. The main reason for this downgrade was the company’s “weak liquidity" and unpredictable revenue outlook amid the government's decision to defer purchases of the company’s vaccines.
In its Q2earnings call management stated that the fall in revenue guidance is due to lower expectations from anthrax and smallpox franchises following discussions with the United States government.
The downgrade also comes a couple of weeks after Emergent announced that it will implement strategic plans to reduce focus on its CDMO service business. The company plans on prioritizing the advancement of its core product businesses — medical countermeasures and Narcan Nasal Spray — and the timely delivery of its products to its existing customers, including the United States and allied governments. While the decision is expected to result in an annualized savings of almost $100 million, it will reduce the present workforce by nearly 400 employees.
Earlier this March, the FDA granted over-the-counter (OTC) status to Narcan nasal spray for emergency treatment of opioid overdose. Following the approval, Narcan is the first and currently the only naloxone NCI nasal spray available for opioid overdose in the U.S. market without a prescription. The medication will be made available later this year.
In the past couple of years, the company has lost significant market value, likely due to the loss of contract development and manufacturing (CDMO) services contracts from AstraZeneca AZN and Johnson & Johnson JNJ in 2021. Emergent suffered this setback when there was a manufacturing mishap at its Bayview facility where COVID-19 vaccine ingredients of J&J and AstraZeneca reportedly got mixed and led to several faulty batches of J&J’s vaccine. Emergent lost its contract for AstraZeneca’s vaccine following the mishap. In June 2022, Emergent and J&J announced their decision to terminate the deal, citing contract breaches.
Emergent Biosolutions Inc. Price
Emergent Biosolutions Inc. price | Emergent Biosolutions Inc. Quote
Zacks Rank
Emergent currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
Emergent Biosolutions Inc. (EBS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research The downside came after the S&P Global announced that Advance Auto Parts AAP will replace the company in the S&P SmallCap 600 index. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Emergent Biosolutions Inc. (EBS) : Free Stock Analysis Report To read this article on Zacks.com click here. Per S&P Global, Emergent no longer represents the small-cap market space, hence the substitution with Advance Auto Parts, which satisfies the index requirements.
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Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Emergent Biosolutions Inc. (EBS) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research The downside came after the S&P Global announced that Advance Auto Parts AAP will replace the company in the S&P SmallCap 600 index. In the past couple of years, the company has lost significant market value, likely due to the loss of contract development and manufacturing (CDMO) services contracts from AstraZeneca AZN and Johnson & Johnson JNJ in 2021.
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Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Emergent Biosolutions Inc. (EBS) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research The downside came after the S&P Global announced that Advance Auto Parts AAP will replace the company in the S&P SmallCap 600 index. Due to the removal from the index, several market participants, such as mutual funds and ETFs, which maintain positions on stock in the S&P SmallCap 600 index, are more likely to sell their positions in the company’s stock, which is no longer a part of this index.
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Image Source: Zacks Investment Research The downside came after the S&P Global announced that Advance Auto Parts AAP will replace the company in the S&P SmallCap 600 index. Click to get this free report AstraZeneca PLC (AZN) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Emergent Biosolutions Inc. (EBS) : Free Stock Analysis Report To read this article on Zacks.com click here. The company plans on prioritizing the advancement of its core product businesses — medical countermeasures and Narcan Nasal Spray — and the timely delivery of its products to its existing customers, including the United States and allied governments.
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2023-08-24 00:00:00 UTC
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Goldman Sachs Maintains Advance Auto Parts (AAP) Neutral Recommendation
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https://www.nasdaq.com/articles/goldman-sachs-maintains-advance-auto-parts-aap-neutral-recommendation-1
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Fintel reports that on August 24, 2023, Goldman Sachs maintained coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation.
Analyst Price Forecast Suggests 14.47% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 14.47% from its latest reported closing price of 69.44.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $69.44 / share, the stock's dividend yield is 1.44%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.08 (n=236).
The current dividend yield is 0.17 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.03. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 5.00%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1149 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 146 owner(s) or 11.27% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%. Total shares owned by institutions decreased in the last three months by 3.10% to 62,430K shares.
The put/call ratio of AAP is 0.71, indicating a bullish outlook.
What are Other Shareholders Doing?
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 1,301.37% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
Advance Auto Parts Reports Second Quarter 2023 Results Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6% Operating Income of $134.4 Million; Operating Income Margin of 5.0% Separately Announces Leadership Appointments
Amendment No. 2 to the Credit Agreement Dated as of August
List of the Issuer and its Guarantor Subsidiaries.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 24, 2023, Goldman Sachs maintained coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Goldman Sachs maintained coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Goldman Sachs maintained coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Goldman Sachs maintained coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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2023-08-24 00:00:00 UTC
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RBC Capital Maintains Advance Auto Parts (AAP) Sector Perform Recommendation
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AAP
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https://www.nasdaq.com/articles/rbc-capital-maintains-advance-auto-parts-aap-sector-perform-recommendation-0
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nan
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Fintel reports that on August 24, 2023, RBC Capital maintained coverage of Advance Auto Parts (NYSE:AAP) with a Sector Perform recommendation.
Analyst Price Forecast Suggests 16.99% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 16.99% from its latest reported closing price of 67.94.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $67.94 / share, the stock's dividend yield is 1.47%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.08 (n=236).
The current dividend yield is 0.15 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.17. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
What is the Fund Sentiment?
There are 1141 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 153 owner(s) or 11.82% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%. Total shares owned by institutions decreased in the last three months by 3.59% to 62,094K shares.
The put/call ratio of AAP is 0.65, indicating a bullish outlook.
What are Other Shareholders Doing?
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 1,301.37% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
Advance Auto Parts Reports Second Quarter 2023 Results Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6% Operating Income of $134.4 Million; Operating Income Margin of 5.0% Separately Announces Leadership Appointments
Amendment No. 2 to the Credit Agreement Dated as of August
List of the Issuer and its Guarantor Subsidiaries.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 24, 2023, RBC Capital maintained coverage of Advance Auto Parts (NYSE:AAP) with a Sector Perform recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 24, 2023, RBC Capital maintained coverage of Advance Auto Parts (NYSE:AAP) with a Sector Perform recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 24, 2023, RBC Capital maintained coverage of Advance Auto Parts (NYSE:AAP) with a Sector Perform recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 24, 2023, RBC Capital maintained coverage of Advance Auto Parts (NYSE:AAP) with a Sector Perform recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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10644.0
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2023-08-24 00:00:00 UTC
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After Hours Most Active for Aug 24, 2023 : KVUE, AAP, JNJ, RGF, QQQ, AFRM, EBS, AAPL, NVDA, INTC, PFE, TNET
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AAP
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-24-2023-%3A-kvue-aap-jnj-rgf-qqq-afrm-ebs-aapl-nvda-intc-pfe
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The NASDAQ 100 After Hours Indicator is down -33.63 to 14,782.81. The total After hours volume is currently 66,381,478 shares traded.
The following are the most active stocks for the after hours session:
Kenvue Inc. (KVUE) is -0.2088 at $23.45, with 68,085,293 shares traded. KVUE's current last sale is 83.75% of the target price of $28.
Advance Auto Parts Inc. (AAP) is -0.03 at $67.88, with 7,780,274 shares traded. AAP's current last sale is 86.47% of the target price of $78.5.
Johnson & Johnson (JNJ) is unchanged at $165.09, with 6,101,196 shares traded. JNJ's current last sale is 89.72% of the target price of $184.
The Real Good Food Company, Inc. (RGF) is -0.29 at $3.75, with 3,456,022 shares traded. As reported by Zacks, the current mean recommendation for RGF is in the "strong buy range".
Invesco QQQ Trust, Series 1 (QQQ) is -0.89 at $360.33, with 2,714,469 shares traded. This represents a 41.72% increase from its 52 Week Low.
Affirm Holdings, Inc. (AFRM) is +1.45 at $15.26, with 2,714,337 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2024. The consensus EPS forecast is $-0.71. Smarter Analyst Reports: Marqeta Expands Partnership with Klarna Bank; Shares Gain 6.5% Pre-Market
Emergent Biosolutions, Inc. (EBS) is -0.01 at $4.52, with 2,641,880 shares traded. EBS's current last sale is 27.39% of the target price of $16.5.
Apple Inc. (AAPL) is -0.36 at $176.02, with 1,821,436 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.38. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
NVIDIA Corporation (NVDA) is -0.99 at $470.64, with 1,778,358 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2023. The consensus EPS forecast is $2.02. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Intel Corporation (INTC) is -0.06 at $32.53, with 1,572,451 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $0.03. INTC's current last sale is 92.94% of the target price of $35.
Pfizer, Inc. (PFE) is unchanged at $36.16, with 1,443,175 shares traded. PFE's current last sale is 81.26% of the target price of $44.5.
TriNet Group, Inc. (TNET) is unchanged at $105.58, with 1,300,620 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2023. The consensus EPS forecast is $1.2. TNET's current last sale is 93.43% of the target price of $113.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts Inc. (AAP) is -0.03 at $67.88, with 7,780,274 shares traded. AAP's current last sale is 86.47% of the target price of $78.5. Apple Inc. (AAPL) is -0.36 at $176.02, with 1,821,436 shares traded.
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Advance Auto Parts Inc. (AAP) is -0.03 at $67.88, with 7,780,274 shares traded. AAP's current last sale is 86.47% of the target price of $78.5. Apple Inc. (AAPL) is -0.36 at $176.02, with 1,821,436 shares traded.
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Advance Auto Parts Inc. (AAP) is -0.03 at $67.88, with 7,780,274 shares traded. AAP's current last sale is 86.47% of the target price of $78.5. Apple Inc. (AAPL) is -0.36 at $176.02, with 1,821,436 shares traded.
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Advance Auto Parts Inc. (AAP) is -0.03 at $67.88, with 7,780,274 shares traded. AAP's current last sale is 86.47% of the target price of $78.5. Apple Inc. (AAPL) is -0.36 at $176.02, with 1,821,436 shares traded.
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10645.0
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2023-08-24 00:00:00 UTC
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Morgan Stanley Maintains Advance Auto Parts (AAP) Equal-Weight Recommendation
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AAP
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https://www.nasdaq.com/articles/morgan-stanley-maintains-advance-auto-parts-aap-equal-weight-recommendation-1
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Fintel reports that on August 24, 2023, Morgan Stanley maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 14.47% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 14.47% from its latest reported closing price of 69.44.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $69.44 / share, the stock's dividend yield is 1.44%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.08 (n=236).
The current dividend yield is 0.17 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.03. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 5.00%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1149 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 146 owner(s) or 11.27% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%. Total shares owned by institutions decreased in the last three months by 3.10% to 62,430K shares.
The put/call ratio of AAP is 0.71, indicating a bullish outlook.
What are Other Shareholders Doing?
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 1,301.37% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
Advance Auto Parts Reports Second Quarter 2023 Results Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6% Operating Income of $134.4 Million; Operating Income Margin of 5.0% Separately Announces Leadership Appointments
Amendment No. 2 to the Credit Agreement Dated as of August
List of the Issuer and its Guarantor Subsidiaries.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on August 24, 2023, Morgan Stanley maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Morgan Stanley maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Morgan Stanley maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Morgan Stanley maintained coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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10646.0
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2023-08-24 00:00:00 UTC
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Truist Securities Maintains Advance Auto Parts (AAP) Hold Recommendation
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AAP
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https://www.nasdaq.com/articles/truist-securities-maintains-advance-auto-parts-aap-hold-recommendation-0
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nan
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nan
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Fintel reports that on August 24, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation.
Analyst Price Forecast Suggests 16.99% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 16.99% from its latest reported closing price of 67.94.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $67.94 / share, the stock's dividend yield is 1.47%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.08 (n=236).
The current dividend yield is 0.15 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.17. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
What is the Fund Sentiment?
There are 1141 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 153 owner(s) or 11.82% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%. Total shares owned by institutions decreased in the last three months by 3.59% to 62,094K shares.
The put/call ratio of AAP is 0.65, indicating a bullish outlook.
What are Other Shareholders Doing?
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 1,301.37% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
Advance Auto Parts Reports Second Quarter 2023 Results Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6% Operating Income of $134.4 Million; Operating Income Margin of 5.0% Separately Announces Leadership Appointments
Amendment No. 2 to the Credit Agreement Dated as of August
List of the Issuer and its Guarantor Subsidiaries.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 24, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 24, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 24, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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Fintel reports that on August 24, 2023, Truist Securities maintained coverage of Advance Auto Parts (NYSE:AAP) with a Hold recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 31.56%.
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10647.0
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2023-08-24 00:00:00 UTC
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Wedbush Reiterates Advance Auto Parts (AAP) Neutral Recommendation
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AAP
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https://www.nasdaq.com/articles/wedbush-reiterates-advance-auto-parts-aap-neutral-recommendation-0
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nan
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nan
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Fintel reports that on August 24, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation.
Analyst Price Forecast Suggests 14.47% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 14.47% from its latest reported closing price of 69.44.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 2.52%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $69.44 / share, the stock's dividend yield is 1.44%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.08 (n=236).
The current dividend yield is 0.17 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.03. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 5.00%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1149 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 146 owner(s) or 11.27% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%. Total shares owned by institutions decreased in the last three months by 3.10% to 62,430K shares.
The put/call ratio of AAP is 0.71, indicating a bullish outlook.
What are Other Shareholders Doing?
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 1,301.37% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm increased its portfolio allocation in AAP by 1,130.31% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
Advance Auto Parts Reports Second Quarter 2023 Results Q2 Net Sales Increased 0.8% to $2.7 Billion; Comparable Store Sales Decreased 0.6% Operating Income of $134.4 Million; Operating Income Margin of 5.0% Separately Announces Leadership Appointments
Amendment No. 2 to the Credit Agreement Dated as of August
List of the Issuer and its Guarantor Subsidiaries.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 24, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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Fintel reports that on August 24, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.13%, a decrease of 30.08%.
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10648.0
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2023-08-24 00:00:00 UTC
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October 6th Options Now Available For Advance Auto Parts (AAP)
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AAP
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https://www.nasdaq.com/articles/october-6th-options-now-available-for-advance-auto-parts-aap
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nan
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nan
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the October 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new October 6th contracts and identified one put and one call contract of particular interest.
The put contract at the $68.00 strike price has a current bid of $2.55. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $68.00, but will also collect the premium, putting the cost basis of the shares at $65.45 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $68.54/share today.
Because the $68.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.75% return on the cash commitment, or 31.83% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $68.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $69.00 strike price has a current bid of $3.00. If an investor was to purchase shares of AAP stock at the current price level of $68.54/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $69.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.05% if the stock gets called away at the October 6th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red:
Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.38% boost of extra return to the investor, or 37.15% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $68.54) to be 55%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Funds Holding STOT
Sypris Solutions Earnings History
Top Ten Hedge Funds Holding DBES
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the October 6th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the October 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new October 6th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the October 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new October 6th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the October 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new October 6th contracts and identified one put and one call contract of particular interest.
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10649.0
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2023-08-23 00:00:00 UTC
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Advance Auto Parts Stock (NYSE:AAP): Watch for a Massive Relief Rally
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-stock-nyse%3Aaap%3A-watch-for-a-massive-relief-rally
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nan
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nan
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Advance Auto Parts (NYSE:AAP) didn't need to knock it out of the park with its just-released quarterly results. For a relief rally to happen, the company only needed to indicate that changes are coming. I am bullish on AAP stock because the generally neutral-to-bearish sentiment among investors has likely peaked and should subside over the coming months.
Advance Auto Parts is one of the most-recognized automotive parts suppliers in the U.S. While automotive dealers sometimes buy car parts from Advance Auto Parts, the company's stores also cater to regular retail customers.
Some onlookers might be surprised that traders are buying Advance Auto Parts stock today. Yet, if you're a contrarian investor, this should make perfect sense. After all, when there's fear in the air but a catastrophe fails to materialize -- and when there's newfound hope for a brighter future -- positive surprises can happen on Wall Street.
AAP Stock's Dreadful Journey to the Bottom
Right now, if you're not squeamish, I invite you to take a look at the chart of AAP stock. It's the type of chart that some less-than-charitable market technicians might call "ugly."
As you can see, Advance Auto Parts stock tanked after the company's last three quarterly earnings releases (not including today's report). One of those three earnings reports (Q4 2022) actually included an EPS beat. Nevertheless, investors simply weren't in the mood to buy AAP stock.
For the most part, I found these sell-offs to be overdone. I figured that since new car prices are so high nowadays, people would want to hold on to their current vehicles longer. Thus, auto-part sales should be robust in 2023.
That logic might hold up for the auto-parts sector generally, but Advance Auto Parts' critics have pointed to lackluster leadership under CEO Tom Greco as a major problem for the company. I don't want to get into a debate about Greco's competence as a CEO, but Advance Auto Parts' wide EPS miss in this year's first quarter provided the skeptics with plenty of fodder.
The company had a chance to redeem itself when it reported its second-quarter 2023 financial results this morning. I'll be the first to admit that the company's results weren't perfect. As it turned out, Advance Auto Parts' quarterly sales of $2.7 billion were in line with analysts' projections. Meanwhile, the company earned $1.43 per share in Q2, missing Wall Street's call for $1.69 per share.
Looking ahead to the full year of 2023, Advance Auto Parts raised its net sales guidance slightly to a range of $11.25 billion to $11.35 billion from the previous range of $11.2 billion to $11.3 billion. At the same time, Advance Auto Parts reduced its full-year diluted EPS outlook from $6.00 to $6.50 previously to a new range of $4.50 to $5.10.
New Leadership Means New Hope for Advance Auto Parts
I actually like it when companies lower their EPS guidance since this is often a setup for an upcoming earnings beat. Yet, what most likely prompted a rally instead of the usual dumpage in AAP stock today was Advance Auto Parts' leadership transition.
If Greco was supposedly the problem, then at least now there's hope that the problem will be fixed. Along with the earnings release this morning, Advance Auto Parts announced two executive-level change-ups. First, Tony Iskander was named interim chief financial officer at the company, and he will succeed Jeff Shepherd. Second and most importantly, Shane O’Kelly will replace Greco as CEO, effective September 11.
In other words, Greco will be out of the picture very soon. Moreover, O'Kelly has some pedigree as he previously served as served as the CEO of Home Depot (NYSE:HD) subsidiary HD Supply. Home Depot is highly respected in the financial markets, so maybe O'Kelly can help Advance Auto Parts navigate a turnaround this and next year.
Is AAP Stock a Buy, According to Analysts?
On TipRanks, AAP comes in as a Hold based on two Buys, 16 Holds, and one Sell rating assigned by analysts in the past three months. The average Advance Auto Parts price target is $75.82, implying 9% upside potential.
Conclusion: Should You Consider AAP Stock?
Changing a chief executive isn't as simple as replacing a car part. It will take some time for Advance Auto Parts' new CEO to settle in and prove himself.
Still, it appears that financial traders are glad to see Advance Auto Parts undergoing a transition with new leadership. After many months of negative sentiment, there's hope for better days ahead. So, if you believe that a turnaround is afoot and hated companies can become Wall Street darlings, consider AAP a stock with tremendous upside potential.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (NYSE:AAP) didn't need to knock it out of the park with its just-released quarterly results. I am bullish on AAP stock because the generally neutral-to-bearish sentiment among investors has likely peaked and should subside over the coming months. AAP Stock's Dreadful Journey to the Bottom Right now, if you're not squeamish, I invite you to take a look at the chart of AAP stock.
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Yet, what most likely prompted a rally instead of the usual dumpage in AAP stock today was Advance Auto Parts' leadership transition. Advance Auto Parts (NYSE:AAP) didn't need to knock it out of the park with its just-released quarterly results. I am bullish on AAP stock because the generally neutral-to-bearish sentiment among investors has likely peaked and should subside over the coming months.
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Advance Auto Parts (NYSE:AAP) didn't need to knock it out of the park with its just-released quarterly results. I am bullish on AAP stock because the generally neutral-to-bearish sentiment among investors has likely peaked and should subside over the coming months. AAP Stock's Dreadful Journey to the Bottom Right now, if you're not squeamish, I invite you to take a look at the chart of AAP stock.
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I am bullish on AAP stock because the generally neutral-to-bearish sentiment among investors has likely peaked and should subside over the coming months. Nevertheless, investors simply weren't in the mood to buy AAP stock. Is AAP Stock a Buy, According to Analysts?
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10650.0
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2023-08-23 00:00:00 UTC
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Why Advance Auto Parts Stock Jumped Earlier Today
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-stock-jumped-earlier-today
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nan
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nan
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What happened
Investors in Advance Auto Parts (NYSE: AAP) must have heaved a sigh of relief this morning when the stock rallied soon after the market's opening. Unfortunately, their excitement lasted only so long, with the stock giving up those gains as the day progressed. Advance's stock was trading 1% lower as of noon E.T. on Wednesday, down considerably from the high of 6.2% earlier in the day.
The automotive parts retailer announced its quarterly numbers and has appointed a new CEO. While the market perhaps considers the latter as a positive move, it's taking a cautious stand given Advance Auto Parts' latest numbers and outlook.
So what
Here are some important numbers from Advance Auto Parts' second-quarter earnings report (all changes are year over year):
Revenue was up 0.8%, driven by new store openings.
Gross margin was down to 42.7% from 44.5%.
Earnings per share (EPS) fell to $1.43 from $2.38.
Free cash flow (FCF) was negative $309.4 million, down from a positive FCF of $97.3 million.
Those bleak numbers have reminded investors, yet again, about the retailer's ongoing struggles. In May, the company not only cut its outlook for the full year but also slashed its quarterly dividend drastically to $0.25 per share from $1.50.
Unfortunately, things seem to have gotten worse since, as Advance Auto Parts has further downgraded its 2023 operating margin outlook by a percentage point to a range of 4% to 4.3%. That's nearly half of what the company projected in February this year.
The aftermarket parts retailer also expects only $4.50 to $5.10 in earnings per share (EPS) this year, down significantly from its original EPS guidance of $10.20 to $11.20.
Now what
Advance Auto Parts' recent performance under CEO Tom Greco has clearly left much to be desired. That explains why the stock rose earlier today, with the company saying it is initiating an "operational and strategic review" of its business and has announced a new leader. Greco will retire and be replaced by Shane O'Kelly, effective Sept. 11.
O'Kelly is currently the CEO of Home Depot's HD Supply unit, and investors are hopeful he will turn Advance Auto Parts around. However, with the company also expecting a challenging year ahead, investors aren't willing to bet on a potential turnaround just yet.
10 stocks we like better than Advance Auto Parts
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of August 21, 2023
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Investors in Advance Auto Parts (NYSE: AAP) must have heaved a sigh of relief this morning when the stock rallied soon after the market's opening. While the market perhaps considers the latter as a positive move, it's taking a cautious stand given Advance Auto Parts' latest numbers and outlook. O'Kelly is currently the CEO of Home Depot's HD Supply unit, and investors are hopeful he will turn Advance Auto Parts around.
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What happened Investors in Advance Auto Parts (NYSE: AAP) must have heaved a sigh of relief this morning when the stock rallied soon after the market's opening. The automotive parts retailer announced its quarterly numbers and has appointed a new CEO. The aftermarket parts retailer also expects only $4.50 to $5.10 in earnings per share (EPS) this year, down significantly from its original EPS guidance of $10.20 to $11.20.
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What happened Investors in Advance Auto Parts (NYSE: AAP) must have heaved a sigh of relief this morning when the stock rallied soon after the market's opening. 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them!
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What happened Investors in Advance Auto Parts (NYSE: AAP) must have heaved a sigh of relief this morning when the stock rallied soon after the market's opening. on Wednesday, down considerably from the high of 6.2% earlier in the day. O'Kelly is currently the CEO of Home Depot's HD Supply unit, and investors are hopeful he will turn Advance Auto Parts around.
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10651.0
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2023-08-23 00:00:00 UTC
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Advance Auto Parts Cuts FY23 Earnings View, Lifts Sales View; Names New CEO, Interim CFO - Update
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-cuts-fy23-earnings-view-lifts-sales-view-names-new-ceo-interim-cfo
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nan
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nan
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(RTTNews) - Advance Auto Parts, Inc. (AAP), while announcing weak profit and nearly flat sales in the second quarter, on Wednesday lowered its fiscal 2023 earnings view below market estimates, but lifted sales forecast.
Separately, Advance Auto Parts announced that its board of directors has appointed Shane O'Kelly as president and chief executive officer, effective September 11. O'Kelly will succeed Tom Greco, who has served as president and CEO since April 2016.
The company also announced that Tony Iskander has been named interim chief financial officer, effective August 18.
For fiscal 2023, the automotive aftermarket parts provider now expects earnings of $4.50 to $5.10 per share, down from previous estimate of $6.00 to $6.50.
On average, 24 analysts polled by Thomson Reuters expect earnings of $5.85 per share for the year. Analysts' estimates typically exclude special items.
Net sales are currently expected to be $11.25 billion to $11.35 billion, higher than earlier expected $11.20 billion to $11.30 billion. The Street estimate net sales of $11.22 billion for the year.
Comparable store sales are now expected to be between down 0.5 percent and up 0.5 percent, while previous estimate was a drop of 1 percent.
Tony Iskander, interim chief financial officer, said, "We are updating our full-year guidance, which considers a modest step up in net and comparable store sales growth driven by strengthening of our professional business. However, we are reducing our outlook for operating income margin rate, diluted earnings per share and free cash flow. This reflects additional headwinds anticipated in the back half of the year driven by our ongoing commitment to maintain competitive price targets, impacts from a shift in channel mix and investments in our team to help retain top talent."
In the second quarter, earnings decreased to $85.36 million or $1.43 per share from $144.40 million or $2.38 per share last year.
The company's net sales for the quarter rose 0.7 percent to $2.69 billion from $2.67 billion last year.
The analysts expected earnings of $1.66 per share on net sales of $2.66 billion for the quarter.
Regarding the CEO change, the company noted that O'Kelly has also been appointed to the board of directors, effective September 11. Gene Lee, interim executive chair of the board of directors, will continue in his interim role through the end of the year.
Greco had announced his planned retirement in February 2023 and will stay on as an advisor to ensure a seamless transition.
O'Kelly, who holds more than 30 years of experience, most recently served as CEO of HD Supply, a subsidiary of The Home Depot, Inc. Prior to joining Home Depot, he was the CEO of PetroChoice.
The new interim CFO, Iskander, succeeds Jeff Shepherd, who departed from Advance, effective August 18.
In pre-market activity on the NYSE, Advance Auto Parts shares were trading at $69.00, up 2.5 percent.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Advance Auto Parts, Inc. (AAP), while announcing weak profit and nearly flat sales in the second quarter, on Wednesday lowered its fiscal 2023 earnings view below market estimates, but lifted sales forecast. Separately, Advance Auto Parts announced that its board of directors has appointed Shane O'Kelly as president and chief executive officer, effective September 11. Tony Iskander, interim chief financial officer, said, "We are updating our full-year guidance, which considers a modest step up in net and comparable store sales growth driven by strengthening of our professional business.
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(RTTNews) - Advance Auto Parts, Inc. (AAP), while announcing weak profit and nearly flat sales in the second quarter, on Wednesday lowered its fiscal 2023 earnings view below market estimates, but lifted sales forecast. Separately, Advance Auto Parts announced that its board of directors has appointed Shane O'Kelly as president and chief executive officer, effective September 11. The company also announced that Tony Iskander has been named interim chief financial officer, effective August 18.
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(RTTNews) - Advance Auto Parts, Inc. (AAP), while announcing weak profit and nearly flat sales in the second quarter, on Wednesday lowered its fiscal 2023 earnings view below market estimates, but lifted sales forecast. Net sales are currently expected to be $11.25 billion to $11.35 billion, higher than earlier expected $11.20 billion to $11.30 billion. The analysts expected earnings of $1.66 per share on net sales of $2.66 billion for the quarter.
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(RTTNews) - Advance Auto Parts, Inc. (AAP), while announcing weak profit and nearly flat sales in the second quarter, on Wednesday lowered its fiscal 2023 earnings view below market estimates, but lifted sales forecast. The company also announced that Tony Iskander has been named interim chief financial officer, effective August 18. The analysts expected earnings of $1.66 per share on net sales of $2.66 billion for the quarter.
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10652.0
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2023-08-23 00:00:00 UTC
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S&P 500 Movers: VLO, AAP
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AAP
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https://www.nasdaq.com/articles/sp-500-movers%3A-vlo-aap
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nan
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nan
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In early trading on Wednesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 5.6%. Year to date, Advance Auto Parts has lost about 51.7% of its value.
And the worst performing S&P 500 component thus far on the day is Valero Energy, trading down 3.5%. Valero Energy is lower by about 0.4% looking at the year to date performance.
Two other components making moves today are EQT, trading down 3.3%, and Merck, trading up 4.1% on the day.
VIDEO: S&P 500 Movers: VLO, AAP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: S&P 500 Movers: VLO, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Advance Auto Parts has lost about 51.7% of its value. And the worst performing S&P 500 component thus far on the day is Valero Energy, trading down 3.5%.
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VIDEO: S&P 500 Movers: VLO, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 5.6%. Year to date, Advance Auto Parts has lost about 51.7% of its value.
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VIDEO: S&P 500 Movers: VLO, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 5.6%. And the worst performing S&P 500 component thus far on the day is Valero Energy, trading down 3.5%.
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VIDEO: S&P 500 Movers: VLO, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 5.6%. And the worst performing S&P 500 component thus far on the day is Valero Energy, trading down 3.5%.
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10653.0
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2023-08-23 00:00:00 UTC
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Advance Auto (AAP) Q2 Earnings Miss, Sales Top Estimates
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AAP
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https://www.nasdaq.com/articles/advance-auto-aap-q2-earnings-miss-sales-top-estimates
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nan
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nan
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Advance Auto Parts, Inc. AAP delivered adjusted earnings of $1.43 per share for second-quarter 2023, down 62% from the year-ago quarter's figure. The reported figure also fell short of the Zacks Consensus Estimate of $1.72 per share. Advance Auto generated net revenues of $2,686 million, which topped the Zacks Consensus Estimate of $2,671 million on lower-than-expected comps decline. Comparable store sales dropped 0.6%. We projected a decline 0.7%. The top line increased 0.8% year over year.
Operating income plunged 33.3% year over year to $134.4 million. SG&A expenses totaled $1,013.7 million for second-quarter 2023, up 3% year over year.
Advance Auto had cash and cash equivalents of $277.1 million as of Jul 15, 2023, compared with $269.3 million on Dec 31, 2023. Total long-term debt was $1,785.1 million as of Jul 15, 2023, up from $1,188.3 million on Dec 31, 2022. From January through the second quarter of 2023, net cash used by operating activities and negative FCF totaled $164.6 million and $309.4 million, respectively.
AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023.
As of Jul 15, 2023, AAP operated 4,790 stores and 319 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 1,307 independently owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.
Advance Auto estimates 2023 net sales in the band of $11.25-$11.35 billion, up from the previous guided range of $11.2-$11.3 billion. Comparable store sales are projected within a range of negative 0.5% to positive 0.5%. Adjusted operating income margin is envisioned in the range of 4-4.3%, down from 5-5.3% guided earlier.
Advance Auto expects 2023 capex in the range of $200-$250 million, down from $250-$300 million. The company projects FCF in the band of $150-$250 million, down from the prior guidance of $200-$300 million. Earnings are forecast between $4.50-$5.10 per share, down from the prior estimate of $6-$6.50 per share. AAP aims to open 40 to 60 new stores this year.
AAP currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Advance Auto Parts, Inc. Price and EPS Surprise
Advance Auto Parts, Inc. price-eps-surprise | Advance Auto Parts, Inc. Quote
Key Releases From the Same Space
O’Reilly Automotive, Inc. ORLY reported second-quarter 2023 adjusted earnings per share of $10.22, beating the Zacks Consensus Estimate of $10.05. The bottom line increased from $8.78 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4,069 million, crossing the Zacks Consensus Estimate of $3,990 million. The top line increased 11% year over year. The total store count was 6,071 as of Jun 30, 2023.
ORLY had cash and cash equivalents of $57.9 million at the end of the reported quarter, down from $108.6 million recorded as of 2022-end. Its long-term debt was $4,873.7 million, higher than $4,371.6 million as of Dec 31, 2022.
AutoNation, Inc. AN reported second-quarter 2023 adjusted earnings of $6.29 per share, which decreased 2.9% year over year but topped the Zacks Consensus Estimate of $5.83. The earnings beat can be primarily attributed to higher-than-expected new vehicle revenues and profits. In the reported quarter, revenues amounted to $6,890.1 million, surpassing the Zacks Consensus Estimate of $6,645 million. The company had recorded revenues of $6,869.2 million in the second quarter of 2022.
AutoNation’s cash and cash equivalents were $63.7 million as of Jun 30, 2023, declining from $72.6 million recorded as of Dec 31, 2022. The company’s liquidity was $1.4 billion, including $64 million in cash and nearly $1.3 billion available under its revolving credit facility.
Lithia Motors LAD reported adjusted earnings of $10.91 per share for second-quarter 2023, which declined from the prior-year quarter’s $12.18. The bottom line, nevertheless, surpassed the Zacks Consensus Estimate of $9.19 per share. Total revenues jumped 12% year over year to $8,111.5 million. The top line outpaced the Zacks Consensus Estimate of $7,697 million.
Lithia had cash/cash equivalents/restricted cash of $199.7 million as of Jun 30, 2023, down from $246.7 million as of Dec 31, 2022. Long-term debt was $5,414 million as of Jun 30, 2023, up from $5,088.3 million as of Dec 31, 2022.
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O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
AutoNation, Inc. (AN) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
Lithia Motors, Inc. (LAD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, Inc. AAP delivered adjusted earnings of $1.43 per share for second-quarter 2023, down 62% from the year-ago quarter's figure. As of Jul 15, 2023, AAP operated 4,790 stores and 319 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP delivered adjusted earnings of $1.43 per share for second-quarter 2023, down 62% from the year-ago quarter's figure. AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts, Inc. AAP delivered adjusted earnings of $1.43 per share for second-quarter 2023, down 62% from the year-ago quarter's figure. AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023.
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Advance Auto Parts, Inc. AAP delivered adjusted earnings of $1.43 per share for second-quarter 2023, down 62% from the year-ago quarter's figure. AAP’s board declared a cash dividend of 25 cents per share, which would be paid out on Oct 27, 2023, to all common shareholders of record as of Oct 13, 2023. As of Jul 15, 2023, AAP operated 4,790 stores and 319 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands.
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10654.0
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2023-08-23 00:00:00 UTC
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Auto Parts Stocks Shift Gears: Which is the Right One to Buy?
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AAP
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https://www.nasdaq.com/articles/auto-parts-stocks-shift-gears%3A-which-is-the-right-one-to-buy
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nan
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nan
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Auto parts stocks shifted gears this year, naming new CEOs to the 3 largest players. While O’Reilly Automotive (NASDAQ: ORLY) and Autozone (NYSE: AZO) chose to go the internal route to help ensure a smooth transition, Advance Auto Parts (NYSE: AAP) looked outside the company.
Given the recent downturn in outlook, this may be a good move, and the choice appears good. Advance Auto Parts named Shane O’Kelly to the position; Mr. O’Kelly served as CEO of HD Supply before the appointment. The question is which is better positioned to deliver results to shareholders now and in the future.
Advance Auto Parts Booted from S&P 500
Advance Auto Parts has had its share of problems over the past 2 years. A long story short, the company’s lean into dividends and dividend growth was cut drastically short and resulted in a dividend cut and, now, removal from the S&P 500. That situation sent shares into a downward spiral that has them down more than 70%, possibly heading lower. The new CEO could and probably will turn the company around; the question is when and what happens to the share price between now and then?
The Q2 results were weak and lagged behind its peers. The $2.7 billion in revenue is up 1.1% and beat the consensus estimates but is far short of O’Reilly’s 10% and the 5%+ expected from AZO when it reports. The worst news in the report is that the margin contracted more than expected, leaving the earnings down compared to last year and double-digits below the Marketbeat.com consensus.
The company raised guidance, which may be enough to put a bottom in the analysts' sentiment, but that is not in place yet. The analysts have been downgrading the stock and lowering price targets to place the stock high on the Most Downgraded and Lowest Rated Stocks list on the Marketbeat.com platform. The consensus price is about 45% above the action but trending lower. The most recent price targets are in a wide range, bracketing the current price point, suggesting fair value is near.
Get in the Zone with Autozone
Autozone’s chart looks much better than Advance’s from the start. This chart shows volatility but a seasonal upswing in prices that could take it back to all-time highs soon. The upswing is bolstered by a recent $2 billion addition to the buyback program worth another 2.5% to shareholders.
Given its track record for share repurchases and growth outlook, Autozone doesn't need to pay a dividend to support its price action. The stock also offers some value relative to O’Reilly, which carries the highest valuation at 24X earnings.
The analysts are more enthusiastic about Autozone and see it advancing. The 19 with current ratings have it pegged at a firm and steady Moderate Buy with a price target about 10% above the price action. The trend in the consensus target flattened over the last month but is rising and leading the market higher.
This trend should continue following the Q2 release, assuming the company’s report is closer in alignment with ORLY than AAP. O’Reilly and Autozone are still in the S&P 500 and will likely remain in their positions for the foreseeable future.
O’Reilly is the Leader of the Pack
If you base the decision on performance, analysts' sentiment, and the charts, then O’Reilly Automotive is the pack's leader. The company delivered +10% growth in Q2 and is expected to deliver a high-single-digit figure in Q3. The chart is very bullish, showing a solid uptrend ending in a Bull Flag/Rising Triangle pattern, suggesting a continuation is at hand. The analysts rate the stock a firm and steady Moderate Buy with a price target that, while only 3.5% above the current action, is trending robustly higher with high targets that suggest another 10%+ of upside is on the way.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While O’Reilly Automotive (NASDAQ: ORLY) and Autozone (NYSE: AZO) chose to go the internal route to help ensure a smooth transition, Advance Auto Parts (NYSE: AAP) looked outside the company. This trend should continue following the Q2 release, assuming the company’s report is closer in alignment with ORLY than AAP. The worst news in the report is that the margin contracted more than expected, leaving the earnings down compared to last year and double-digits below the Marketbeat.com consensus.
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While O’Reilly Automotive (NASDAQ: ORLY) and Autozone (NYSE: AZO) chose to go the internal route to help ensure a smooth transition, Advance Auto Parts (NYSE: AAP) looked outside the company. This trend should continue following the Q2 release, assuming the company’s report is closer in alignment with ORLY than AAP. The analysts have been downgrading the stock and lowering price targets to place the stock high on the Most Downgraded and Lowest Rated Stocks list on the Marketbeat.com platform.
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While O’Reilly Automotive (NASDAQ: ORLY) and Autozone (NYSE: AZO) chose to go the internal route to help ensure a smooth transition, Advance Auto Parts (NYSE: AAP) looked outside the company. This trend should continue following the Q2 release, assuming the company’s report is closer in alignment with ORLY than AAP. The analysts have been downgrading the stock and lowering price targets to place the stock high on the Most Downgraded and Lowest Rated Stocks list on the Marketbeat.com platform.
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While O’Reilly Automotive (NASDAQ: ORLY) and Autozone (NYSE: AZO) chose to go the internal route to help ensure a smooth transition, Advance Auto Parts (NYSE: AAP) looked outside the company. This trend should continue following the Q2 release, assuming the company’s report is closer in alignment with ORLY than AAP. The question is which is better positioned to deliver results to shareholders now and in the future.
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10655.0
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2023-08-23 00:00:00 UTC
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Here's What Key Metrics Tell Us About Advance Auto Parts (AAP) Q2 Earnings
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AAP
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https://www.nasdaq.com/articles/heres-what-key-metrics-tell-us-about-advance-auto-parts-aap-q2-earnings
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nan
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nan
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For the quarter ended June 2023, Advance Auto Parts (AAP) reported revenue of $2.69 billion, up 0.8% over the same period last year. EPS came in at $1.43, compared to $3.74 in the year-ago quarter.
The reported revenue represents a surprise of +0.58% over the Zacks Consensus Estimate of $2.67 billion. With the consensus EPS estimate being $1.72, the EPS surprise was -16.86%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Advance Auto Parts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable store sales - YoY change: -0.6% versus -0.85% estimated by seven analysts on average.
Number of stores (Retail) - Total: 5109 compared to the 5107 average estimate based on three analysts.
Number of stores opened: 18 compared to the 9.5 average estimate based on two analysts.
Number of stores (BOP): 5096 compared to the 5096 average estimate based on two analysts.
View all Key Company Metrics for Advance Auto Parts here>>>
Shares of Advance Auto Parts have returned -5.9% over the past month versus the Zacks S&P 500 composite's -3.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Download free today.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the quarter ended June 2023, Advance Auto Parts (AAP) reported revenue of $2.69 billion, up 0.8% over the same period last year. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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For the quarter ended June 2023, Advance Auto Parts (AAP) reported revenue of $2.69 billion, up 0.8% over the same period last year. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Advance Auto Parts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable store sales - YoY change: -0.6% versus -0.85% estimated by seven analysts on average.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. For the quarter ended June 2023, Advance Auto Parts (AAP) reported revenue of $2.69 billion, up 0.8% over the same period last year. Here is how Advance Auto Parts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable store sales - YoY change: -0.6% versus -0.85% estimated by seven analysts on average.
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For the quarter ended June 2023, Advance Auto Parts (AAP) reported revenue of $2.69 billion, up 0.8% over the same period last year. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how Advance Auto Parts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Comparable store sales - YoY change: -0.6% versus -0.85% estimated by seven analysts on average.
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10656.0
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2023-08-23 00:00:00 UTC
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Advance Auto Parts Profit Falls In Q2
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-profit-falls-in-q2
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nan
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nan
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(RTTNews) - Advance Auto Parts (AAP) revealed earnings for second quarter that decreased from last year
The company's earnings totaled $85.36 million, or $1.43 per share. This compares with $144.40 million, or $2.38 per share, in last year's second quarter.
The company's revenue for the quarter rose 0.7% to $2.69 billion from $2.67 billion last year.
Advance Auto Parts earnings at a glance (GAAP) :
-Earnings (Q2): $85.36 Mln. vs. $144.40 Mln. last year. -EPS (Q2): $1.43 vs. $2.38 last year. -Revenue (Q2): $2.69 Bln vs. $2.67 Bln last year.
-Guidance: Full year EPS guidance: $4.50 - $ 5.10 Full year revenue guidance: $11,250 -$11,350 Mln
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Advance Auto Parts (AAP) revealed earnings for second quarter that decreased from last year The company's earnings totaled $85.36 million, or $1.43 per share. Advance Auto Parts earnings at a glance (GAAP) : -Earnings (Q2): $85.36 Mln. -Guidance: Full year EPS guidance: $4.50 - $ 5.10 Full year revenue guidance: $11,250 -$11,350 Mln The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts earnings at a glance (GAAP) : -Earnings (Q2): $85.36 Mln. (RTTNews) - Advance Auto Parts (AAP) revealed earnings for second quarter that decreased from last year The company's earnings totaled $85.36 million, or $1.43 per share. The company's revenue for the quarter rose 0.7% to $2.69 billion from $2.67 billion last year.
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(RTTNews) - Advance Auto Parts (AAP) revealed earnings for second quarter that decreased from last year The company's earnings totaled $85.36 million, or $1.43 per share. Advance Auto Parts earnings at a glance (GAAP) : -Earnings (Q2): $85.36 Mln. -Revenue (Q2): $2.69 Bln vs. $2.67 Bln last year.
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(RTTNews) - Advance Auto Parts (AAP) revealed earnings for second quarter that decreased from last year The company's earnings totaled $85.36 million, or $1.43 per share. Advance Auto Parts earnings at a glance (GAAP) : -Earnings (Q2): $85.36 Mln. vs. $144.40 Mln.
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10657.0
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2023-08-23 00:00:00 UTC
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Advance Auto Parts Q2 23 Earnings Conference Call At 8:00 AM ET
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-q2-23-earnings-conference-call-at-8%3A00-am-et
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nan
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nan
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(RTTNews) - Advance Auto Parts (AAP) will host a conference call at 8:00 AM ET on August 23, 2023, to discuss Q2 23 earnings results.
To access the live webcast, log on to http://ir.advanceautoparts.com/investors/overview/default.aspx
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Advance Auto Parts (AAP) will host a conference call at 8:00 AM ET on August 23, 2023, to discuss Q2 23 earnings results. To access the live webcast, log on to http://ir.advanceautoparts.com/investors/overview/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Advance Auto Parts (AAP) will host a conference call at 8:00 AM ET on August 23, 2023, to discuss Q2 23 earnings results. To access the live webcast, log on to http://ir.advanceautoparts.com/investors/overview/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Advance Auto Parts (AAP) will host a conference call at 8:00 AM ET on August 23, 2023, to discuss Q2 23 earnings results. To access the live webcast, log on to http://ir.advanceautoparts.com/investors/overview/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Advance Auto Parts (AAP) will host a conference call at 8:00 AM ET on August 23, 2023, to discuss Q2 23 earnings results. To access the live webcast, log on to http://ir.advanceautoparts.com/investors/overview/default.aspx The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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10658.0
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2023-08-22 00:00:00 UTC
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Stephens & Co. Reiterates Advance Auto Parts (AAP) Equal-Weight Recommendation
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AAP
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https://www.nasdaq.com/articles/stephens-co.-reiterates-advance-auto-parts-aap-equal-weight-recommendation
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nan
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nan
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Fintel reports that on August 22, 2023, Stephens & Co. reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 16.55% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 16.55% from its latest reported closing price of 68.20.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 3.11%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $68.20 / share, the stock's dividend yield is 1.47%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.08 (n=236).
The current dividend yield is 0.15 standard deviations below the historical average.
The company's 3-Year dividend growth rate is 5.00%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1167 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 127 owner(s) or 9.81% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 28.56%. Total shares owned by institutions decreased in the last three months by 1.38% to 63,430K shares.
The put/call ratio of AAP is 0.68, indicating a bullish outlook.
What are Other Shareholders Doing?
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 1,301.37% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm increased its portfolio allocation in AAP by 112.11% over the last quarter.
Invesco holds 1,677K shares representing 2.82% ownership of the company. In it's prior filing, the firm reported owning 800K shares, representing an increase of 52.30%. The firm decreased its portfolio allocation in AAP by 89.32% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
Amended and Restated By-Laws of Advance Auto Parts, Inc., effective August 8, 2023
Advance Auto Parts, Inc. 2023 Omnibus Incentive Compensation Plan (the “2023 Plan”)
Form of 2023 Advance Auto Parts, Inc. Time-Based Restricted Stock Unit Award Agreement under the 2014 Plan.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
Click to Learn More
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 22, 2023, Stephens & Co. reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 28.56%.
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Fintel reports that on August 22, 2023, Stephens & Co. reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 28.56%.
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Fintel reports that on August 22, 2023, Stephens & Co. reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 28.56%.
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Fintel reports that on August 22, 2023, Stephens & Co. reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Equal-Weight recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 28.56%.
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10659.0
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2023-08-22 00:00:00 UTC
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Kenvue Joins S&P 500 on Friday: Time to Buy?
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AAP
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https://www.nasdaq.com/articles/kenvue-joins-sp-500-on-friday%3A-time-to-buy
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nan
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nan
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On Monday, S&P Dow Jones Indices announced that Kenvue (KVUE) would join the S&P 500 on Aug. 25, replacing Advance Auto Parts (AAP), which is being demoted to the S&P SmallCap 600.
“As previously announced on August 9, the addition of Kenvue is the result of S&P 500 and S&P 100 constituent Johnson & Johnson (JNJ) offering to exchange the shares of Kenvue held for shares of Johnson & Johnson in a split-off exchange offer that expired on Friday, August 18,” S&P Dow Jones stated in its Aug. 21 press release.
According to Barron’s, approximately 300 million Kenvue shares could be purchased by S&P 500 index funds required to hold all of the index’s constituents. Trading could get a little crazy Thursday as funds scramble to get on board Kenvue stock.
Not surprisingly, Tuesday’s Kenvue volume, with one hour left in trading, was 59.4 million, nearly 10 million more than its 30-day average volume. The buying should continue through Thursday’s close.
But is it a buy for the long haul? I doubt it. Here's why.
The Pros of Holding Kenvue Beyond Next Week
Kenvue went public on May 3 at $22 a share. That was at the high end of its range between $20 and $23. The IPO price valued the maker of Tylenol and Listerine at $41 billion, making it the largest IPO since 2021.
KVUE stock gained more than 22% on its first trading day, closing at $26.91. It’s since fallen below $24, but it is still above its IPO price.
Things that make it an attractive purchase for the long haul include annual revenue of $15.0 billion, with 10 brands generating at least $400 million in net sales in 2021; seven of them being the number one brand in their category. In addition, it generated half of its revenue outside North America.
The share exchange sees J&J shareholders get eight Kenvue shares for one share of J&J. The company is effectively buying back 191 million of its shares by exchanging 1.53 billion KVUE shares with its shareholders.
There’s no question this is a win for J&J shareholders. They retain 9.5% of Kenvue while hiving off a slower-growing, lower-margin business.
J&J first announced it would spin off Kenvue in November 2012.
“We believe that the New Consumer Health Company would be a global leader across attractive and growing consumer health categories, and a streamlined and targeted corporate structure would provide it with the agility and flexibility to grow its iconic portfolio of brands and innovate new products,” stated then Johnson & Johnson CEO Alex Gorsky.
At the time, the company trotted out the usual reasons businesses are spun out: greater management focus, better capital allocation based on specific needs, and speed to address industry trends.
There’s no question that the consumer health business was getting lost in the shuffle operating as a minor part of a bigger healthcare and pharmaceutical company.
While it’s too soon to tell if Kenvue’s independence has made a difference, it certainly wasn’t benefiting nearly enough from its association with J&J.
The Cons of Owning Kenvue for the Long Haul
Of the 12 analysts covering Kenvue stock, just four rate it Overweight or an outright Buy, with a median target price of $28.50, 20% higher than where it’s currently trading.
That price target is the best news for shareholders. It suggests analysts, while ho-hum about its future, still see an upside ahead for its share price. Being added to the S&P 500 should help.
However, consider Kenvue’s revenue and earnings over the past decade.
In fiscal 2022 (Jan. 1, 2023 year-end), it had $14.95 billion in revenue, with $2.68 billion in operating income. In fiscal 2012, it had revenue of $14.45 billion, with $1.69 billion in pre-tax profits.
So, its compound annual growth rate (CAGR) for revenue over the past decade is 0.34%, while its CAGR for pre-tax operating profits over the same 10 years was a slightly more respectable 4.72%.
These numbers will be frozen in time without a significant acquisition to move the needle on the top and bottom lines. Further, it’s doubtful that this lack of growth will result in multiple expansions, either, meaning there are no growth drivers outside M&A.
As of July 2, 2023, Kenvue had net debt of $7.37 billion. That’s a low 17% of its $43.9 billion market cap. However, should it decide to play the M&A game, the percentage will move higher on any significant transaction, leaving it stuck in a Catch-22 situation.
It’s damned if it does, and it’s damned if it doesn’t.
From where I sit, the cons outweigh the pros of owning KVU stock beyond the pop of joining the S&P 500. To grow sales, you have to have growth drivers. Kenvue has none.
Sure, it might be able to cut costs, increasing its operating margin over the next few years, but ultimately, it all comes back to growing the top line.
Over the past decade, it’s shown little appetite for doing so.
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On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On Monday, S&P Dow Jones Indices announced that Kenvue (KVUE) would join the S&P 500 on Aug. 25, replacing Advance Auto Parts (AAP), which is being demoted to the S&P SmallCap 600. At the time, the company trotted out the usual reasons businesses are spun out: greater management focus, better capital allocation based on specific needs, and speed to address industry trends. 3 Machine Learning Stocks Analysts Expect to Rally On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
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On Monday, S&P Dow Jones Indices announced that Kenvue (KVUE) would join the S&P 500 on Aug. 25, replacing Advance Auto Parts (AAP), which is being demoted to the S&P SmallCap 600. “As previously announced on August 9, the addition of Kenvue is the result of S&P 500 and S&P 100 constituent Johnson & Johnson (JNJ) offering to exchange the shares of Kenvue held for shares of Johnson & Johnson in a split-off exchange offer that expired on Friday, August 18,” S&P Dow Jones stated in its Aug. 21 press release. Things that make it an attractive purchase for the long haul include annual revenue of $15.0 billion, with 10 brands generating at least $400 million in net sales in 2021; seven of them being the number one brand in their category.
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On Monday, S&P Dow Jones Indices announced that Kenvue (KVUE) would join the S&P 500 on Aug. 25, replacing Advance Auto Parts (AAP), which is being demoted to the S&P SmallCap 600. “As previously announced on August 9, the addition of Kenvue is the result of S&P 500 and S&P 100 constituent Johnson & Johnson (JNJ) offering to exchange the shares of Kenvue held for shares of Johnson & Johnson in a split-off exchange offer that expired on Friday, August 18,” S&P Dow Jones stated in its Aug. 21 press release. The share exchange sees J&J shareholders get eight Kenvue shares for one share of J&J.
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On Monday, S&P Dow Jones Indices announced that Kenvue (KVUE) would join the S&P 500 on Aug. 25, replacing Advance Auto Parts (AAP), which is being demoted to the S&P SmallCap 600. Things that make it an attractive purchase for the long haul include annual revenue of $15.0 billion, with 10 brands generating at least $400 million in net sales in 2021; seven of them being the number one brand in their category. The company is effectively buying back 191 million of its shares by exchanging 1.53 billion KVUE shares with its shareholders.
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10660.0
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2023-08-22 00:00:00 UTC
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Pre-Market Earnings Report for August 23, 2023 : ADI, BBWI, WSM, LANC, AAP, YMM, KSS, DY, PTON, FL, ANF, NMM
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AAP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-august-23-2023-%3A-adi-bbwi-wsm-lanc-aap-ymm-kss-dy-pton-fl
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nan
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nan
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The following companies are expected to report earnings prior to market open on 08/23/2023. Visit our Earnings Calendar for a full list of expected earnings releases.
Analog Devices, Inc. (ADI)is reporting for the quarter ending July 31, 2023. The semiconductor company's consensus earnings per share forecast from the 12 analysts that follow the stock is $2.53. This value represents a 0.40% increase compared to the same quarter last year. In the past year ADI has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 2.91%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ADI is 16.80 vs. an industry ratio of -14.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Bath & Body Works, Inc. (BBWI)is reporting for the quarter ending July 31, 2023. The retail company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.33. This value represents a 36.54% decrease compared to the same quarter last year. In the past year BBWI has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 26.92%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for BBWI is 12.24 vs. an industry ratio of 11.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Williams-Sonoma, Inc. (WSM)is reporting for the quarter ending July 31, 2023. The home furnishings company's consensus earnings per share forecast from the 10 analysts that follow the stock is $2.72. This value represents a 29.72% decrease compared to the same quarter last year. WSM missed the consensus earnings per share in the 4th calendar quarter of 2022 by -1.59%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for WSM is 9.63 vs. an industry ratio of 12.10.
Lancaster Colony Corporation (LANC)is reporting for the quarter ending June 30, 2023. The food company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.28. This value represents a 5.19% decrease compared to the same quarter last year. The last two quarters LANC had negative earnings surprises; the latest report they missed by -11%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for LANC is 36.80 vs. an industry ratio of 16.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Advance Auto Parts Inc. (AAP)is reporting for the quarter ending June 30, 2023. The wholesale retail company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.72. This value represents a 54.01% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAP is 11.40 vs. an industry ratio of 192.30.
Full Truck Alliance Co. Ltd. (YMM)is reporting for the quarter ending June 30, 2023. The technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.06. This value represents a 0.00% increase compared to the same quarter last year. In the past year YMM Zacks Investment Research reports that the 2023 Price to Earnings ratio for YMM is 21.31 vs. an industry ratio of -8.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Kohl's Corporation (KSS)is reporting for the quarter ending July 31, 2023. The retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.24. This value represents a 78.38% decrease compared to the same quarter last year. KSS missed the consensus earnings per share in the 1st calendar quarter of 2023 by -341.75%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for KSS is 12.01 vs. an industry ratio of 8.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Dycom Industries, Inc. (DY)is reporting for the quarter ending July 31, 2023. The building company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.66. This value represents a 13.70% increase compared to the same quarter last year. In the past year DY has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 147.14%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for DY is 15.10 vs. an industry ratio of 19.00.
Peloton Interactive, Inc. (PTON)is reporting for the quarter ending June 30, 2023. The leisure (recreational) company's consensus earnings per share forecast from the 9 analysts that follow the stock is $-0.45. This value represents a 65.91% increase compared to the same quarter last year. Zacks Investment Research reports that the 2023 Price to Earnings ratio for PTON is -2.13 vs. an industry ratio of 20.00.
Foot Locker, Inc. (FL)is reporting for the quarter ending July 31, 2023. The retail (shoe) company's consensus earnings per share forecast from the 10 analysts that follow the stock is $0.05. This value represents a 95.45% decrease compared to the same quarter last year. FL missed the consensus earnings per share in the 2nd calendar quarter of 2023 by -10.26%. Zacks Investment Research reports that the 2024 Price to Earnings ratio for FL is 11.77 vs. an industry ratio of 11.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Abercrombie & Fitch Company (ANF)is reporting for the quarter ending July 31, 2023. The retail (shoe) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.13. This value represents a 143.33% increase compared to the same quarter last year. Zacks Investment Research reports that the 2024 Price to Earnings ratio for ANF is 19.98 vs. an industry ratio of 11.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Navios Maritime Partners LP (NMM)is reporting for the quarter ending June 30, 2023. The shipping company's consensus earnings per share forecast from the 1 analyst that follows the stock is $2.88. This value represents a 24.80% decrease compared to the same quarter last year. NMM missed the consensus earnings per share in the 4th calendar quarter of 2022 by -19.38%. Zacks Investment Research reports that the 2023 Price to Earnings ratio for NMM is 2.09 vs. an industry ratio of -4.90, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts Inc. (AAP)is reporting for the quarter ending June 30, 2023. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAP is 11.40 vs. an industry ratio of 192.30. The technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.06.
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Advance Auto Parts Inc. (AAP)is reporting for the quarter ending June 30, 2023. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAP is 11.40 vs. an industry ratio of 192.30. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ADI is 16.80 vs. an industry ratio of -14.20, implying that they will have a higher earnings growth than their competitors in the same industry.
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Advance Auto Parts Inc. (AAP)is reporting for the quarter ending June 30, 2023. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAP is 11.40 vs. an industry ratio of 192.30. Zacks Investment Research reports that the 2023 Price to Earnings ratio for ADI is 16.80 vs. an industry ratio of -14.20, implying that they will have a higher earnings growth than their competitors in the same industry.
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Advance Auto Parts Inc. (AAP)is reporting for the quarter ending June 30, 2023. Zacks Investment Research reports that the 2023 Price to Earnings ratio for AAP is 11.40 vs. an industry ratio of 192.30. In the past year ADI has beat the expectations every quarter.
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10661.0
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2023-08-22 00:00:00 UTC
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AAP Quantitative Stock Analysis - Benjamin Graham
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AAP
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https://www.nasdaq.com/articles/aap-quantitative-stock-analysis-benjamin-graham-0
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nan
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nan
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Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Auto & Truck Parts industry. The rating using this strategy is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
Detailed Analysis of ADVANCE AUTO PARTS, INC.
AAP Guru Analysis
AAP Fundamental Analysis
More Information on Benjamin Graham
Benjamin Graham Portfolio
Top Benjamin Graham Stocks
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
Additional Research Links
Top NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
Financial Planning Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham. ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Auto & Truck Parts industry.
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Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Detailed Analysis of ADVANCE AUTO PARTS, INC. AAP Guru Analysis AAP Fundamental Analysis More Information on Benjamin Graham Benjamin Graham Portfolio Top Benjamin Graham Stocks About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham.
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Detailed Analysis of ADVANCE AUTO PARTS, INC. AAP Guru Analysis AAP Fundamental Analysis More Information on Benjamin Graham Benjamin Graham Portfolio Top Benjamin Graham Stocks About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham.
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Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Detailed Analysis of ADVANCE AUTO PARTS, INC. AAP Guru Analysis AAP Fundamental Analysis More Information on Benjamin Graham Benjamin Graham Portfolio Top Benjamin Graham Stocks About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham.
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10662.0
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2023-08-22 00:00:00 UTC
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7 Very Oversold S&P 500 Stocks to Buy Right Now
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AAP
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https://www.nasdaq.com/articles/7-very-oversold-sp-500-stocks-to-buy-right-now
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The stock market, much like the ebb and flow of tides, has its moments of highs and lows. In the vast ocean of S&P 500 stocks, there are some that currently find themselves in an oversold territory.
While this might raise alarm bells for the faint-hearted, seasoned investors often see this as an opportunity to secure valuable stocks at discounted prices.
In this article, we’ll use the relative strength index – RSI – to pin down oversold stocks. Typically, an RSI of around 30 means a stock is oversold.
Of course, indicators aren’t everything, so we’ll also explore underlying benefits that make each stock a buy today. Here’s a look at seven such oversold S&P 500 stocks that present a potentially lucrative buy-in opportunity right now.
Advance Auto Parts (AAP)
Source: Ken Wolter / Shutterstock.com
Advance Auto Parts (NYSE:AAP) crashed hard in June, falling more than 50% in one day after reporting rough financials.
But there’s a bright light on the horizon for the car parts retailer. Before the fallout began, AAP announced current CEO Tom Greco planned to retire by the end of the year.
Today, AAP’s board hasn’t yet named a replacement – and fresh blood might be the exact thing that turns the company around.
Wall Street seems to think so, too. Last week research firm Wedbush reiterated its Neutral rating but pinned the stock’s fair value 15% above its current price. H
edge funds and institutional investors are also rotating into the stock, with companies doubling their current holdings on the current dip. AAP trades at a 0.38 price-to-sales ratio, which makes the stock a bargain at today’s valuation.
Although AAP certainly has a long road ahead, its current condition is definitely oversold.
Dollar General (DG)
Source: Jonathan Weiss / Shutterstock.com
Dollar General (NYSE:DG), despite a seemingly recession-resistant model, has fallen nearly 34% since January.
Much of the stock’s trouble came from a lackluster financial report which, although the company reported a quarterly $2.38 EPS, fell below analyst estimates. Still, analysts remain upbeat and project a steep 20% upside from current pricing.
As Americans become increasingly price sensitive, due in part to ballooning consumer credit card debt, companies like Dollar General become the go-to option.
Dollar General’s resiliency is notable, too, as the company boasts 31 straight years of sales expansion, including during 2008’s Financial Crisis and throughout the pandemic. With a solid outlook and a strong market position, Dollar General is another oversold stock investors should take notice of.
Allstate (ALL)
Source: Jonathan Weiss / Shutterstock.com
No matter the economy, insurance isn’t something to skimp on. And Allstate (NYSE:ALL) is a primary player in the space. The company is down 20% this year despite a healthy policy portfolio.
To counter the poor performance, management is taking action. The company announced a new thrift-focused policy, stopping buybacks. Likewise, they’ve raised prices on some policies. The latter changes already have had some effects, as personal auto pricing adjustments pushed premiums up 6% over the past quarter.
Analysts covering the company generally see the stock as a Hold, if not a Buy. No matter the rating, though, analysts across the board see the stock having substantial upside. Price targets average around $126, with the most optimistic pegging the stock’s fair value closer to $155.
Allstate definitely has a deep hole to dig itself out from but, with its industry positioning and inelastic product line, the stock is a definite deal at today’s pricing.
PayPal (PYPL)
With a staggering 435 million customers, PayPal’s (NASDAQ:PYPL) foothold in the fintech arena is indisputable.
Unlike traditional value-driven banking stocks, PayPal doesn’t provide dividends and its price-to-earnings ratio is on the higher end compared to older banking institutions.
This leaves it straddling the line between being a high-growth prospect and a straightforward value proposition, leaving some investors confused about where the stock falls in a balanced portfolio.
But for investors keen on harnessing a brand balancing growth and maturity, PayPal is a commendable choice. Stability is the watchword with PayPal’s financial metrics.
Though earnings took a slight dip earlier in the month, the outcomes were within expectations, and the company continued its upward trajectory, albeit at a more measured pace.
For stakeholders seeking reassurance, PayPal’s recent report offers solace with a 7% year-over-year uptick in revenue, a 2% margin increase, and an 11% reduction in non-operating expenses. These show PayPal is here to stay, and it’s recent venture into stablecoin offerings prove the company is at the fore of today’s financial markets.
American Tower Corp (AMT)
Source: Pavel Kapysh / Shutterstock.com
American Tower Corp (NYSE:AMT) is a REIT investors should consider when diversifying their portfolio, but the cell tower company’s stock is down 18% this year despite positive news across the board.
The company owns more than 220,000 towers worldwide and is still expanding. Given cell service’s indispensable nature in today’s connected world, AMT is positioned to remain resilient against the broader real estate market’s ups and downs.
With the rise of the “Internet of Things,” the importance of cell towers is only poised to grow. This makes AMT a REIT that’s synonymous with market stability.
American Tower’s global presence is also noteworthy in its ambition. Not only does it have operations in developed nations like the U.S., but it also has a footprint in burgeoning markets such as Africa. As these emerging regions witness a surge in digital connectivity, they open up vast growth avenues for the company.
As with most REITs, American Tower presents an attractive dividend. But what sets it apart is the cell tower industry’s profitability, which has empowered the company to raise its dividend consistently through the last 20 distribution cycles.
This track record of reliability underscores American Tower’s capability to thrive, even in challenging economic landscapes.
Extra Space Storage (EXR)
Source: Ken Wolter / Shutterstock.com
As Americans downsize, personal storage companies like Extra Space Storage (NYSE:EXR) are positioned to become a household spending staple. The stock is down 12% this year, though, despite a strong financial position.
Critically, for investors unable to stomach this month’s volatility, Extra Space Storage stock’s beta is only 0.56. This means the stock is fairly stable compared to the wide market, making it a viable defensive play for nervous investors.
The company’s price-to-earnings-growth ratio is also around 6, indicating undervaluation at today’s prices.
Self-storage demand grew to more than 1.7 billion square feet this year, indicating healthy forecasts for EXR’s core operations. As 20% of Americans currently use some form of self-storage and 15% more expect to in the near future, Extra Space Storage is ready to capitalize on growing demand, and it’s oversold nature positions it for a sharp reversal.
Etsy (ETSY)
Source: Sergei Elagin / Shutterstock
Etsy (NASDAQ:ETSY) is an online retailer that, despite economic unease, remains dominant in its core customer segments as more consumers cycle into online-only shopping trends.
Today, Etsy boasts an impressive 89.9 million active buyers and 5.9 million active sellers. Management attributes its robust user engagement to its special product range that, simply put, cannot be found in traditional brick-and-mortar shops or even big-box online retailers.
Etsy is also expanding that unique product line, indicated by recent acquisitions of Reverb and Depop. Both will further enhance Etsy’s market reach and diversify its revenue. Ultimately, Etsy is here to stay. With its finger on the pulse of the next generation of American consumers, it’s well-positioned to expand its footprint as an oversold growth stock.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.
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The post 7 Very Oversold S&P 500 Stocks to Buy Right Now appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) Source: Ken Wolter / Shutterstock.com Advance Auto Parts (NYSE:AAP) crashed hard in June, falling more than 50% in one day after reporting rough financials. Before the fallout began, AAP announced current CEO Tom Greco planned to retire by the end of the year. Today, AAP’s board hasn’t yet named a replacement – and fresh blood might be the exact thing that turns the company around.
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Advance Auto Parts (AAP) Source: Ken Wolter / Shutterstock.com Advance Auto Parts (NYSE:AAP) crashed hard in June, falling more than 50% in one day after reporting rough financials. Before the fallout began, AAP announced current CEO Tom Greco planned to retire by the end of the year. Today, AAP’s board hasn’t yet named a replacement – and fresh blood might be the exact thing that turns the company around.
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Advance Auto Parts (AAP) Source: Ken Wolter / Shutterstock.com Advance Auto Parts (NYSE:AAP) crashed hard in June, falling more than 50% in one day after reporting rough financials. Before the fallout began, AAP announced current CEO Tom Greco planned to retire by the end of the year. Today, AAP’s board hasn’t yet named a replacement – and fresh blood might be the exact thing that turns the company around.
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Advance Auto Parts (AAP) Source: Ken Wolter / Shutterstock.com Advance Auto Parts (NYSE:AAP) crashed hard in June, falling more than 50% in one day after reporting rough financials. Before the fallout began, AAP announced current CEO Tom Greco planned to retire by the end of the year. Today, AAP’s board hasn’t yet named a replacement – and fresh blood might be the exact thing that turns the company around.
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10663.0
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2023-08-21 00:00:00 UTC
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S&P 500 Movers: EL, PANW
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AAP
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https://www.nasdaq.com/articles/sp-500-movers%3A-el-panw
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nan
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In early trading on Monday, shares of Palo Alto Networks topped the list of the day's best performing components of the S&P 500 index, trading up 15.3%. Year to date, Palo Alto Networks registers a 73.2% gain.
And the worst performing S&P 500 component thus far on the day is Estee Lauder, trading down 2.9%. Estee Lauder is lower by about 38.7% looking at the year to date performance.
Two other components making moves today are Advance Auto Parts, trading down 2.5%, and Tesla, trading up 5.2% on the day.
VIDEO: S&P 500 Movers: EL, PANW
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, Palo Alto Networks registers a 73.2% gain. And the worst performing S&P 500 component thus far on the day is Estee Lauder, trading down 2.9%. Estee Lauder is lower by about 38.7% looking at the year to date performance.
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In early trading on Monday, shares of Palo Alto Networks topped the list of the day's best performing components of the S&P 500 index, trading up 15.3%. Year to date, Palo Alto Networks registers a 73.2% gain. And the worst performing S&P 500 component thus far on the day is Estee Lauder, trading down 2.9%.
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In early trading on Monday, shares of Palo Alto Networks topped the list of the day's best performing components of the S&P 500 index, trading up 15.3%. And the worst performing S&P 500 component thus far on the day is Estee Lauder, trading down 2.9%. Two other components making moves today are Advance Auto Parts, trading down 2.5%, and Tesla, trading up 5.2% on the day.
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In early trading on Monday, shares of Palo Alto Networks topped the list of the day's best performing components of the S&P 500 index, trading up 15.3%. And the worst performing S&P 500 component thus far on the day is Estee Lauder, trading down 2.9%. VIDEO: S&P 500 Movers: EL, PANW The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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10664.0
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2023-08-21 00:00:00 UTC
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Is Advance Auto Parts Stock a Buy?
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AAP
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https://www.nasdaq.com/articles/is-advance-auto-parts-stock-a-buy
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nan
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nan
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It's been a difficult ride for investors of Advance Auto Parts (NYSE: AAP). The stock is down 56% in the last five years, compared to a 54% gain for the S&P 500 index. And it has tanked 53% just this year. It's likely an understatement to say that there's a ton of pessimism surrounding this business.
It's no wonder that, as of this writing, shares of Advance Auto Parts trade at a trailing-price-to-earnings (P/E) ratio of 10.3. That might be compelling for investors looking for deep value stocks. But I think it's best to avoid the company altogether.
Here's why.
A struggling business
Advance Auto Parts has been such a huge disappointment for investors because of its terrible financial performance. Between fiscal 2017 and fiscal 2022, revenue increased at a compound annual rate of just 3.6%. And same-store sales, one of the most important metrics to gauge the health of a retail enterprise, actually declined 0.4% during the first quarter of fiscal 2023, which is not a good sign. Profitability is also unimpressive, as the operating margin was 2.6% in Q1.
The leadership team, led by CEO Tom Greco, continues to stay focused on bolstering the underlying business. "We remain committed to executing against our key initiatives to drive top-line growth and improve operational performance," he said on the Q1 2023 earnings call. Key to this so-called transformation is to drive greater sales with professional customers, while improving pricing and parts availability.
Probably the single most important factor working against Advance Auto Parts is management's poor job at successfully managing inventory and turning it into cash. Having the right parts on the shelves is critical because consumers are in a time crunch, needing the right tools and supplies to fix their cars and get back on the road. Without the correct mix of inventory, customers will go elsewhere.
This means Advance Auto Parts isn't doing a good job at converting the cash it spends on the inventory into cash received as revenue, called the cash conversion cycle. In the last fiscal year, the cash cycle was 79 days. In comparison, massive retailer Walmart takes just six days.
Rivals do it better
The company's fundamentals are shockingly bad in their own right, but even more so when looking at two thriving industry rivals, O'Reilly Automotive (NASDAQ: ORLY) and AutoZone (NYSE: AZO). Their revenue growth has been much stronger, with greater profitability. In their last fiscal quarters, both O'Reilly and AutoZone posted operating margins of 21%.
Moreover, both companies have cash conversion cycles in negative territory, meaning that they are able to sell inventory to customers before having to pay their suppliers for the goods. Since it essentially runs the same business model, it's alarming that Advance Auto Parts can't slowly approach its competitors when it comes to this data point, an obvious sign of mismanagement.
While Advance Auto Parts had to recently cut its dividend to "enhance financial flexibility," O'Reilly and AutoZone are too busy generating copious amounts of free cash flow that is consistently used to do stock buybacks. An outstanding share count that gets steadily reduced provides a significant boost to earnings per share.
These impressive metrics clearly demonstrate that O'Reilly and AutoZone are far superior businesses when compared to Advance Auto Parts. And that's what matters to the share price over the long term. In fact, both of these rivals have seen their stocks absolutely crush the S&P 500 in the last three-, five-, and 10-year periods.
Consequently, both of these stocks trade at much higher P/E multiples than Advance Auto Parts today. But based on their strong fundamentals, investors who are looking to allocate capital to this industry will be much better off investing that money into shares of O'Reilly and AutoZone instead.
10 stocks we like better than Advance Auto Parts
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's been a difficult ride for investors of Advance Auto Parts (NYSE: AAP). Having the right parts on the shelves is critical because consumers are in a time crunch, needing the right tools and supplies to fix their cars and get back on the road. Since it essentially runs the same business model, it's alarming that Advance Auto Parts can't slowly approach its competitors when it comes to this data point, an obvious sign of mismanagement.
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It's been a difficult ride for investors of Advance Auto Parts (NYSE: AAP). Key to this so-called transformation is to drive greater sales with professional customers, while improving pricing and parts availability. Probably the single most important factor working against Advance Auto Parts is management's poor job at successfully managing inventory and turning it into cash.
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It's been a difficult ride for investors of Advance Auto Parts (NYSE: AAP). This means Advance Auto Parts isn't doing a good job at converting the cash it spends on the inventory into cash received as revenue, called the cash conversion cycle. While Advance Auto Parts had to recently cut its dividend to "enhance financial flexibility," O'Reilly and AutoZone are too busy generating copious amounts of free cash flow that is consistently used to do stock buybacks.
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It's been a difficult ride for investors of Advance Auto Parts (NYSE: AAP). In the last fiscal year, the cash cycle was 79 days. In their last fiscal quarters, both O'Reilly and AutoZone posted operating margins of 21%.
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10665.0
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2023-08-21 00:00:00 UTC
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3 Bargain Stocks I'm Willing to Buy Now
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AAP
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https://www.nasdaq.com/articles/3-bargain-stocks-im-willing-to-buy-now
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nan
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So far, August hasn't started out as a great month for the stock market. Many shareholders who had been enjoying gains earlier in the year have seen many of those gains reverse as rising interest rates continue to provide an ever more compelling alternative to stocks for income-oriented investors.
Yet if there's an upside to a down market, it's that they often offer up value prices on solid businesses. With that in mind, three Motley Fool contributors examined companies that looked like genuine bargains in today's market. They picked Advance Auto Parts (NYSE: AAP), Axos Financial (NYSE: AX), and Albertsons (NYSE: ACI). Read on to find out why and determine for yourself whether they represent the types of value-priced businesses you'd like to own for yourself.
Image source: Getty Images
A company for the long haul
Eric Volkman (Advance Auto Parts): One beaten-down stock that feels like a clear and unambiguous good deal is Advance Auto Parts, whose price is down a queasy 51% so far this year.
Much of Advance's share price retreat was due to the very disappointing first-quarter results it published at the end of May. Year-over-year net sales growth was weak, and net income fell off a cliff while coming in far under the consensus analyst estimate.
Compounding that, the company cut both its full-year guidance for key line items -- sales, earnings, and free cash flow, to name only three critical ones. As if that wasn't painful enough, it also took an ax to its quarterly dividend, slicing it to $0.25 per share from $1.50.
The auto parts business is coming out of a period of struggle, and Advance has suffered lately. The global supply chain woes that were particularly acute last year haven't entirely melted away. On top of that, economic worries in recent times have dampened the auto parts market -- nonessential car repairs and upgrades are often postponed when dark clouds appear on the macroeconomic horizon.
The situation won't magically improve soon for Advance. The company is slated to release second-quarter results on Aug. 23, and the analysts tracking it aren't expecting much. On average, they're projecting net sales will be flat year over year, and per-share net income will decelerate by 57%.
Yet there are many green lights on the road ahead. The world continues to embrace alt-fuel rides -- particularly electric vehicles (EVs), sales of which continue to rise at torrid rates. As they do, drivers holding on to their beloved old gas guzzlers will need to perform more maintenance to keep them in shape. Meanwhile, the economic concerns seem to be easing. Ditto for those knotty supply chain tangles.
Eventually, these shifts will filter down into higher sales and better profitability for Advance. Its prognosticators are already anticipating a recovery in 2024; for that year, they're modeling a slight 2% growth in net sales, and an encouraging per-share earnings improvement of 15%.
With the continuing rise of alt-fuel vehicles -- not to mention those with increasingly sophisticated assisted driving systems -- we can imagine this will be only the start of a solid, long-term recovery story for Advance.
Put it in the (online) bank
Jason Hall (Axos Financial): Moody's recently downgraded 10 banks, put another six under review -- including some of the biggest regional banks -- and shifted the outlook to negative for another 11. As a result, many investors have thrown more than one banking baby out with the bathwater.
That's created a buying opportunity for savvy investors looking for a bargain. Already one of my largest holdings, Axos Financial, tops my list. Like other banks, Axos owns lots and lots of loans. What makes it a little different from most is how much of its book is invested in variable-rate loans. At the end of the second quarter, a massive 59% of its loans are variable rate, while another 34% is hybrid loans.
The result? Net interest income increased 23% last quarter, and 29% over the past year, while net interest margin -- its effective yield earned after it pays depositors and on borrowings -- increased to 4.34% while most banks are seeing compression.
Fear of banks has pushed Axos shares to bargain levels. At recent prices, you can buy shares for barely 8 times earnings, and 1.27 times book value. How cheap is that? The average P/E over the past decade is 14, with an average price-to-book value of 2.2. If its earnings hold up, that implies 70% to 80% upside just on valuation normalizing to the historical average. Thing is, I expect Axos' profits to continue growing over the long term. That makes the stock even more a bargain today.
Heads, you win; tails, you pick up what looks like a bargain
Chuck Saletta (Albertsons): Grocery giant Albertsons has agreed to be bought out for $34.10 per share, less a $6.85 special dividend that Albertsons already paid. The net price of $27.25 for the deal represents a substantial 25% premium to Albertsons' recent stock price of $21.79 per share.
Of course, it is likely that some of the stores will need to be divested as part of the merger to satisfy antitrust regulators. Those divestitures will reduce the price of the acquisition but will also leave behind a spin-off company in the hands of Albertsons' current shareholders. As a result, even if regulators shrink the size of the overall deal, Albertsons' shareholders would remain more or less whole.
Yet the size of the acquisition has added complexities on top of the operational ones associated with folding in a company of Albertsons' size and scope. In particular, it is proving to be a difficult merger to get through legal approval. First, a judge temporarily blocked Albertsons' special dividend, which had delayed its payment. More recently, a handful of states' attorneys general have written the FTC to announce their opposition to the merger.
That opposition is probably a decent reason that Albertson's stock recently traded hands at around a 25% discount to its buyout price. The market views it as a risk that the merger won't be approved at all. Assuming that happens, as a going business, Albertsons currently trades at around 10 times its trailing earnings and eight times its anticipated forward earnings. Not only that, but analysts also expect it to be able to increase those earnings at around 8% annualized over the next five years.
Put it all together, and you wind up with a company with a solid acquisition-related upside if all goes well and what looks like a solid value price compared with its prospects if it doesn't.
Get started now
While there are good reasons to believe Advance Auto Parts, Axos Financial, and Albertsons all look like bargains today, prices that excite value investors rarely last long in the stock market. As a result, today is a great day to investigate them further or to seek out other bargains for yourself. If you do, you just might find yourself face to face with an opportunity to buy a great company at a bargain price.
10 stocks we like better than Advance Auto Parts
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of August 14, 2023
Chuck Saletta has no position in any of the stocks mentioned. Eric Volkman has no position in any of the stocks mentioned. Jason Hall has positions in Axos Financial. The Motley Fool has positions in and recommends Axos Financial. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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They picked Advance Auto Parts (NYSE: AAP), Axos Financial (NYSE: AX), and Albertsons (NYSE: ACI). On top of that, economic worries in recent times have dampened the auto parts market -- nonessential car repairs and upgrades are often postponed when dark clouds appear on the macroeconomic horizon. With the continuing rise of alt-fuel vehicles -- not to mention those with increasingly sophisticated assisted driving systems -- we can imagine this will be only the start of a solid, long-term recovery story for Advance.
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They picked Advance Auto Parts (NYSE: AAP), Axos Financial (NYSE: AX), and Albertsons (NYSE: ACI). Put it in the (online) bank Jason Hall (Axos Financial): Moody's recently downgraded 10 banks, put another six under review -- including some of the biggest regional banks -- and shifted the outlook to negative for another 11. Get started now While there are good reasons to believe Advance Auto Parts, Axos Financial, and Albertsons all look like bargains today, prices that excite value investors rarely last long in the stock market.
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They picked Advance Auto Parts (NYSE: AAP), Axos Financial (NYSE: AX), and Albertsons (NYSE: ACI). Image source: Getty Images A company for the long haul Eric Volkman (Advance Auto Parts): One beaten-down stock that feels like a clear and unambiguous good deal is Advance Auto Parts, whose price is down a queasy 51% so far this year. The net price of $27.25 for the deal represents a substantial 25% premium to Albertsons' recent stock price of $21.79 per share.
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They picked Advance Auto Parts (NYSE: AAP), Axos Financial (NYSE: AX), and Albertsons (NYSE: ACI). The net price of $27.25 for the deal represents a substantial 25% premium to Albertsons' recent stock price of $21.79 per share. The market views it as a risk that the merger won't be approved at all.
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10666.0
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2023-08-18 00:00:00 UTC
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Wedbush Reiterates Advance Auto Parts (AAP) Neutral Recommendation
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AAP
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https://www.nasdaq.com/articles/wedbush-reiterates-advance-auto-parts-aap-neutral-recommendation
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Fintel reports that on August 18, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation.
Analyst Price Forecast Suggests 14.43% Upside
As of August 1, 2023, the average one-year price target for Advance Auto Parts is 79.49. The forecasts range from a low of 50.50 to a high of $142.48. The average price target represents an increase of 14.43% from its latest reported closing price of 69.46.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 3.11%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 30, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 received the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $69.46 / share, the stock's dividend yield is 1.44%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.75%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 2.04 (n=236).
The current dividend yield is 0.15 standard deviations below the historical average.
The company's 3-Year dividend growth rate is 5.00%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1197 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 97 owner(s) or 7.50% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 23.84%. Total shares owned by institutions decreased in the last three months by 4.85% to 61,287K shares.
The put/call ratio of AAP is 0.62, indicating a bullish outlook.
What are Other Shareholders Doing?
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
Price T Rowe Associates holds 2,050K shares representing 3.45% ownership of the company. In it's prior filing, the firm reported owning 78K shares, representing an increase of 96.18%. The firm increased its portfolio allocation in AAP by 1,308.81% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Jpmorgan Chase holds 1,703K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 3,297K shares, representing a decrease of 93.61%. The firm decreased its portfolio allocation in AAP by 73.37% over the last quarter.
D. E. Shaw holds 1,662K shares representing 2.80% ownership of the company. In it's prior filing, the firm reported owning 34K shares, representing an increase of 97.97%. The firm increased its portfolio allocation in AAP by 2,610.73% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Additional reading:
AMENDED AND ADVANCE AUTO PARTS, INC.
Advance Auto Parts, Inc. 2023 Omnibus Incentive Compensation Plan (the “2023 Plan”)
Form of 2023 Advance Auto Parts, Inc. Time-Based Restricted Stock Unit Award Agreement under the 2014 Plan.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
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This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on August 18, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 23.84%.
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Fintel reports that on August 18, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 23.84%.
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Fintel reports that on August 18, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 23.84%.
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Fintel reports that on August 18, 2023, Wedbush reiterated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.14%, a decrease of 23.84%.
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10667.0
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2023-08-15 00:00:00 UTC
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Advance Auto Parts (AAP) Dips More Than Broader Markets: What You Should Know
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-dips-more-than-broader-markets%3A-what-you-should-know-2
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Advance Auto Parts (AAP) closed at $69.73 in the latest trading session, marking a -1.94% move from the prior day. This change lagged the S&P 500's 1.16% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 1.14%.
Prior to today's trading, shares of the auto parts retailer had gained 2.35% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.34% and the S&P 500's loss of 0.27% in that time.
Investors will be hoping for strength from Advance Auto Parts as it approaches its next earnings release, which is expected to be August 23, 2023. On that day, Advance Auto Parts is projected to report earnings of $1.65 per share, which would represent a year-over-year decline of 55.88%. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 0.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.98 per share and revenue of $11.23 billion, which would represent changes of -54.14% and +0.64%, respectively, from the prior year.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. Advance Auto Parts is currently a Zacks Rank #4 (Sell).
Digging into valuation, Advance Auto Parts currently has a Forward P/E ratio of 11.89. Its industry sports an average Forward P/E of 25.16, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
Investors should also note that AAP has a PEG ratio of 1.04 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.71 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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It’s credited with a “watershed medical breakthrough” and is developing a bustling pipeline of other projects that could make a world of difference for patients suffering from diseases involving the liver, lungs, and blood. This is a timely investment that you can catch while it emerges from its bear market lows.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) closed at $69.73 in the latest trading session, marking a -1.94% move from the prior day. Investors should also note that AAP has a PEG ratio of 1.04 right now. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts (AAP) closed at $69.73 in the latest trading session, marking a -1.94% move from the prior day. Investors should also note that AAP has a PEG ratio of 1.04 right now.
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Advance Auto Parts (AAP) closed at $69.73 in the latest trading session, marking a -1.94% move from the prior day. Investors should also note that AAP has a PEG ratio of 1.04 right now. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Advance Auto Parts (AAP) closed at $69.73 in the latest trading session, marking a -1.94% move from the prior day. Investors should also note that AAP has a PEG ratio of 1.04 right now. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here.
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10668.0
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2023-08-14 00:00:00 UTC
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What's in Store for Advance Auto (AAP) This Earnings Season?
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AAP
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https://www.nasdaq.com/articles/whats-in-store-for-advance-auto-aap-this-earnings-season
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nan
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nan
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Advance Auto Parts AAP is slated to release second-quarter 2023 results on Aug 23, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at $2.67 and $1.59 billion, respectively.
For the second quarter, the consensus estimate for AAP’s earnings per share has moved down by 20 cents in the past 60 days. The bottom-line estimate implies a deterioration of 57.5% from the year-ago reported number. The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year increase of 0.26%.
Over the trailing four quarters, AAP surpassed earnings estimates once, missed on two occasions and met the same on the other, the average negative surprise being 16.8%. This is depicted in the graph below.
Advance Auto Parts, Inc. Price and EPS Surprise
Advance Auto Parts, Inc. price-eps-surprise | Advance Auto Parts, Inc. Quote
Q1 Highlights
Advance Auto delivered adjusted earnings of 72 cents per share in first-quarter 2023, down 68.1% from the year-ago quarter's figure. The reported figure fell short of the Zacks Consensus Estimate of $2.60 per share. Advance Auto generated net revenues of $3,417.6 million, lagging the Zacks Consensus Estimate of $3,427 million but increasing 1.3% year over year. Comparable store sales dropped 0.4%.
Factors to Shape Q2 Results
Intensive expansion efforts have forced Advance Auto Parts to bear the brunt of high selling, general and administrative (SG&A) costs, which are limiting the firm’s margins. During the last reported quarter, SG&A expenses were 40.4% of net sales, up from 38.6% of net sales reported in the same quarter of 2023. The trend is expected to have continued in the second quarter of 2023 as well, weighing on the margins. We anticipate adjusted SG&A costs to inch up 5% year over year.
Moreover, rising investments to develop technology platforms and digital initiatives are set to dent the firm’s margins in the to-be-reported quarter. The company continues to deploy capital to pursue new growth opportunities through investments, partnerships and acquisitions. Amid rising expenses, our projections call for adjusted operating income to decline 48% in the second quarter of 2023.
The trimmed 2023 guidance sparks pessimism for the upcoming results. Advance Auto estimates 2023 net sales in the band of $11.2-$11.3 billion, down from the previous range of $11.4-$11.6 billion. Comparable store sales are now expected between negative 1% and 0%, down from the previous guided range of 1-3%.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Advance Auto Parts for the quarter to be reported, as it does not have the right combination of the two key ingredients. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: AAP has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Releases From the Same Space
O’Reilly Automotive, Inc. ORLY reported second-quarter 2023 adjusted earnings per share of $10.22, beating the Zacks Consensus Estimate of $10.05. The bottom line increased from $8.78 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4,069 million, crossing the Zacks Consensus Estimate of $3,990 million. The top line increased 11% year over year.The total store count was 6,071 as of Jun 30, 2023.
ORLY had cash and cash equivalents of $57.9 million at the end of the reported quarter, down from $108.6 million recorded as of 2022-end. Its long-term debt was $4,873.7 million, higher than $4,371.6 million as of Dec 31, 2022.
AutoNation, Inc. AN reported second-quarter 2023 adjusted earnings of $6.29 per share, which decreased 2.9% year over year but topped the Zacks Consensus Estimate of $5.83. The earnings beat can be primarily attributed to higher-than-expected new vehicle revenues and profits. In the reported quarter, revenues amounted to $6,890.1 million, surpassing the Zacks Consensus Estimate of $6,645 million. The company had recorded revenues of $6,869.2 million in the second quarter of 2022.
AutoNation’s cash and cash equivalents were $63.7 million as of Jun 30, 2023, declining from $72.6 million recorded as of Dec 31, 2022. The company’s liquidity was $1.4 billion, including $64 million in cash and nearly $1.3 billion available under its revolving credit facility.
Lithia Motors LAD reported adjusted earnings of $10.91 per share for second-quarter 2023, which declined from the prior-year quarter’s $12.18. The bottom line, nevertheless, surpassed the Zacks Consensus Estimate of $9.19 per share. Total revenues jumped 12% year over year to $8,111.5 million. The top line outpaced the Zacks Consensus Estimate of $7,697 million.
Lithia had cash/cash equivalents/restricted cash of $199.7 million as of Jun 30, 2023, down from $246.7 million as of Dec 31, 2022. Long-term debt was $5,414 million as of Jun 30, 2023, up from $5,088.3 million as of Dec 31, 2022.
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O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
AutoNation, Inc. (AN) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
Lithia Motors, Inc. (LAD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts AAP is slated to release second-quarter 2023 results on Aug 23, before market open. For the second quarter, the consensus estimate for AAP’s earnings per share has moved down by 20 cents in the past 60 days. Over the trailing four quarters, AAP surpassed earnings estimates once, missed on two occasions and met the same on the other, the average negative surprise being 16.8%.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts AAP is slated to release second-quarter 2023 results on Aug 23, before market open. For the second quarter, the consensus estimate for AAP’s earnings per share has moved down by 20 cents in the past 60 days.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts AAP is slated to release second-quarter 2023 results on Aug 23, before market open. For the second quarter, the consensus estimate for AAP’s earnings per share has moved down by 20 cents in the past 60 days.
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Advance Auto Parts AAP is slated to release second-quarter 2023 results on Aug 23, before market open. For the second quarter, the consensus estimate for AAP’s earnings per share has moved down by 20 cents in the past 60 days. Over the trailing four quarters, AAP surpassed earnings estimates once, missed on two occasions and met the same on the other, the average negative surprise being 16.8%.
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10669.0
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2023-08-11 00:00:00 UTC
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Noteworthy Thursday Option Activity: AAP, WGO, TMCI
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AAP
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-aap-wgo-tmci
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 9,217 contracts have traded so far, representing approximately 921,700 underlying shares. That amounts to about 47.1% of AAP's average daily trading volume over the past month of 2.0 million shares. Particularly high volume was seen for the $70 strike call option expiring August 18, 2023, with 864 contracts trading so far today, representing approximately 86,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $70 strike highlighted in orange:
Winnebago Industries, Inc. (Symbol: WGO) saw options trading volume of 1,783 contracts, representing approximately 178,300 underlying shares or approximately 46.9% of WGO's average daily trading volume over the past month, of 380,415 shares. Especially high volume was seen for the $70 strike put option expiring September 15, 2023, with 612 contracts trading so far today, representing approximately 61,200 underlying shares of WGO. Below is a chart showing WGO's trailing twelve month trading history, with the $70 strike highlighted in orange:
And Treace Medical Concepts Inc (Symbol: TMCI) options are showing a volume of 1,614 contracts thus far today. That number of contracts represents approximately 161,400 underlying shares, working out to a sizeable 46.8% of TMCI's average daily trading volume over the past month, of 344,995 shares. Especially high volume was seen for the $20 strike put option expiring August 18, 2023, with 1,195 contracts trading so far today, representing approximately 119,500 underlying shares of TMCI. Below is a chart showing TMCI's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for AAP options, WGO options, or TMCI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Corning Average Annual Return
CNVY shares outstanding history
Goldman Sachs Group shares outstanding history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $70 strike call option expiring August 18, 2023, with 864 contracts trading so far today, representing approximately 86,400 underlying shares of AAP. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 9,217 contracts have traded so far, representing approximately 921,700 underlying shares. That amounts to about 47.1% of AAP's average daily trading volume over the past month of 2.0 million shares.
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Particularly high volume was seen for the $70 strike call option expiring August 18, 2023, with 864 contracts trading so far today, representing approximately 86,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $70 strike highlighted in orange: Winnebago Industries, Inc. (Symbol: WGO) saw options trading volume of 1,783 contracts, representing approximately 178,300 underlying shares or approximately 46.9% of WGO's average daily trading volume over the past month, of 380,415 shares. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 9,217 contracts have traded so far, representing approximately 921,700 underlying shares.
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 9,217 contracts have traded so far, representing approximately 921,700 underlying shares. Below is a chart showing AAP's trailing twelve month trading history, with the $70 strike highlighted in orange: Winnebago Industries, Inc. (Symbol: WGO) saw options trading volume of 1,783 contracts, representing approximately 178,300 underlying shares or approximately 46.9% of WGO's average daily trading volume over the past month, of 380,415 shares. That amounts to about 47.1% of AAP's average daily trading volume over the past month of 2.0 million shares.
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Below is a chart showing AAP's trailing twelve month trading history, with the $70 strike highlighted in orange: Winnebago Industries, Inc. (Symbol: WGO) saw options trading volume of 1,783 contracts, representing approximately 178,300 underlying shares or approximately 46.9% of WGO's average daily trading volume over the past month, of 380,415 shares. Below is a chart showing TMCI's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for AAP options, WGO options, or TMCI options, visit StockOptionsChannel.com. Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 9,217 contracts have traded so far, representing approximately 921,700 underlying shares.
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10670.0
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2023-08-08 00:00:00 UTC
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AAP Quantitative Stock Analysis - Benjamin Graham
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AAP
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https://www.nasdaq.com/articles/aap-quantitative-stock-analysis-benjamin-graham
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nan
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nan
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Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Auto & Truck Parts industry. The rating using this strategy is 71% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
Detailed Analysis of ADVANCE AUTO PARTS, INC.
AAP Guru Analysis
AAP Fundamental Analysis
More Information on Benjamin Graham
Benjamin Graham Portfolio
Top Benjamin Graham Stocks
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
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About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham. ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Auto & Truck Parts industry.
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Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Detailed Analysis of ADVANCE AUTO PARTS, INC. AAP Guru Analysis AAP Fundamental Analysis More Information on Benjamin Graham Benjamin Graham Portfolio Top Benjamin Graham Stocks About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham.
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Detailed Analysis of ADVANCE AUTO PARTS, INC. AAP Guru Analysis AAP Fundamental Analysis More Information on Benjamin Graham Benjamin Graham Portfolio Top Benjamin Graham Stocks About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham.
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Below is Validea's guru fundamental report for ADVANCE AUTO PARTS, INC. (AAP). Detailed Analysis of ADVANCE AUTO PARTS, INC. AAP Guru Analysis AAP Fundamental Analysis More Information on Benjamin Graham Benjamin Graham Portfolio Top Benjamin Graham Stocks About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Of the 22 guru strategies we follow, AAP rates highest using our Value Investor model based on the published strategy of Benjamin Graham.
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10671.0
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2023-08-08 00:00:00 UTC
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Hagerty, Inc. (HGTY) Q2 Earnings and Revenues Beat Estimates
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AAP
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https://www.nasdaq.com/articles/hagerty-inc.-hgty-q2-earnings-and-revenues-beat-estimates
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nan
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nan
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Hagerty, Inc. (HGTY) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced a loss of $0.04, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Hagerty, Inc., which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, posted revenues of $261.24 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 0.65%. This compares to year-ago revenues of $206.02 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Hagerty, Inc. Shares have added about 1.1% since the beginning of the year versus the S&P 500's gain of 17.7%.
What's Next for Hagerty, Inc.
While Hagerty, Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Hagerty, Inc. Mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $271.83 million in revenues for the coming quarter and $0.01 on $991.6 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Wholesale - Parts is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Advance Auto Parts (AAP), is yet to report results for the quarter ended June 2023. The results are expected to be released on August 23.
This auto parts retailer is expected to post quarterly earnings of $1.59 per share in its upcoming report, which represents a year-over-year change of -57.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Advance Auto Parts' revenues are expected to be $2.67 billion, up 0.3% from the year-ago quarter.
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Hagerty, Inc. (HGTY) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One other stock from the same industry, Advance Auto Parts (AAP), is yet to report results for the quarter ended June 2023. Click to get this free report Hagerty, Inc. (HGTY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Click to get this free report Hagerty, Inc. (HGTY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Advance Auto Parts (AAP), is yet to report results for the quarter ended June 2023. Hagerty, Inc., which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry, posted revenues of $261.24 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 0.65%.
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Click to get this free report Hagerty, Inc. (HGTY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, Advance Auto Parts (AAP), is yet to report results for the quarter ended June 2023. Hagerty, Inc. (HGTY) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.04 per share.
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One other stock from the same industry, Advance Auto Parts (AAP), is yet to report results for the quarter ended June 2023. Click to get this free report Hagerty, Inc. (HGTY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Hagerty, Inc. (HGTY) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of $0.04 per share.
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10672.0
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2023-08-03 00:00:00 UTC
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Down 77%, Is It Time to Buy This Auto Parts Stock?
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AAP
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https://www.nasdaq.com/articles/down-77-is-it-time-to-buy-this-auto-parts-stock
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nan
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nan
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Like other e-commerce stocks, CarParts.com (NASDAQ: PRTS) was a big winner during the pandemic's height.
The little-known auto parts stock surged as revenue skyrocketed, benefiting from the twin tailwinds of e-commerce and spending on discretionary auto upgrades or repairs as the pandemic gave Americans free time and a reason to invest in their cars.
More recently, however, CarParts.com's growth has slowed and the stock has given up its pandemic-era gains. It's now trading down 77% from its peak in early 2021. Has the marekt gone to far and is it time to consider buying the dip on this auto parts retailer? Let's take a look.
Underwhelming results
CarParts.com's revenue growth continued to decelerate in its second-quarter earnings report, growing just 0.4%, or 12% on a two-year stack, to $177 million. That topped estimates of $175.8 million.
The company cited macro-level challenges for the slow growth, saying some of its customers were trading down to cheaper products and delaying purchases of non-discretionary items.
Gross margin fell 90 basis points to 34.2% due to higher outbound transportation costs and product mix, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $8.3 million to $6.3 million. On the bottom line, it reported a generally accepted accounting principles (GAAP) loss of $0.01, down from a per-share profit of $0.07 in the quarter a year ago, and below estimates at breakeven.
Image source: Getty Images.
CarParts.com vs. the competition
CarParts.com isn't the only online auto parts retailer struggling these days.
Early in the year, Auto Plus, a subsidiary of Icahn Enterprises (NASDAQ: IEP) filed for Chapter 11 bankruptcy. AutoAnything said it was going out of business, and PartsID's business has collapsed with revenue down 83% to $16.2 million.
Those challenges at its competitors all potentially give CarParts.com an opportunity to pick up market share, but the major auto parts chains may be beating it to the punch.
O'Reilly Automotive (NASDAQ: ORLY), for example, posted a robust comparable store sales growth of 9% in the second quarter. AutoZone and Genuine Parts Company also posted more modest comparable sales growth. On the other hand, Advance Auto Parts was forced to slash its dividend due to falling profits.
However, CarParts.com competes more directly against other options in the e-commerce channel, and its brick-and-mortar peers didn't see the same spike in revenue during the pandemic's height.
New growth opportunities
CarParts.com expects a modest recovery in revenue growth in the second half of the year. It's forecasting top-line growth of 3% to 5%, implying a range of 3% to 7% for the second half, though management said it expected the macro environment to remain challenging in the second half of the year.
However, the company is also making investments that are paving the way for its next leg of growth. It just launched a mobile app on both iOS and Android, giving it an opportunity to more directly capture and monetize its customer relationships. The company currently gets most of its traffic from the mobile channel, but relies on paid and organic search from sources like Google, rather than direct traffic.
Having customers download its mobile app, however, would help it reduce marketing costs, and give it a direct communication channel to customers where it can offer discounts and promotions, or potentially loyalty rewards. CEO David Meniane said the company would likely provide data on downloads and other usage metrics later in the year. He also said the company was planning a brand advertising campaign later this year that should help drive adoption of the app.
Separately, the company said it continues to make progress with its new do-it-for-me (DIFM) program, which allows customers to bring CarParts.com parts to partnered mechanics, who do the labor for them. The "Get It Installed" service is still in a "test-and-learn" phase, but management said that the Net Promoter Score for the service has doubled, showing that the experience is improving.
Is CarParts.com a buy?
Given the company's forecast for the rest of the year and the expected sluggishness in consumer demand, investors should temper their expectations for a recovery this year.
However, the mobile app and the DIFM program both show promising signs, and the auto parts sector should benefit from a gradual shift to e-commerce just as much of the rest of the retail sector has experienced. Additionally, CarParts.com stock trades at a reasonable valuation of just 12 times adjusted EBITDA.
While 2023 may be a challenging year, CarParts.com still looks like a good bet for long-term outperformance.
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Jeremy Bowman has positions in CarParts.com. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On the bottom line, it reported a generally accepted accounting principles (GAAP) loss of $0.01, down from a per-share profit of $0.07 in the quarter a year ago, and below estimates at breakeven. Underwhelming results CarParts.com's revenue growth continued to decelerate in its second-quarter earnings report, growing just 0.4%, or 12% on a two-year stack, to $177 million. Those challenges at its competitors all potentially give CarParts.com an opportunity to pick up market share, but the major auto parts chains may be beating it to the punch.
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On the bottom line, it reported a generally accepted accounting principles (GAAP) loss of $0.01, down from a per-share profit of $0.07 in the quarter a year ago, and below estimates at breakeven. AutoZone and Genuine Parts Company also posted more modest comparable sales growth. New growth opportunities CarParts.com expects a modest recovery in revenue growth in the second half of the year.
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On the bottom line, it reported a generally accepted accounting principles (GAAP) loss of $0.01, down from a per-share profit of $0.07 in the quarter a year ago, and below estimates at breakeven. The little-known auto parts stock surged as revenue skyrocketed, benefiting from the twin tailwinds of e-commerce and spending on discretionary auto upgrades or repairs as the pandemic gave Americans free time and a reason to invest in their cars. New growth opportunities CarParts.com expects a modest recovery in revenue growth in the second half of the year.
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On the bottom line, it reported a generally accepted accounting principles (GAAP) loss of $0.01, down from a per-share profit of $0.07 in the quarter a year ago, and below estimates at breakeven. That topped estimates of $175.8 million. New growth opportunities CarParts.com expects a modest recovery in revenue growth in the second half of the year.
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10673.0
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2023-08-02 00:00:00 UTC
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Hubbell and Advance Auto Parts have been highlighted as Zacks Bull and Bear of the Day
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AAP
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https://www.nasdaq.com/articles/hubbell-and-advance-auto-parts-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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nan
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For Immediate Release
Chicago, IL – August 02, 2023 – Zacks Equity Research shares Hubbell HUBB as the Bull of the Advance Auto Parts AAP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Walmart Inc. WMT, The Home Depot, Inc. HD and Costco Wholesale Corp. COST.
Here is a synopsis of all five stocks:
Bull of the Day:
Hubbell is a top international manufacturer of high-quality and reliable utility and electrical solutions that aid non-residential and residential construction, industrial applications, and utility applications.
The company's earnings outlook has positively improved across all timeframes over the last several months, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
The company resides within the Zacks Manufacturing – Electrical Utilities industry, which is currently ranked in the top 1% of all industries thanks to positive earnings estimate revisions. As many are aware, roughly half of a stock's movement can be attributed to its group, helping to clarify the importance of targeting industries seeing bright outlooks.
Aside from the improved earnings outlook and favorable industry standing, let's take a closer look at a few other traits of Hubbell.
Hubbell
HUBB shares could attract growth-focused investors, further reflected by the Style Score of "B" for Growth. Estimates for its current fiscal year suggest 40% EPS growth in its current fiscal year (FY23) on nearly 10% higher revenues.
Shares aren't stretched regarding valuation on a relative basis, with the current 20.8X forward earnings multiple sitting just a few ticks above the 20.1X five-year median and nicely beneath 2022 highs of 24.9X.
Hubbell recently delivered quarterly results that came in above expectations, exceeding the Zacks Consensus EPS Estimate by more than 12% and reporting revenue modestly above expectations. In fact, the company has surpassed EPS expectations by an average of an impressive 20% across its last four quarters.
The company has enjoyed steady sales growth.
In addition, shares could attract income-focused investors; HUBB shares currently yield 1.4% annually paired with a sustainable payout ratio sitting at 34% of earnings. The company has also consistently boosted its payout, carrying an 8% five-year annualized dividend growth rate.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Hubbell would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Advance Auto Parts is a leading automotive aftermarket parts provider in North America, serving both the professional installer and do-it-yourself customers.
The company's stores and branches offer a broad selection of brand names, original equipment manufacturer (OEM), and private label automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and more.
Analysts have taken a bearish stance on the company's earnings outlook, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Let's take a closer look at what's been happening with the company.
Advance Auto Parts
Advance Auto Parts has posted weak quarterly results as of late, falling short of earnings and revenue expectations in two of its last three releases. In its latest print, the company missed EPS estimates by more than 70% and reported revenue marginally below the consensus.
The market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints. Down nearly 60% just over the previous year, the stock has been a bear's dream.
The company's earnings are expected to take a sizable hit, with estimates for its current fiscal year (FY23) suggesting a 58% pullback. Still, earnings growth resumes in FY24, with estimates calling for a 15% recovery in earnings on 2.3% higher revenues.
The company's next quarterly release is expected on August 22nd: the Zacks Consensus EPS Estimate of $1.59 suggests a 57% decline in earnings from the year-ago quarter, with the estimate down nearly 16% just over the last 60 days.
Further, our consensus revenue estimate for the upcoming release stands at $2.7 billion, 0.3% higher than the year-ago quarter. It's worth noting that the quarterly revenue estimate has been revised 2.3% lower since May.
Bottom Line
Negative earnings estimate revisions from analysts and weak quarterly results paint a challenging picture for the company's shares in the near term.
Advance Auto Parts is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
3 Blue-Chip Retail Stocks for Steady Growth & Stability
Investing in the stock market can be a rewarding venture, but it comes with its fair share of risks and uncertainties. Investors must carefully assess market dynamics and craft a robust investment strategy. They should look for well-established companies with a history of success and a proven ability to weather economic downturns.
Hence, when it comes to long-term stability and consistent growth, market pundits place their bets on highly reputed companies with humongous market capitalization. These industry titans are commonly referred to as blue-chip companies. Blue-chip stocks are financially resilient, with an impressive track record of solid returns to shareholders.
These companies tend to be less susceptible to sudden stock price fluctuations. For income-oriented investors, blue-chip companies reward shareholders with regular dividend payouts, further enhancing stability.
These stalwarts possess a winning combination of established market positions, strong brand recognition, loyal customer bases and extensive market penetration. Such traits provide these companies with a distinct competitive edge and help unlock new opportunities, thus making them investor favorite.
By investing in blue-chip stocks, investors can build a well-diversified portfolio. Here we have identified three stocks from the Retail - Wholesale sector — Walmart Inc., The Home Depot, Inc. and Costco Wholesale Corp.. Thanks to successful business operations, these bellwethers have withstood multiple market gyrations and delivered returns to investors. These blue-chip stocks have balance sheet strength to tackle any untoward market volatility.
3 Prominent Picks
Walmart: The omnichannel retailer has been doing every bit to solidify its already robust market position. Walmart has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems as well as undertaking efforts to enhance merchandise assortments. The company is innovating in the supply chain and adding capacity as well as building businesses, such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace and Walmart Fulfillment Services.
With a market cap of $430.5 billion as of Jul 31, 2023, Walmart has a long-term earnings growth expectation of 5.5%. This Zacks Rank #2 (Buy) stock has a trailing four-quarter earnings surprise of 12%, on average. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Walmart's current financial-year sales suggests growth of 4.2% from the year-ago period. The company pays out a quarterly dividend of 57 cents ($2.28 annualized) per share, giving a 1.4% yield at the current stock price. WMT's payout ratio is 35, with a five-year dividend growth rate of 1.9%. (Check WMT's dividend history here)
Home Depot: The Atlanta, GA-based company is the world's largest home improvement specialty retailer. HD has been benefiting from ongoing investments in the One Home Depot plan. Continued strength in the Pro and DIY categories and digital momentum have been the key drivers. Its interconnected retail strategy and underlying technology infrastructure have helped boost web traffic for the past few quarters, aiding digital sales.
With a market cap of more than $335.6 billion, Home Depot has a long-term earnings growth expectation of 8.7%. This Zacks Rank #3 (Hold) stock has a trailing four-quarter earnings surprise of 1.7%, on average. The company pays out a quarterly dividend of $2.09 ($8.36 annualized) per share, giving a 2.5% yield at the current stock price. HD's payout ratio is 51, with a five-year dividend growth rate of 14.5%.
Costco: A consumer defensive stock, Costco has been surviving the market turmoil pretty well. Strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on memberships have been the discount retailer's primary strengths. Costco's distinctive membership business model and pricing power set it apart from traditional players.
With a market cap of $248.5 billion, Costco has a long-term earnings growth expectation of 8.3%. This Zacks Rank #3 stock has a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Costco's current financial-year sales and EPS suggests growth of 6.8% and 9.7%, respectively, from the year-ago period. The company pays out a quarterly dividend of $1.02 ($4.08 annualized) per share, giving a 0.7% yield at the current stock price. COST's payout ratio is 29, with a five-year dividend growth rate of 12%.
Why Haven't You Looked at Zacks' Top Stocks?
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Walmart Inc. (WMT) : Free Stock Analysis Report
The Home Depot, Inc. (HD) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
Hubbell Inc (HUBB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – August 02, 2023 – Zacks Equity Research shares Hubbell HUBB as the Bull of the Advance Auto Parts AAP as the Bear of the Day. The market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Hubbell Inc (HUBB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Hubbell Inc (HUBB) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – August 02, 2023 – Zacks Equity Research shares Hubbell HUBB as the Bull of the Advance Auto Parts AAP as the Bear of the Day. The market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints.
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Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Hubbell Inc (HUBB) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – August 02, 2023 – Zacks Equity Research shares Hubbell HUBB as the Bull of the Advance Auto Parts AAP as the Bear of the Day. The market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints.
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For Immediate Release Chicago, IL – August 02, 2023 – Zacks Equity Research shares Hubbell HUBB as the Bull of the Advance Auto Parts AAP as the Bear of the Day. The market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Costco Wholesale Corporation (COST) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Hubbell Inc (HUBB) : Free Stock Analysis Report To read this article on Zacks.com click here.
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10674.0
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2023-08-02 00:00:00 UTC
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Bear of the Day: Advance Auto Parts (AAP)
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AAP
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https://www.nasdaq.com/articles/bear-of-the-day%3A-advance-auto-parts-aap-0
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nan
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nan
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Advance Auto Parts AAP is a leading automotive aftermarket parts provider in North America, serving both the professional installer and do-it-yourself customers.
The company’s stores and branches offer a broad selection of brand names, original equipment manufacturer (OEM), and private label automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and more.
Analysts have taken a bearish stance on the company’s earnings outlook, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
Let’s take a closer look at what’s been happening with the company.
Advance Auto Parts
Advance Auto Parts has posted weak quarterly results as of late, falling short of earnings and revenue expectations in two of its last three releases. In its latest print, the company missed EPS estimates by more than 70% and reported revenue marginally below the consensus.
As shown below, the market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints. Down nearly 60% just over the previous year, the stock has been a bear’s dream.
Image Source: Zacks Investment Research
The company’s earnings are expected to take a sizable hit, with estimates for its current fiscal year (FY23) suggesting a 58% pullback. Still, earnings growth resumes in FY24, with estimates calling for a 15% recovery in earnings on 2.3% higher revenues.
Image Source: Zacks Investment Research
The company’s next quarterly release is expected on August 22nd: the Zacks Consensus EPS Estimate of $1.59 suggests a 57% decline in earnings from the year-ago quarter, with the estimate down nearly 16% just over the last 60 days.
Further, our consensus revenue estimate for the upcoming release stands at $2.7 billion, 0.3% higher than the year-ago quarter. It’s worth noting that the quarterly revenue estimate has been revised 2.3% lower since May.
Bottom Line
Negative earnings estimate revisions from analysts and weak quarterly results paint a challenging picture for the company’s shares in the near term.
Advance Auto Parts AAP is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts AAP is a leading automotive aftermarket parts provider in North America, serving both the professional installer and do-it-yourself customers. As shown below, the market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints. Advance Auto Parts AAP is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
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Advance Auto Parts AAP is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook. Advance Auto Parts AAP is a leading automotive aftermarket parts provider in North America, serving both the professional installer and do-it-yourself customers. As shown below, the market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints.
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Advance Auto Parts AAP is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook. Advance Auto Parts AAP is a leading automotive aftermarket parts provider in North America, serving both the professional installer and do-it-yourself customers. As shown below, the market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints.
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Advance Auto Parts AAP is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook. Advance Auto Parts AAP is a leading automotive aftermarket parts provider in North America, serving both the professional installer and do-it-yourself customers. As shown below, the market has consistently punished AAP shares post-earnings, with shares facing selling pressure following each of its last four prints.
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10675.0
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2023-07-31 00:00:00 UTC
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Insiders Buy the Holdings of FNX ETF
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AAP
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https://www.nasdaq.com/articles/insiders-buy-the-holdings-of-fnx-etf-0
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nan
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nan
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A look at the weighted underlying holdings of the First Trust Mid Cap Core AlphaDEX Fund (FNX) shows an impressive 10.3% of holdings on a weighted basis have experienced insider buying within the past six months.
Advance Auto Parts Inc (Symbol: AAP), which makes up 0.29% of the First Trust Mid Cap Core AlphaDEX Fund (FNX), has seen 6 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $3,130,576 worth of AAP, making it the #146 largest holding. The table below details the recent insider buying activity observed at AAP:
AAP — last trade: $73.17 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
06/07/2023 Jeffrey J. Jones II Director 1,525 $65.94 $100,558
06/07/2023 Eugene I. Lee Jr. Director 7,635 $65.51 $500,160
06/07/2023 John Francis Ferraro Director 1,525 $65.56 $99,979
06/07/2023 Carla Jean Bailo Director 500 $65.90 $32,950
06/12/2023 Douglas A. Pertz Director 6,145 $65.44 $402,145
06/09/2023 Joan M. Hilson Director 388 $64.26 $24,933
And Matador Resources Co (Symbol: MTDR), the #314 largest holding among components of the First Trust Mid Cap Core AlphaDEX Fund (FNX), shows 8 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $1,601,702 worth of MTDR, which represents approximately 0.15% of the ETF's total assets at last check. The recent insider buying activity observed at MTDR is detailed in the table below:
MTDR — last trade: $53.77 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
03/08/2023 William M. Byerley Director 125 $55.30 $6,912
03/14/2023 Reynald Baribault Director 300 $49.15 $14,745
03/13/2023 Joseph Wm Foran Chairman and CEO 2,000 $48.77 $97,540
03/15/2023 William Thomas Elsener EVP, Reservoir Engineering 500 $45.78 $22,890
03/15/2023 Joseph Wm Foran Chairman and CEO 2,000 $44.75 $89,500
03/15/2023 Robert Gaines Baty Director 500 $44.80 $22,400
03/16/2023 Billy E. Goodwin President-Operations 1,000 $44.52 $44,520
03/16/2023 Timothy E. Parker Director 4,500 $43.52 $195,840
05/04/2023 Joseph Wm Foran Chairman and CEO 2,000 $42.40 $84,800
05/23/2023 Monika U. Ehrman Director 225 $48.05 $10,811
06/01/2023 Joseph Wm Foran Chairman and CEO 652 $44.40 $28,949
10 ETFs With Stocks That Insiders Are Buying »
Also see:
Funds Holding REIT
Funds Holding AGGE
DDIV Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts Inc (Symbol: AAP), which makes up 0.29% of the First Trust Mid Cap Core AlphaDEX Fund (FNX), has seen 6 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $3,130,576 worth of AAP, making it the #146 largest holding. The table below details the recent insider buying activity observed at AAP: AAP — last trade: $73.17 — Recent Insider Buys:
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The table below details the recent insider buying activity observed at AAP: AAP — last trade: $73.17 — Recent Insider Buys: Advance Auto Parts Inc (Symbol: AAP), which makes up 0.29% of the First Trust Mid Cap Core AlphaDEX Fund (FNX), has seen 6 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $3,130,576 worth of AAP, making it the #146 largest holding.
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Advance Auto Parts Inc (Symbol: AAP), which makes up 0.29% of the First Trust Mid Cap Core AlphaDEX Fund (FNX), has seen 6 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $3,130,576 worth of AAP, making it the #146 largest holding. The table below details the recent insider buying activity observed at AAP: AAP — last trade: $73.17 — Recent Insider Buys:
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Advance Auto Parts Inc (Symbol: AAP), which makes up 0.29% of the First Trust Mid Cap Core AlphaDEX Fund (FNX), has seen 6 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $3,130,576 worth of AAP, making it the #146 largest holding. The table below details the recent insider buying activity observed at AAP: AAP — last trade: $73.17 — Recent Insider Buys:
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10676.0
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2023-07-30 00:00:00 UTC
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Is It Time to Buy the S&P 500's 4 Worst-Performing Stocks?
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AAP
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https://www.nasdaq.com/articles/is-it-time-to-buy-the-sp-500s-4-worst-performing-stocks-7
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nan
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nan
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The S&P 500 has had a banner year, posting a 19% gain so far as excitement about artificial intelligence, a recovery from last year's sell-off, and an improving economy have lifted the broad market.
However, not every S&P 500 stock has been a winner. In fact, a number of stocks in the market-tracking index have fallen sharply this year. Let's look at the four worst performers to see if any are worth buying today.
Image source: Getty Images.
1. Advance Auto Parts, down 51.3%
Advance Auto Parts (NYSE: AAP) has been the worst performer by far on the S&P 500 this year.
While auto parts stocks O'Reilly Automotive and AutoZone have outperformed the market over the long term, Advance Auto Parts has significantly lagged behind its peers despite having a similar business model.
The stock plunged sharply following the company's most recent earnings report.
^SPX data by YCharts
The auto-parts industry tends to be recession-proof, but while its peers were posting solid results, Advance said comparable store sales fell 0.4%, and the company slashed its full-year guidance and its dividend. It now expects earnings per share of $6.00 to $6.50, down from a previous range of $10.20 to $11.20. It also lowered its quarterly dividend from $1.50 to $0.25 per share, which seemed to be the primary reason for the sell-off.
Advance is also looking for a new CEO to replace Tom Greco, who is planning to retire. Any turnaround is likely to require a new leader, and that will take time. Given that delay and the pressure on the bottom line, the stock is best avoided.
2. KeyCorp, down 33.3%
Regional banks have struggled this year following the crisis that sank Silicon Valley Bank and Signature Bank, and KeyBank parent KeyCorp (NYSE: KEY) has been the worst performing of the regional bank stocks included in the S&P 500, down 33%.
The stock fell sharply in March as those banks went under, and it's yet to recover those losses.
^SPX data by YCharts
Second-quarter results missed expectations but showed that the bank was on stable ground. The bank did forecast a slight decline in net interest income for the rest of the year as well.
Still, with interest rates remaining high and the economy starting to recover, the environment could be favorable for KeyCorp to make a comeback. Other signs show the bank is on the right track, including a $1 billion increase in deposits over the prior quarter and low net charge-offs at just 0.17% of total loans. Total loans also increased 11% from the quarter a year ago to $120.7 billion.
While KeyCorp is still facing some challenges, the stock also offers a 6.9% dividend yield, making it a solid bet for investors willing to ride out the volatility as the economy seems poised for a recovery.
3. Dollar General, down 33.1%
Dollar General (NYSE: DG) might be a surprising name to see on this list. After all, the retail stock tends to thrive in recessionary environments because of its reputation for low prices.
However, a combination of an elevated valuation coming into this year and a shift in consumer spending from goods to services seems to explain its troubles. The stock plunged following the company's most recent earnings report.
^SPX data by YCharts
In its fiscal first-quarter earnings report, comparable sales rose 1.6% and overall revenue was up 6.8%. Adjusted earnings per share fell from $2.41 to $2.34.
However, the main reason for the sell-off was a cut in EPS guidance resulting from a challenging macroeconomic environment. It now forecasts a full-year performance in a range of an 8% decline to flat growth, compared with a previous range of 4% to 6% growth.
While that guidance makes it clear the company is struggling in the current environment, its valuation looks much more reasonable after the sell-off at a price-to-earnings ratio of 15.5, and the company has long-term competitive advantages, including its unrivaled store footprint, low prices, and a multicategory product assortment. It's worth buying the dip on this one.
4. Enphase Energy, down 32.3%
Solar-energy company Enphase Energy (NASDAQ: ENPH) has been another big loser this year. Once again, the stock suffered a big setback following an earnings report.
^SPX data by YCharts
The stock fell back after it missed first-quarter revenue estimates and offered below-consensus guidance for the second quarter. Revenue in the quarter rose 64.5% to $726 million but fell 9% sequentially in the U.S. because of seasonality and macroeconomic conditions. Its second-quarter guidance calling for flat sequential revenue growth at $700 million to $750 million disappointed the market.
With revenue growth seemingly plateauing and the valuation elevated, investors may want to wait until stronger growth returns at Enphase, especially given the long-term underperformance in the solar industry.
Find out why Enphase Energy is one of the 10 best stocks to buy now
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SVB Financial provides credit and banking services to The Motley Fool. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool recommends Enphase Energy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts, down 51.3% Advance Auto Parts (NYSE: AAP) has been the worst performer by far on the S&P 500 this year. ^SPX data by YCharts The auto-parts industry tends to be recession-proof, but while its peers were posting solid results, Advance said comparable store sales fell 0.4%, and the company slashed its full-year guidance and its dividend. Other signs show the bank is on the right track, including a $1 billion increase in deposits over the prior quarter and low net charge-offs at just 0.17% of total loans.
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Advance Auto Parts, down 51.3% Advance Auto Parts (NYSE: AAP) has been the worst performer by far on the S&P 500 this year. ^SPX data by YCharts The auto-parts industry tends to be recession-proof, but while its peers were posting solid results, Advance said comparable store sales fell 0.4%, and the company slashed its full-year guidance and its dividend. It now forecasts a full-year performance in a range of an 8% decline to flat growth, compared with a previous range of 4% to 6% growth.
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Advance Auto Parts, down 51.3% Advance Auto Parts (NYSE: AAP) has been the worst performer by far on the S&P 500 this year. KeyCorp, down 33.3% Regional banks have struggled this year following the crisis that sank Silicon Valley Bank and Signature Bank, and KeyBank parent KeyCorp (NYSE: KEY) has been the worst performing of the regional bank stocks included in the S&P 500, down 33%. Enphase Energy, down 32.3% Solar-energy company Enphase Energy (NASDAQ: ENPH) has been another big loser this year.
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Advance Auto Parts, down 51.3% Advance Auto Parts (NYSE: AAP) has been the worst performer by far on the S&P 500 this year. KeyCorp, down 33.3% Regional banks have struggled this year following the crisis that sank Silicon Valley Bank and Signature Bank, and KeyBank parent KeyCorp (NYSE: KEY) has been the worst performing of the regional bank stocks included in the S&P 500, down 33%. Enphase Energy is on the list -- but there are nine others you may be overlooking.
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10677.0
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2023-07-27 00:00:00 UTC
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3 Stocks That Haven't Been This Cheap in Over a Decade
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AAP
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https://www.nasdaq.com/articles/3-stocks-that-havent-been-this-cheap-in-over-a-decade
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nan
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nan
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Walgreens Boots Alliance (NASDAQ: WBA), Verizon Communications (NYSE: VZ), and Advance Auto Parts (NYSE: AAP) are three stocks that aren't in great shape these days. Investors are concerned about their financial situations both in the near and long term, and that has put some significant pressure on their valuations this year.
Below, I'll look at what has led investors to be so bearish on these stocks, and whether there's a good contrarian case to be made for investing in any of them.
1. Walgreens Boots Alliance
Walgreens Boots Alliance has been struggling badly over the years, and 2023 has been no exception, with the pharmacy chain's shares down 18% thus far. The company is no longer benefiting from an uptick in in-store traffic due to COVID vaccinations.
Although sales of $35.4 billion for the period ended May 31 were up 8.6% year over year, the company's earnings per share (EPS) fell from $0.33 to $0.14, with Walgreens blaming the underwhelming performance on COVID-19 headwinds. It also slashed its guidance for the fiscal year, now projecting adjusted EPS to be no higher than $4.05 (the previous forecast projected adjusted EPS to be at least $4.45).
For a company that has struggled with growth over the years, that's a surefire recipe for disaster. Although its dividend yield may look attractive at 6.5%, investors are more than a little wary of Walgreens as the stock is trading around prices it was at in 2012.
There's ample risk here. Walgreens' bottom line is going in the wrong direction, and the company is also investing billions into a new healthcare segment that may not pay off and be profitable for multiple years. That raises question marks about the safety of the dividend, which is a big reason why investors undoubtedly buy the healthcare stock.
While Walgreens looks like it may be undervalued right now, investors should be careful with the stock as it is a chronic underperformer. It could make for a good contrarian investment, but you have to be a big believer that its venture into healthcare will pay off.
2. Verizon Communications
Verizon is one of the leading telecom companies in the industry, but a big risk surrounding its business today is its exposure to lead-covered cables. The potential liability surrounding that has made investors incredibly bearish on what is otherwise a stable business. Down 14% this year, Verizon has nevertheless been the best-performing stock on this list.
At 7.7%, the stock's yield is even higher than Walgreens' current payout. And with the stock closing at less than $34 last week, you'd have to go back to 2010 for the last time Verizon's stock was trading at consistently lower prices than where it is right now.
Investors should consider the risks related to lead-covered cables, especially since it could cost the company billions of dollars, but they also shouldn't exaggerate it either; there's no certainty as to how much the company may have to pay. Meanwhile, the stock's payout ratio is around 50% of earnings, so there is a buffer there for the company to absorb some adversity and still be able to continue paying its dividend.
Given the relative stability of the business, Verizon makes for a compelling contrarian investment right now. It's by no means risk-free, but with its low valuation it could have significant upside if things don't turn out as badly as investors are fearing they will.
3. Advance Auto Parts
Earlier this year, Advance Auto Parts not only slashed its guidance for the year but also its dividend, from quarterly payments of $1.50 to just $0.25. At 1.4%, the dividend yield is now a much more modest payout than the two other dividend stocks on this list pay. And as a result of the troubling outlook, investors have been quick to dump the stock, sending it down a staggering 52% year to date.
The auto parts company has been struggling amid rising costs and challenging macroeconomic conditions this year. For the period ended April 22, sales of $3.4 billion were only up 1.3% year over year, but selling, general, and administrative costs rose by around 6% to just under $1.4 billion, and interest expenses more than doubled to nearly $30 million.
At a time when economic conditions look concerning, there are no shortage of challenges facing Advance Auto Parts, and neither its top nor its bottom line is looking great right now. The stock looks cheap and is trading at around where it was in 2012, but even contrarian investors may be better off taking a wait-and-see approach with the company.
Worsening economic conditions could lead to even more of a drag on its already lackluster financials, which may result in a lower stock price this year.
10 stocks we like better than Walgreens Boots Alliance
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Walgreens Boots Alliance wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 17, 2023
David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Walgreens Boots Alliance (NASDAQ: WBA), Verizon Communications (NYSE: VZ), and Advance Auto Parts (NYSE: AAP) are three stocks that aren't in great shape these days. Walgreens' bottom line is going in the wrong direction, and the company is also investing billions into a new healthcare segment that may not pay off and be profitable for multiple years. At a time when economic conditions look concerning, there are no shortage of challenges facing Advance Auto Parts, and neither its top nor its bottom line is looking great right now.
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Walgreens Boots Alliance (NASDAQ: WBA), Verizon Communications (NYSE: VZ), and Advance Auto Parts (NYSE: AAP) are three stocks that aren't in great shape these days. Walgreens Boots Alliance Walgreens Boots Alliance has been struggling badly over the years, and 2023 has been no exception, with the pharmacy chain's shares down 18% thus far. Advance Auto Parts Earlier this year, Advance Auto Parts not only slashed its guidance for the year but also its dividend, from quarterly payments of $1.50 to just $0.25.
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Walgreens Boots Alliance (NASDAQ: WBA), Verizon Communications (NYSE: VZ), and Advance Auto Parts (NYSE: AAP) are three stocks that aren't in great shape these days. 10 stocks we like better than Walgreens Boots Alliance When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 17, 2023 David Jagielski has no position in any of the stocks mentioned.
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Walgreens Boots Alliance (NASDAQ: WBA), Verizon Communications (NYSE: VZ), and Advance Auto Parts (NYSE: AAP) are three stocks that aren't in great shape these days. Although its dividend yield may look attractive at 6.5%, investors are more than a little wary of Walgreens as the stock is trading around prices it was at in 2012. Verizon Communications Verizon is one of the leading telecom companies in the industry, but a big risk surrounding its business today is its exposure to lead-covered cables.
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10678.0
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2023-07-25 00:00:00 UTC
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Advance Auto Parts (AAP) Stock Sinks As Market Gains: What You Should Know
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-stock-sinks-as-market-gains%3A-what-you-should-know-4
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nan
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Advance Auto Parts (AAP) closed the most recent trading day at $71.55, moving -1.66% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 0.61%.
Coming into today, shares of the auto parts retailer had gained 8.13% in the past month. In that same time, the Retail-Wholesale sector gained 3.9%, while the S&P 500 gained 4.86%.
Wall Street will be looking for positivity from Advance Auto Parts as it approaches its next earnings report date. The company is expected to report EPS of $1.59, down 57.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.67 billion, up 0.26% from the prior-year quarter.
AAP's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $11.22 billion. These results would represent year-over-year changes of -53.99% and +0.62%, respectively.
Any recent changes to analyst estimates for Advance Auto Parts should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Advance Auto Parts is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Advance Auto Parts has a Forward P/E ratio of 12.13 right now. Its industry sports an average Forward P/E of 25.71, so we one might conclude that Advance Auto Parts is trading at a discount comparatively.
Investors should also note that AAP has a PEG ratio of 1.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.69 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) closed the most recent trading day at $71.55, moving -1.66% from the previous trading session. AAP's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $11.22 billion. Investors should also note that AAP has a PEG ratio of 1.06 right now.
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Advance Auto Parts (AAP) closed the most recent trading day at $71.55, moving -1.66% from the previous trading session. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. AAP's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $11.22 billion.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts (AAP) closed the most recent trading day at $71.55, moving -1.66% from the previous trading session. AAP's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $11.22 billion.
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Advance Auto Parts (AAP) closed the most recent trading day at $71.55, moving -1.66% from the previous trading session. AAP's full-year Zacks Consensus Estimates are calling for earnings of $6 per share and revenue of $11.22 billion. Investors should also note that AAP has a PEG ratio of 1.06 right now.
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10679.0
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2023-07-16 00:00:00 UTC
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1 Growth Stock Down 70% to Buy Right Now
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AAP
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https://www.nasdaq.com/articles/1-growth-stock-down-70-to-buy-right-now-2
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nan
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nan
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It's been a tough past year and a half for Advance Auto Parts (NYSE: AAP). But it's been even tougher for its shareholders. The stock is down 70% from its early 2022 high, and lower by 37% just since the end of May. A combination of broken supply chains, inflation, and broad economic malaise is taking a measurable toll on the company's results. The first quarter's revenue growth of 1.3% is outright anemic, and same-store sales actually slipped a bit for the three-month stretch. Full-year sales and earnings guidance was lowered too, with the latter being nearly cut in half.
As the old adage goes, though, it's darkest before dawn. Advance Auto Parts is arguably at the "can't get any worse" stage of this highly problematic cycle. You can step into the stock at what's apt to be close to the bottom.
The pandemic-prompted cyclical headwind is nearing its end
The auto parts business is a perennial winner. Most people just need their cars to work, and given the ever-growing cost of buying a new one, it makes good financial sense to keep older ones in good working order for as long as possible. Advance Auto Parts has been no exception to the market's consistent growth cadence.
The COVID-19 pandemic and its subsequent fallout, however, really did a delayed number on this company. As CEO Tom Greco explained of the company's lackluster Q1 results, "unfavorable product mix" and "higher than planned investments to narrow competitive price gaps" are crimping overall profits, echoing a comment made in the company's Q4 2022 report.
Dialing back Advance Auto Parts' 2023 revenue growth outlook from a range of 1% to 3% to a new range calling for a decline of as much as 1% suggests there's no meaningful relief on the horizon. The recent dividend cut says the same.
Nothing lasts forever, though. Indeed, better days may be in store for the auto parts retailer and its stock sooner than most everyone expects.
One of the forces currently working in Advance Auto Parts' favor is the sky-high price of new cars. While now down a bit from the record high of $49,507 hit in December of last year, Cox Automotive's estimated average sales price of $48,658 for vehicles sold in May is still jaw-droppingly high, leaving them out of reach for many would-be buyers.
To this end, S&P Global Mobility reckons that, as of May, the average age of cars still being driven on U.S. roads stands at a record-breaking 12.5 years. But, even a 12-and-a-half-year-old car that's in reasonably good condition is going to need repairs sooner or later, and likely need them sooner than later.
At the same time, although they're still relatively expensive and auto parts stores still have fewer in stock than they did prior to the pandemic, wholesale costs for car parts are leveling off at the same time their availability is improving. It's a start. Note that sales of these goods remain in a broad, industrywide uptrend even if Advance Auto Parts bumped into a bit of a headwind a quarter earlier.
Data source: U.S. Census Bureau and Bureau of Labor Statistics.
Also bear in mind that at least some of the company's self-imposed, profit-sapping efforts are winding down. As Greco also explained in the company's fourth-quarter report, "After several years of significant investments in complex transformation initiatives and the majority of the integration behind us, we're now able to focus more time and resources on leveraging our differentiated asset base and improving execution."
Look where Advance Auto Parts is going, not where it's been
This year's going to be another tough one to be sure. The auto parts retailer says earnings will likely roll in between $6 and $6.50 per share versus last year's $8.32; profits will slump considerably more than sales will. Last year's free cash flow of more than $700 million could fall all the way back to as low as $200 million, according to the company's guidance. Yikes.
But all of this trouble may already be priced into the stock ... and then some.
What's not priced in is the fact that the new-and-improved Advance Auto Parts could be fully up and running right around the same time supply chains are finally, fully fixed and costs are finally starting to ease. That probably won't matter in earnest until next year. Analysts expect this year's projected per-share profit of $5.91 to start growing again in 2024, en route to full-year earnings of $6.78 per share.
Given that stocks tend to reflect their plausible future rather than their present, however, now's the time to take a swing on Advance Auto Parts. That's especially true while the stock is priced less than 10 times next year's expected profits. That's pretty cheap.
Just bear in mind there's still plenty of volatility in the cards.
10 stocks we like better than Advance Auto Parts
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 10, 2023
James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It's been a tough past year and a half for Advance Auto Parts (NYSE: AAP). A combination of broken supply chains, inflation, and broad economic malaise is taking a measurable toll on the company's results. Note that sales of these goods remain in a broad, industrywide uptrend even if Advance Auto Parts bumped into a bit of a headwind a quarter earlier.
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It's been a tough past year and a half for Advance Auto Parts (NYSE: AAP). Dialing back Advance Auto Parts' 2023 revenue growth outlook from a range of 1% to 3% to a new range calling for a decline of as much as 1% suggests there's no meaningful relief on the horizon. What's not priced in is the fact that the new-and-improved Advance Auto Parts could be fully up and running right around the same time supply chains are finally, fully fixed and costs are finally starting to ease.
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It's been a tough past year and a half for Advance Auto Parts (NYSE: AAP). At the same time, although they're still relatively expensive and auto parts stores still have fewer in stock than they did prior to the pandemic, wholesale costs for car parts are leveling off at the same time their availability is improving. Given that stocks tend to reflect their plausible future rather than their present, however, now's the time to take a swing on Advance Auto Parts.
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It's been a tough past year and a half for Advance Auto Parts (NYSE: AAP). Full-year sales and earnings guidance was lowered too, with the latter being nearly cut in half. Look where Advance Auto Parts is going, not where it's been This year's going to be another tough one to be sure.
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10680.0
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2023-07-16 00:00:00 UTC
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Buy the Dip on Advance Auto Parts? 1 Number That Screams Warning Sign, and 2 Better Competitors Worth Buying Instead
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AAP
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https://www.nasdaq.com/articles/buy-the-dip-on-advance-auto-parts-1-number-that-screams-warning-sign-and-2-better
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nan
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nan
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Advance Auto Parts (NYSE: AAP) shares have been smashed this year. But before buying the dip, Motley Fool contributors Jason Hall and Tyler Crowe think investors should look at AutoZone (NYSE: AZO) and O'Reilly Auto Parts (NASDAQ: ORLY) first, and explain the one number that breaks down why these two have been far better investments than their struggling competitor.
*Stock prices used were from the afternoon of July 7, 2023. The video was published on July 16, 2023.
10 stocks we like better than Advance Auto Parts
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 10, 2023
Jason Hall has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (NYSE: AAP) shares have been smashed this year. But before buying the dip, Motley Fool contributors Jason Hall and Tyler Crowe think investors should look at AutoZone (NYSE: AZO) and O'Reilly Auto Parts (NASDAQ: ORLY) first, and explain the one number that breaks down why these two have been far better investments than their struggling competitor. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Advance Auto Parts (NYSE: AAP) shares have been smashed this year. But before buying the dip, Motley Fool contributors Jason Hall and Tyler Crowe think investors should look at AutoZone (NYSE: AZO) and O'Reilly Auto Parts (NASDAQ: ORLY) first, and explain the one number that breaks down why these two have been far better investments than their struggling competitor. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Jason Hall has no position in any of the stocks mentioned.
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Advance Auto Parts (NYSE: AAP) shares have been smashed this year. But before buying the dip, Motley Fool contributors Jason Hall and Tyler Crowe think investors should look at AutoZone (NYSE: AZO) and O'Reilly Auto Parts (NASDAQ: ORLY) first, and explain the one number that breaks down why these two have been far better investments than their struggling competitor. 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen.
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Advance Auto Parts (NYSE: AAP) shares have been smashed this year. But before buying the dip, Motley Fool contributors Jason Hall and Tyler Crowe think investors should look at AutoZone (NYSE: AZO) and O'Reilly Auto Parts (NASDAQ: ORLY) first, and explain the one number that breaks down why these two have been far better investments than their struggling competitor. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Jason Hall has no position in any of the stocks mentioned.
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10681.0
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2023-07-14 00:00:00 UTC
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Best Dividend Stocks to Buy: Dollar General vs. Advance Auto Parts
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AAP
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https://www.nasdaq.com/articles/best-dividend-stocks-to-buy%3A-dollar-general-vs.-advance-auto-parts
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nan
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nan
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Fool.com contributor Parkev Tatevosian compares Dollar General (NYSE: DG) and Advance Auto Parts (NYSE: AAP) to determine which is the better dividend stock to buy for passive income investors.
*Stock prices used were the afternoon prices of July 11, 2023. The video was published on July 13, 2023.
10 stocks we like better than Advance Auto Parts
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of July 10, 2023
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fool.com contributor Parkev Tatevosian compares Dollar General (NYSE: DG) and Advance Auto Parts (NYSE: AAP) to determine which is the better dividend stock to buy for passive income investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them!
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Fool.com contributor Parkev Tatevosian compares Dollar General (NYSE: DG) and Advance Auto Parts (NYSE: AAP) to determine which is the better dividend stock to buy for passive income investors. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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Fool.com contributor Parkev Tatevosian compares Dollar General (NYSE: DG) and Advance Auto Parts (NYSE: AAP) to determine which is the better dividend stock to buy for passive income investors. 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned.
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Fool.com contributor Parkev Tatevosian compares Dollar General (NYSE: DG) and Advance Auto Parts (NYSE: AAP) to determine which is the better dividend stock to buy for passive income investors. See the 10 stocks *Stock Advisor returns as of July 10, 2023 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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10682.0
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2023-07-13 00:00:00 UTC
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AAP September 1st Options Begin Trading
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AAP
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https://www.nasdaq.com/articles/aap-september-1st-options-begin-trading
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nan
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nan
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the September 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new September 1st contracts and identified one put and one call contract of particular interest.
The put contract at the $70.00 strike price has a current bid of $4.30. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $70.00, but will also collect the premium, putting the cost basis of the shares at $65.70 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $70.46/share today.
Because the $70.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 6.14% return on the cash commitment, or 44.84% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $70.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $71.00 strike price has a current bid of $4.90. If an investor was to purchase shares of AAP stock at the current price level of $70.46/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $71.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.72% if the stock gets called away at the September 1st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $71.00 strike highlighted in red:
Considering the fact that the $71.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 6.95% boost of extra return to the investor, or 50.77% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $70.46) to be 55%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Top Stocks Held By Bruce Berkowitz
EHTH Average Annual Return
GMMB Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $71.00 strike highlighted in red: Considering the fact that the $71.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the September 1st expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $71.00 strike highlighted in red: Considering the fact that the $71.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the September 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new September 1st contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $71.00 strike highlighted in red: Considering the fact that the $71.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the September 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new September 1st contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new September 1st contracts and identified one put and one call contract of particular interest. Below is a chart showing AAP's trailing twelve month trading history, with the $71.00 strike highlighted in red: Considering the fact that the $71.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available today, for the September 1st expiration.
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10683.0
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2023-07-11 00:00:00 UTC
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Ex-Dividend Reminder: Oxford Industries, Foot Locker and Advance Auto Parts
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AAP
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-oxford-industries-foot-locker-and-advance-auto-parts
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 7/13/23, Oxford Industries, Inc. (Symbol: OXM), Foot Locker, Inc. (Symbol: FL), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Oxford Industries, Inc. will pay its quarterly dividend of $0.65 on 7/28/23, Foot Locker, Inc. will pay its quarterly dividend of $0.40 on 7/28/23, and Advance Auto Parts Inc will pay its quarterly dividend of $0.25 on 7/28/23. As a percentage of OXM's recent stock price of $101.44, this dividend works out to approximately 0.64%, so look for shares of Oxford Industries, Inc. to trade 0.64% lower — all else being equal — when OXM shares open for trading on 7/13/23. Similarly, investors should look for FL to open 1.52% lower in price and for AAP to open 0.36% lower, all else being equal.
Below are dividend history charts for OXM, FL, and AAP, showing historical dividends prior to the most recent ones declared.
Oxford Industries, Inc. (Symbol: OXM):
Foot Locker, Inc. (Symbol: FL):
Advance Auto Parts Inc (Symbol: AAP):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.56% for Oxford Industries, Inc., 6.06% for Foot Locker, Inc., and 1.44% for Advance Auto Parts Inc.
Free Report: Top 8%+ Dividends (paid monthly)
In Tuesday trading, Oxford Industries, Inc. shares are currently up about 0.1%, Foot Locker, Inc. shares are up about 0.7%, and Advance Auto Parts Inc shares are up about 0.8% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
PFX Average Annual Return
Paycom Software RSI
Funds Holding DBKO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, on 7/13/23, Oxford Industries, Inc. (Symbol: OXM), Foot Locker, Inc. (Symbol: FL), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for FL to open 1.52% lower in price and for AAP to open 0.36% lower, all else being equal. Below are dividend history charts for OXM, FL, and AAP, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel, on 7/13/23, Oxford Industries, Inc. (Symbol: OXM), Foot Locker, Inc. (Symbol: FL), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Oxford Industries, Inc. (Symbol: OXM): Foot Locker, Inc. (Symbol: FL): Advance Auto Parts Inc (Symbol: AAP): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for FL to open 1.52% lower in price and for AAP to open 0.36% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 7/13/23, Oxford Industries, Inc. (Symbol: OXM), Foot Locker, Inc. (Symbol: FL), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for FL to open 1.52% lower in price and for AAP to open 0.36% lower, all else being equal. Below are dividend history charts for OXM, FL, and AAP, showing historical dividends prior to the most recent ones declared.
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Oxford Industries, Inc. (Symbol: OXM): Foot Locker, Inc. (Symbol: FL): Advance Auto Parts Inc (Symbol: AAP): In general, dividends are not always predictable, following the ups and downs of company profits over time. Looking at the universe of stocks we cover at Dividend Channel, on 7/13/23, Oxford Industries, Inc. (Symbol: OXM), Foot Locker, Inc. (Symbol: FL), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for FL to open 1.52% lower in price and for AAP to open 0.36% lower, all else being equal.
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10684.0
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2023-07-06 00:00:00 UTC
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Advance Auto Parts: Buy, Sell, or Hold?
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts%3A-buy-sell-or-hold
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nan
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nan
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Advance Auto Parts (NYSE: AAP) isn't just disliked among financial market commentators; it's actually despised. Even long-standing value investors have made a pariah of this automotive parts standby.
In a time when new vehicles are expensive and the average age of a car on the road is 12.5 years, Advance Auto Parts stock should be an obvious buy-and-hold. Yet, the company's first-quarter financial report was so disastrous that Advance Auto Parts stock went from a no-brainer to a no-go for many prospective investors.
Still, if you dare to venture where others won't, there just may be a bargain afoot with this beaten-down auto parts purveyor.
A quarter fully stocked with gloom and doom
Practically everything that could possibly go awry in a quarterly financial report actually happened all at once with Advance Auto Parts in Q1 2023. The only not-completely terrible part was the company's sales, which grew 1.3% year over year to $3.42 billion and just barely missed the analyst consensus estimate. After that, it's all downhill.
Advance Auto Parts' EPS of $0.72 drastically missed Wall Street's call for $2.60 and came in far below the year-earlier period's EPS of $2.26. CEO Tom Greco offered up excuses as to why Advance Auto Parts' quarterly operating margin rate of 2.6% came in "well below expectations," citing "higher-than-planned investments to narrow competitive price gaps in the professional sales channel as well as unfavorable product mix."
But wait -- there's more pain to come. Advance Auto Parts slashed its fiscal 2023 EPS outlook from a previous range of $10.20-$11.20 to a revised range of $6.00-$6.50. On top of all that, the company lowered its 2023 comparable-store sales guidance from 1% to 3%, to a range of -1% to flat.
Moreover, after ramping up the company's dividend payments from $0.06 per share in 2019 to $1.50 in 2022, Advance Auto Parts suddenly chopped its quarterly dividend to just $0.25 per share.
Its stock gets sent to the junkyard
The single-session 30% share-price drop that ensued post-earnings was horrifying, but pull back the chart, and you'll see that it's a continuation of a steeper drop. After topping out at around $240 in late 2021/early 2022, Advance Auto Parts' stock has managed to plumb the $70 level, surpassing even the COVID-19 bottom.
As a contrarian investor, I relish the challenge of defending the indefensible. First and foremost, Advance Auto Parts is still profitable and has an enticing trailing-12-month P/E ratio (10.4 versus the sector median of 16.7); price-to-book ratio (1.6 versus the sector median of 2.3); and price-to-sales ratio (0.4 versus the sector median of 0.9). None of these attractive metrics would have been possible without the dreadful quarterly miss-and-reduce (as opposed to beat-and-raise).
Next, consider that after raising its dividends too much, Advance Auto Parts now has a dividend that's probably more sustainable. If the company's dividend payout ratio is now 44%, that's not unreasonable (in my humble opinion) as my internal alarm bells typically don't ring until a payout ratio exceeds 50%.
And if financial commentators truly can't stand Greco, they should celebrate his announced retirement at the end of this year. If any event could mark a new chapter in the ongoing story of Advance Auto Parts, this would be it. There's been no update so far as to Greco's replacement, so stay tuned.
Finally, if you truly believe that the financial markets are efficient, poor Q1 results and downbeat full-year guidance should be considered fully known and priced-in factors. From here, with the critics out in full force and expectations at rock bottom, it feels like there's nowhere to go but up for Advance Auto Parts.
So if you have a deep contrarian streak and are willing to stay the course through the CEO succession, I invite you to hold your nose and buy a few shares of Advance Auto Parts. It won't necessarily be a smooth ride, but at least you can save up some gas money with whatever's left of the dividend.
10 stocks we like better than Advance Auto Parts
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They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of June 30, 2023
David Moadel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (NYSE: AAP) isn't just disliked among financial market commentators; it's actually despised. In a time when new vehicles are expensive and the average age of a car on the road is 12.5 years, Advance Auto Parts stock should be an obvious buy-and-hold. CEO Tom Greco offered up excuses as to why Advance Auto Parts' quarterly operating margin rate of 2.6% came in "well below expectations," citing "higher-than-planned investments to narrow competitive price gaps in the professional sales channel as well as unfavorable product mix."
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Advance Auto Parts (NYSE: AAP) isn't just disliked among financial market commentators; it's actually despised. In a time when new vehicles are expensive and the average age of a car on the road is 12.5 years, Advance Auto Parts stock should be an obvious buy-and-hold. Yet, the company's first-quarter financial report was so disastrous that Advance Auto Parts stock went from a no-brainer to a no-go for many prospective investors.
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Advance Auto Parts (NYSE: AAP) isn't just disliked among financial market commentators; it's actually despised. A quarter fully stocked with gloom and doom Practically everything that could possibly go awry in a quarterly financial report actually happened all at once with Advance Auto Parts in Q1 2023. 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen.
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Advance Auto Parts (NYSE: AAP) isn't just disliked among financial market commentators; it's actually despised. A quarter fully stocked with gloom and doom Practically everything that could possibly go awry in a quarterly financial report actually happened all at once with Advance Auto Parts in Q1 2023. If the company's dividend payout ratio is now 44%, that's not unreasonable (in my humble opinion) as my internal alarm bells typically don't ring until a payout ratio exceeds 50%.
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10685.0
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2023-07-01 00:00:00 UTC
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Thinking of Buying Advance Auto Parts? Consider This Booming Stock Instead.
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AAP
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https://www.nasdaq.com/articles/thinking-of-buying-advance-auto-parts-consider-this-booming-stock-instead.
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nan
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nan
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Advance Auto Parts' (NYSE: AAP) first-quarter financials crushed any remaining optimism investors might have had for this company's potential turnaround. Revenue barely increased, and net income shrunk by more than two-thirds.
Making matters worse, management severely downgraded financial guidance for the rest of fiscal 2023. The business also cut its quarterly dividend payout. Unsurprisingly, as of this writing, the stock is down an eye-watering 54% this year.
If you're seriously thinking of buying shares of Advance Auto Parts in hopes of a major bounce-back, I think it's best to reconsider your stance. Furthermore, it's a better idea to take a closer look at this booming auto stock instead.
A much better business
While the struggles for Advance Auto Parts continue, another industry giant, O'Reilly Automotive (NASDAQ: ORLY), is firing on all cylinders. In this year's first quarter, it increased revenue by 12% to $3.7 billion, with same-store sales rising 11%. O'Reilly also opened 58 net new stores during the three-month period, bringing its total count to over 6,000. These impressive gains continue a long-running track record of stellar growth.
The aftermarket auto parts industry has traditionally been a very lucrative place to invest. The main reason for this is that demand is generally pretty stable, regardless of what the broader economy is doing.
For example, when times are good and consumer confidence is high, people tend to drive more. And this increases the wear and tear on their vehicles, which results in a greater need for things like brakes, motor oil, and batteries.
And in a recessionary period, consumers are less likely to want to buy new cars, instead focusing on extending the usefulness of their existing automobiles. These factors also drive strong demand for O'Reilly's products.
Then there's the long-term trend of cars just getting older. The average age of a car on the road is a record 12.5 years, a number that has slowly gone up over time. The more time a car spends outside of its original warranty, the better it is for a business like O'Reilly to provide the products needed to complete necessary repairs.
O'Reilly Automotive's Q1 operating margin of 19.3% is light years better than the disappointing 2.6% Advance Auto Parts registered. And while the latter just downgraded guidance for the current fiscal year, O'Reilly's leadership team actually increased its estimates for full-year diluted earnings per share. They also expect the company to produce $1.8 billion to $2.1 billion of free cash flow in 2023.
A premium valuation
Over the past three, five, and 10 years, shares of O'Reilly have soared 126%, 243%, and 738%, respectively. These monster gains far outpace what the S&P 500 or the Nasdaq Composite have been able to do. It's strikingly clear that boring businesses, and not just high-flying tech stocks, can make for wonderful investments.
Advance Auto Parts, on the other hand, has seen its stock price fall 49% in the last five years. As a result, it currently trades at a price-to-earnings (P/E) ratio of 10, much less than O'Reilly's P/E multiple of 27.
It might be tempting to scoop up shares of Advance Auto Parts as a value-focused investment opportunity. After all, all it might take for the stock to soar is better-than-expected financial results, something that could be possible given the company's already depressed guidance.
Even with what appears to be an attractive valuation, I believe it's a good idea for investors to pass on Advance Auto Parts without hesitation. Until there is concrete evidence that it is catching up to its peers in the industry in terms of financial results, it's best to stay far away.
But even this seems unlikely. It's hard to pinpoint exact reasons as to why Advance Auto Parts has severely underperformed its industry rivals. The most obvious seem to be subpar financials, as well as inferior inventory management. Because customers need their parts urgently to get their cars working again, time is a key deciding factor on where to shop. Without adequate product assortment, Advance Auto Parts will keep lagging competitors.
This just means that it might be worth paying a premium valuation for what is an outstanding business in O'Reilly Automotive. Its performance over time speaks for itself.
10 stocks we like better than O'Reilly Automotive
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and O'Reilly Automotive wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 26, 2023
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts' (NYSE: AAP) first-quarter financials crushed any remaining optimism investors might have had for this company's potential turnaround. A much better business While the struggles for Advance Auto Parts continue, another industry giant, O'Reilly Automotive (NASDAQ: ORLY), is firing on all cylinders. And while the latter just downgraded guidance for the current fiscal year, O'Reilly's leadership team actually increased its estimates for full-year diluted earnings per share.
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Advance Auto Parts' (NYSE: AAP) first-quarter financials crushed any remaining optimism investors might have had for this company's potential turnaround. Making matters worse, management severely downgraded financial guidance for the rest of fiscal 2023. If you're seriously thinking of buying shares of Advance Auto Parts in hopes of a major bounce-back, I think it's best to reconsider your stance.
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Advance Auto Parts' (NYSE: AAP) first-quarter financials crushed any remaining optimism investors might have had for this company's potential turnaround. A much better business While the struggles for Advance Auto Parts continue, another industry giant, O'Reilly Automotive (NASDAQ: ORLY), is firing on all cylinders. O'Reilly Automotive's Q1 operating margin of 19.3% is light years better than the disappointing 2.6% Advance Auto Parts registered.
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Advance Auto Parts' (NYSE: AAP) first-quarter financials crushed any remaining optimism investors might have had for this company's potential turnaround. Advance Auto Parts, on the other hand, has seen its stock price fall 49% in the last five years. After all, all it might take for the stock to soar is better-than-expected financial results, something that could be possible given the company's already depressed guidance.
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10686.0
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2023-06-30 00:00:00 UTC
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Advance Auto Parts (AAP) Up 0.3% Since Last Earnings Report: Can It Continue?
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-up-0.3-since-last-earnings-report%3A-can-it-continue
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nan
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nan
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). Shares have added about 0.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Advance Auto Parts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Advance Auto Q1 Earnings & Revenues Miss Estimates
Advance Auto delivered adjusted earnings of 72 cents per share in first-quarter 2023, down 68.1% from the year-ago quarter's figure. The reported figure fell short of the Zacks Consensus Estimate of $2.60 per share. Advance Auto generated net revenues of $3,417.6 million lagged the Zacks Consensus Estimate of $3,427 million, but increased 1.3% year over year.
Comparable store sales dropped 0.4%. Operating income plunged 55.7% year over year to $90 million. SG&A expenses totaled $1,380 million for first-quarter 2023, up 5.9% year over year.
Financial Position
Advance Auto had cash and cash equivalents of $226.4 million as of Apr 22, 2023, compared with $269.3 million on Dec 31, 2023. Total long-term debt was $1,784.6 million as of Apr 22, 2023, up from $1,188.3 million on Dec 31, 2023. Year to date, net cash used by operating activities and FCF totaled $378.9 million and $468.9 million, respectively.
Dividend & Share Repurchase
AAP’s board slashed the cash dividend to 25 cents per share, which would be paid out on Jul 28, 2023, to all common shareholders of record as of Jul 14, 2023.
During the quarter under discussion, AAP repurchased around $12.6 million worth of shares.
Store Update
As of Apr 22, 2023, AAP operated 5,096 stores and 318 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. It also served 1,315 independently owned Carquest-branded stores across these locations, in addition to Mexico and various Caribbean islands.
Revised Guidance 2023
Advance Auto estimates 2023 net sales in the band of $11.2-$11.3 billion, down from the previous range of $11.4-$11.6 billion. Comparable store sales are now expected between negative 1% and 0%, down from the previous guided range of 1-3%. Adjusted operating income margin is envisioned in the range of 5-5.3%, down from previous guidance of 7.8-8.2%.
Advance Auto expects 2023 capex in the range of $250-$300 million, down from prior guided range of $300-$350 million. The company projects FCF in the band of $200-$300 million, down from the prior guidance of a minimum of $400 million. Diluted EPS is forecast between $6-$6.50 per share, down from the prior estimate of $10.2-$11.2 per share. It aims to open 40 to 60 new stores this year, which is lower than its prior estimate of 60-80 stores.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -44.94% due to these changes.
VGM Scores
Currently, Advance Auto Parts has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Advance Auto Parts has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Advance Auto Parts belongs to the Zacks Automotive - Retail and Wholesale - Parts industry. Another stock from the same industry, AutoZone (AZO), has gained 3.5% over the past month. More than a month has passed since the company reported results for the quarter ended May 2023.
AutoZone reported revenues of $4.09 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $34.12 for the same period compares with $29.03 a year ago.
For the current quarter, AutoZone is expected to post earnings of $44.63 per share, indicating a change of +10.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for AutoZone. Also, the stock has a VGM Score of A.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
AutoZone, Inc. (AZO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). Dividend & Share Repurchase AAP’s board slashed the cash dividend to 25 cents per share, which would be paid out on Jul 28, 2023, to all common shareholders of record as of Jul 14, 2023. During the quarter under discussion, AAP repurchased around $12.6 million worth of shares.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report To read this article on Zacks.com click here. It has been about a month since the last earnings report for Advance Auto Parts (AAP). Dividend & Share Repurchase AAP’s board slashed the cash dividend to 25 cents per share, which would be paid out on Jul 28, 2023, to all common shareholders of record as of Jul 14, 2023.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report To read this article on Zacks.com click here. It has been about a month since the last earnings report for Advance Auto Parts (AAP). Dividend & Share Repurchase AAP’s board slashed the cash dividend to 25 cents per share, which would be paid out on Jul 28, 2023, to all common shareholders of record as of Jul 14, 2023.
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It has been about a month since the last earnings report for Advance Auto Parts (AAP). Dividend & Share Repurchase AAP’s board slashed the cash dividend to 25 cents per share, which would be paid out on Jul 28, 2023, to all common shareholders of record as of Jul 14, 2023. During the quarter under discussion, AAP repurchased around $12.6 million worth of shares.
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10687.0
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2023-06-29 00:00:00 UTC
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Interesting AAP Put And Call Options For August 11th
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AAP
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https://www.nasdaq.com/articles/interesting-aap-put-and-call-options-for-august-11th
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the August 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new August 11th contracts and identified one put and one call contract of particular interest.
The put contract at the $68.00 strike price has a current bid of $2.30. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $68.00, but will also collect the premium, putting the cost basis of the shares at $65.70 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $68.53/share today.
Because the $68.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 3.38% return on the cash commitment, or 28.71% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $68.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $69.00 strike price has a current bid of $2.40. If an investor was to purchase shares of AAP stock at the current price level of $68.53/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $69.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.19% if the stock gets called away at the August 11th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red:
Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.50% boost of extra return to the investor, or 29.73% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $68.53) to be 56%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
Top Dividend Stocks YTD
ARTE Average Annual Return
FRC Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the August 11th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the August 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new August 11th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the August 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new August 11th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new August 11th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAP's trailing twelve month trading history, with the $69.00 strike highlighted in red: Considering the fact that the $69.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the August 11th expiration.
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10688.0
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2023-06-29 00:00:00 UTC
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Northcoast Research Initiates Coverage of Advance Auto Parts (AAP) with Neutral Recommendation
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AAP
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https://www.nasdaq.com/articles/northcoast-research-initiates-coverage-of-advance-auto-parts-aap-with-neutral
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Fintel reports that on June 28, 2023, Northcoast Research initiated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation.
Analyst Price Forecast Suggests 23.64% Upside
As of June 1, 2023, the average one-year price target for Advance Auto Parts is 84.47. The forecasts range from a low of 57.57 to a high of $142.48. The average price target represents an increase of 23.64% from its latest reported closing price of 68.32.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 3.11%. The projected annual non-GAAP EPS is 13.56.
Advance Auto Parts Declares $0.25 Dividend
On May 31, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 will receive the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $68.32 / share, the stock's dividend yield is 1.46%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.50%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 1.68 (n=236).
The current dividend yield is 0.02 standard deviations below the historical average.
The company's 3-Year dividend growth rate is 5.00%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1301 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 36 owner(s) or 2.69% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 3.95%. Total shares owned by institutions decreased in the last three months by 4.99% to 63,626K shares.
The put/call ratio of AAP is 0.57, indicating a bullish outlook.
What are Other Shareholders Doing?
Jpmorgan Chase holds 3,297K shares representing 5.55% ownership of the company. In it's prior filing, the firm reported owning 3,394K shares, representing a decrease of 2.94%. The firm decreased its portfolio allocation in AAP by 25.75% over the last quarter.
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Champlain Investment Partners holds 1,553K shares representing 2.61% ownership of the company. In it's prior filing, the firm reported owning 1,571K shares, representing a decrease of 1.17%. The firm increased its portfolio allocation in AAP by 80,150.76% over the last quarter.
Millennium Management holds 1,509K shares representing 2.54% ownership of the company. In it's prior filing, the firm reported owning 1,181K shares, representing an increase of 21.74%. The firm increased its portfolio allocation in AAP by 9.53% over the last quarter.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Key filings for this company:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on June 28, 2023, Northcoast Research initiated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 3.95%.
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Fintel reports that on June 28, 2023, Northcoast Research initiated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 3.95%.
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Fintel reports that on June 28, 2023, Northcoast Research initiated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 3.95%.
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Fintel reports that on June 28, 2023, Northcoast Research initiated coverage of Advance Auto Parts (NYSE:AAP) with a Neutral recommendation. The projected annual non-GAAP EPS is 13.56. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 3.95%.
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10689.0
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2023-06-27 00:00:00 UTC
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Bear of the Day: Advance Auto Parts (AAP)
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https://www.nasdaq.com/articles/bear-of-the-day%3A-advance-auto-parts-aap
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Advance Auto Parts (AAP) is a Zacks Rank #5 (Strong Sell) that provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks. The company is a leading automotive parts provider in North America, serving the “do-it-yourself” or “DIY customers.
After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022. However, the stock has sold off 73% since those $244 highs and sits at $66 after a 40% drop in June.
While some might be looking to buy after this recent drop, it might take a while to see a bounce. An earnings miss and cascading estimates will likely keep the stock suppressed unless the company can turn the momentum.
About the Company
Advanced Auto Parts is headquartered in Raleigh, NC.The company was founded in 1929 and employs 40,000.
The company operates under four store names: Advance Auto Parts, Carquest, Worldpac, and Autopart International.
AAP is valued at $4 billion and has a Forward PE of 11. The stock holds Zacks Style Scores of “B” in Value, but “F” in Growth and Momentum. The stock pays a dividend of 1.5%.
Q1 Earnings
In late May Advance Auto reported Q1 earnings, missing expectations by 72%. The company missed on revenues, cut its outlook, and slashed the dividend 83%. FY23 was cut to $6.00-6.50 v the $10.63 expected.
Operating margins were 2.6%, down from 6% a year ago. Management blamed this drop on “higher than planned investments to narrow competitive price gaps in the professional sales channel as well as unfavorable product mix.”
The combination of weak guidance and the dividend cut brought in the sellers. And since earnings the stock fell even lower as analyst estimates continue to drop.
Estimates
Over the last 30 days, analysts have cut estimates for all time-frames.
For the current quarter, analysts have dropped their numbers from $2.89 to $1.59 $0.87, or 45%.
For the next quarter, analysts lowered estimates from $2.82 to $2.01, or 29%.
Longer term, numbers are falling as well. Next year’s estimates have gone from $11.53-6.95 or 40%.
Technical Take
The stock has taken out the COVID lows and has fallen to levels not seen since 2012. When a stock takes out decade lows, it typically means investors have given up on the name.
While there might be a bounce at some point, investors that have been stuck long likely look to get out on any bounce. Looking at moving averages, the 21-day is at $76, while the 50-day is at $103.
While it might be tempting to buy at current levels and look for a run into those MA resistance levels, there is still a possibility of more downside.
The 2012 lows are $60, while the $2010 lows and big long-term support are at $40. New buyers can likely be patient and wait for those levels if they are interested in the name.
In Summary
When a stock makes decade lows, investors are running to get out. While it might be tempting to buy the large sell-off, the risk-reward is unknown when a stock is falling like a waterfall.
If investors are interested in AAP, they can be patient and wait for price to come to them, or look for the earnings story to turn around.
For those interested in the sector, a better option might be O’Reilly Automotive (ORLY). The stock is a Zacks Rank #2 (BUY) and is trading near all-time highs.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) is a Zacks Rank #5 (Strong Sell) that provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks. After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022. AAP is valued at $4 billion and has a Forward PE of 11.
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Advance Auto Parts (AAP) is a Zacks Rank #5 (Strong Sell) that provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks. Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report To read this article on Zacks.com click here. After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022.
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Click to get this free report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report To read this article on Zacks.com click here. Advance Auto Parts (AAP) is a Zacks Rank #5 (Strong Sell) that provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks. After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022.
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Advance Auto Parts (AAP) is a Zacks Rank #5 (Strong Sell) that provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks. After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022. AAP is valued at $4 billion and has a Forward PE of 11.
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10690.0
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2023-06-27 00:00:00 UTC
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Dave & Buster's and Advance Auto Parts have been highlighted as Zacks Bull and Bear of the Day
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https://www.nasdaq.com/articles/dave-busters-and-advance-auto-parts-have-been-highlighted-as-zacks-bull-and-bear-of-the
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For Immediate Release
Chicago, IL – June 27, 2023 – Zacks Equity Research shares Dave & Buster’s Entertainment PLAY as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Atmos Energy ATO, Conagra Brands CAG and Krispy Kreme DNUT.
Here is a synopsis of all five stocks.
Bull of the Day:
Dave & Buster’s Entertainment is a Zacks Rank #1 (Strong Buy) that owns and operates entertainment and dining venues for adults and families. These venues offer a niche atmosphere, where kids can play games, while adults enjoy live sports or other televised events.
The stock has been trading sideways over the last two years, but positive earnings momentum has grabbed the attention of investors. The stock recently made 2023 highs and has pulled back since. With PLAY trading up just over 10% on the year, there seems to be much more potential for the stock to run higher in the back half of the year.
About the Company
Dave & Busters was founded in 1982 and is headquartered in Coppell, Texas. The company employs over 22,000 people and has a market cap of $1.8 billion.
In addition to the strong Zacks Rank, the stock has a Zacks Style Score of “A” in Value and “B” in Growth. The stock has a Forward PE of 12, making it attractive for value investors.
Q1 Earnings
In early June, D&B reported first-quarter earnings, surprising to the upside by 24%. Q1 came in at $1.45 v $1.17 expected, while revenues were in line with expectations.
Same-store sales were down 4.1% annually. But adjusted EBITDA increased 29.8% Y/Y to $182.1 million, with margins contracting to 30.5% from 31.1% a year ago.
CEO Chris Morris had the following comments about the strong quarter:
“Our extremely talented team of operators and support center employees continue to execute on the breadth of strategic opportunities we've identified to unlock significant revenue growth and cost efficiency opportunities in our business which will continue to bring meaningful upside to all stakeholders and in all macro-economic environments. As a testament to the conviction, we have in the long-term success of our business and the value we see in our shares, we have repurchased $200 million of common stock thus far in fiscal 2023, reducing our shares outstanding by nearly 12%.”
In addition to the stock buyback, management displayed confidence in their significant liquidity profile, strong balance sheet, and substantial cash flow. The company says it will “provide the flexibility to invest in the business and opportunistically return capital to shareholders.”
Estimates Rising
While analysts are mixed on the short-term, the company is seeing earnings estimates turn higher long-term.
For the current year, numbers have gone up 12% over the last month, moving from $3.18 to $3.56. For the next year, estimates have gone higher by 14% over that same time frame, moving from $3.83 to $4.35.
Price targets for the stock are going higher as well, with a handful of analysts looking for the PLAY to move into the $60 area, or 50% higher from current levels.
After earnings, BMO moved their target to $60, from $55 and has an Outperform rating. Truist has the stock rated as a Buy and has a $63 target.
Dave & Buster’s has since held an investor day presentation to give investors a better view of the future. After that presentation, Raymond James reiterated PLAY with Strong Buy and has a price target of $60.
The Technicals
Since the COVID crash and rally, the stock has been stuck in a large sideways trading range since early 2021. The high end of this range is the $50 level and the low range is $30.
Buy-and-hold investors are no doubt frustrated by the lack of movement, but the recent earnings pop to 2023 highs brought more attention to the stock. Since then, PLAY has pulled back over 15% and almost filled the investor day gap.
For those interested in the name, current levels offer a great entry point for longer-term investors. For more active traders, the moving averages will likely offer support for a bounce.
The 200-day MA is at $37.25, while the 50-day MA is at $36.10. For more patient investors, they might wait for the “Golden Cross,” which is when that 50-day gets above the 200-day. If that occurs it would be a positive sign for momentum and bring more buyers into the stock.
Looking at resistance, the $45-50 level has been a big hurdle. If the stock can get some more upside above that $50 area, the bulls should target a continued extension to the $62 area.
Bottom Line
Dave & Buster’s is a great place for family fun, but the stock has been stuck going sideways after almost two years. Earnings momentum appears to have brought excitement to the name and investors should be watching the stock closely.
The most recent move lower offers a great risk-reward opportunity for both short-term traders and buy-and-hold investors.
If the bulls can keep the 50-day MA level intact, the stock should eventually grind back to those post-earnings highs. If the company can continue its earnings momentum, a move to that $60 level in the back half of the year is possible.
Bear of the Day:
Advance Auto Parts is a Zacks Rank #5 (Strong Sell) that provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks. The company is a leading automotive parts provider in North America, serving the “do-it-yourself” or “DIY customers.
After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022. However, the stock has sold off 73% since those $244 highs and sits at $66 after a 40% drop in June.
While some might be looking to buy after this recent drop, it might take a while to see a bounce. An earnings miss and cascading estimates will likely keep the stock suppressed unless the company can turn the momentum.
About the Company
Advance Auto Parts is headquartered in Raleigh, NC.The company was founded in 1929 and employs 40,000.
The company operates under four store names: Advance Auto Parts, Carquest, Worldpac, and Autopart International.
AAP is valued at $4 billion and has a Forward PE of 11. The stock holds Zacks Style Scores of “B” in Value, but “F” in Growth and Momentum. The stock pays a dividend of 1.5%.
Q1 Earnings
In late May Advance Auto reported Q1 earnings, missing expectations by 72%. The company missed on revenues, cut its outlook, and slashed the dividend 83%. FY23 was cut to $6.00-6.50 v the $10.63 expected.
Operating margins were 2.6%, down from 6% a year ago. Management blamed this drop on “higher than planned investments to narrow competitive price gaps in the professional sales channel as well as unfavorable product mix.”
The combination of weak guidance and the dividend cut brought in the sellers. And since earnings the stock fell even lower as analyst estimates continue to drop.
Estimates
Over the last 30 days, analysts have cut estimates for all time-frames.
For the current quarter, analysts have dropped their numbers from $2.89 to $1.59: -$0.87, or 45%.
For the next quarter, analysts lowered estimates from $2.82 to $2.01, or 29%.
Longer term, numbers are falling as well. Next year’s estimates have gone from $11.53-6.95 or 40%.
Technical Take
The stock has taken out the COVID lows and has fallen to levels not seen since 2012. When a stock takes out decade lows, it typically means investors have given up on the name.
While there might be a bounce at some point, investors that have been stuck long likely look to get out on any bounce. Looking at moving averages, the 21-day is at $76, while the 50-day is at $103.
While it might be tempting to buy at current levels and look for a run into those MA resistance levels, there is still a possibility of more downside.
The 2012 lows are $60, while the $2010 lows and big long-term support are at $40. New buyers can likely be patient and wait for those levels if they are interested in the name.
In Summary
When a stock makes decade lows, investors are running to get out. While it might be tempting to buy the large sell-off, the risk-reward is unknown when a stock is falling like a waterfall.
If investors are interested in AAP, they can be patient and wait for price to come to them, or look for the earnings story to turn around.
Additional content:
3 Recession-Proof Stocks to Buy for the 2nd Half of 2023
The U.S. economy expanded in the first quarter and is expected to grow again in the second quarter. However, a prominent index has been signaling recession for months, while recently, an inverted yield curve confirmed that economic growth might shrink soon.
This calls for investing in recession-proof stocks like Atmos Energy, Conagra Brands and Krispy Kreme for steady returns.
Leading Economic Index Yet Again Declines
The Leading Economic Index (LEI), tracked by the Conference Board, declined by 0.7% to a reading of 106.7 in May, following a drop of 0.6% in April. The LEI has now registered its 14th successive monthly decline, signaling an impending economic slump.
The LEI, incidentally, declined by 4.3% from November 2022 to May 2023, a steeper decline compared to the drop of 3.8% between May 2022 and November 2022, pointing toward weaker economic activity soon.
The Conference Board’s, Senior Manager, Justyna Zabinska-La Monica, said that the economy is expected to contract from the beginning of the third quarter of this year to the first three-month period of 2024. She believes that lower government outlays and tightening monetary policy will likely lead to a recession.
Yield-Curve Inversion Signals Economic Downturn
Last week, the U.S. government’s borrowing costs for the short term surpassed their long-term counterparts, and the gap is quickly approaching the record touched during the banking turmoil in March.
On Jun 21, the 2-year Treasury yield was at 4.74%, while the yield for the 10-year Treasury came in at 3.78%, resulting in an inverted yield curve. Needless to say, inverted yield curve situations have always preceded a recession in the last five decades.
An inverted yield curve leads to a worsening credit condition, leading to an imminent recession. The inversion deepened as the Federal Reserve continues to stay hawkish. The central bank’s tightening monetary policy to curb inflation will eventually raise borrowing costs, and deter economic growth.
Lest we forget, Fed Chair Jerome Powell confirmed that it’s imperative to hike interest rates this year to bring down price pressures. He acknowledged that even if inflation has moderated, it remains above the Fed’s target of 2% (read more: 3 Top Bank Stocks to Gain as Powell Stays Hawkish).
3 Recession-Proof Stocks to Buy Now
With threats of a recession looming, it’s judicious for investors to place bets on stocks that are unfazed by economic downturn-led market gyrations. These recession-proof stocks mostly belong to the utilities and consumer staple sectors since the demand for their products like water, gas, electricity, food, and personal care products remains unaltered in any economic situation.
We have, thus, selected three stocks from the aforesaid areas that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). The search was also narrowed down with a VGM Score of A or B. Here V stands for Value, G for Growth, and M for Momentum; the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
Atmos Energy is engaged in the regulated natural gas distribution and storage business. Atmos Energy, currently, has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for its current-year earnings has moved up 0.5% over the past 60 days. ATO’s expected earnings growth rate for the current year is 7.7%.
Conagra Brands is one of the leading branded food companies in North America. Conagra Brands, currently, has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for its next-year earnings has moved up 0.7% over the past 60 days. CAG’s expected earnings growth rate for the current year is nearly 17%.
Krispy Kreme operates as a branded retailer and wholesaler of doughnuts, coffee, and other complementary beverages and treats, and packaged sweets. Krispy Kreme, currently, has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for its next-year earnings has moved up 2.4% over the past 60 days. DNUT’s expected earnings growth rate for the current year is 13.8%.
Why Haven’t You Looked at Zacks' Top Stocks?
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Conagra Brands (CAG) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
Krispy Kreme, Inc. (DNUT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL – June 27, 2023 – Zacks Equity Research shares Dave & Buster’s Entertainment PLAY as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022. AAP is valued at $4 billion and has a Forward PE of 11.
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For Immediate Release Chicago, IL – June 27, 2023 – Zacks Equity Research shares Dave & Buster’s Entertainment PLAY as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. Click to get this free report Conagra Brands (CAG) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report Krispy Kreme, Inc. (DNUT) : Free Stock Analysis Report To read this article on Zacks.com click here. After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022.
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Click to get this free report Conagra Brands (CAG) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report Atmos Energy Corporation (ATO) : Free Stock Analysis Report Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report Krispy Kreme, Inc. (DNUT) : Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL – June 27, 2023 – Zacks Equity Research shares Dave & Buster’s Entertainment PLAY as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022.
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For Immediate Release Chicago, IL – June 27, 2023 – Zacks Equity Research shares Dave & Buster’s Entertainment PLAY as the Bull of the Day and Advance Auto Parts AAP as the Bear of the Day. After seeing strong earnings during the pandemic, AAP hit all-time highs in early 2022. AAP is valued at $4 billion and has a Forward PE of 11.
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10691.0
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2023-06-23 00:00:00 UTC
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Insiders Buy the Holdings of FDL ETF
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AAP
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https://www.nasdaq.com/articles/insiders-buy-the-holdings-of-fdl-etf
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nan
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nan
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A look at the weighted underlying holdings of the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL) shows an impressive 12.7% of holdings on a weighted basis have experienced insider buying within the past six months.
Fifth Third Bancorp (Symbol: FITB), which makes up 0.69% of the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $30,884,421 worth of FITB, making it the #29 largest holding. The table below details the recent insider buying activity observed at FITB:
FITB — last trade: $25.64 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
03/13/2023 Gary R. Heminger Director 47,500 $26.82 $1,274,092
05/03/2023 Evan Bayh Director 5,000 $24.82 $124,100
And Advance Auto Parts Inc (Symbol: AAP), the #44 largest holding among components of the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $12,919,222 worth of AAP, which represents approximately 0.29% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below:
AAP — last trade: $67.97 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
06/07/2023 Jeffrey J. Jones II Director 1,525 $65.94 $100,558
06/07/2023 Eugene I. Lee Jr. Director 7,635 $65.51 $500,160
06/07/2023 John Francis Ferraro Director 1,525 $65.56 $99,979
06/07/2023 Carla Jean Bailo Director 500 $65.90 $32,950
06/12/2023 Douglas A. Pertz Director 6,145 $65.44 $402,145
06/09/2023 Joan M. Hilson Director 388 $64.26 $24,933
10 ETFs With Stocks That Insiders Are Buying »
Also see:
Stocks Being Sold By Hedge Funds
SCHO Historical Stock Prices
TILE Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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03/13/2023 Gary R. Heminger Director 47,500 $26.82 $1,274,092 05/03/2023 Evan Bayh Director 5,000 $24.82 $124,100 And Advance Auto Parts Inc (Symbol: AAP), the #44 largest holding among components of the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $12,919,222 worth of AAP, which represents approximately 0.29% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below: AAP — last trade: $67.97 — Recent Insider Buys:
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03/13/2023 Gary R. Heminger Director 47,500 $26.82 $1,274,092 05/03/2023 Evan Bayh Director 5,000 $24.82 $124,100 And Advance Auto Parts Inc (Symbol: AAP), the #44 largest holding among components of the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $12,919,222 worth of AAP, which represents approximately 0.29% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below: AAP — last trade: $67.97 — Recent Insider Buys:
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03/13/2023 Gary R. Heminger Director 47,500 $26.82 $1,274,092 05/03/2023 Evan Bayh Director 5,000 $24.82 $124,100 And Advance Auto Parts Inc (Symbol: AAP), the #44 largest holding among components of the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $12,919,222 worth of AAP, which represents approximately 0.29% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below: AAP — last trade: $67.97 — Recent Insider Buys:
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03/13/2023 Gary R. Heminger Director 47,500 $26.82 $1,274,092 05/03/2023 Evan Bayh Director 5,000 $24.82 $124,100 And Advance Auto Parts Inc (Symbol: AAP), the #44 largest holding among components of the First Trust Morningstar Dividend Leaders Index Fund (Symbol: FDL), shows 6 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $12,919,222 worth of AAP, which represents approximately 0.29% of the ETF's total assets at last check. The recent insider buying activity observed at AAP is detailed in the table below: AAP — last trade: $67.97 — Recent Insider Buys:
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10692.0
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2023-06-22 00:00:00 UTC
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Heavy-Volume Buying Boosts O'Reilly Automotive Stock
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AAP
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https://www.nasdaq.com/articles/heavy-volume-buying-boosts-oreilly-automotive-stock
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nan
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nan
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Whenever a stock can rev up to outperform the broader market, even in a single session, that can be a signal of institutional support that can lead to bigger gains.
On June 21, O’Reilly Automotive Inc. (NASDAQ: ORLY) advanced 2.23% in volume which was 15% heavier than average. O’Reilly was the biggest percentage gainer within the consumer discretionary sector, as tracked by the Consumer Discretionary Select Sector SPDR Fund (NYSEARCA: XLY). The sector ETF itself was down 1.20% in the session, while the broader S&P 500 declined 0.52%.
If a stock rises, particularly in heavy volume, while the broader sector or market is down, indicates that one or more institutional buyers are accumulating shares in that particular stock.
More Buying Than Selling Lately
Although MarketBeat’s O’Reilly Automotive institutional ownership data indicate more selling than buying in the past 12 months, that trend may be reversing. The stock’s up/down volume ratio is 1.3, indicating that buyers have been in charge in the past 50 sessions.
Take a look at the O’Reilly Automotive chart, using either a bar or candlestick setting to get a granular view. That shows the stock’s base, which began in mid-May as O’Reilly retreated from a high of $964.58.
The current base has corrected just 9% from peak to trough so far, an indication of mild selling rather than a race to the exits.
How Are Competitors Doing?
Compare O’Reilly’s chart with that of rival Autozone Inc. (NYSE: AZO), whose current base has corrected 17% so far. Autozone, like O’Reilly, has been performing better in recent weeks, etching the right side of its structure.
Autozone gapped down hard after its most recent earnings report, although as reported previously by MarketBeat, that post-earnings pullback may have set the stock up for further gains, as more value-minded investors drove in.
When you’re evaluating a stock, it’s worth seeing how its competitors and industry peers are performing. While Autozone and O’Reilly are on similar trajectories, Advance Auto Parts Inc. (NYSE: AAP) has careened off the road in a one-car crash.
Earnings declined 80% year-over-year, while revenue grew at a rate of 1%. As MarketBeat’s Advance Auto Parts earnings data reveal, the company missed top and bottom-line views in the most recent quarter. It missed earnings views by a long shot, actually, coming in $1.88 short. That’s not something investors take kindly, and the stock gapped down 35%. It’s currently trading at multi-year lows, underperforming 97% of stocks in the broader market.
O'Reilly Holding Up Better
Does that portend anything worrisome for O’Reilly?
The answer is a resounding no. Advance Auto Parts made its own mess, dropping prices to compete with O’Reilly and Autozone, but that made a big dent in profit margins and resulted in the company slashing its shareholder payout. MarketBeat’s Advance Auto Parts dividend data show that stark reduction, from $1.50 per share way down to $0.25 a share.
Analysts see Advance Auto Parts’ earnings declining by 54% this year.
O’Reilly, meanwhile, is expected to grow earnings by 12% to $37.37 per share.
Trends Still In O'Reilly's Favor
What’s driving growth? While the era of used cars growing in price is behind us, as another pandemic anomaly fades into the rear-view mirror, inflation and rising interest rates are still keeping many would-be buyers out of new-car showrooms.
That’s good for O’Reilly and its industry peers.
But what about potential roadblocks such as electric vehicles, which present a whole new set of challenges, as their repairs may be unfamiliar to mechanics well-versed in traditional internal combustion engines?
In response to a question at last year’s analyst day, O’Reilly CEO Greg Johnson addressed that topic, saying EVs’ multiple electric motors and large battery packs result in significant heat generation.
“So you have to have the cooling systems on EVs are going to be much more elaborate than what they are on internal combustion engine vehicles. So that category is good for us,” Johnson said.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While Autozone and O’Reilly are on similar trajectories, Advance Auto Parts Inc. (NYSE: AAP) has careened off the road in a one-car crash. While the era of used cars growing in price is behind us, as another pandemic anomaly fades into the rear-view mirror, inflation and rising interest rates are still keeping many would-be buyers out of new-car showrooms. But what about potential roadblocks such as electric vehicles, which present a whole new set of challenges, as their repairs may be unfamiliar to mechanics well-versed in traditional internal combustion engines?
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While Autozone and O’Reilly are on similar trajectories, Advance Auto Parts Inc. (NYSE: AAP) has careened off the road in a one-car crash. More Buying Than Selling Lately Although MarketBeat’s O’Reilly Automotive institutional ownership data indicate more selling than buying in the past 12 months, that trend may be reversing. As MarketBeat’s Advance Auto Parts earnings data reveal, the company missed top and bottom-line views in the most recent quarter.
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While Autozone and O’Reilly are on similar trajectories, Advance Auto Parts Inc. (NYSE: AAP) has careened off the road in a one-car crash. If a stock rises, particularly in heavy volume, while the broader sector or market is down, indicates that one or more institutional buyers are accumulating shares in that particular stock. Autozone gapped down hard after its most recent earnings report, although as reported previously by MarketBeat, that post-earnings pullback may have set the stock up for further gains, as more value-minded investors drove in.
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While Autozone and O’Reilly are on similar trajectories, Advance Auto Parts Inc. (NYSE: AAP) has careened off the road in a one-car crash. The sector ETF itself was down 1.20% in the session, while the broader S&P 500 declined 0.52%. If a stock rises, particularly in heavy volume, while the broader sector or market is down, indicates that one or more institutional buyers are accumulating shares in that particular stock.
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10693.0
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2023-06-20 00:00:00 UTC
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CarMax (KMX) to Report Q1 Earnings: What's in the Offing?
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AAP
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https://www.nasdaq.com/articles/carmax-kmx-to-report-q1-earnings%3A-whats-in-the-offing
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nan
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CarMax Inc. KMX is slated to release first-quarter fiscal 2024 results on Jun 23, before the opening bell. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 73 cents per share and $7.28 billion, respectively.
The used car dealership chain beat earnings estimates in the last reported quarter on higher-than-anticipated gross profit per unit in the used and wholesale vehicle segments. CarMax surpassed earnings estimates in two of the trailing four quarters and missed twice, the average surprise being 0.28%. This is depicted in the graph below:
CarMax, Inc. Price and EPS Surprise
CarMax, Inc. price-eps-surprise | CarMax, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for CarMax’s fiscal first-quarter earnings per share has been revised up by a cent in the past seven days. The bottom line projection indicates a year-over-year decline of 53.21%. The Zacks Consensus Estimate for quarterly revenues suggests a year-over-year contraction of 21.77%.
Factors to Note
The estimated decline in total vehicles sold by CarMax in the first quarter of fiscal 2024 is likely to have played spoilsport. The Zacks Consensus Estimate for used and wholesale units sold during the to-be-reported quarter is pegged at 206,644 and 150,859, respectively, implying a decline from the year-ago period’s level of 240,950 and 186,307 units.
Additionally, falling average selling prices are likely to have clipped revenues further. For the May quarter, the consensus estimates for used vehicle ASP is pegged at $26,750, indicating a drop from the year-ago figure of $28,840. The consensus estimate for wholesale vehicle ASP is pegged at $8,740, indicating a fall from the year-ago figure of $11,000.
Consequently, the Zacks Consensus Estimate for CarMax’s net sales from used vehicles is $5,688 million, implying an 18.9% year-over-year decline. The Zacks Consensus Estimate for quarterly net sales of wholesale vehicles is pegged at $1,339 million, indicating a decrease from the prior-year period’s $2,117 million.
Lower year-over-year revenues, commodity cost inflation and logistical challenges are likely to have weighed on gross profits. The Zacks Consensus Estimate for quarterly gross profit from the used-vehicle segment is pegged at $459 million, implying a decline from $564 million reported in the year-earlier quarter. The consensus mark for quarterly gross profit from the wholesale vehicle segment is pegged at $149 million, suggesting a decline from $192 million reported in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for CarMax this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
Earnings ESP: CarMax has an Earnings ESP of -4.57%. This is because the Most Accurate Estimate of earnings is pegged 3 cents lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CarMax currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Peer Releases
CarMax’s key peers include O’Reilly Automotive ORLY, Advance Auto Parts AAP and AutoZone AZO.
O’Reilly released first-quarter 2023 results on Apr 26. It reported adjusted earnings per share of $8.28, beating the Zacks Consensus Estimate of $8 on higher-than-expected comps growth. The bottom line increased 15.5% from $7.17 in the prior-year quarter. Quarterly revenues of $3.70 billion topped the consensus mark of $3.56 billion and were 12% higher than the prior-year figure of $3.30 billion.
For 2023, O’Reilly expects total revenues in the range of $15.2-$15.5 billion. Earnings per share are expected between $36.5 and $37. The forecast for comparable store sales growth is in the range of 4-6%. The free cash flow projection is in the band of $1.8-$2.1 billion. Capital expenditures are expected within the range of $750-$800 million. The company intends to open 180-190 stores this year.
Advance Auto reported first-quarter 2023 results on May 31. It reported adjusted earnings of 72 cents, falling 68.1% from the year-ago quarter figure and lagging the Zacks Consensus Estimate of $2.60 per share. Advance Auto generated net revenues of $3,417.6 million, lagging the Zacks Consensus Estimate of $3,427 million but increasing 1.3% from the year-ago reported figure.
Advance Auto estimates 2023 net sales in the band of $11.2-$11.3 billion. Comparable store sales are envisioned to range between negative 1% and 0%. The operating income margin is envisioned in the range of 5%-5.3%. Advance Auto expects its 2023 capex to be in the range of $250-$300 million. The company targets FCF in the range of $200-$300 million. EPS is forecast between $6 and $6.5. It aims to open 40 to 60 new stores this year.
AutoZone posted third-quarter fiscal 2023 results on May 23. It reported earnings of $34.12 per share, up 17.5% year over year and surpassed the Zacks Consensus Estimate of $30.84 per share. Net sales grew 5.8% to $4,090.5 million. However, the top line lagged the Zacks Consensus Estimate of $4,102.8 million. Gross profit increased to $2,146.1 million from the prior-year quarter’s figure of $2,006.4 million.
As of May 6, 2023, AutoZone had cash and cash equivalents of $274.9 million, up from $263 million on May 7, 2022. The total debt amounted to $7,340.5 million as of May 6, marking an increase from $6,057.4 million on May 7, 2022. Under its share repurchase program, AutoZone repurchased 356,000 shares of its common stock for $908.2 million during the fiscal third quarter of 2023, at an average price of $2,551 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report
AutoZone, Inc. (AZO) : Free Stock Analysis Report
CarMax, Inc. (KMX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Peer Releases CarMax’s key peers include O’Reilly Automotive ORLY, Advance Auto Parts AAP and AutoZone AZO. Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report CarMax, Inc. (KMX) : Free Stock Analysis Report To read this article on Zacks.com click here. The used car dealership chain beat earnings estimates in the last reported quarter on higher-than-anticipated gross profit per unit in the used and wholesale vehicle segments.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report CarMax, Inc. (KMX) : Free Stock Analysis Report To read this article on Zacks.com click here. Peer Releases CarMax’s key peers include O’Reilly Automotive ORLY, Advance Auto Parts AAP and AutoZone AZO. This is depicted in the graph below: CarMax, Inc. Price and EPS Surprise CarMax, Inc. price-eps-surprise | CarMax, Inc. Quote Trend in Estimate Revision The Zacks Consensus Estimate for CarMax’s fiscal first-quarter earnings per share has been revised up by a cent in the past seven days.
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Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report CarMax, Inc. (KMX) : Free Stock Analysis Report To read this article on Zacks.com click here. Peer Releases CarMax’s key peers include O’Reilly Automotive ORLY, Advance Auto Parts AAP and AutoZone AZO. This is depicted in the graph below: CarMax, Inc. Price and EPS Surprise CarMax, Inc. price-eps-surprise | CarMax, Inc. Quote Trend in Estimate Revision The Zacks Consensus Estimate for CarMax’s fiscal first-quarter earnings per share has been revised up by a cent in the past seven days.
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Peer Releases CarMax’s key peers include O’Reilly Automotive ORLY, Advance Auto Parts AAP and AutoZone AZO. Click to get this free report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report CarMax, Inc. (KMX) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for the quarter’s earnings and revenues is pegged at 73 cents per share and $7.28 billion, respectively.
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10694.0
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2023-06-12 00:00:00 UTC
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Monday Sector Leaders: Technology & Communications, Services
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AAP
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https://www.nasdaq.com/articles/monday-sector-leaders%3A-technology-communications-services-3
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The best performing sector as of midday Monday is the Technology & Communications sector, up 1.6%. Within the sector, Oracle Corp (Symbol: ORCL) and Broadcom Inc (Symbol: AVGO) are two of the day's stand-outs, showing a gain of 6.2% and 5.7%, respectively. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 1.6% on the day, and up 37.06% year-to-date. Oracle Corp, meanwhile, is up 39.69% year-to-date, and Broadcom Inc is up 54.50% year-to-date. Combined, ORCL and AVGO make up approximately 6.4% of the underlying holdings of XLK.
The next best performing sector is the Services sector, up 0.8%. Among large Services stocks, Carnival Corp (Symbol: CCL) and Advance Auto Parts Inc (Symbol: AAP) are the most notable, showing a gain of 13.4% and 4.6%, respectively. One ETF closely tracking Services stocks is the iShares U.S. Consumer Services ETF (IYC), which is up 1.0% in midday trading, and up 20.71% on a year-to-date basis. Carnival Corp, meanwhile, is up 86.20% year-to-date, and Advance Auto Parts Inc, is down 55.13% year-to-date. Combined, CCL and AAP make up approximately 0.4% of the underlying holdings of IYC.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, six sectors are up on the day, while three sectors are down.
SECTOR % CHANGE
Technology & Communications +1.6%
Services +0.8%
Healthcare +0.8%
Industrial +0.7%
Materials +0.3%
Consumer Products +0.1%
Utilities -0.4%
Financial -1.0%
Energy -1.2%
10 ETFs With Stocks That Insiders Are Buying »
Also see:
MODN Options Chain
ETFs Holding SPPI
Top Ten Hedge Funds Holding IGEB
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among large Services stocks, Carnival Corp (Symbol: CCL) and Advance Auto Parts Inc (Symbol: AAP) are the most notable, showing a gain of 13.4% and 4.6%, respectively. Combined, CCL and AAP make up approximately 0.4% of the underlying holdings of IYC. Combined, ORCL and AVGO make up approximately 6.4% of the underlying holdings of XLK.
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Among large Services stocks, Carnival Corp (Symbol: CCL) and Advance Auto Parts Inc (Symbol: AAP) are the most notable, showing a gain of 13.4% and 4.6%, respectively. Combined, CCL and AAP make up approximately 0.4% of the underlying holdings of IYC. Within the sector, Oracle Corp (Symbol: ORCL) and Broadcom Inc (Symbol: AVGO) are two of the day's stand-outs, showing a gain of 6.2% and 5.7%, respectively.
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Among large Services stocks, Carnival Corp (Symbol: CCL) and Advance Auto Parts Inc (Symbol: AAP) are the most notable, showing a gain of 13.4% and 4.6%, respectively. Combined, CCL and AAP make up approximately 0.4% of the underlying holdings of IYC. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 1.6% on the day, and up 37.06% year-to-date.
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Among large Services stocks, Carnival Corp (Symbol: CCL) and Advance Auto Parts Inc (Symbol: AAP) are the most notable, showing a gain of 13.4% and 4.6%, respectively. Combined, CCL and AAP make up approximately 0.4% of the underlying holdings of IYC. Within the sector, Oracle Corp (Symbol: ORCL) and Broadcom Inc (Symbol: AVGO) are two of the day's stand-outs, showing a gain of 6.2% and 5.7%, respectively.
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10695.0
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2023-06-12 00:00:00 UTC
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Monday Sector Leaders: Biotechnology, Auto Dealerships
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AAP
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https://www.nasdaq.com/articles/monday-sector-leaders%3A-biotechnology-auto-dealerships
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nan
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nan
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In trading on Monday, biotechnology shares were relative leaders, up on the day by about 2.5%. Leading the group were shares of Chinook Therapeutics, up about 56.3% and shares of Precigen up about 11.9% on the day.
Also showing relative strength are auto dealerships shares, up on the day by about 2% as a group, led by Vroom, trading up by about 14.6% and Advance Auto Parts, trading higher by about 6% on Monday.
VIDEO: Monday Sector Leaders: Biotechnology, Auto Dealerships
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, biotechnology shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are auto dealerships shares, up on the day by about 2% as a group, led by Vroom, trading up by about 14.6% and Advance Auto Parts, trading higher by about 6% on Monday. VIDEO: Monday Sector Leaders: Biotechnology, Auto Dealerships The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, biotechnology shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are auto dealerships shares, up on the day by about 2% as a group, led by Vroom, trading up by about 14.6% and Advance Auto Parts, trading higher by about 6% on Monday. VIDEO: Monday Sector Leaders: Biotechnology, Auto Dealerships The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, biotechnology shares were relative leaders, up on the day by about 2.5%. Also showing relative strength are auto dealerships shares, up on the day by about 2% as a group, led by Vroom, trading up by about 14.6% and Advance Auto Parts, trading higher by about 6% on Monday. VIDEO: Monday Sector Leaders: Biotechnology, Auto Dealerships The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, biotechnology shares were relative leaders, up on the day by about 2.5%. Leading the group were shares of Chinook Therapeutics, up about 56.3% and shares of Precigen up about 11.9% on the day. Also showing relative strength are auto dealerships shares, up on the day by about 2% as a group, led by Vroom, trading up by about 14.6% and Advance Auto Parts, trading higher by about 6% on Monday.
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10696.0
|
2023-06-12 00:00:00 UTC
|
Grab This Bargain Even Cheaper Than Director Lee Jr. Did
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AAP
|
https://www.nasdaq.com/articles/grab-this-bargain-even-cheaper-than-director-lee-jr.-did
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nan
|
nan
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There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on June 7, Advance Auto Parts Inc's Director, Eugene I. Lee Jr., invested $500,160.45 into 7,635 shares of AAP, for a cost per share of $65.51. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Monday, bargain hunters could buy shares of Advance Auto Parts Inc (Symbol: AAP) and achieve a cost basis 2.0% cheaper than Lee Jr., with shares changing hands as low as $64.20 per share. Advance Auto Parts Inc shares are currently trading up about 2.1% on the day. The chart below shows the one year performance of AAP shares, versus its 200 day moving average:
Looking at the chart above, AAP's low point in its 52 week range is $63.56 per share, with $212.25 as the 52 week high point — that compares with a last trade of $65.22. By comparison, below is a table showing the prices at which AAP insider buying was recorded over the last six months:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
06/07/2023 Jeffrey J. Jones II Director 1,525 $65.94 $100,558.50
06/07/2023 Eugene I. Lee Jr. Director 7,635 $65.51 $500,160.45
06/07/2023 John Francis Ferraro Director 1,525 $65.56 $99,979.00
06/07/2023 Carla Jean Bailo Director 500 $65.90 $32,950.00
The current annualized dividend paid by Advance Auto Parts Inc is $1/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 07/13/2023. Below is a long-term dividend history chart for AAP, which can be of good help in judging whether the most recent dividend with approx. 1.6% annualized yield is likely to continue.
Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »
Also see:
API market cap history
SMMT Insider Buying
TSRE Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The chart below shows the one year performance of AAP shares, versus its 200 day moving average: Looking at the chart above, AAP's low point in its 52 week range is $63.56 per share, with $212.25 as the 52 week high point — that compares with a last trade of $65.22. By comparison, below is a table showing the prices at which AAP insider buying was recorded over the last six months: Back on June 7, Advance Auto Parts Inc's Director, Eugene I. Lee Jr., invested $500,160.45 into 7,635 shares of AAP, for a cost per share of $65.51.
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In trading on Monday, bargain hunters could buy shares of Advance Auto Parts Inc (Symbol: AAP) and achieve a cost basis 2.0% cheaper than Lee Jr., with shares changing hands as low as $64.20 per share. Back on June 7, Advance Auto Parts Inc's Director, Eugene I. Lee Jr., invested $500,160.45 into 7,635 shares of AAP, for a cost per share of $65.51. The chart below shows the one year performance of AAP shares, versus its 200 day moving average: Looking at the chart above, AAP's low point in its 52 week range is $63.56 per share, with $212.25 as the 52 week high point — that compares with a last trade of $65.22.
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In trading on Monday, bargain hunters could buy shares of Advance Auto Parts Inc (Symbol: AAP) and achieve a cost basis 2.0% cheaper than Lee Jr., with shares changing hands as low as $64.20 per share. Back on June 7, Advance Auto Parts Inc's Director, Eugene I. Lee Jr., invested $500,160.45 into 7,635 shares of AAP, for a cost per share of $65.51. The chart below shows the one year performance of AAP shares, versus its 200 day moving average: Looking at the chart above, AAP's low point in its 52 week range is $63.56 per share, with $212.25 as the 52 week high point — that compares with a last trade of $65.22.
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Back on June 7, Advance Auto Parts Inc's Director, Eugene I. Lee Jr., invested $500,160.45 into 7,635 shares of AAP, for a cost per share of $65.51. The chart below shows the one year performance of AAP shares, versus its 200 day moving average: Looking at the chart above, AAP's low point in its 52 week range is $63.56 per share, with $212.25 as the 52 week high point — that compares with a last trade of $65.22. In trading on Monday, bargain hunters could buy shares of Advance Auto Parts Inc (Symbol: AAP) and achieve a cost basis 2.0% cheaper than Lee Jr., with shares changing hands as low as $64.20 per share.
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10697.0
|
2023-06-11 00:00:00 UTC
|
Is Advance Auto Parts Stock in Trouble?
|
AAP
|
https://www.nasdaq.com/articles/is-advance-auto-parts-stock-in-trouble
|
nan
|
nan
|
The stock of automotive aftermarket-parts retailer Advance Auto Parts (NYSE: AAP) is down 64.5% over the last year, in contrast to its peers O'Reilly Automotive (NASDAQ: ORLY) and AutoZone (NYSE: AZO), which are up 42.7% and 16.4%, respectively. This is not a story of an industry in trouble, but rather one about the underperformance of a company within the sector and how retail investors could see the warning signs.
Where did it all go wrong?
In 2015, highly respected activist investor Starboard Value thought it had identified a value opportunity in Advance Auto Parts that would see the stock price rise from $171 to $350. At the time of this writing, the company's stock is nearer $68.
Starboard's case was powerful and relied on a well-known value-based approach. Advance's margins and sales growth significantly lagged behind its two prominent peers, AutoZone and O'Reilly Automotive, and there was an opportunity to close the gap.
Moreover, Advance's exposure to the faster-growing do-it-for-me (DIFM) market meant it had a natural growth opportunity.
Improving inventory management
In improving its business to the level of its peers, Advance would generate significant value for investors and satisfy its customers by enhancing its inventory and supply chain management.
This is a crucial issue in the industry, as consumers -- and professionals in particular -- often require a part immediately. Better inventory management would reduce days of inventory outstanding -- that is, the number of days a company holds its inventory before selling it. It would also improve Advance's position in the DIFM market, leading to higher growth and margin expansion.
The chart below shows how many days on average it takes each company to clear its inventory, so a lower number is better. Unfortunately, Advance's management failed to reduce it significantly over the years, and it's still far higher than its rivals' numbers.
Data by YCharts.
Improving accounts payable
At the same time, Advance would improve its working capital usage (the money tied up in the business) by increasing its accounts payable over inventory ratio -- meaning taking relatively longer to pay its suppliers for inventory. A higher number is better because it implies Advance would hold on to cash relatively longer. Improving the ratio would free up valuable cash to use elsewhere in business operations.
It didn't happen. Or at least it didn't reach anything near the standards of its peers, and Advance continues to be the laggard.
Data by YCharts.
Lowering the receivables turnover ratio
More working capital improvements were supposed to come by lowering its receivables turnover ratio, meaning Advance Auto Parts would do a better job of collecting receivables from its customers; in other words, collecting money from sales made to clients. Again, this would generate relatively more cash up front, which could be used to run the business better -- say, in making more products more readily available, particularly for the DIFM market.
Again, it didn't happen.
Data by YCharts. TTM = trailing 12 months.
And, of course, Advance's operating margin consistently lagged its peers. In the end, Starboard exited its position in May 2021.
It's a move that proved prescient as Advance's stock is down a whopping 67% since the start of May 2021. Over the same period, O'Reilly's stock is up 60%, and AutoZone is up 59%. This is an Advance Auto Parts problem, not an industry one.
Data by YCharts.
What it means to investors
The point of looking at these metrics is to highlight that these were precisely the metrics Starboard hoped would improve and those that the company's progress would be judged on. And those issues existed even when the stock price was closer to $240 (in early 2022) than the $68 it currently trades on. The warning signs were there.
All of this is not to be too negative on the prospects for the company because there's still a value opportunity. CEO Tom Greco is retiring at the end of the year, and whoever replaces him will undoubtedly have the plan to turn these metrics around. But until there's tangible proof of improvement on the metrics discussed above, then the stock is unattractive.
There is a value case to be made for the stock, but based on the above, it's not a strong one for long-term investors until management can provide hard evidence of improving the metrics above. The good news is that these numbers can be ascertained by retail investors using publicly available information.
10 stocks we like better than Advance Auto Parts
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 5, 2023
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The stock of automotive aftermarket-parts retailer Advance Auto Parts (NYSE: AAP) is down 64.5% over the last year, in contrast to its peers O'Reilly Automotive (NASDAQ: ORLY) and AutoZone (NYSE: AZO), which are up 42.7% and 16.4%, respectively. In 2015, highly respected activist investor Starboard Value thought it had identified a value opportunity in Advance Auto Parts that would see the stock price rise from $171 to $350. Advance's margins and sales growth significantly lagged behind its two prominent peers, AutoZone and O'Reilly Automotive, and there was an opportunity to close the gap.
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The stock of automotive aftermarket-parts retailer Advance Auto Parts (NYSE: AAP) is down 64.5% over the last year, in contrast to its peers O'Reilly Automotive (NASDAQ: ORLY) and AutoZone (NYSE: AZO), which are up 42.7% and 16.4%, respectively. Improving accounts payable At the same time, Advance would improve its working capital usage (the money tied up in the business) by increasing its accounts payable over inventory ratio -- meaning taking relatively longer to pay its suppliers for inventory. Lowering the receivables turnover ratio More working capital improvements were supposed to come by lowering its receivables turnover ratio, meaning Advance Auto Parts would do a better job of collecting receivables from its customers; in other words, collecting money from sales made to clients.
|
The stock of automotive aftermarket-parts retailer Advance Auto Parts (NYSE: AAP) is down 64.5% over the last year, in contrast to its peers O'Reilly Automotive (NASDAQ: ORLY) and AutoZone (NYSE: AZO), which are up 42.7% and 16.4%, respectively. Improving inventory management In improving its business to the level of its peers, Advance would generate significant value for investors and satisfy its customers by enhancing its inventory and supply chain management. 10 stocks we like better than Advance Auto Parts When our analyst team has a stock tip, it can pay to listen.
|
The stock of automotive aftermarket-parts retailer Advance Auto Parts (NYSE: AAP) is down 64.5% over the last year, in contrast to its peers O'Reilly Automotive (NASDAQ: ORLY) and AutoZone (NYSE: AZO), which are up 42.7% and 16.4%, respectively. It would also improve Advance's position in the DIFM market, leading to higher growth and margin expansion. In the end, Starboard exited its position in May 2021.
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10698.0
|
2023-06-07 00:00:00 UTC
|
Unusual Put Option Trade in Advance Auto Parts (AAP) Worth Almost $10MM
|
AAP
|
https://www.nasdaq.com/articles/unusual-put-option-trade-in-advance-auto-parts-aap-worth-almost-%2410mm
|
nan
|
nan
|
On June 7, 2023 at 15:44:40 ET an unusually large $9,350.00K block of Put contracts in Advance Auto Parts (AAP) was sold, with a strike price of $160.00 / share, expiring in 9 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.07 sigmas above the mean, placing it in the 98.72th percentile of all recent large trades made in AAP options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 1301 funds or institutions reporting positions in Advance Auto Parts. This is a decrease of 39 owner(s) or 2.91% in the last quarter. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 16.26%. Total shares owned by institutions decreased in the last three months by 4.50% to 63,985K shares.
The put/call ratio of AAP is 0.57, indicating a bullish outlook.
Analyst Price Forecast Suggests 27.85% Upside
As of June 1, 2023, the average one-year price target for Advance Auto Parts is 84.47. The forecasts range from a low of 57.57 to a high of $142.48. The average price target represents an increase of 27.85% from its latest reported closing price of 66.07.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Advance Auto Parts is 11,502MM, an increase of 3.11%. The projected annual non-GAAP EPS is 13.56.
What are Other Shareholders Doing?
Jpmorgan Chase holds 3,297K shares representing 5.55% ownership of the company. In it's prior filing, the firm reported owning 3,394K shares, representing a decrease of 2.94%. The firm decreased its portfolio allocation in AAP by 25.75% over the last quarter.
HLIEX - JPMorgan Equity Income Fund Class I holds 2,451K shares representing 4.12% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 1,833K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 1,799K shares, representing an increase of 1.85%. The firm decreased its portfolio allocation in AAP by 22.19% over the last quarter.
Champlain Investment Partners holds 1,553K shares representing 2.61% ownership of the company. In it's prior filing, the firm reported owning 1,571K shares, representing a decrease of 1.17%. The firm increased its portfolio allocation in AAP by 80,150.76% over the last quarter.
Millennium Management holds 1,509K shares representing 2.54% ownership of the company. In it's prior filing, the firm reported owning 1,181K shares, representing an increase of 21.74%. The firm increased its portfolio allocation in AAP by 9.53% over the last quarter.
Advance Auto Parts Declares $0.25 Dividend
On May 31, 2023 the company declared a regular quarterly dividend of $0.25 per share ($1.00 annualized). Shareholders of record as of July 14, 2023 will receive the payment on July 28, 2023. Previously, the company paid $1.50 per share.
At the current share price of $66.07 / share, the stock's dividend yield is 1.51%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.42%, the lowest has been 0.13%, and the highest has been 9.15%. The standard deviation of yields is 1.54 (n=237).
The current dividend yield is 0.06 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.71. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 5.00%, demonstrating that it has increased its dividend over time.
Advance Auto Parts Background Information
(This description is provided by the company.)
Advance Auto Parts, Inc., is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers. As of October 3, 2020, Advance operated 4,811 stores and 168 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,269 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
Key filings for this company:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
On June 7, 2023 at 15:44:40 ET an unusually large $9,350.00K block of Put contracts in Advance Auto Parts (AAP) was sold, with a strike price of $160.00 / share, expiring in 9 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.07 sigmas above the mean, placing it in the 98.72th percentile of all recent large trades made in AAP options. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 16.26%.
|
On June 7, 2023 at 15:44:40 ET an unusually large $9,350.00K block of Put contracts in Advance Auto Parts (AAP) was sold, with a strike price of $160.00 / share, expiring in 9 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.07 sigmas above the mean, placing it in the 98.72th percentile of all recent large trades made in AAP options. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 16.26%.
|
On June 7, 2023 at 15:44:40 ET an unusually large $9,350.00K block of Put contracts in Advance Auto Parts (AAP) was sold, with a strike price of $160.00 / share, expiring in 9 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.07 sigmas above the mean, placing it in the 98.72th percentile of all recent large trades made in AAP options. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 16.26%.
|
On June 7, 2023 at 15:44:40 ET an unusually large $9,350.00K block of Put contracts in Advance Auto Parts (AAP) was sold, with a strike price of $160.00 / share, expiring in 9 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.07 sigmas above the mean, placing it in the 98.72th percentile of all recent large trades made in AAP options. Average portfolio weight of all funds dedicated to AAP is 0.18%, a decrease of 16.26%.
|
10699.0
|
2023-06-07 00:00:00 UTC
|
Safe Dividend Stock Pops 5% in 5 Days Thanks to Analyst Dislike
|
AAP
|
https://www.nasdaq.com/articles/safe-dividend-stock-pops-5-in-5-days-thanks-to-analyst-dislike
|
nan
|
nan
|
Thoughtful reader Terry K. asks for my favorite utility dividend--specifically why I prefer NextEra Energy Partners (NEP) to Clearway Energy (CWEN):
Would like your thoughts on CWEN vs. NEP. I've looked at both and based on numbers CWEN looks to be the better option.
It has just raised its dividend.
Plus, it is better liked by other analysts.
Analyst ratings are a wonderful contrarian indicator. Thank you for writing in; I bet many of our fellow contrarians are asking the same thing! This is a great opportunity for all of us because it has been too long since we have lauded buying dividends that analysts dislike.
First, let's put on our own analyst hats and compare the dividend growth numbers between NEP and CWEN. Terry, as you noted, CWEN boosted its dividend in May. The company has actually hiked its payout every quarter since the summer of 2020. And the safest dividend is one that's just been raised. Nice.
Since CWEN began paying a dividend in 2015, shareholders have enjoyed a 91% shot in the dividend arm. Granted, it hasn't been a perfectly smooth ride. CWEN cut its payout in early 2019.
Still, 91% higher is almost a double! But the stock price does appear to be a bargain, rising only 17% over the same period. CWEN's "dividend magnet" appears overdue, with the payout poised to pull the price higher:
CWEN's Dividend Magnet is Due
Why do I harp so much on payout growth? Because dividend hikes are the "second-level benefit" of buying high yielders.
We income investors love current dividends because they are cash now. Money in our accounts. Moola for us, plus a constraint on management to stay sane and not spend irresponsibly.
We especially appreciate payouts that grow because they correspond with stock prices that rise. Over time, for better or for worse, shares follow their dividends (higher or lower).
For example, last week Advanced Auto Parts (AAP) slashed its payout's tires by 83%. The stock plunged, closing 71% below its previous "full dividend" highs. A reminder that no dividend bad deed goes unpunished.
So yes, to your point, Terry, CWEN is a relative value right now. Its share price is due to catch up with its dividend. That payout is still rising. CWEN, good, AAP bad.
My utility play NEP, though, looks great. Shares are literally being given away. First, let's line up their dividends over the same time period. NEP's payout is running laps around its rival:
NEP vs. CWEN Dividend Growth (Since 2015)
NEP's share price has outperformed CWEN's (38% to 17%). More importantly, NEP's dividend is climbing fast.
Chief Financial Officer Kirk Crews recently reiterated that NEP would boost its payout by 12% to 15% per year through at least 2026.
Shares yield 5.6% today. Which means we're looking at expected returns of 17.6% to 20.6% annually, because it's unlikely that the yield on NEP will climb much higher. (Dividend up, price static, yield up, buyers appear, price up, yield stabilizes.)
Instead, its price will probably rally as investors find their way back to utility stocks. These "bond proxies" were dumped alongside bonds as interest rates skyrocketed through 2022.
But that was last year. Today, we live in a world in which the Federal Reserve is just about done hiking. Long rates have topped and are gradually making their way lower as we head into the most telegraphed recession of all time.
Bullish news for utilities. Which means CWEN and especially NEP are likely to find nice homes in dividend portfolios soon. And we should expect their share prices to once again climb with each payout hike their management teams deliver.
And yes, when in doubt, give me the stock that is ignored or, better yet, hated by analysts. David Dreman explored this in his book Contrarian Investment Strategies: The Psychological Edge, as he showed that investors overvalue stocks that analysts like and undervalue those they don't.
Think about it. If we buy a stock popular with analysts--rated a buy or strong buy--there's nowhere to go but a downgrade. Which dings the share price.
On the other hand, stocks loathed by analysts are strong candidates for upgrades! When someone breaks rank and upgrades the stock, it pops on the news.
And wouldn't you know it, last week Bank of America's Julien Dumoulin-Smith upgraded NEP. The stock is up 5% over the last five days, buoyed by the move.
But why wait for the Juliens of the world to approve our purchases? He merely cited our man Kirk and NEP's dividend growth as his reason for the upgrade. Old news--to us!
Which is why we didn't wait for Julien.
We careful contrarians don't look for any analyst approval before we buy. We prefer to lead the Wall Street herd rather than follow it.
Give me the "who cares" setup we saw in LeMaitre Vascular (LMAT), a recent Hidden Yields pick. Three months ago, analysts offered three Buy ratings and three Holds. And Hold is Wall Street code for Sell, really, when analysts are afraid to rock the boat. So, we had a split caucus.
But LMAT should have been six Buys. Three suits missed this pop:
Three Analysts Slept on This LMAT Pop
We bought LMAT after the firm had hired a bunch of new salespeople. And before these three analysts woke up! There was no need for us to wait for their approval. Profit margins at the medical device maker were "depressed" (at least by LMAT's stellar standards) while the new employees ramped up.
We also liked LMAT as a play on a weaker dollar. This is far from the dangerous strong dollar bulldozer that smashes sales numbers and stock prices.
You would think analysts would see these catalysts. For whatever reason, half of the herd following LMAT did not.
Which is why we buy ahead of analyst approval. We don't sit around and wait for it. Especially when it comes to buying dividend growers.
Speaking of which--here are my five favorite dividend growers to buy today. I have company names, tickers and dividend growth figures in this no-risk report on dividend magnet darlings.
Please don't wait for these stocks to pop 5% next week, like NEP did last week. Grab my latest dividend magnet research right here.
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
For example, last week Advanced Auto Parts (AAP) slashed its payout's tires by 83%. CWEN, good, AAP bad. Chief Financial Officer Kirk Crews recently reiterated that NEP would boost its payout by 12% to 15% per year through at least 2026.
|
For example, last week Advanced Auto Parts (AAP) slashed its payout's tires by 83%. CWEN, good, AAP bad. Thoughtful reader Terry K. asks for my favorite utility dividend--specifically why I prefer NextEra Energy Partners (NEP) to Clearway Energy (CWEN): Would like your thoughts on CWEN vs. NEP.
|
For example, last week Advanced Auto Parts (AAP) slashed its payout's tires by 83%. CWEN, good, AAP bad. Thoughtful reader Terry K. asks for my favorite utility dividend--specifically why I prefer NextEra Energy Partners (NEP) to Clearway Energy (CWEN): Would like your thoughts on CWEN vs. NEP.
|
For example, last week Advanced Auto Parts (AAP) slashed its payout's tires by 83%. CWEN, good, AAP bad. NEP's share price has outperformed CWEN's (38% to 17%).
|
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