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11000.0
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2022-02-07 00:00:00 UTC
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Advance Auto Parts (AAP) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-1
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Advance Auto Parts (AAP) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2021. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 14. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This auto parts retailer is expected to post quarterly earnings of $1.95 per share in its upcoming report, which represents a year-over-year change of +4.3%.
Revenues are expected to be $2.36 billion, down 0.1% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.81% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Advance Auto Parts?
For Advance Auto Parts, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.84%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Advance Auto Parts will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Advance Auto Parts would post earnings of $2.78 per share when it actually produced earnings of $3.21, delivering a surprise of +15.47%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Advance Auto Parts appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2021. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
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Advance Auto Parts (AAP) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2021. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Advance Auto Parts (AAP) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2021. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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Advance Auto Parts (AAP) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended December 2021. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 14.
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11001.0
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2022-02-07 00:00:00 UTC
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Noteworthy Monday Option Activity: TSN, AAP, DXC
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AAP
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-tsn-aap-dxc
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Tyson Foods Inc (Symbol: TSN), where a total volume of 30,697 contracts has been traded thus far today, a contract volume which is representative of approximately 3.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 142.2% of TSN's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $100 strike call option expiring February 18, 2022, with 7,677 contracts trading so far today, representing approximately 767,700 underlying shares of TSN. Below is a chart showing TSN's trailing twelve month trading history, with the $100 strike highlighted in orange:
Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 4,252 contracts, representing approximately 425,200 underlying shares or approximately 68.7% of AAP's average daily trading volume over the past month, of 618,570 shares. Particularly high volume was seen for the $260 strike call option expiring March 18, 2022, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $260 strike highlighted in orange:
And DXC Technology Co (Symbol: DXC) options are showing a volume of 11,140 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 61.5% of DXC's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $38 strike call option expiring March 18, 2022, with 5,054 contracts trading so far today, representing approximately 505,400 underlying shares of DXC. Below is a chart showing DXC's trailing twelve month trading history, with the $38 strike highlighted in orange:
For the various different available expirations for TSN options, AAP options, or DXC options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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 $260 strike call option expiring March 18, 2022, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of AAP. Below is a chart showing TSN's trailing twelve month trading history, with the $100 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 4,252 contracts, representing approximately 425,200 underlying shares or approximately 68.7% of AAP's average daily trading volume over the past month, of 618,570 shares. Below is a chart showing AAP's trailing twelve month trading history, with the $260 strike highlighted in orange: And DXC Technology Co (Symbol: DXC) options are showing a volume of 11,140 contracts thus far today.
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Below is a chart showing TSN's trailing twelve month trading history, with the $100 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 4,252 contracts, representing approximately 425,200 underlying shares or approximately 68.7% of AAP's average daily trading volume over the past month, of 618,570 shares. Particularly high volume was seen for the $260 strike call option expiring March 18, 2022, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $260 strike highlighted in orange: And DXC Technology Co (Symbol: DXC) options are showing a volume of 11,140 contracts thus far today.
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Below is a chart showing TSN's trailing twelve month trading history, with the $100 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 4,252 contracts, representing approximately 425,200 underlying shares or approximately 68.7% of AAP's average daily trading volume over the past month, of 618,570 shares. Particularly high volume was seen for the $260 strike call option expiring March 18, 2022, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $260 strike highlighted in orange: And DXC Technology Co (Symbol: DXC) options are showing a volume of 11,140 contracts thus far today.
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Below is a chart showing TSN's trailing twelve month trading history, with the $100 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 4,252 contracts, representing approximately 425,200 underlying shares or approximately 68.7% of AAP's average daily trading volume over the past month, of 618,570 shares. Particularly high volume was seen for the $260 strike call option expiring March 18, 2022, with 3,966 contracts trading so far today, representing approximately 396,600 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $260 strike highlighted in orange: And DXC Technology Co (Symbol: DXC) options are showing a volume of 11,140 contracts thus far today.
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11002.0
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2022-02-04 00:00:00 UTC
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Factors at Play Ahead of Lithia's (LAD) Q4 Earnings Release
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AAP
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https://www.nasdaq.com/articles/factors-at-play-ahead-of-lithias-lad-q4-earnings-release
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nan
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nan
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Lithia Motors LAD is slated to release fourth-quarter 2021 results on Feb 9, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at $9.99 per share and $6.32 billion, respectively.
The auto retailer came up with better-than-expected results in the last reported quarter, primarily on higher-than-anticipated used-vehicle sales. In fact, Lithia surpassed earnings estimates in the last four quarters, with the average being 29.1%. This is depicted in the graph below:
Lithia Motors, Inc. Price and EPS Surprise
Lithia Motors, Inc. price-eps-surprise | Lithia Motors, Inc. Quote
Trend in Estimate Revisions
The Zacks Consensus Estimate for fourth-quarter earnings per share has moved 12 cents north in the past 30 days. The metric indicates a significant year-over-year jump of 83%. Further, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 60.3%.
Earnings Whispers
Our proven model predicts an earnings beat for Lithia 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, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +5.18%. This is because the Most Accurate Estimate for earnings per share is pegged 52 cents higher than the Zacks Consensus Estimate.
Zacks Rank: Lithia currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Things to Note
Courtesy of economic recovery from the pandemic lows and preference for personal mobility, demand for vehicles has been on the rise, which is likely to have aided sales of Lithia. Encouragingly, the auto retailer is expected to post a year-over-year increase in fourth-quarter revenues across all units. A spree of strategic buyouts is expected to have enhanced Lithia’s product portfolio and market share. Also, we expect Lithia’s Driveway e-commerce program to have significantly buoyed the firm’s fourth-quarter revenues. More importantly, the rising average selling price for new and used cars amid supply-demand mismatch is likely to have fueled revenues.
The Zacks Consensus Estimate for revenues in the used vehicle business is $2,276 million, indicating a significant increase from $1,201 million recorded in the year-ago period. The consensus mark for revenues from the new vehicle segment stands at $2,930 million, suggesting 36.3% year-over-year growth. The Zacks Consensus Estimate for revenues from Finance & Insurance and Fleet & Other is pegged at $294 million and $42.65 million, implying a year-over-year improvement of 70% and 52.5%, respectively.
Higher year-over-year projected gross margins for used vehicle retail also augur well. The consensus mark for fourth-quarter 2021 gross margins in the used vehicle retail segment is pegged at 11.3%, signaling an increase from 10.2% recorded in the corresponding period of 2020.
Other Stocks With Favorable Combination
Here are a few other auto retailers, which, according to our model, also have the right combination of elements to post an earnings beat for the quarter to be reported:
Penske Automotive PAG has an Earnings ESP of +9.27% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 19.
The Zacks Consensus Estimate for Penske’s to-be-reported quarter’s earnings and revenues is pegged at $3.62 per share and $6.31 billion, respectively. Encouragingly, PAG surpassed earnings estimates in the last four quarters, with an average of 20.3%.
Group 1 Automotive GPI has an Earnings ESP of +0.63% and a Zacks Rank #2. The company is set to report fourth-quarter 2021 earnings on Feb 10.
The Zacks Consensus Estimate for Group 1’s to-be-reported quarter’s earnings and revenues is pegged at $9.06 per share and $3.48 billion, respectively. GPI surpassed earnings estimates in three of the last four quarters and missed once, with an average of 7.96%.
Advance Auto Parts AAP has an Earnings ESP of +1.29% and a Zacks Rank #3. The stock is set to report fourth-quarter 2021 earnings on Feb 14.
The Zacks Consensus Estimate for Advance Auto’s to-be-reported quarter’s earnings and revenues is pegged at $1.95 per share and $2.35 billion, respectively. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Penske Automotive Group, Inc. (PAG): Free Stock Analysis Report
Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
Group 1 Automotive, Inc. (GPI): 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 has an Earnings ESP of +1.29% and a Zacks Rank #3. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Advance Auto Parts AAP has an Earnings ESP of +1.29% and a Zacks Rank #3. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%.
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Advance Auto Parts AAP has an Earnings ESP of +1.29% and a Zacks Rank #3. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
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Advance Auto Parts AAP has an Earnings ESP of +1.29% and a Zacks Rank #3. AAP surpassed earnings estimates in three of the last four quarters and missed once, with an average surprise of 9.01%. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
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11003.0
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2022-02-01 00:00:00 UTC
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5 Top Real Estate Stocks to Buy in February
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AAP
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https://www.nasdaq.com/articles/5-top-real-estate-stocks-to-buy-in-february
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nan
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nan
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Investing in real estate stocks is a great way to generate passive income. You don't have to be rich to build a diversified real estate portfolio thanks to real estate investment trusts (REITs), publicly traded businesses that acquire and rent out properties and pay out at least 90% of their taxable income as dividends.
REITs typically focus on a specific niche within real estate, so investors can quickly build a portfolio with exposure to many property types and generate the passive income they need without having to have a fortune already. Are you looking to get started? Here are five real estate stocks to begin with.
1. Retail buildings
W.P. Carey (NYSE: WPC) is a single-tenant net lease REIT, which means it only deals with buildings occupied by one tenant, and these tenants are responsible for maintaining the property and paying its taxes and insurance. W.P. Carey owns more than 1,200 properties, diversified across various industries, so it's less vulnerable to one single event happening that might prevent many tenants from paying rent.
Image source: Getty Images.
Its property base is retail stores as well as industrial and warehouse properties, and its largest tenants include companies like U-Haul parent company Amerco, Marriott, and Advance Auto Parts; it has properties across the United States and Europe.
The company is about to become a Dividend Aristocrat and currently offers a dividend yield of 5.5%. It creates steady growth by signing leases averaging almost 11 years in length, and its contracts include escalators that often reflect inflation rates.
2. Shopping centers
Simon Property Group (NYSE: SPG) is on the other side of the spectrum; it owns destination retail properties like shopping centers, malls, and premier outlets. While many assume malls are a dying business, premier malls like those in big cities are still doing well. The pandemic stressed Simon Property Group because malls temporarily shut down in many areas, and tenants couldn't afford rent. The company had to cut its dividend and is still working its way back to pre-COVID business levels.
The company is now largely back on its feet, and its occupancy rate was almost 93% in its most recent quarter, 2021 Q3. The stock's dividend yield is 4.5%, solid considering the dividend is still below pre-pandemic payouts. E-commerce is slowly eating up a share of retail sales in the United States, but if you believe in the long-term health of premium shopping centers, Simon Property Group is arguably the most dominant REIT in its space.
3. Data centers
Digital Realty Trust (NYSE: DLR) acquires, owns, and operates data centers worldwide; roughly half of its customer bookings come from outside of the Americas. It's one of the most prominent publicly traded REITs, with a market cap of more than $40 billion. Its customers are from various industries, including fintech, energy, cloud computing, and public organizations.
The company continually grows its dividend; the payout has increased in the last 16 years and running. The stock's current dividend yield is 3.1%. The world is becoming increasingly digital, and it's easier for most businesses to outsource their data center infrastructure to a company like Digital Realty. Its increasing backlog shows its business is strong, rising to $294 million in 2021 Q3 from $269 million the previous quarter.
4. Industrial property
STAG Industrial (NYSE: STAG) owns and operates industrial properties in the United States, renting them to single-occupant tenants. Its portfolio includes more than 500 buildings spread across 40 states; roughly 40% of its business touches e-commerce activities. STAG is a very diversified company despite the e-commerce concentration -- Amazon is its largest tenant but still only makes up 4% of STAG's revenue.
STAG has increased its dividend for the past eight years and currently offers a 3.5% dividend yield. It pays a monthly dividend, which could appeal to investors looking for steady dividend income. E-commerce is an established growth industry, so this should bode well for STAG's business moving forward. Its balance sheet is strong, with just $301 million of its $1.98 billion in total debt due before 2024.
5. Self-storage
CubeSmart (NYSE: CUBE) is one of the largest self-storage owners and operators in the United States. In other words, it's a consumer-facing business, where customers are walking into CubeSmart-branded buildings and renting CubeSmart storage units. Its total portfolio consists of 545 stores and is rented out at 93.4% as of its most recent quarter, 2021 Q3.
The company has raised its dividend payout for the past 12 years, and its dividend yield is 3.4%. CubeSmart also recently invested heavily in its growth, acquiring Storage West for $1.7 billion in stock. The pandemic has increased demand for self-storage, so even though the industry's growth moving forward might slow, CubeSmart should remain one of the top businesses in its industry.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool owns and recommends Amazon, Digital Realty Trust, and Stag Industrial. The Motley Fool recommends Amerco and Marriott International and recommends the following options: long January 2023 $115 calls on Marriott International. 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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REITs typically focus on a specific niche within real estate, so investors can quickly build a portfolio with exposure to many property types and generate the passive income they need without having to have a fortune already. It creates steady growth by signing leases averaging almost 11 years in length, and its contracts include escalators that often reflect inflation rates. E-commerce is slowly eating up a share of retail sales in the United States, but if you believe in the long-term health of premium shopping centers, Simon Property Group is arguably the most dominant REIT in its space.
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You don't have to be rich to build a diversified real estate portfolio thanks to real estate investment trusts (REITs), publicly traded businesses that acquire and rent out properties and pay out at least 90% of their taxable income as dividends. Data centers Digital Realty Trust (NYSE: DLR) acquires, owns, and operates data centers worldwide; roughly half of its customer bookings come from outside of the Americas. Industrial property STAG Industrial (NYSE: STAG) owns and operates industrial properties in the United States, renting them to single-occupant tenants.
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You don't have to be rich to build a diversified real estate portfolio thanks to real estate investment trusts (REITs), publicly traded businesses that acquire and rent out properties and pay out at least 90% of their taxable income as dividends. Its property base is retail stores as well as industrial and warehouse properties, and its largest tenants include companies like U-Haul parent company Amerco, Marriott, and Advance Auto Parts; it has properties across the United States and Europe. Industrial property STAG Industrial (NYSE: STAG) owns and operates industrial properties in the United States, renting them to single-occupant tenants.
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You don't have to be rich to build a diversified real estate portfolio thanks to real estate investment trusts (REITs), publicly traded businesses that acquire and rent out properties and pay out at least 90% of their taxable income as dividends. Industrial property STAG Industrial (NYSE: STAG) owns and operates industrial properties in the United States, renting them to single-occupant tenants. The Motley Fool owns and recommends Amazon, Digital Realty Trust, and Stag Industrial.
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11004.0
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2022-01-25 00:00:00 UTC
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The Best REITs to Buy With $500 Right Now
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AAP
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https://www.nasdaq.com/articles/the-best-reits-to-buy-with-%24500-right-now
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nan
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nan
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Generating passive income from your investments can be immensely rewarding. Most people put their blood, sweat, and tears into their paychecks, but owning shares of real estate investment trusts (REITs) means that you get paid for simply being a part-business owner; no other effort necessary.
Unlike buying a rental property, buying REITs is very affordable. Indeed, $500 can put you well on your way to building a diversified portfolio of REITs that send money your way over and over again. Here are some quality REITs to consider.
First, why are REITs such great dividend stocks?
REITs are businesses that function as landlords; they acquire and rent properties to tenants, which are often other businesses.
Image source: Getty Images.
REITs can own virtually any property type, including residential housing, medical facilities, retail and commercial buildings, office space, and more. REITs are required to pay out at least 90% of their taxable income to investors as dividends and avoid corporate income tax as a result.
Congress established the REIT business structure to give citizens the ability to benefit from real estate without owning property. An investor can use REITs to build a diverse collection of investments with exposure to virtually any type of property they want.
STORE Capital
Net lease REIT STORE Capital (NYSE: STOR) rents to single-occupant tenants, individual businesses that occupy the whole building, versus buildings like shopping malls or plazas. Net leases mean that STORE acquires and leases out its properties, and the tenant pays all of the upkeep, like property taxes, insurance, and maintenance, which means a lower-risk, more predictable income stream for STORE.
STORE Capital has a diversified tenant base, where no individual tenant represents more than 3.1% of its income. This protects the company's cash flow from a major tenant leaving or going out of business. Its largest tenants include Ashley HomeStore, Camping World, Bass Pro Shops, and AMC. Just 2% of STORE's tenants do less than $5 million in annual revenue, so these are large businesses that are likely more reliable than the "mom-and-pop" shops paying their rent month to month.
STORE's balance sheet is rated investment-grade by the major credit rating companies like S&P, and its dividend payout ratio is 70% of cash flow. STORE has grown its dividend for seven consecutive years, and it yields 5.1% on the current share price. It builds 2.5% growth into its lease agreements through annual escalators, which help keep STORE's yearly cash flow (called funds from operations) growing year in and year out.
W.P. Carey
Another net lease REIT, W.P. Carey (NYSE: WPC), carries a lot of similarities to STORE. The company assumes less risk and expenses by maintaining net leases with its tenants but targets a very different market. Roughly three-quarters of W.P. Carey's rental income comes from industrial, warehouse, and office building spaces.
W.P. Carey is well-diversified; its largest tenant makes up just 3.2% of its income, and notable tenants include U-Haul parent company Amerco, the Spanish government, Marriott, and Advance Auto Parts. The company's portfolio totals more than 1,200 properties, so W.P. Carey is one of the larger REITs in the industry.
Financial discipline is key to long-term success as a REIT, and W.P. Carey passes this test; its balance sheet holds investment-grade ratings from the major credit companies. The company's about to become a Dividend Aristocrat; the dividend has been paid and raised for 24 consecutive years and yields 5.6% at the current share price. Its dividend payout ratio is slightly higher at 87%, but the company has little debt due over the next three years and can continuously raise funds through built-in rent escalators or asset sales.
Public Storage
Owning storage facilities could be one of the most overlooked types of property. Public Storage (NYSE: PSA) dominates as the world's largest owner, operator, and developer of self-storage buildings. It boasts a portfolio of more than 2,500 facilities across America. Storage is an underrated property type; it's in nearly constant demand as people relocate or simply need a place to put their stuff.
STORE and W.P. Carey own the buildings that its commercial tenants operate out of, collecting rent, invisible to the consumer. You wouldn't walk into an AMC movie theater and know that AMC doesn't own the theater building or who they pay rent to. Public Storage, on the other hand, is consumer-facing. Individuals and businesses are walking into Public Storage-branded facilities to rent storage units.
Public Storage pays a solid dividend that yields 2.3% but hasn't raised it in several years. Don't assume that Public Storage is in financial trouble, however. Its balance sheet has a strong investment-grade rating from the credit companies, and the dividend payout ratio is just under 75%.
The company's invested aggressively in growth, acquiring competitor ezStorage for $1.8 billion in cash, which closed last spring. Its funds from operations, the cash income that REITs measure performance by, grew 30% year over year in its most recent quarter, Q3 of 2021. Investors should look for dividends to continue growing again over time.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool owns and recommends S&P Global. The Motley Fool recommends Amerco, Camping World Holdings, Marriott International, and STORE Capital and recommends the following options: long January 2023 $115 calls on Marriott International and short March 2022 $32 calls on Camping World Holdings. 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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Most people put their blood, sweat, and tears into their paychecks, but owning shares of real estate investment trusts (REITs) means that you get paid for simply being a part-business owner; no other effort necessary. REITs can own virtually any property type, including residential housing, medical facilities, retail and commercial buildings, office space, and more. Its dividend payout ratio is slightly higher at 87%, but the company has little debt due over the next three years and can continuously raise funds through built-in rent escalators or asset sales.
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STORE Capital Net lease REIT STORE Capital (NYSE: STOR) rents to single-occupant tenants, individual businesses that occupy the whole building, versus buildings like shopping malls or plazas. It builds 2.5% growth into its lease agreements through annual escalators, which help keep STORE's yearly cash flow (called funds from operations) growing year in and year out. The Motley Fool recommends Amerco, Camping World Holdings, Marriott International, and STORE Capital and recommends the following options: long January 2023 $115 calls on Marriott International and short March 2022 $32 calls on Camping World Holdings.
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STORE Capital Net lease REIT STORE Capital (NYSE: STOR) rents to single-occupant tenants, individual businesses that occupy the whole building, versus buildings like shopping malls or plazas. Net leases mean that STORE acquires and leases out its properties, and the tenant pays all of the upkeep, like property taxes, insurance, and maintenance, which means a lower-risk, more predictable income stream for STORE. It builds 2.5% growth into its lease agreements through annual escalators, which help keep STORE's yearly cash flow (called funds from operations) growing year in and year out.
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STORE Capital Net lease REIT STORE Capital (NYSE: STOR) rents to single-occupant tenants, individual businesses that occupy the whole building, versus buildings like shopping malls or plazas. It builds 2.5% growth into its lease agreements through annual escalators, which help keep STORE's yearly cash flow (called funds from operations) growing year in and year out. Public Storage Owning storage facilities could be one of the most overlooked types of property.
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11005.0
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2022-01-25 00:00:00 UTC
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How to Boost Your Portfolio with Top Retail and Wholesale Stocks Set to Beat Earnings
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AAP
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https://www.nasdaq.com/articles/how-to-boost-your-portfolio-with-top-retail-and-wholesale-stocks-set-to-beat-earnings-11
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nan
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nan
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Advance Auto Parts?
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Advance Auto Parts (AAP) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.97 a share, just 21 days from its upcoming earnings release on February 15, 2022.
By taking the percentage difference between the $1.97 Most Accurate Estimate and the $1.95 Zacks Consensus Estimate, Advance Auto Parts has an Earnings ESP of 1.29%. Investors should also know that AAP is just one of a large group of stocks with positive ESPs. All of these qualifying stocks can be filtered by ESP, Zacks Rank, % Surprise (Last Qtr.), and Reporting date.
Using the Zacks Earnings ESP to your advantage is just the start. Make sure to check out the Earnings ESP Home Page for even more earnings-related tips and tricks to design a winning investment portfolio.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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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) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.97 a share, just 21 days from its upcoming earnings release on February 15, 2022. Investors should also know that AAP is just one of a large group of stocks with positive ESPs. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Advance Auto Parts (AAP) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.97 a share, just 21 days from its upcoming earnings release on February 15, 2022. Investors should also know that AAP is just one of a large group of stocks with positive ESPs.
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Advance Auto Parts (AAP) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.97 a share, just 21 days from its upcoming earnings release on February 15, 2022. Investors should also know that AAP is just one of a large group of stocks with positive ESPs. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report Advance Auto Parts (AAP) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $1.97 a share, just 21 days from its upcoming earnings release on February 15, 2022. Investors should also know that AAP is just one of a large group of stocks with positive ESPs.
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11006.0
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2022-01-21 00:00:00 UTC
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First Week of AAP September 16th Options Trading
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AAP
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https://www.nasdaq.com/articles/first-week-of-aap-september-16th-options-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 begin trading this week, for the September 16th expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 238 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 September 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $220.00 strike price has a current bid of $18.30. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $220.00, but will also collect the premium, putting the cost basis of the shares at $201.70 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $227.36/share today.
Because the $220.00 strike represents an approximate 3% 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 60%. 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 8.32% return on the cash commitment, or 12.76% 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 $220.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $230.00 strike price has a current bid of $19.80. If an investor was to purchase shares of AAP stock at the current price level of $227.36/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $230.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.87% if the stock gets called away at the September 16th 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 $230.00 strike highlighted in red:
Considering the fact that the $230.00 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 50%. 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 8.71% boost of extra return to the investor, or 13.36% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 35%, while the implied volatility in the call contract example is 33%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 253 trading day closing values as well as today's price of $227.36) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
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 $230.00 strike highlighted in red: Considering the fact that the $230.00 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 this week, for the September 16th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $230.00 strike highlighted in red: Considering the fact that the $230.00 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 this week, for the September 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new September 16th 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 $230.00 strike highlighted in red: Considering the fact that the $230.00 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 this week, for the September 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new September 16th 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 16th 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 $230.00 strike highlighted in red: Considering the fact that the $230.00 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 this week, for the September 16th expiration.
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11007.0
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2022-01-17 00:00:00 UTC
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Why Advance Auto Parts (AAP) Could Beat Earnings Estimates Again
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-aap-could-beat-earnings-estimates-again
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nan
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nan
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry.
When looking at the last two reports, this auto parts retailer has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 15.36%, on average, in the last two quarters.
For the last reported quarter, Advance Auto Parts came out with earnings of $3.21 per share versus the Zacks Consensus Estimate of $2.78 per share, representing a surprise of 15.47%. For the previous quarter, the company was expected to post earnings of $2.95 per share and it actually produced earnings of $3.40 per share, delivering a surprise of 15.25%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Advance Auto Parts lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Advance Auto Parts has an Earnings ESP of +1.08% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
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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It is worth considering Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
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It is worth considering Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report For the last reported quarter, Advance Auto Parts came out with earnings of $3.21 per share versus the Zacks Consensus Estimate of $2.78 per share, representing a surprise of 15.47%.
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It is worth considering Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry. Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report For the last reported quarter, Advance Auto Parts came out with earnings of $3.21 per share versus the Zacks Consensus Estimate of $2.78 per share, representing a surprise of 15.47%.
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Advance Auto Parts, Inc. (AAP): Free Stock Analysis Report It is worth considering Advance Auto Parts (AAP), which belongs to the Zacks Automotive - Retail and Wholesale - Parts industry. For the last reported quarter, Advance Auto Parts came out with earnings of $3.21 per share versus the Zacks Consensus Estimate of $2.78 per share, representing a surprise of 15.47%.
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11008.0
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2022-01-13 00:00:00 UTC
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Advance Auto Parts Inc Shares Close in on 52-Week High - Market Mover
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-shares-close-in-on-52-week-high-market-mover
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nan
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nan
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Advance Auto Parts Inc (AAP) shares closed today at 1.3% below its 52 week high of $244.55, giving the company a market cap of $14B. The stock is currently down 1.0% year-to-date, up 36.6% over the past 12 months, and up 40.1% over the past five years. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 rose 0.6%.
Trading Activity
Trading volume this week was 18.9% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.8.
Technical Indicators
The Relative Strength Index (RSI) on the stock was between 30 and 70.
MACD, a trend-following momentum indicator, indicates a downward trend.
The stock closed above its Bollinger band, indicating it may be overbought.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by -75.3%
The company's stock price performance over the past 12 months beats the peer average by 74.9%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 250.0% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed today at 1.3% below its 52 week high of $244.55, giving the company a market cap of $14B. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 rose 0.6%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -75.3% The company's stock price performance over the past 12 months beats the peer average by 74.9% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 250.0% higher than the average peer.
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Advance Auto Parts Inc (AAP) shares closed today at 1.3% below its 52 week high of $244.55, giving the company a market cap of $14B. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 rose 0.6%. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -75.3% The company's stock price performance over the past 12 months beats the peer average by 74.9% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 250.0% higher than the average peer.
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Advance Auto Parts Inc (AAP) shares closed today at 1.3% below its 52 week high of $244.55, giving the company a market cap of $14B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by -75.3% The company's stock price performance over the past 12 months beats the peer average by 74.9% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 250.0% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Advance Auto Parts Inc (AAP) shares closed today at 1.3% below its 52 week high of $244.55, giving the company a market cap of $14B. This week, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 rose 0.6%. Technical Indicators The Relative Strength Index (RSI) on the stock was between 30 and 70.
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11009.0
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2022-01-05 00:00:00 UTC
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Pre-Market Most Active for Jan 5, 2022 : CNTB, SQQQ, WEJO, STLA, F, AACG, NKLA, PLTR, PFE, BHP, T, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-jan-5-2022-%3A-cntb-sqqq-wejo-stla-f-aacg-nkla-pltr-pfe-bhp-t
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -68.87 to 16,210.86. The total Pre-Market volume is currently 18,343,446 shares traded.
The following are the most active stocks for the pre-market session:
Connect Biopharma Holdings Limited (CNTB) is -0.25 at $5.45, with 2,483,443 shares traded. As reported by Zacks, the current mean recommendation for CNTB is in the "strong buy range".
ProShares UltraPro Short QQQ (SQQQ) is +0.07 at $6.04, with 2,420,290 shares traded. This represents a 7.28% increase from its 52 Week Low.
Wejo Group Limited (WEJO) is +0.97 at $7.27, with 1,615,862 shares traded. As reported by Zacks, the current mean recommendation for WEJO is in the "strong buy range".
Stellantis N.V. (STLA) is +0.33 at $20.62, with 1,398,459 shares traded. As reported by Zacks, the current mean recommendation for STLA is in the "strong buy range".
Ford Motor Company (F) is -0.15 at $24.16, with 1,363,269 shares traded., following a 52-week high recorded in prior regular session.
ATA Creativity Global (AACG) is -0.49 at $2.06, with 1,135,408 shares traded.
Nikola Corporation (NKLA) is +0.44 at $10.76, with 730,776 shares traded. NKLA's current last sale is 65.21% of the target price of $16.5.
Palantir Technologies Inc. (PLTR) is +0.09 at $18.26, with 630,542 shares traded. PLTR's current last sale is 79.39% of the target price of $23.
Pfizer, Inc. (PFE) is +1.1 at $55.63, with 584,148 shares traded. As reported by Zacks, the current mean recommendation for PFE is in the "buy range".
BHP Group Limited (BHP) is +0.55 at $61.87, with 560,302 shares traded. BHP's current last sale is 104.86% of the target price of $59.
AT&T Inc. (T) is +0.25 at $25.89, with 485,985 shares traded. T's current last sale is 86.3% of the target price of $30.
Apple Inc. (AAPL) is -0.55 at $179.15, with 403,589 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $1.89. 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 -0.55 at $179.15, with 403,589 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 STLA is in the "strong buy range".
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Apple Inc. (AAPL) is -0.55 at $179.15, with 403,589 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 CNTB is in the "strong buy range".
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Apple Inc. (AAPL) is -0.55 at $179.15, with 403,589 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". BHP Group Limited (BHP) is +0.55 at $61.87, with 560,302 shares traded.
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Apple Inc. (AAPL) is -0.55 at $179.15, with 403,589 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -68.87 to 16,210.86.
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11010.0
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2021-12-31 00:00:00 UTC
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Advance Auto Parts (NYSE:AAP) Seems To Use Debt Quite Sensibly
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-nyse%3Aaap-seems-to-use-debt-quite-sensibly
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nan
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nan
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The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. Importantly, Advance Auto Parts, Inc. (NYSE:AAP) does carry debt. But the real question is whether this debt is making the company risky.
When Is Debt A Problem?
Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. If things get really bad, the lenders can take control of the business. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. Of course, plenty of companies use debt to fund growth, without any negative consequences. The first step when considering a company's debt levels is to consider its cash and debt together.
How Much Debt Does Advance Auto Parts Carry?
The chart below, which you can click on for greater detail, shows that Advance Auto Parts had US$1.03b in debt in October 2021; about the same as the year before. On the flip side, it has US$604.6m in cash leading to net debt of about US$429.4m.
NYSE:AAP Debt to Equity History December 31st 2021
How Healthy Is Advance Auto Parts' Balance Sheet?
Zooming in on the latest balance sheet data, we can see that Advance Auto Parts had liabilities of US$4.96b due within 12 months and liabilities of US$3.71b due beyond that. Offsetting this, it had US$604.6m in cash and US$931.8m in receivables that were due within 12 months. So its liabilities total US$7.13b more than the combination of its cash and short-term receivables.
This deficit isn't so bad because Advance Auto Parts is worth a massive US$14.7b, and thus could probably raise enough capital to shore up its balance sheet, if the need arose. But it's clear that we should definitely closely examine whether it can manage its debt without dilution.
We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
Advance Auto Parts's net debt is only 0.36 times its EBITDA. And its EBIT easily covers its interest expense, being 25.3 times the size. So you could argue it is no more threatened by its debt than an elephant is by a mouse. Another good sign is that Advance Auto Parts has been able to increase its EBIT by 22% in twelve months, making it easier to pay down debt. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Advance Auto Parts's ability to maintain a healthy balance sheet going forward. So if you want to see what the professionals think, you might find this free report on analyst profit forecasts to be interesting.
Finally, while the tax-man may adore accounting profits, lenders only accept cold hard cash. So we always check how much of that EBIT is translated into free cash flow. During the last three years, Advance Auto Parts produced sturdy free cash flow equating to 76% of its EBIT, about what we'd expect. This cold hard cash means it can reduce its debt when it wants to.
Our View
The good news is that Advance Auto Parts's demonstrated ability to cover its interest expense with its EBIT delights us like a fluffy puppy does a toddler. But truth be told we feel its level of total liabilities does undermine this impression a bit. Looking at the bigger picture, we think Advance Auto Parts's use of debt seems quite reasonable and we're not concerned about it. While debt does bring risk, when used wisely it can also bring a higher return on equity. Of course, we wouldn't say no to the extra confidence that we'd gain if we knew that Advance Auto Parts insiders have been buying shares: if you're on the same wavelength, you can find out if insiders are buying by clicking this link.
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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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Importantly, Advance Auto Parts, Inc. (NYSE:AAP) does carry debt. NYSE:AAP Debt to Equity History December 31st 2021 How Healthy Is Advance Auto Parts' Balance Sheet? The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.'
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Importantly, Advance Auto Parts, Inc. (NYSE:AAP) does carry debt. NYSE:AAP Debt to Equity History December 31st 2021 How Healthy Is Advance Auto Parts' Balance Sheet? We measure a company's debt load relative to its earnings power by looking at its net debt divided by its earnings before interest, tax, depreciation, and amortization (EBITDA) and by calculating how easily its earnings before interest and tax (EBIT) cover its interest expense (interest cover).
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Importantly, Advance Auto Parts, Inc. (NYSE:AAP) does carry debt. NYSE:AAP Debt to Equity History December 31st 2021 How Healthy Is Advance Auto Parts' Balance Sheet? The first step when considering a company's debt levels is to consider its cash and debt together.
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Importantly, Advance Auto Parts, Inc. (NYSE:AAP) does carry debt. NYSE:AAP Debt to Equity History December 31st 2021 How Healthy Is Advance Auto Parts' Balance Sheet? It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses.
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11011.0
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2021-12-30 00:00:00 UTC
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Advance Auto Parts Inc Shares Near 52-Week High - Market Mover
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-shares-near-52-week-high-market-mover
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nan
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nan
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Advance Auto Parts Inc (AAP) shares closed today at 2.0% below its 52 week high of $242.29, giving the company a market cap of $15B. The stock is currently up 55.4% year-to-date, up 56.2% over the past 12 months, and up 45.7% over the past five years. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%.
Trading Activity
Trading volume this week was 23.6% lower than the 20-day average.
Beta, a measure of the stock’s volatility relative to the overall market stands at 0.8.
Technical Indicators
The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
MACD, a trend-following momentum indicator, indicates an upward trend.
The stock closed below its Bollinger band, indicating it may be oversold.
Market Comparative Performance
The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis
The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis
The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and lags it on a 5 year basis
Per Group Comparative Performance
The company's stock price performance year-to-date beats the peer average by 35.2%
The company's stock price performance over the past 12 months beats the peer average by 37.2%
The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 336.5% higher than the average peer.
This story was produced by the Kwhen Automated News Generator. For more articles like this, please visit us at finance.kwhen.com. Write to editors@kwhen.com. © 2020 Kwhen Inc.
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) shares closed today at 2.0% below its 52 week high of $242.29, giving the company a market cap of $15B. Beta, a measure of the stock’s volatility relative to the overall market stands at 0.8. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 35.2% The company's stock price performance over the past 12 months beats the peer average by 37.2% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 336.5% higher than the average peer.
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Advance Auto Parts Inc (AAP) shares closed today at 2.0% below its 52 week high of $242.29, giving the company a market cap of $15B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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Advance Auto Parts Inc (AAP) shares closed today at 2.0% below its 52 week high of $242.29, giving the company a market cap of $15B. Market Comparative Performance The company's share price is the same as the S&P 500 Index , beats it on a 1-year basis, and lags it on a 5-year basis The company's share price is the same as the Dow Jones Industrial Average , beats it on a 1-year basis, and lags it on a 5-year basis The company share price is the same as the performance of its peers in the Consumer Discretionary industry sector , beats it on a 1-year basis, and lags it on a 5 year basis Per Group Comparative Performance The company's stock price performance year-to-date beats the peer average by 35.2% The company's stock price performance over the past 12 months beats the peer average by 37.2% The company's price-to-earnings ratio, which relates a company's share price to its earnings per share, is 336.5% higher than the average peer. This story was produced by the Kwhen Automated News Generator.
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Advance Auto Parts Inc (AAP) shares closed today at 2.0% below its 52 week high of $242.29, giving the company a market cap of $15B. This week, the Dow Jones Industrial Average rose 2.1%, and the S&P 500 rose 2.1%. Technical Indicators The Relative Strength Index (RSI) on the stock was above 70, indicating it may be overbought.
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11012.0
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2021-12-24 00:00:00 UTC
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22 Safe Dividend Stocks for 22% Returns in 2022
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AAP
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https://www.nasdaq.com/articles/22-safe-dividend-stocks-for-22-returns-in-2022
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nan
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nan
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Let's buy the dip on high-growth dividend payers as we head into 2022. Basic investors are fearful, which means it's time for us contrarians to get greedy.
Thanks to the year-end pullback in stocks, we have an opportunity to double our dividend money even faster than usual. Usually, these moonshot plays aren't so cheap. But we have a "mini" bear market in small caps and other areas of the market to thank for these bargains.
In a moment we'll discuss 22 dividend growth stocks that are poised to double in just a few years. These companies have been growing their payouts so fast that, at this pace, they'll double their payouts in just a few years.
This means that their stock prices are likewise set to double in just a few years. Buying stocks like these is the surest, safest way to "get rich" in the stock market because share prices tend to rise with dividends over time.
How can a dividend grower make so many people rich so fast? Here's an example. I recently pointed out that hospital landlord Medical Properties Trust (MPW) is poised to deliver 9.4% to 10.4% returns per year, every year, for the foreseeable future.
But the stock only pays 5.4% as I write this. So where did I come up with the extra coin?
Well, MPW raises its dividend every year. In fact, the company has hiked its payout six times in the last five years. It is skillfully playing a game of "Hospital Monopoly" where it adds assets regularly. These new hospitals boost the firm's cash flow and then management, in turn, hikes the dividend:
MPW Raised Dividends Six Times in Five Years
Going forward, I have MPW penciled in for another "penny per share" raise next year. And the year after that. And so on.
These pennies add up. They represent 4% to 5% annual gains on the stock's payout. Which means that by 2025, shares will pay $1.28 per share, a sweet jump from today's $1.12.
When 2025 comes around, and we wonder where the first half of the decade went, MPW's yield will have grown to 6%+ thanks to these annual gains. But it's unlikely we'll be able to bank 6%+ on new money. This "yield on cost" will be a deal that can only be snagged by forward-looking investors who bought shares today.
Over time, MPW's share price tends to rise along with its payout. My longtime Contrarian Income Report subscribers know this well from when we originally purchased this dividend powerhouse in 2015. Let's rewind even longer to 2013--a full eight years--which is when MPW began boosting its payout.
Over time, its dividend staircase has been a guiding light for its stock. The price can spike higher or lower, but over time it simply follows the dividend:
Dividend Growth Means Price Appreciation
(Please note that the price line above means price only, not total return, which includes the dividends you are paid and is, of course, higher.)
The reason I don't think we'll see a 6%+ dividend yield deal on MPW in 2025 is that, over the long haul, this stock's price tracks its payout. By then, new investors will probably see a yield of 5% or less, because income investors will continue to realize they should ditch their lame 2%-paying blue chips and hop aboard this hospital landlord.
Which means anyone who owns shares right now is poised to enjoy 4% to 5% annual price gains per year. Shares should cruise north of $25 by 2025, thanks to these dividend increases that will attract new income investors.
Want to make more than 9.4% to 10.4% per year? We have two choices:
Find a double-digit yield that is not only secure, but also growing. (Difficult.)
Find a dividend that is growing by double digits (Doable.)
Here are 22 stocks that make the cut, boasting 15% annual dividend growth rates over the past five years, and that raised their payouts by at least 15% in the past year. I've also grouped them into three years based on just how aggressive they've been with the rate hikes in recent history:
Tier 1
Stocks with anywhere between 15%-20% average annual dividend growth comprise our first tier. And with a couple of exceptions, these represent organic, repeatable income-growth stories that are worth a closer look.
Take Washington, D.C.-area consulting mainstay Booz Allen Hamilton (BAH), for instance. Its 19.4% dividend hike in 2021 is right on par with its five-year average, reflecting years of smooth, steady top- and bottom-line growth. You can thank its strong ties to the government and military for that.
BAH: Refreshing Business Consistency, Even During the Pandemic
Boding well for future dividend expansion is a modest payout ratio of 33%. You'll rarely see a company double its distribution overnight with that kind of coverage--but double-digit hikes are easily achievable, especially if Booz Allen keeps its profits rising apace.
Tier 2
Our second tier--stocks with 20%-30% average annual income growth--is similar to Tier 1 in that many of the dividend histories here look consistent, and that the stocks can be expected to keep up a brisk payout tempo.
Better still: Some stocks appear to be even earlier in their dividend arc.
SS&C Technologies (SSNC) is a prime example. This $20 billion company is a leader in several niche businesses: It's the world's largest hedge fund and private equity administrator, and the world's largest mutual fund transfer agency. It also has its tendrils in a number of other financial functions, and even deals in healthcare information tech.
Revenues more than tripled between 2016 and 2020, from just under $1.5 billion to $4.7 billion. Net income roughly quintupled in that same period, to $625 million.
In a funny way, that almost makes its 220% dividend growth since 2016 look a little on the sluggish side. But present and prospective investors can have a lot of confidence in the current payout, as well as the potential for future raises. SSNC only dishes out about 22% of its profits as dividends.
Tier 3
Unsurprisingly, our third tier--five-year annual dividend growth of 30% or more--includes companies that delivered some of 2021's biggest payout hikes.
Morgan Stanley (MS) made waves by doubling its dividend as part of a wave of financial-sector income announcements this summer. Advance Auto Parts (AAP) made that look like a token increase, juicing its payout by 4x in spring to $1.00 per share.
Both stocks are still paying out less than a quarter of their profits to shareholders as dividends, suggesting oodles more room to keep the good times rolling in the next few years. But in both cases, the sudden dividend jolts were a big departure from their increase histories--especially AAP, which had announced a 317% hike in early 2020 to 25 cents quarterly, but which prior to that had been stuck at 6 cents per share since the early aughts.
Make 15% Every Year--Even During Recessions!
I've added each and every one of these 22 stocks to my near-term watch list and marked them for deeper analysis as we cross into 2022.
What I can't tell you is how many of these 22 stocks will make the cut.
What I can tell you is that I'm already targeting seven dividend-growth dynamos, each of which are flashing all the telltale signs of stocks that are primed to double in just a few years.
It's a bold claim, I know. But I expect each of these seven stocks to deliver a minimum of 15% in returns each year because they ace the so-called "shareholder trifecta," where a stock pays us in three different ways:
With a dividend today.
A payout raise tomorrow (which lifts the share price accordingly).
And by repurchasing shares (less float means more mileage per share on dividends and raises).
These "Hidden Yields" stocks can provide us with a recession-proof retirement. They can even make us as rich as we'd hoped to be in our younger days!
These dividends should pop, pop, pop--and when they do, their share prices will quickly follow. In other words, the best time to buy them is right now--before they soar, not after!
Bull or bear, I don't care. These seven recession-proof dividend stocks are primed to deliver 15% returns per year, every year. Click now to get their names, tickers, buy-in prices and analysis explaining why their dividends are about to explode higher!
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) made that look like a token increase, juicing its payout by 4x in spring to $1.00 per share. But in both cases, the sudden dividend jolts were a big departure from their increase histories--especially AAP, which had announced a 317% hike in early 2020 to 25 cents quarterly, but which prior to that had been stuck at 6 cents per share since the early aughts. Its 19.4% dividend hike in 2021 is right on par with its five-year average, reflecting years of smooth, steady top- and bottom-line growth.
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Advance Auto Parts (AAP) made that look like a token increase, juicing its payout by 4x in spring to $1.00 per share. But in both cases, the sudden dividend jolts were a big departure from their increase histories--especially AAP, which had announced a 317% hike in early 2020 to 25 cents quarterly, but which prior to that had been stuck at 6 cents per share since the early aughts. Here are 22 stocks that make the cut, boasting 15% annual dividend growth rates over the past five years, and that raised their payouts by at least 15% in the past year.
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Advance Auto Parts (AAP) made that look like a token increase, juicing its payout by 4x in spring to $1.00 per share. But in both cases, the sudden dividend jolts were a big departure from their increase histories--especially AAP, which had announced a 317% hike in early 2020 to 25 cents quarterly, but which prior to that had been stuck at 6 cents per share since the early aughts. Buying stocks like these is the surest, safest way to "get rich" in the stock market because share prices tend to rise with dividends over time.
|
Advance Auto Parts (AAP) made that look like a token increase, juicing its payout by 4x in spring to $1.00 per share. But in both cases, the sudden dividend jolts were a big departure from their increase histories--especially AAP, which had announced a 317% hike in early 2020 to 25 cents quarterly, but which prior to that had been stuck at 6 cents per share since the early aughts. Buying stocks like these is the surest, safest way to "get rich" in the stock market because share prices tend to rise with dividends over time.
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11013.0
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2021-12-15 00:00:00 UTC
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Notable Wednesday Option Activity: AAP, LLY, DHI
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AAP
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aap-lly-dhi
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 9,016 contracts has been traded thus far today, a contract volume which is representative of approximately 901,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 132.3% of AAP's average daily trading volume over the past month, of 681,230 shares. Especially high volume was seen for the $160 strike call option expiring January 21, 2022, with 4,000 contracts trading so far today, representing approximately 400,000 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange:
Eli Lilly (Symbol: LLY) saw options trading volume of 31,939 contracts, representing approximately 3.2 million underlying shares or approximately 100.2% of LLY's average daily trading volume over the past month, of 3.2 million shares. Especially high volume was seen for the $300 strike call option expiring January 21, 2022, with 5,628 contracts trading so far today, representing approximately 562,800 underlying shares of LLY. Below is a chart showing LLY's trailing twelve month trading history, with the $300 strike highlighted in orange:
And Horton Inc (Symbol: DHI) saw options trading volume of 27,174 contracts, representing approximately 2.7 million underlying shares or approximately 88.7% of DHI's average daily trading volume over the past month, of 3.1 million shares. Particularly high volume was seen for the $97.50 strike call option expiring December 17, 2021, with 10,746 contracts trading so far today, representing approximately 1.1 million underlying shares of DHI. Below is a chart showing DHI's trailing twelve month trading history, with the $97.50 strike highlighted in orange:
For the various different available expirations for AAP options, LLY options, or DHI options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $160 strike call option expiring January 21, 2022, with 4,000 contracts trading so far today, representing approximately 400,000 underlying shares of AAP. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 9,016 contracts has been traded thus far today, a contract volume which is representative of approximately 901,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 132.3% of AAP's average daily trading volume over the past month, of 681,230 shares.
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Especially high volume was seen for the $160 strike call option expiring January 21, 2022, with 4,000 contracts trading so far today, representing approximately 400,000 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange: Eli Lilly (Symbol: LLY) saw options trading volume of 31,939 contracts, representing approximately 3.2 million underlying shares or approximately 100.2% of LLY's average daily trading volume over the past month, of 3.2 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 9,016 contracts has been traded thus far today, a contract volume which is representative of approximately 901,600 underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 9,016 contracts has been traded thus far today, a contract volume which is representative of approximately 901,600 underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange: Eli Lilly (Symbol: LLY) saw options trading volume of 31,939 contracts, representing approximately 3.2 million underlying shares or approximately 100.2% of LLY's average daily trading volume over the past month, of 3.2 million shares. That number works out to 132.3% of AAP's average daily trading volume over the past month, of 681,230 shares.
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Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange: Eli Lilly (Symbol: LLY) saw options trading volume of 31,939 contracts, representing approximately 3.2 million underlying shares or approximately 100.2% of LLY's average daily trading volume over the past month, of 3.2 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 9,016 contracts has been traded thus far today, a contract volume which is representative of approximately 901,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 132.3% of AAP's average daily trading volume over the past month, of 681,230 shares.
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11014.0
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2021-12-15 00:00:00 UTC
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Advance Auto Parts Inc. (AAP) Ex-Dividend Date Scheduled for December 16, 2021
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc.-aap-ex-dividend-date-scheduled-for-december-16-2021
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nan
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nan
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Advance Auto Parts Inc. (AAP) will begin trading ex-dividend on December 16, 2021. A cash dividend payment of $1 per share is scheduled to be paid on January 03, 2022. Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that AAP has paid the same dividend. At the current stock price of $235.39, the dividend yield is 1.7%.
The previous trading day's last sale of AAP was $235.39, representing a -3.15% decrease from the 52 week high of $243.05 and a 64.44% increase over the 52 week low of $143.15.
AAP is a part of the Consumer Services sector, which includes companies such as O'Reilly Automotive, Inc. (ORLY) and Tractor Supply Company (TSCO). AAP's current earnings per share, an indicator of a company's profitability, is $9.88. Zacks Investment Research reports AAP's forecasted earnings growth in 2021 as 39.35%, compared to an industry average of 33.1%.
For more information on the declaration, record and payment dates, visit the aap Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAP through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAP as a top-10 holding:
Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD)
Global X S&P 500 Quality Dividend ETF (QDIV)
Knowledge Leaders Developed World ETF (KLDW)
Direxion Daily Retail Bull 3X Shares ETF (RETL)
Direxion Daily Consumer Discretionary Bull 3X Shares (WANT).
The top-performing ETF of this group is WANT with an increase of 22.51% over the last 100 days. RCD has the highest percent weighting of AAP at 1.82%.
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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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports AAP's forecasted earnings growth in 2021 as 39.35%, compared to an industry average of 33.1%. For more information on the declaration, record and payment dates, visit the aap Dividend History page.
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. AAP's current earnings per share, an indicator of a company's profitability, is $9.88. The following ETF(s) have AAP as a top-10 holding: Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD) Global X S&P 500 Quality Dividend ETF (QDIV) Knowledge Leaders Developed World ETF (KLDW) Direxion Daily Retail Bull 3X Shares ETF (RETL) Direxion Daily Consumer Discretionary Bull 3X Shares (WANT).
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the aap Dividend History page. The following ETF(s) have AAP as a top-10 holding: Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD) Global X S&P 500 Quality Dividend ETF (QDIV) Knowledge Leaders Developed World ETF (KLDW) Direxion Daily Retail Bull 3X Shares ETF (RETL) Direxion Daily Consumer Discretionary Bull 3X Shares (WANT).
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AAP's current earnings per share, an indicator of a company's profitability, is $9.88. The following ETF(s) have AAP as a top-10 holding: Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RCD) Global X S&P 500 Quality Dividend ETF (QDIV) Knowledge Leaders Developed World ETF (KLDW) Direxion Daily Retail Bull 3X Shares ETF (RETL) Direxion Daily Consumer Discretionary Bull 3X Shares (WANT). Advance Auto Parts Inc. (AAP) will begin trading ex-dividend on December 16, 2021.
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11015.0
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2021-12-11 00:00:00 UTC
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Advance Auto Parts, Inc. (NYSE:AAP) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc.-nyse%3Aaap-looks-like-a-good-stock-and-its-going-ex-dividend-soon
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nan
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nan
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Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Advance Auto Parts, Inc. (NYSE:AAP) is about to go ex-dividend in just four days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. This means that investors who purchase Advance Auto Parts' shares on or after the 16th of December will not receive the dividend, which will be paid on the 3rd of January.
The company's next dividend payment will be US$1.00 per share, and in the last 12 months, the company paid a total of US$4.00 per share. Based on the last year's worth of payments, Advance Auto Parts stock has a trailing yield of around 1.7% on the current share price of $240.04. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Advance Auto Parts has been able to grow its dividends, or if the dividend might be cut.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That's why it's good to see Advance Auto Parts paying out a modest 25% of its earnings. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 20% of its free cash flow as dividends last year, which is conservatively low.
It's positive to see that Advance Auto Parts's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
Click here to see the company's payout ratio, plus analyst estimates of its future dividends.
NYSE:AAP Historic Dividend December 11th 2021
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see Advance Auto Parts's earnings per share have risen 10% per annum over the last five years. Earnings per share have been growing rapidly and the company is retaining a majority of its earnings within the business. Fast-growing businesses that are reinvesting heavily are enticing from a dividend perspective, especially since they can often increase the payout ratio later.
The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Advance Auto Parts has delivered 32% dividend growth per year on average over the past 10 years. It's exciting to see that both earnings and dividends per share have grown rapidly over the past few years.
Final Takeaway
From a dividend perspective, should investors buy or avoid Advance Auto Parts? Advance Auto Parts has been growing earnings at a rapid rate, and has a conservatively low payout ratio, implying that it is reinvesting heavily in its business; a sterling combination. It's a promising combination that should mark this company worthy of closer attention.
Curious what other investors think of Advance Auto Parts? See what analysts are forecasting, with this visualisation of its historical and future estimated earnings and cash flow.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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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Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Advance Auto Parts, Inc. (NYSE:AAP) is about to go ex-dividend in just four days. NYSE:AAP Historic Dividend December 11th 2021 Have Earnings And Dividends Been Growing? Based on the last year's worth of payments, Advance Auto Parts stock has a trailing yield of around 1.7% on the current share price of $240.04.
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NYSE:AAP Historic Dividend December 11th 2021 Have Earnings And Dividends Been Growing? Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Advance Auto Parts, Inc. (NYSE:AAP) is about to go ex-dividend in just four days. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth.
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Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Advance Auto Parts, Inc. (NYSE:AAP) is about to go ex-dividend in just four days. NYSE:AAP Historic Dividend December 11th 2021 Have Earnings And Dividends Been Growing? It's positive to see that Advance Auto Parts's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
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Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Advance Auto Parts, Inc. (NYSE:AAP) is about to go ex-dividend in just four days. NYSE:AAP Historic Dividend December 11th 2021 Have Earnings And Dividends Been Growing? As a result, readers should always check whether Advance Auto Parts has been able to grow its dividends, or if the dividend might be cut.
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11016.0
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2021-12-04 00:00:00 UTC
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Advance Auto Parts (NYSE:AAP) shareholders have earned a 51% return over the last year
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-nyse%3Aaap-shareholders-have-earned-a-51-return-over-the-last-year
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nan
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nan
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The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the Advance Auto Parts, Inc. (NYSE:AAP) share price is up 49% in the last 1 year, clearly besting the market return of around 17% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Also impressive, the stock is up 35% over three years, making long term shareholders happy, too.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Advance Auto Parts was able to grow EPS by 43% in the last twelve months. This EPS growth is reasonably close to the 49% increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. We don't think its coincidental that the share price is growing at a similar rate to the earnings per share.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
NYSE:AAP Earnings Per Share Growth December 4th 2021
We know that Advance Auto Parts has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Advance Auto Parts will grow revenue in the future.
A Different Perspective
It's good to see that Advance Auto Parts has rewarded shareholders with a total shareholder return of 51% in the last twelve months. And that does include the dividend. That's better than the annualised return of 6% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Advance Auto Parts .
But note: Advance Auto Parts may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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 example, the Advance Auto Parts, Inc. (NYSE:AAP) share price is up 49% in the last 1 year, clearly besting the market return of around 17% (not including dividends). NYSE:AAP Earnings Per Share Growth December 4th 2021 We know that Advance Auto Parts has improved its bottom line lately, but is it going to grow revenue? We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
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For example, the Advance Auto Parts, Inc. (NYSE:AAP) share price is up 49% in the last 1 year, clearly besting the market return of around 17% (not including dividends). NYSE:AAP Earnings Per Share Growth December 4th 2021 We know that Advance Auto Parts has improved its bottom line lately, but is it going to grow revenue? Also impressive, the stock is up 35% over three years, making long term shareholders happy, too.
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For example, the Advance Auto Parts, Inc. (NYSE:AAP) share price is up 49% in the last 1 year, clearly besting the market return of around 17% (not including dividends). NYSE:AAP Earnings Per Share Growth December 4th 2021 We know that Advance Auto Parts has improved its bottom line lately, but is it going to grow revenue? Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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For example, the Advance Auto Parts, Inc. (NYSE:AAP) share price is up 49% in the last 1 year, clearly besting the market return of around 17% (not including dividends). NYSE:AAP Earnings Per Share Growth December 4th 2021 We know that Advance Auto Parts has improved its bottom line lately, but is it going to grow revenue? I find it very interesting to look at share price over the long term as a proxy for business performance.
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11017.0
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2021-12-01 00:00:00 UTC
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SPXV's Underlying Holdings Could Mean 11% Gain Potential
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AAP
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https://www.nasdaq.com/articles/spxvs-underlying-holdings-could-mean-11-gain-potential
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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 ProShares ProShares S&P 500 Ex-Health Care ETF (Symbol: SPXV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $108.87 per unit.
With SPXV trading at a recent price near $98.46 per unit, that means that analysts see 10.57% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPXV's underlying holdings with notable upside to their analyst target prices are State Street Corp. (Symbol: STT), Advance Auto Parts Inc (Symbol: AAP), and Aptiv PLC (Symbol: APTV). Although STT has traded at a recent price of $88.97/share, the average analyst target is 15.47% higher at $102.73/share. Similarly, AAP has 14.44% upside from the recent share price of $220.72 if the average analyst target price of $252.58/share is reached, and analysts on average are expecting APTV to reach a target price of $183.28/share, which is 14.30% above the recent price of $160.35. Below is a twelve month price history chart comparing the stock performance of STT, AAP, and APTV:
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
ProShares ProShares S&P 500 Ex-Health Care ETF SPXV $98.46 $108.87 10.57%
State Street Corp. STT $88.97 $102.73 15.47%
Advance Auto Parts Inc AAP $220.72 $252.58 14.44%
Aptiv PLC APTV $160.35 $183.28 14.30%
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 »
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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ProShares ProShares S&P 500 Ex-Health Care ETF SPXV $98.46 $108.87 10.57% State Street Corp. STT $88.97 $102.73 15.47% Advance Auto Parts Inc AAP $220.72 $252.58 14.44% Aptiv PLC APTV $160.35 $183.28 14.30% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPXV's underlying holdings with notable upside to their analyst target prices are State Street Corp. (Symbol: STT), Advance Auto Parts Inc (Symbol: AAP), and Aptiv PLC (Symbol: APTV). Similarly, AAP has 14.44% upside from the recent share price of $220.72 if the average analyst target price of $252.58/share is reached, and analysts on average are expecting APTV to reach a target price of $183.28/share, which is 14.30% above the recent price of $160.35.
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Three of SPXV's underlying holdings with notable upside to their analyst target prices are State Street Corp. (Symbol: STT), Advance Auto Parts Inc (Symbol: AAP), and Aptiv PLC (Symbol: APTV). Similarly, AAP has 14.44% upside from the recent share price of $220.72 if the average analyst target price of $252.58/share is reached, and analysts on average are expecting APTV to reach a target price of $183.28/share, which is 14.30% above the recent price of $160.35. ProShares ProShares S&P 500 Ex-Health Care ETF SPXV $98.46 $108.87 10.57% State Street Corp. STT $88.97 $102.73 15.47% Advance Auto Parts Inc AAP $220.72 $252.58 14.44% Aptiv PLC APTV $160.35 $183.28 14.30% 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 14.44% upside from the recent share price of $220.72 if the average analyst target price of $252.58/share is reached, and analysts on average are expecting APTV to reach a target price of $183.28/share, which is 14.30% above the recent price of $160.35. Three of SPXV's underlying holdings with notable upside to their analyst target prices are State Street Corp. (Symbol: STT), Advance Auto Parts Inc (Symbol: AAP), and Aptiv PLC (Symbol: APTV). Below is a twelve month price history chart comparing the stock performance of STT, AAP, and APTV: Below is a summary table of the current analyst target prices discussed above:
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ProShares ProShares S&P 500 Ex-Health Care ETF SPXV $98.46 $108.87 10.57% State Street Corp. STT $88.97 $102.73 15.47% Advance Auto Parts Inc AAP $220.72 $252.58 14.44% Aptiv PLC APTV $160.35 $183.28 14.30% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPXV's underlying holdings with notable upside to their analyst target prices are State Street Corp. (Symbol: STT), Advance Auto Parts Inc (Symbol: AAP), and Aptiv PLC (Symbol: APTV). Similarly, AAP has 14.44% upside from the recent share price of $220.72 if the average analyst target price of $252.58/share is reached, and analysts on average are expecting APTV to reach a target price of $183.28/share, which is 14.30% above the recent price of $160.35.
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11018.0
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2021-11-16 00:00:00 UTC
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Advance Auto Parts, Inc (AAP) Q3 2021 Earnings Call Transcript
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-q3-2021-earnings-call-transcript
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nan
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nan
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Image source: The Motley Fool.
Advance Auto Parts, Inc (NYSE: AAP)
Q3 2021 Earnings Call
Nov 16, 2021, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Advance Auto Parts Third Quarter 2021 Conference Call.
Before we begin, Ms. Elisabeth Eisleben, Senior Vice President, Communications and Investor Relations, will make a brief statement concerning forward-looking statements that will be discussed on this call. Please go ahead.
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Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Good morning. And thank you for joining us to discuss our Q3 2021 results that we highlighted in our earnings release yesterday. I'm joined today by Tom Greco, our President and Chief Executive Officer; and Jeff Shepherd, our Executive Vice President and Chief Financial Officer. Following their prepared remarks, we'll turn our attention to answering your questions.
Before we begin, please be advised that our remarks today may contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements, including, but not limited to, statements regarding our initiatives, plans, projections and future performance. Actual results could differ materially from those projected or implied by the forward-looking statements.
Additional information about factors that could cause actual results to differ can be found under the captions Forward-Looking Statements and Risk Factors in our most recent Annual Report on Form 10-K and subsequent filings made with the Commission.
Now, let me turn the call over to Tom Greco.
Tom Greco -- President and Chief Executive Officer
Thanks, Elisabeth. And good morning to all of you joining us today. As always, we hope that you and your families are healthy and safe.
I'd like to start by thanking the Advance team and Carquest independents for their hard work and perseverance through these challenging times. Their continued dedication to provide outstanding service to our customers allowed us to deliver another quarter of top line sales growth, adjusted margin expansion and a double-digit increase in earnings per share.
We've been investing in both our team and our business over multiple years to transform and better leverage Advance's assets. In Q3, this helped enable us to comp the comp on top of our strongest quarterly comparable store sales growth of 2020. Specifically, we delivered comp store sales growth of 3.1%, while sustaining an identical two-year stack of 13.3% compared with Q2. As expected, this was led by the continued recovery of our professional business and a gradual improvement in key urban markets.
By putting DIY consumers and Pro customers at the center of every decision we make, we've been able to respond quickly to evolving needs. In Q3, this was highlighted by an overall channel shift back to Professional and a return to stores for DIYers. Within Professional, we're seeing increasing strength in certain geographies, which, like the rest of the country last year as the ongoing return to office of professional workers in large urban markets, catches up with the rest of the country.
Our diversified digital and physical asset base has enabled us to respond rapidly to these changing channel dynamics in the current environment. In addition, we also delivered significant improvements in our adjusted gross margin rate of 246 basis points, led by our category management initiatives.
Our adjusted SG&A costs as a percentage of net sales were 209 basis points higher as we lapped a unique quarter in Q3 2020. As we've discussed over the past year, our SG&A costs were much lower than normal in Q2 and Q3 of 2020. This was due to an unusually high DIY sales mix and actions we took last year during the initial stages of the pandemic, which were not repeated. Overall, we delivered adjusted operating income margin expansion of 37 basis points to 10.4% versus Q3 2020.
Adjusted diluted EPS of $3.21 increased 21.6% compared with Q3 2020 and 31% compared with the same period of 2019. Our year-to-date adjusted earnings per share are up approximately 50% compared with 2020. Year-to-date, our balance sheet remains strong with a 19% increase in free cash flow to $734 million, while returning a record $953 million to our shareholders through a combination of share repurchases and quarterly cash dividend.
Consistent with the front half of the year, there were several industry-related factors, coupled with operational improvements, contributing to our sales growth and margin expansion in Q3. As discussed in our April investor presentation, the three primary external drivers of industry demand are still improving versus prior year and the outlook remains positive.
The car park continues to grow slightly. The fleet is aging and perhaps most importantly vehicle miles driven continue to improve versus both 2020 and 2019. More broadly, the chip shortage continues to impact availability of new vehicles and is contributing to a surge in used car sales. This benefits our industry as consumers are repairing and maintaining their vehicles longer.
As we all know, over the last 18 months, the pandemic changed consumer behavior across our industry, which led to a surge in DIY omnichannel growth in 2020, while the Professional business declined. However, as the economy continues to reopen, with miles driven steadily increasing, our Professional business is now consistently exceeding pre-pandemic levels as discussed last quarter.
Regional performance was led by the Southwest and West. Category growth was led by brakes, motor oil and filters as miles driven reliant categories improved versus the softer 2020. We also saw continued strength in DieHard batteries, which led the way on a two-year stack basis. Each of these categories performed well as a result of the diligent planning between our merchant and supply chain teams, enabling a strong competitive position despite global supply chain disruptions.
At the same time, we experienced challenges in Q3 as we strategically transitioned tens of thousands of undercar and engine management SKUs to own brand. Importantly, these in-stock positions are now significantly improved and we're confident these initiatives will help drive future margin expansion.
Overall, comp sales were positive in all three periods of Q3, led by Professional. DIY omnichannel delivered slightly positive comp growth in Q3, while lapping high double-digit growth than the prior year. Within Professional, we navigated a very challenging global supply chain environment to allow us to say yes to our customers. The investments we've made in our supply chain, inventory positioning and in our dynamic assortment tool help put us in a favorable position competitively. We've implemented the dynamic assortment tool in all company-owned US stores as well as over 800 independent locations.
Our MyAdvance portal and embedded Advance Pro catalog continues to be a differentiator for us, while driving online traffic. Our online sales to Professional customers continues to grow as we strengthen the speed and functionality of Advance Pro. We remain committed to providing our industry-leading assortment of parts for all Professional customers. This will help enable us to grow first call status and increase share of wallet in a very fragmented market.
In addition, we expanded DieHard to our Professional customers. Following a recent independent consumer survey, DieHard stake disclaims as America's most trusted auto battery. During Q3, we announced a multi-year agreement with our national customer Bridgestone to sell DieHard batteries in more than 2,200 tire and vehicle service centers across the United States. With this systemwide rollout during Q3, we replaced their previous battery provider, making us the exclusive battery supplier across all Bridgestone locations.
In terms of our independent business, we added 16 net new independent Carquest stores in the quarter, bringing our total to 44 net new this year. We continue to grow our independent business through differentiated offerings for our Carquest partners, including our new Carquest by Advance banner program, which we announced earlier this month. As we continue to build and strengthen the Advance brand and our DIY business, Carquest by Advance adds DIY relevance for our Carquest-branded independent partners, while providing incremental traffic and margin opportunities. We've recently enrolled this new initiative out to our independent partners and look forward to further expansion over time for both new and existing Carquest independents.
Transitioning to DIY omnichannel, comparable store sales were slightly positive in Q3. As you'll recall, our DIY omnichannel business reported strong double-digit comp sales growth in Q3 2020. We continue to enhance our offerings and execute our long-term strategy to differentiate our DIY business and increased market share. In Q3, we continue to leverage our Speed Perks loyalty program as VIP membership grew by 13% and our number of ELITE members, representing the highest tier of customer spend, increased 21%.
Last year, the launch of our Advance Same Day suite of services helped enable a huge surge in e-commerce growth. This year, as DIYers return to our stores, in-store sales growth led our DIY sales growth. Part of this was expected due to a planned reduction in inefficient online discounts, which significantly increased gross margins.
Turning to margin expansion. We again increased our adjusted operating income margin in the quarter. Like Q2, this was driven by category management actions within gross margin, where our key initiatives played a role. First, we are realizing benefits from our new strategic pricing tools and capabilities. Like other companies, we're experiencing higher-than-expected inflation. However, our team has been able to respond rapidly in this dynamic environment as industry pricing remains rational. Behind strategic sourcing, vendor income was positive versus the previous year with continued strong sales growth.
Finally, double-digit revenue growth in own brand outpaced our overall growth in the quarter as we expanded the Carquest brand into new category. Carquest products have a lower price per unit than comparable branded products, which reduced comp and net sales growth in the quarter as expected. At the same time, the margin rate for own brands is much higher and contributed to the Q3 adjusted gross margin expansion.
Shifting to supply chain. We continue to make progress on our productivity initiatives. In Q3, the benefits from these initiatives were more than offset by widely documented disruptions and inflationary pressure within the global supply chain. As a result, we did not leverage supply chain in the quarter. We completed the rollout of cross-banner replenishment, or CBR, for the originally planned group of stores in the quarter. The completion of this milestone is driving cost savings through a reduction in stem miles from our DCs to stores. Over the course of our implementation, our team identified additional stores that will be added over time.
Secondly, we're continuing the implementation of our new Warehouse Management System, or WMS. This is helping to deliver further improvements in fill rate, on-hand accuracy and productivity. We successfully transitioned to our new WMS in approximately 36% of our distribution center network as measured by unit volume. As previously communicated, we follow WMS with a new Labor Management System, or LMS, which drive standardization and productivity. We are on track to complete the WMS and LMS implementations by the end of 2023 as discussed in April.
Further, our consolidation efforts to integrate WORLDPAC and Autopart International, known as AI, are also on track to be completed by early next year. This is enabling accelerated growth, gross margin expansion and SG&A savings. Gross margin expansion here comes behind the expanded distribution of AI's high margin owned brand products, such as shocks and struts, to the larger WORLDPAC customer base.
Finally, as we expand our store footprint, we're also enhancing our supply chain capabilities on the West Coast with the addition of a much larger and more modern DC in San Bernardino. This facility will serve as the consolidation point for supplier shipments for the Western US and enable rapid e-commerce delivery. In addition, we began to work to consolidate our DC network in the Greater Toronto area. Two separate distribution centers, one Carquest and one WORLDPAC will be transitioned into a single brand-new facility that will allow us to better serve growing demand in the Ontario market.
Turning to SG&A. We continue to execute our initiatives, both sales and profit per store along with the reduction of corporate SG&A. As previewed on our Q2 call, we also faced both planned and unplanned inflationary cost pressure versus the prior year in Q3. SG&A headwinds include higher than planned store labor cost per hour, higher incentive compensation and increased delivery costs associated with the recovery of our Professional business. Jeff will discuss these and other SG&A details in a few minutes. We remain on track with our sales and profit per store initiative, including our average sales per store objective of $1.8 million per store by 2023.
In terms of new locations year-to-date, we've opened 19 stores, six new WORLDPAC branches and converted 44 net new locations to the Carquest independent family. This puts our net new locations at 69, including stores, branches and independents during the first three quarters. Separately, we're actively working to convert the 109 locations in California we announced in April.
However, we're experiencing construction-related delays, primarily due to a much slower-than-normal permitting process. This is attributable to more stringent guidelines associated with COVID-19, which were exacerbated by the surge of the Delta variant. We now expect the majority of the store openings planned for 2021 to shift into 2022. As a result, we're incurring start-up costs within SG&A for the balance of the year, while realizing less than planned revenue and income. The good news is, we remain confident that once converted, these stores will be accretive to our growth trajectory.
The final area of margin expansion is reducing our corporate and other SG&A costs. We began to realize some of the cost benefits related to the restructuring of our corporate functions announced earlier this year, in addition to savings from our continued focus on team member safety.
In Q3, we saw a 22% reduction in our total recordable injury rate compared with the prior year. Our lost time injury rate improved 14% compared with the same period in 2020. Our focus on team member safety is only one component of our ESG agenda at Advance.
Our vision advancing a world in motion is demonstrated by the objective we outlined last April to deliver top quartile total shareholder return in the 2021 through 2023 timeframe. While delivering this goal, we're also focused on ESG. As part of this commitment, we launched our first materiality assessment earlier this year to help prioritize ESG initiatives. During Q3, we completed this assessment and are working to finalize the findings. The results will be incorporated in our 2021 Corporate Sustainability Report, which we expect to publish in mid-2022.
Before turning the call over to Jeff, I want to recognize all team members and generous customers for their contribution to our recent American Heart Association campaign. This year, we introduced a new technology solution in stores that allows customers to round up at the point of sale. This made it even easier for customers to participate and helped us achieve a record-setting campaign of $1.7 million. The mission of this organization is important to all of us across the Advance family. And I want to personally thank everyone for helping making this our most successful campaign to-date.
With that, I'll turn it over to Jeff for more details on our financial performance.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Thanks, Tom. And good morning. I would like to start by thanking our team members who prioritize the health and safety of our customers and fellow team members while continuing to deliver exceptional results through an uncertain and challenging times.
In Q3, our net sales increased 3.1% to $2.6 billion. Adjusted gross profit margin improved 246 basis points to 46.2%, primarily the result of our ongoing category management initiatives, including strategic pricing, strategic sourcing, own brand expansion and favorable product mix. Consistent with last quarter, these were partially offset by inflationary product and supply chain costs as well as an unfavorable channel mix.
In the quarter, same SKU inflation was approximately 3.6%, which was part of [Phonetic] our plan entering the year and was by far the largest headwind we had to overcome within gross profit. We're working with all our supplier partners to mitigate costs where possible.
Year-to-date, adjusted gross margin improved 184 basis points compared with the same period of 2020. As expected, our Q3 SG&A expenses increased due to several factors we discussed earlier in the year. As a percent of net sales, our adjusted SG&A deleveraged by 209 basis points, driven primarily by labor costs, which included a meaningful cost per hour increase as well as higher incentive compensation compared to the prior year.
In addition, we incurred higher delivery expenses related to serving our Professional customers and approximately $10 million in start-up costs related to the conversion of our California locations in Q3. Year-to-date, SG&A as a percent of net sales was relatively flat compared to the same period of 2020, increasing 9 basis points year-over-year.
While we've reduced our COVID-19-related costs by $13 million year-to-date, the health and safety of our team members and customers continues to be our top priority. Our adjusted operating income increased to $274 million in Q3 compared to $256 million one year ago. On a rate basis, our adjusted OI margin expanded by 37 basis points to 10.4%. Finally, our adjusted diluted earnings per share increased 21.6% to $3.21 compared to $2.64 in Q3 of 2020. Compared with 2019, adjusted diluted EPS was up 31% in the quarter.
Our free cash flow for the first nine months of the year was $734 million, an increase of 19% versus last year. This increase was primarily driven by improvements in our operating income as well as our continued focus on working capital metrics, including our accounts payable ratio, which expanded 351 basis points versus Q3 2020. Year-to-date through Q3, our capital investments were $191 million.
We continue to focus on maintaining sufficient liquidity, while returning excess cash to shareholders. In Q3, we returned approximately $228 million to our shareholders through the repurchase of 1.1 million shares at an average price of $205.65. Year-to-date, we've returned approximately $792 million to our shareholders through the repurchase of nearly 4.2 million shares at an average price of $189.43. Since restarting our share repurchase program in Q3 of 2018, we returned over $2 billion in share repurchases at an average share price of approximately $164. Additionally, we paid a cash dividend of $1 per share in the quarter totaling $63 million.
As we mentioned in our press release yesterday, our Board once again approved a quarterly cash dividend of $1 per share. We remain confident in our ability to generate meaningful cash from our business and expect to return excess cash to our shareholders in a balanced approach between dividends and buybacks.
As you saw in the yesterday's 8-K filing with the SEC, we recently closed the refinancing of our new five-year revolving credit facility. The prior facility was set to mature in January 2023. And the bank markets have returned to pre-pandemic levels, we took the opportunity to secure our liquidity for another five years. This included improved pricing and terms while also increasing the overall facility size to $1.2 billion. We have strong relationships with our banks. And this commitment allows us to secure future financial flexibility. More details of this facility can be found in our 8-K filings.
Turning to our updated full year outlook. We are increasing 2021 sales and profit guidance to reflect the positive results year-to-date and our expectations for the balance of the year. Through the first four weeks of Q4, we're continuing to see sales strength in our two-year stack, remaining in line with what we delivered in the last two quarters. This guidance incorporates continued top-line strength, ongoing inflationary headwinds and up to an additional $10 million in start-up costs in Q4 related to our West Coast expansion.
As discussed, the construction environment in California remains challenging, resulting in a reduction of our guidance from new store openings and capital expenditures. As a result, we're updating our full year 2021 guidance to net sales of $10.9 billion to $10.95 billion, comparable store sales of 9.5% to 10%, adjusted operating income margin rate of 9.4% to 9.5%, a minimum of 30 new stores this year, a minimum of $275 million in capex and a minimum of $725 million in free cash flow.
In summary, we're very excited about our current momentum. We remain focused on the execution of the long-term strategy, while delivering top quartile total shareholder return over the 2021 to 2023 time frame.
Now, let's open the call for your questions. Operator?
Questions and Answers:
Operator
[Operator Instructions] And your first question comes from the line of Michael Lasser from UBS. Your line is open.
Michael Lasser -- UBS -- Analyst
Good morning. Thanks a lot for taking my question. The two-year stacks were steady this quarter versus last quarter, but the implied DIFM comp at Advance realized this quarter was lower than its competitors. What would be causing your share to lag in this environment, especially as you leverage these geographies that are going to recover probably faster than other areas?
Tom Greco -- President and Chief Executive Officer
Hey. Good morning, Michael. Well, first of all, on the geography front, our leading geographies were the West and Southwest, which are two of our smaller regions. We're really excited about our performance out there. We're gaining share out there, but they're smaller. We haven't seen the Northeast come back at the level we would have liked on a two-year stack basis. So that's kind of the geography point.
I think, just to go back to the framework we shared in April. We're targeting top quartile total shareholder return. And there's three components to that. The first one is comp sales and it's very important. I mean, we've got 7% of the industry sales and we want to grow above the market and comp sales are very important. The second is to significantly expand our margins. And the third is to return a substantial amount of cash back to our shareholders.
We think we've got a unique opportunity as a company. With top quartile, we said we would deliver 20% to 22% total shareholder return over the next couple of years. And we delivered about 22% EPS growth in the quarter. So we think that's going to stack up really well. I will say that, we wish our comp sales would have been higher in the quarter. And I think the thing that we called out in the script pertain to a couple of categories that we made a pretty big change in. I think our supply chain and merchant team did a terrific job on the sourcing front in terms of brakes and batteries and filters. We had a very strong quarter on those categories.
In terms of engine management and steering and suspension, we transitioned tens of thousands of SKUs in the quarter to Carquest own brand. And given the current global supply chain environment, it was just challenging. They've got -- our in-stocks were just not where we wanted them to be overall and, in the end, I think in the quarter, the category changes we made ended up giving us some short-term pain in the quarter, but it's definitely for long-term gain. This is a huge move for us.
We're in much better shape now than we were this summer and our customers love this product. It's a great product, it's OE quality, it's selling extremely well. Our in-stock rates are improving. And obviously, we love the margin rate. So, we didn't like the in-stock this summer on those categories, but the move is highly consistent with our plan to drive total shareholder return. And we believe that it will be a big margin driver for us next year into 2022.
Michael Lasser -- UBS -- Analyst
Understood. My follow-up question, have those issues already been addressed such that they're having less of an impact on the business? And more significantly, what's the path to the 2023 operating margin target? Should the margin expansion be pretty consistent in 2022 and 2023 or are you expecting more like a hockey stick inflection in 2023, given some of the moving dynamics that are going on?
Tom Greco -- President and Chief Executive Officer
Sure. I'll take the first one. I would say, we're in much better shape on those categories. I don't think we're where we want to be at this point. But we're in much better shape and it's improving every week. I'll let Jeff talk to the cadence of our margin expansion going forward.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah, sure. In terms of overall margin expansion over the next couple of years, first of all, we'll provide guidance for '22 here in February. But overall, the way we're thinking about it is relatively consistent growth from our margin expansion initiatives. Now, some are faster than others but, in the aggregate, we expect contributions relatively evenly over '22 and '23.
Michael Lasser -- UBS -- Analyst
Thank you so much.
Operator
Your next question comes from the line of Bobby Griffin from Raymond James. Your line is open.
Mitch Ingles -- Raymond James -- Analyst
Hey, everyone. This is Mitch Ingles filling in for Bobby. Congrats on another nice quarter. So, your gross margin rate ex-LIFO impact has improved roughly 250 basis points over the past two quarters, which is impressive given the current retail environment. How should we think about your gross margin performance in 4Q and how that correlates to your FY '21 either [Phonetic] rate outlook of 9.4% to 9.5%?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah, sure. I'll start with the second part first. What we've said really going into the back half is, our margin expansion overall was going to be led by gross margin, largely in line with those category management initiatives that we just talked about. So that's really going to be the contributing factor. SG&A, we've said at this point, is either going to be flat or a slight headwind. So we really think the growth that we're going to see this year is all up in gross margin. Fourth quarter, largely a lot of the same. We think we have the pricing power to sustain. We're going to continue with our strategic sourcing. And as Tom just mentioned, with the challenges behind us, we're going to continue to see benefits from the own brand expansion.
Mitch Ingles -- Raymond James -- Analyst
Got it. Thanks, Jeff. And then, as a follow-up, inventory levels are likely not optimal given all the product strains [Phonetic] across retail. And how much of this is actually pressuring sales? And what I'm getting at is, are customers simply substituting out-of-stock product with in-stock product or is this actually hurting the conversion rate? So any insight here would be helpful. Thank you.
Tom Greco -- President and Chief Executive Officer
Sure. I'll take that one, Bobby. I mean, first of all, as I mentioned, on the big categories, brakes and batteries, we've been in good shape the whole time. In fact, I would say, we've been advantaged competitively on those categories. And for sure, we're seeing that, as we start this quarter, steering and suspension, engine management and big, big DIFM categories. We're really pleased that that's coming back in.
And in some cases, certainly in the summer where we were making a transition and we didn't have something that we would have lost that sale. I don't know that we were able to pick up everything that we would have liked in the summer. But as that comes back in, we're starting to see those categories bounce back nicely. And obviously, there are certain occasions where you've got an application that you've got an alternative for, but there are others where you just don't. So, the moral of the story is, I think we're in much better shape now than we were in the third quarter and we're seeing that in our early performance.
Mitch Ingles -- Raymond James -- Analyst
Great to hear. Thanks for the color.
Operator
Your next question comes from the line of Christopher Horvers from JPMorgan. Your line is open.
Christian Carlino -- JPMorgan -- Analyst
Hi, good morning. It's Christian on for Chris. On the long-term margin outlook, you had spoken to 280 to 290 basis points of inflation in your 2023 margin target. How are you thinking about both the magnitude of that as well as the mix of SG&A and gross margin impact?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. Certainly, as we look at it in the short-term, we'll be exceeding that in terms of the inflation that we're seeing across the P&L. So that's the combination of input costs, product costs, transportation, wages, fuel, what have you. So, if we were to go back now and look at it, I think we would be adding more to that. But we also have opportunities in the form of really the category management. And in particular, we've been extremely pleased with our ability to pass this on in the form of price. So our strategic pricing has been proven to be able to offset that so far.
Christian Carlino -- JPMorgan -- Analyst
Got it. That's really helpful. And then, in terms of the monthly cadence, could you speak to how DIY and Do-It-For-Me trended through the quarter? And any comments on whether increasing inflation drove an acceleration in trends through the quarter?
Tom Greco -- President and Chief Executive Officer
Sure. Well, the short answer is, DIFM is continuing to recover as we expected, but we are encouraged by the strength and resiliency of the DIY business, which has pretty consistently performed above our expectations throughout the year. And the Pro, once again, wasn't a surprise. We felt it was going to leave the way as people return to offices and school and started to travel again for both personal and business. These kind of consumer dynamics that were created by the pandemic created an increased need for people having their vehicle. It's been a positive on miles driven and our industry overall.
But in terms of DIY, we've seen some interesting and also positive trends. You've got consumers picking up hobbies like they're detailing their cars. You've got people keeping their cars longer because they can't find a new one, they're buying recreational vehicles to visit parts of the country they've never seen before. And even in urban markets, you've got some people that have bought cars because they're no longer comfortable with mass transit. So it's difficult to say how sticky some of these trends are going to be, but we're seeing robust demand across both DIY and DIFM. And we're excited by that. It's a very good time for the industry.
Christian Carlino -- JPMorgan -- Analyst
Great. Thank you for that and best of luck.
Tom Greco -- President and Chief Executive Officer
Thanks.
Operator
Our next question comes from the line of Simeon Gutman from Morgan Stanley. Your line is open.
Jacquelyn Sussman -- Morgan Stanley -- Analyst
Hi. This is Jackie Sussman on for Simeon. We were wondering, we saw that operating income grew 7% to 8% in quarter three on a 3% comp. And if you continue to comp around this level, can EBIT dollar growth be even stronger? I guess, the reason we're asking is to hit that high end of the 10.5% to 12.5% margin guidance by '23. Does EBIT need to grow quicker? Thanks so much.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. I mean, first of all, just looking into the last quarter here, we've incorporated with the continued top line strength that we saw for the first four weeks, also balancing that with the ongoing inflationary headwinds and then up to another $10 million of start-up costs in the fourth quarter related to our West Coast expansion. So, we maintain the first four weeks, we believe there would be upside to the full year results for 2021. I would keep in mind though that our fourth quarter is historically the most volatile. So we're being cautious there. Over the longer-term, again, I would take you back to the April investor event. We're laser-focused on our margin expansion initiatives. I mean, we're very confident that as we continue to execute those, it will provide us the margin rates that we're looking for that will get us well into that 10.5% to 12.5%.
Jacquelyn Sussman -- Morgan Stanley -- Analyst
Great. Thanks so much. And just a quick follow-up. How should we think about supply chain costs in the context of achieving that 10.5% to 12.5% EBIT margin target? Does it kind of preclude from hitting the high end? Thanks so much.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Well, we're continuing to execute our plans on supply chain. Each of the big initiatives we have are going to play a role in taking unnecessary costs out of our supply chain. As we highlighted in the prepared remarks, we are seeing inflation in basically wages in distribution centers, traffic and freight that are above what we expected. But that's not going to stop us from executing our plan. We're going to continue to execute all the initiatives. Supply chain is a big part of taking costs out of our system and we're going to execute those plans over the next couple of years.
Jacquelyn Sussman -- Morgan Stanley -- Analyst
Thanks so much. Congrats on a great quarter.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Thanks.
Operator
Your next question comes from the line of Zach Fadem from Wells Fargo. Your line is open.
Zach Fadem -- Wells Fargo Securities -- Analyst
Hey. Good morning. Tom, can we start with your commentary about DIY turning positive in the quarter. But first of all, did this include every period in the quarter as well as the quarter as a whole? And then, in terms of broader DIY demand, is it fair to say that DIY has improved on a two-year basis or is that trend decelerating?
Tom Greco -- President and Chief Executive Officer
Well, first of all, given the cadence as we talked about in our prepared remarks, Zach, was pretty consistent through the quarter. We did see some acceleration toward the end of the quarter. In terms of DIY overall, as I mentioned a minute ago, I mean, really, really pleased with the resiliency of it. It's really fun in there. A lot of the initiatives that we put in place over the last couple of years, including the launch of DieHard, our battery business continues to perform well. It's a big category within DIY. Our Speed Perks loyalty program is gaining momentum. Our percent of transactions increased in the quarter. And I think our field team is really executing well on the DIY initiatives. So, I'm not going to comment on the two-year stack specifically, but it's been very resilient and we're very pleased with how it's going and we're going to continue to drive DIY. It's an important part of our equation.
Zach Fadem -- Wells Fargo Securities -- Analyst
Got it. And then, on the impact of accelerating inflation, can you talk about any changes you're seeing to consumer behavior, volume or trade down as well as the competitive pricing landscape? And in your mind, is there a level of inflation out there where it gets to be too much and the consumer starts to push back?
Tom Greco -- President and Chief Executive Officer
Well, obviously, particularly in DIY, where you do have an economically challenged customer, we're very cautious about that, top exactly to your point. The thing that I feel good about is, as we've made some transition into own brand products, we're able to offer products at a lower price point than we give people some options, right, to potentially purchase something that was more expensive from a national branded standpoint.
So, I mentioned the change with steering and suspension and engine management, we've got a terrific product that's at a lower price point. So that gives the customer some options that honestly we didn't have before. And we have the advantage of that being a much higher margin than the alternatives. So, I am concerned about it. We're going to watch it very closely. You want to make sure that when we're driving these initiatives that we're wary of what's the implication going to be on the price point. I mean, there's a comp catch, right. When the customer trades down, you've got a lower price per unit on some of these own brand products, but it gives the customer an alternative and it gives you an incremental transaction that you might not have otherwise been able to achieve.
Zach Fadem -- Wells Fargo Securities -- Analyst
Make sense. I appreciate the time.
Tom Greco -- President and Chief Executive Officer
Thank you.
Operator
Your next question comes from the line of Bret Jordan from Jefferies. Your line is open.
Bret Jordan -- Jefferies -- Analyst
Hey. Good morning, guys.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Good morning.
Bret Jordan -- Jefferies -- Analyst
You're a 3.6% same-SKU inflation sort of at sort of low end of the peer range, which is kind of running toward the 5s. I mean, how do you see the cadence of the inflation? Are you still sort of picking up price as your supply chain costs are passed through? Could you talk about where you see inflation maybe being into the fourth quarter and first half of '20 through '22?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. We definitely think the inflation is going to continue and it's going to be higher going into the fourth quarter. We are still seeing those cost increases coming through, so we absolutely anticipate that it will be higher. It will be higher than the 3.6% that we called out in the third quarter. For the year, we're still very comfortable with the range that we put out there of 2% to 4%. We're working through '22. We haven't given our guidance yet. We'll do that in February, but we certainly don't think that this turns off when the calendar turns to 2022. So, certainly in the first half, it's going to continue to be a challenge, but we're going to continue to work through that and we think we still have pricing capabilities to offset that.
Bret Jordan -- Jefferies -- Analyst
Okay. Great. And on the chassis topic, it did sound like that was kind of tough in the quarter. It sounds like it's resolved itself. But do you have any ability to quantify maybe what the impact in chassis out-of-stock was on your comp?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. I mean, we're not going to break that out, Bret. What I can tell you is, there's two elements there. There's the price per unit trade down, right, which was meaningful in the quarter. Once again, the absolute dollars and the profit margin per unit, the profit margin rate per unit is very attractive, but the net sales per unit is just lower. And then, on the in-stock front, we made -- it's literally tens of thousands of SKUs, as we mentioned. So we made the change. We debated this as we exited last year and into this year. We knew it was going to be a big change. We're in the middle of the pandemic. The supply chain was a question mark a little bit, but the reality is we wanted to get this behind us. It's an important margin driver for our future margin expansion plans. It's a big TSR driver for us. And we're pleased that we're able to put the -- make that change in the time frame that we did.
Bret Jordan -- Jefferies -- Analyst
I guess, on that in-stock topic, if you think about your fill rates today versus where they were through the quarter, could you talk about the cadence of fill rates and maybe where we are versus target right now?
Tom Greco -- President and Chief Executive Officer
Yeah. It's definitely moved up significantly. Since the middle of the summer, it's been steadily improving. Every week, it gets better. I mean, obviously we've commissioned new suppliers to come in and make the Carquest product. And again, I'm going to reiterate, this is a terrific product. Our customers and our field team love the product. So, in terms of customer receptiveness, it's been extremely high. The return rates are much lower. So when we get it in across the board, we're in very, very good shape. So, there was a significant improvement though to your question, from, say, August, which is probably when it was the most challenged into now, which, as evidenced by our quarter-to-date sales, we feel pretty good about where we are now with a little bit of room to go to get it to where we want it to be.
Bret Jordan -- Jefferies -- Analyst
Okay. That statement applies to all inventory or just the chassis category August to present?
Tom Greco -- President and Chief Executive Officer
It's really -- think about chassis and also engine management, that's the other big one.
Bret Jordan -- Jefferies -- Analyst
All right. But if you look at -- you just said inventory in general, would you say it is improving your total in-stocks?
Tom Greco -- President and Chief Executive Officer
Yeah. Our inventory is strong in categories like brakes, batteries, filters, as I mentioned. I think relatively speaking, we track this versus peers all the time. And we feel very good about those categories. It was really the categories where we made this huge transition that were most challenged.
Bret Jordan -- Jefferies -- Analyst
Okay, great. Thank you.
Operator
Your next question comes from the line of Seth Basham from Wedbush. Your line is open.
Seth Basham -- Wedbush -- Analyst
Thanks a lot. And good morning. My question is around the implied operating [Technical Issues] for the fourth quarter. It implies a bit more of a step down than is typical this time of the year from the third quarter to the fourth quarter at least on a pre-pandemic basis. Are there any things you can point to that are driving a more material step down in operating margin sequentially?
Tom Greco -- President and Chief Executive Officer
Overall, we're just trying to be very cautious in terms of how we approach the fourth quarter. As I said earlier, it's historically volatile. We do know we're going to have start-up costs in the fourth quarter similar to what we saw in the third quarter, which is not something you would have seen last year. And we think that could be up to $10 million. So that would certainly be something that we have contemplated as part of that fourth quarter. But as we said, we got off to a great start. And certainly if we were to maintain that -- maintain the first four weeks, we believe there would certainly be upside. So, right now, we're just being very cautious given the volatility of the fourth quarter.
Seth Basham -- Wedbush -- Analyst
Got it. Thank you. And my follow-up question is around capitalized supply chain costs has been an important driver of gross margins in the recent quarters. I don't think you called it out this quarter. Can you give us some insight into what's happening with that metric and how to think about it over the next couple of quarters?
Tom Greco -- President and Chief Executive Officer
Sure. For the quarter, it was actually fairly small. It was a slight tailwind, but really nothing significant to call out. We expect that's going to continue into the fourth quarter. We'll give more insights to '22 in February. But I would expect something similar in the fourth quarter that we saw in the third quarter. The real driver of gross profit are the category management items that we pointed out strategic pricing, strategic sourcing and the introduction of the owned brands. And these are all things that we have a lot of control over, we feel really good about it.
Seth Basham -- Wedbush -- Analyst
Great to hear. Thanks a lot and good luck.
Tom Greco -- President and Chief Executive Officer
Thanks, Seth.
Operator
Your next question comes from the line of Michael Montani from Evercore ISI. Your line is open.
Michael Montani -- Evercore ISI -- Analyst
Hey. Thanks for taking the question. Just wanted to ask on the fourth quarter guidance, I was getting to around a 4%, 4.5% comp kind of being implied, which suggests maybe like a 1% to 3% comp for the rest of the quarter. Just wanted to see if there's anything in particular we should be mindful of or if it speaks more to kind of the volatility that you all have been mentioning?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah, it really speaks to the volatility. Like I said, we want to be cautious going into the fourth quarter. It's our lowest revenue quarter of the year. So when we've got a fixed cost in SG&A, like we have, having that lower top line revenue makes it a little bit harder to flow it through and we just want to be cautious. We've seen volatility in the past. And while we're off to a great start, we would want to make sure that we're being cautious as we finish out the year.
Michael Montani -- Evercore ISI -- Analyst
Okay. Thanks. And then, for the follow-up, if I could, on the third quarter comp, can you give some extra color in terms of what happened with transaction counts, if possible, for DIY and DIFM? Was the 3.1% comp basically all the 3.6% inflation or was there also some impact there as well?
Tom Greco -- President and Chief Executive Officer
Well, our transactions were down in the quarter primarily due to DIY, which is the majority of our total transactions, Michael. If you remember, last year we had very robust transaction growth in DIY. On the Pro side, our sales per account up double-digits. And if I look at our transactions with the largest segment of accounts, it was up significantly on both a one and two-year basis. The big strategic accounts, our TechNet customers, we're really pleased to be growing our share of wallet with our biggest accounts because that really drives more loyalty. It means we're selling more of the whole job to the customer. There's obviously a lot of variables that go into the transaction growth, changing vehicle technology, shipping channel dynamics. We love to get the whole job in one transaction for our Pro customers, which is always the goal. So, we're very focused on growing both transactions and dollars per transaction, but that's kind of what happened in the quarter.
Michael Montani -- Evercore ISI -- Analyst
Great. Thanks for taking the question. Good luck.
Tom Greco -- President and Chief Executive Officer
Thanks, Michael.
Operator
And we have reached our allotted time for questions. Mr. Tom Greco, I turn the call back over to you for some closing remarks.
Tom Greco -- President and Chief Executive Officer
Well, thanks for joining us today. We're very excited to finish up the year strong. The industry fundamentals are healthy and we're continuing to execute against our long-term strategic plans. And we also have a lot to be grateful for. I'd like to take a moment to recognize and thank all of our nation's military heroes for their service, including the thousands of Advance team members who currently or have previously served. Advance is proud to honor these men and women through their incredible events as one our service team network posted last week as we continue to celebrate our veterans through our continued partnership with organizations that help support service members, including building homes for heroes.
With that, take care, stay healthy and safe. And I wish you and your families a happy Thanksgiving holiday. We're grateful for your ongoing support and we look forward to sharing our 2021 results and 2022 guidance in February. Thank you.
Operator
[Operator Closing Remarks]
Duration: 54 minutes
Call participants:
Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Tom Greco -- President and Chief Executive Officer
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Michael Lasser -- UBS -- Analyst
Mitch Ingles -- Raymond James -- Analyst
Christian Carlino -- JPMorgan -- Analyst
Jacquelyn Sussman -- Morgan Stanley -- Analyst
Zach Fadem -- Wells Fargo Securities -- Analyst
Bret Jordan -- Jefferies -- Analyst
Seth Basham -- Wedbush -- Analyst
Michael Montani -- Evercore ISI -- Analyst
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Advance Auto Parts, Inc (NYSE: AAP) Q3 2021 Earnings Call Nov 16, 2021, 8:00 a.m. Operator [Operator Closing Remarks] Duration: 54 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President and Chief Financial Officer Michael Lasser -- UBS -- Analyst Mitch Ingles -- Raymond James -- Analyst Christian Carlino -- JPMorgan -- Analyst Jacquelyn Sussman -- Morgan Stanley -- Analyst Zach Fadem -- Wells Fargo Securities -- Analyst Bret Jordan -- Jefferies -- Analyst Seth Basham -- Wedbush -- Analyst Michael Montani -- Evercore ISI -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Their continued dedication to provide outstanding service to our customers allowed us to deliver another quarter of top line sales growth, adjusted margin expansion and a double-digit increase in earnings per share.
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Operator [Operator Closing Remarks] Duration: 54 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President and Chief Financial Officer Michael Lasser -- UBS -- Analyst Mitch Ingles -- Raymond James -- Analyst Christian Carlino -- JPMorgan -- Analyst Jacquelyn Sussman -- Morgan Stanley -- Analyst Zach Fadem -- Wells Fargo Securities -- Analyst Bret Jordan -- Jefferies -- Analyst Seth Basham -- Wedbush -- Analyst Michael Montani -- Evercore ISI -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts, Inc (NYSE: AAP) Q3 2021 Earnings Call Nov 16, 2021, 8:00 a.m. Adjusted gross profit margin improved 246 basis points to 46.2%, primarily the result of our ongoing category management initiatives, including strategic pricing, strategic sourcing, own brand expansion and favorable product mix.
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Operator [Operator Closing Remarks] Duration: 54 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President and Chief Financial Officer Michael Lasser -- UBS -- Analyst Mitch Ingles -- Raymond James -- Analyst Christian Carlino -- JPMorgan -- Analyst Jacquelyn Sussman -- Morgan Stanley -- Analyst Zach Fadem -- Wells Fargo Securities -- Analyst Bret Jordan -- Jefferies -- Analyst Seth Basham -- Wedbush -- Analyst Michael Montani -- Evercore ISI -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts, Inc (NYSE: AAP) Q3 2021 Earnings Call Nov 16, 2021, 8:00 a.m. Their continued dedication to provide outstanding service to our customers allowed us to deliver another quarter of top line sales growth, adjusted margin expansion and a double-digit increase in earnings per share.
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Operator [Operator Closing Remarks] Duration: 54 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President and Chief Financial Officer Michael Lasser -- UBS -- Analyst Mitch Ingles -- Raymond James -- Analyst Christian Carlino -- JPMorgan -- Analyst Jacquelyn Sussman -- Morgan Stanley -- Analyst Zach Fadem -- Wells Fargo Securities -- Analyst Bret Jordan -- Jefferies -- Analyst Seth Basham -- Wedbush -- Analyst Michael Montani -- Evercore ISI -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts, Inc (NYSE: AAP) Q3 2021 Earnings Call Nov 16, 2021, 8:00 a.m. At the same time, the margin rate for own brands is much higher and contributed to the Q3 adjusted gross margin expansion.
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11019.0
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2021-11-16 00:00:00 UTC
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Advance Auto Parts Posts Better-Than-Expected Q3 Results
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-posts-better-than-expected-q3-results
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nan
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nan
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Advance Auto Parts, Inc. (AAP) posted better-than-expected third-quarter results with earnings beating estimates by a huge margin.
However, shares of the leading automotive aftermarket parts provider slipped by more than 1% today at the time of writing.
Better-Than-Expected Results
The company reported adjusted earnings of $3.21 per share, up 21.6% year-over-year, significantly outpacing analysts' estimates of $2.82 per share.
Additionally, net sales rose 3.1% year-over-year to $2.62 billion, surpassing analysts' estimates of $2.56 billion. Similarly, AAP’s comparable-store sales also grew 3.1% compared to the prior-year period. The strong sales growth was primarily driven by continuing momentum in the company’s professional business and modest growth in the DIY omnichannel business.
Management Comments
Tom Greco, President and CEO of AAP, said, “Following several years of investments in both our team as well as our diversified physical and digital asset base, we continue to differentiate Advance in the marketplace.”
Greco concluded, “We’re encouraged by the positive sales trends during the first four weeks of our fourth quarter with our two-year stack remaining in line with Q3. We look forward to finishing 2021 with momentum and remain confident in our ability to drive total shareholder return in the coming years.”
See Analysts’ Top Stocks on TipRanks >>
Updated Guidance
Based on the ongoing business environment and higher than expected inflation headwinds, the company increased its full-year fiscal 2021 guidance.
For FY21, AAP now forecasts net sales in the range of $10.9 billion to $10.95 billion, higher than the consensus estimate of $10.83 billion. However, the company reduced its new store openings count to a minimum of 30 stores from the prior guidance of 80-120 stores.
Analysts’ Take
Responding to AAP’s quarterly performance, Wells Fargo analyst Zachary Fadem maintained a Hold rating on the stock with a price target of $235, which implies 2.9% downside potential to current levels.
Fadem said, “While AAP delivered another very impressive print, tonight's pullback seems about right following recent share strength, a likely conservative Q4 outlook and Q3 results that met, but didn't beat elevated buy-side expectations.”
Overall, the stock commands a Strong Buy consensus rating based on 9 Buys and 3 Holds. At the time of writing, the average Advance Auto Parts price target was $244.75, which implies 1.2% upside potential to current levels. Meanwhile, shares have gained 60.1% over the past year.
Related News:
Oatly Plunges 21% After Q3 Revenue Miss
Musk Sells Additional Tesla Shares; Stock Slips
Spectrum Brands Delivers Mixed Q4 Results
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) posted better-than-expected third-quarter results with earnings beating estimates by a huge margin. Management Comments Tom Greco, President and CEO of AAP, said, “Following several years of investments in both our team as well as our diversified physical and digital asset base, we continue to differentiate Advance in the marketplace.” Greco concluded, “We’re encouraged by the positive sales trends during the first four weeks of our fourth quarter with our two-year stack remaining in line with Q3. Similarly, AAP’s comparable-store sales also grew 3.1% compared to the prior-year period.
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Advance Auto Parts, Inc. (AAP) posted better-than-expected third-quarter results with earnings beating estimates by a huge margin. Analysts’ Take Responding to AAP’s quarterly performance, Wells Fargo analyst Zachary Fadem maintained a Hold rating on the stock with a price target of $235, which implies 2.9% downside potential to current levels. Similarly, AAP’s comparable-store sales also grew 3.1% compared to the prior-year period.
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Analysts’ Take Responding to AAP’s quarterly performance, Wells Fargo analyst Zachary Fadem maintained a Hold rating on the stock with a price target of $235, which implies 2.9% downside potential to current levels. Fadem said, “While AAP delivered another very impressive print, tonight's pullback seems about right following recent share strength, a likely conservative Q4 outlook and Q3 results that met, but didn't beat elevated buy-side expectations.” Overall, the stock commands a Strong Buy consensus rating based on 9 Buys and 3 Holds. Advance Auto Parts, Inc. (AAP) posted better-than-expected third-quarter results with earnings beating estimates by a huge margin.
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Analysts’ Take Responding to AAP’s quarterly performance, Wells Fargo analyst Zachary Fadem maintained a Hold rating on the stock with a price target of $235, which implies 2.9% downside potential to current levels. Advance Auto Parts, Inc. (AAP) posted better-than-expected third-quarter results with earnings beating estimates by a huge margin. Similarly, AAP’s comparable-store sales also grew 3.1% compared to the prior-year period.
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11020.0
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2021-11-15 00:00:00 UTC
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Advance Auto Parts Q3 Profit Rises
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-q3-profit-rises-2021-11-15
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nan
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nan
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(RTTNews) - Advance Auto Parts, Inc. (AAP) Monday reported third-quarter net income of $169.8 million or $2.68 per share, up from $147.5 million or $2.13 per share.
Adjusted earnings for the quarter increased to $3.21 per share from $2.64 per share last year.
Net sales for the quarter were $2.62 billion, up from $2.54 billion last year.
Analysts polled by Thomson Reuters expected earnings of $2.87 per share and revenues of $2.58 billion for the quarter.
"We are pleased with the first three quarters of the year and the continued momentum as we began the fourth quarter," said Jeff Shepherd, executive vice president and chief financial officer. "As a result, we are increasing our full-year 2021 sales and profit guidance to reflect the positive results year-to-date and our expectations for the balance of the year. This guidance incorporates both continued top-line strength as well as higher than planned inflation headwinds.
Looking forward to the full year 2021, the company expects net sales of $10.90 billion to $10.95 billion, up from prior estimate of $10.60 billion to $10.80 billion. Analysts currently estimate earnings of $10.83 billion for the year.
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) Monday reported third-quarter net income of $169.8 million or $2.68 per share, up from $147.5 million or $2.13 per share. Analysts polled by Thomson Reuters expected earnings of $2.87 per share and revenues of $2.58 billion for the quarter. "We are pleased with the first three quarters of the year and the continued momentum as we began the fourth quarter," said Jeff Shepherd, executive vice president and chief financial officer.
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(RTTNews) - Advance Auto Parts, Inc. (AAP) Monday reported third-quarter net income of $169.8 million or $2.68 per share, up from $147.5 million or $2.13 per share. Net sales for the quarter were $2.62 billion, up from $2.54 billion last year. Looking forward to the full year 2021, the company expects net sales of $10.90 billion to $10.95 billion, up from prior estimate of $10.60 billion to $10.80 billion.
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(RTTNews) - Advance Auto Parts, Inc. (AAP) Monday reported third-quarter net income of $169.8 million or $2.68 per share, up from $147.5 million or $2.13 per share. Adjusted earnings for the quarter increased to $3.21 per share from $2.64 per share last year. Net sales for the quarter were $2.62 billion, up from $2.54 billion last year.
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(RTTNews) - Advance Auto Parts, Inc. (AAP) Monday reported third-quarter net income of $169.8 million or $2.68 per share, up from $147.5 million or $2.13 per share. Adjusted earnings for the quarter increased to $3.21 per share from $2.64 per share last year. Analysts polled by Thomson Reuters expected earnings of $2.87 per share and revenues of $2.58 billion for the quarter.
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11021.0
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2021-11-15 00:00:00 UTC
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After-Hours Earnings Report for November 15, 2021 : AAP, QFIN, RXT, JJSF, API, CMP, DM, IDEX, SNDX, POWW, PLSE, RMR
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AAP
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https://www.nasdaq.com/articles/after-hours-earnings-report-for-november-15-2021-%3A-aap-qfin-rxt-jjsf-api-cmp-dm-idex-sndx
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nan
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nan
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The following companies are expected to report earnings after hours on 11/15/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Advance Auto Parts Inc. (AAP)is reporting for the quarter ending September 30, 2021. The wholesale retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.78. This value represents a 1.07% decrease compared to the same quarter last year. AAP missed the consensus earnings per share in the 4th calendar quarter of 2020 by -3.11%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAP is 20.79 vs. an industry ratio of 21.20.
360 DigiTech, Inc. (QFIN)is reporting for the quarter ending September 30, 2021. The technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.33. This value represents a 12.71% increase compared to the same quarter last year. In the past year QFIN has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 25.42%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for QFIN is 5.00 vs. an industry ratio of -171.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Rackspace Technology, Inc. (RXT)is reporting for the quarter ending September 30, 2021. The technology services company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.24. This value represents a 26.32% increase compared to the same quarter last year. RXT missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -26.09%. The "days to cover" for this stock exceeds 12 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for RXT is 15.62 vs. an industry ratio of -171.60, implying that they will have a higher earnings growth than their competitors in the same industry.
J & J Snack Foods Corp. (JJSF)is reporting for the quarter ending September 30, 2021. The food company's consensus earnings per share forecast from the 2 analysts that follow the stock is $1.20. This value represents a 242.86% increase compared to the same quarter last year. JJSF missed the consensus earnings per share in the 4th calendar quarter of 2020 by -35.71%. The "days to cover" for this stock exceeds 21 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for JJSF is 49.63 vs. an industry ratio of 23.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Agora, Inc. (API)is reporting for the quarter ending September 30, 2021. The technology services company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.14. This value represents a 366.67% decrease compared to the same quarter last year. The last two quarters API had negative earnings surprises; the latest report they missed by -133.33%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for API is -46.26 vs. an industry ratio of -171.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Compass Minerals International, Inc. (CMP)is reporting for the quarter ending September 30, 2021. The chemical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $-0.22. This value represents a 214.29% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CMP is 128.30 vs. an industry ratio of 14.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Desktop Metal, Inc. (DM)is reporting for the quarter ending September 30, 2021. The consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.08. DM reported earnings of $-0.33 per share for the same quarter a year ago; representing a a decrease of -75.76%. In the past year DM and beat the expectations the other two quarters. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DM is -45.32 vs. an industry ratio of -37.90.
Ideanomics, Inc. (IDEX)is reporting for the quarter ending September 30, 2021. The technology services company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.01. This value represents a 66.67% increase compared to the same quarter last year. IDEX missed the consensus earnings per share in the 2nd calendar quarter of 2021 by -100%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for IDEX is -33.17 vs. an industry ratio of -171.60, implying that they will have a higher earnings growth than their competitors in the same industry.
Syndax Pharmaceuticals, Inc. (SNDX)is reporting for the quarter ending September 30, 2021. The biomedical (gene) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.64. This value represents a 39.13% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 18 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for SNDX is -7.83 vs. an industry ratio of -5.10.
AMMO, Inc. (POWW)is reporting for the quarter ending September 30, 2021. The leisure (recreational) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.10. This value represents a 300.00% increase compared to the same quarter last year. Zacks Investment Research reports that the 2022 Price to Earnings ratio for POWW is 15.15 vs. an industry ratio of 34.60.
Pulse Biosciences, Inc (PLSE)is reporting for the quarter ending September 30, 2021. The medical instruments company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.54. This value represents a 5.88% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 35 days. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PLSE is -9.13 vs. an industry ratio of 22.00.
The RMR Group Inc. (RMR)is reporting for the quarter ending September 30, 2021. The real estate company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.50. This value represents a 28.21% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for RMR is 21.07 vs. an industry ratio of 37.50.
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 September 30, 2021. AAP missed the consensus earnings per share in the 4th calendar quarter of 2020 by -3.11%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAP is 20.79 vs. an industry ratio of 21.20.
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Advance Auto Parts Inc. (AAP)is reporting for the quarter ending September 30, 2021. AAP missed the consensus earnings per share in the 4th calendar quarter of 2020 by -3.11%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAP is 20.79 vs. an industry ratio of 21.20.
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Advance Auto Parts Inc. (AAP)is reporting for the quarter ending September 30, 2021. AAP missed the consensus earnings per share in the 4th calendar quarter of 2020 by -3.11%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAP is 20.79 vs. an industry ratio of 21.20.
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AAP missed the consensus earnings per share in the 4th calendar quarter of 2020 by -3.11%. Advance Auto Parts Inc. (AAP)is reporting for the quarter ending September 30, 2021. Zacks Investment Research reports that the 2021 Price to Earnings ratio for AAP is 20.79 vs. an industry ratio of 21.20.
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11022.0
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2021-11-14 00:00:00 UTC
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Here's Why I Think Advance Auto Parts (NYSE:AAP) Is An Interesting Stock
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AAP
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https://www.nasdaq.com/articles/heres-why-i-think-advance-auto-parts-nyse%3Aaap-is-an-interesting-stock-2021-11-14
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nan
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nan
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Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses.
In contrast to all that, I prefer to spend time on companies like Advance Auto Parts (NYSE:AAP), which has not only revenues, but also profits. While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. In comparison, loss making companies act like a sponge for capital - but unlike such a sponge they do not always produce something when squeezed.
Advance Auto Parts's Earnings Per Share Are Growing.
As one of my mentors once told me, share price follows earnings per share (EPS). That makes EPS growth an attractive quality for any company. We can see that in the last three years Advance Auto Parts grew its EPS by 11% per year. That growth rate is fairly good, assuming the company can keep it up.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. While we note Advance Auto Parts's EBIT margins were flat over the last year, revenue grew by a solid 13% to US$11b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers.
NYSE:AAP Earnings and Revenue History November 14th 2021
While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. So why not check this interactive chart depicting future EPS estimates, for Advance Auto Parts?
Are Advance Auto Parts Insiders Aligned With All Shareholders?
Since Advance Auto Parts has a market capitalization of US$15b, we wouldn't expect insiders to hold a large percentage of shares. But we are reassured by the fact they have invested in the company. With a whopping US$54m worth of shares as a group, insiders have plenty riding on the company's success. This should keep them focused on creating long term value for shareholders.
It means a lot to see insiders invested in the business, but I find myself wondering if remuneration policies are shareholder friendly. A brief analysis of the CEO compensation suggests they are. I discovered that the median total compensation for the CEOs of companies like Advance Auto Parts, with market caps over US$8.0b, is about US$11m.
The Advance Auto Parts CEO received US$8.1m in compensation for the year ending . That seems pretty reasonable, especially given its below the median for similar sized companies. CEO compensation is hardly the most important aspect of a company to consider, but when its reasonable that does give me a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of a culture of integrity, in a broader sense.
Does Advance Auto Parts Deserve A Spot On Your Watchlist?
As I already mentioned, Advance Auto Parts is a growing business, which is what I like to see. The fact that EPS is growing is a genuine positive for Advance Auto Parts, but the pretty picture gets better than that. Boasting both modest CEO pay and considerable insider ownership, I'd argue this one is worthy of the watchlist, at least. What about risks? Every company has them, and we've spotted 1 warning sign for Advance Auto Parts you should know about.
You can invest in any company you want. But if you prefer to focus on stocks that have demonstrated insider buying, here is a list of companies with insider buying in the last three months.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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NYSE:AAP Earnings and Revenue History November 14th 2021 While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. In contrast to all that, I prefer to spend time on companies like Advance Auto Parts (NYSE:AAP), which has not only revenues, but also profits. Since Advance Auto Parts has a market capitalization of US$15b, we wouldn't expect insiders to hold a large percentage of shares.
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In contrast to all that, I prefer to spend time on companies like Advance Auto Parts (NYSE:AAP), which has not only revenues, but also profits. NYSE:AAP Earnings and Revenue History November 14th 2021 While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually.
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In contrast to all that, I prefer to spend time on companies like Advance Auto Parts (NYSE:AAP), which has not only revenues, but also profits. NYSE:AAP Earnings and Revenue History November 14th 2021 While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. I discovered that the median total compensation for the CEOs of companies like Advance Auto Parts, with market caps over US$8.0b, is about US$11m.
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In contrast to all that, I prefer to spend time on companies like Advance Auto Parts (NYSE:AAP), which has not only revenues, but also profits. NYSE:AAP Earnings and Revenue History November 14th 2021 While we live in the present moment at all times, there's no doubt in my mind that the future matters more than the past. Advance Auto Parts's Earnings Per Share Are Growing.
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11023.0
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2021-10-28 00:00:00 UTC
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Noteworthy Thursday Option Activity: AAP, NOC, MO
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AAP
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-aap-noc-mo-2021-10-28
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 3,519 contracts has been traded thus far today, a contract volume which is representative of approximately 351,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.9% of AAP's average daily trading volume over the past month, of 559,325 shares. Particularly high volume was seen for the $210 strike call option expiring November 19, 2021, with 1,018 contracts trading so far today, representing approximately 101,800 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange:
Northrop Grumman Corp (Symbol: NOC) options are showing a volume of 4,117 contracts thus far today. That number of contracts represents approximately 411,700 underlying shares, working out to a sizeable 59.6% of NOC's average daily trading volume over the past month, of 691,005 shares. Particularly high volume was seen for the $400 strike call option expiring November 19, 2021, with 196 contracts trading so far today, representing approximately 19,600 underlying shares of NOC. Below is a chart showing NOC's trailing twelve month trading history, with the $400 strike highlighted in orange:
And Altria Group Inc (Symbol: MO) saw options trading volume of 40,480 contracts, representing approximately 4.0 million underlying shares or approximately 57.3% of MO's average daily trading volume over the past month, of 7.1 million shares. Especially high volume was seen for the $47.50 strike call option expiring January 21, 2022, with 2,264 contracts trading so far today, representing approximately 226,400 underlying shares of MO. Below is a chart showing MO's trailing twelve month trading history, with the $47.50 strike highlighted in orange:
For the various different available expirations for AAP options, NOC options, or MO options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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 $210 strike call option expiring November 19, 2021, with 1,018 contracts trading so far today, representing approximately 101,800 underlying shares of AAP. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 3,519 contracts has been traded thus far today, a contract volume which is representative of approximately 351,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.9% of AAP's average daily trading volume over the past month, of 559,325 shares.
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Particularly high volume was seen for the $210 strike call option expiring November 19, 2021, with 1,018 contracts trading so far today, representing approximately 101,800 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange: Northrop Grumman Corp (Symbol: NOC) options are showing a volume of 4,117 contracts thus far today. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 3,519 contracts has been traded thus far today, a contract volume which is representative of approximately 351,900 underlying shares (given that every 1 contract represents 100 underlying shares).
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 3,519 contracts has been traded thus far today, a contract volume which is representative of approximately 351,900 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $210 strike call option expiring November 19, 2021, with 1,018 contracts trading so far today, representing approximately 101,800 underlying shares of AAP. That number works out to 62.9% of AAP's average daily trading volume over the past month, of 559,325 shares.
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Below is a chart showing MO's trailing twelve month trading history, with the $47.50 strike highlighted in orange: For the various different available expirations for AAP options, NOC options, or MO options, visit StockOptionsChannel.com. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 3,519 contracts has been traded thus far today, a contract volume which is representative of approximately 351,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.9% of AAP's average daily trading volume over the past month, of 559,325 shares.
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11024.0
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2021-10-25 00:00:00 UTC
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A Look At The Fair Value Of Advance Auto Parts, Inc. (NYSE:AAP)
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AAP
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https://www.nasdaq.com/articles/a-look-at-the-fair-value-of-advance-auto-parts-inc.-nyse%3Aaap-2021-10-25
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nan
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nan
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In this article we are going to estimate the intrinsic value of Advance Auto Parts, Inc. (NYSE:AAP) by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward.
Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model.
What's the estimated valuation?
We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value:
10-year free cash flow (FCF) forecast
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Levered FCF ($, Millions) US$855.6m US$903.4m US$871.0m US$922.0m US$939.5m US$957.6m US$976.1m US$995.0m US$1.01b US$1.03b
Growth Rate Estimate Source Analyst x6 Analyst x4 Analyst x1 Analyst x1 Est @ 1.9% Est @ 1.92% Est @ 1.93% Est @ 1.94% Est @ 1.95% Est @ 1.95%
Present Value ($, Millions) Discounted @ 8.0% US$792 US$774 US$691 US$678 US$639 US$603 US$570 US$538 US$507 US$479
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$6.3b
We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to today's value at a cost of equity of 8.0%.
Terminal Value (TV)= FCF2031 × (1 + g) ÷ (r – g) = US$1.0b× (1 + 2.0%) ÷ (8.0%– 2.0%) = US$17b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$17b÷ ( 1 + 8.0%)10= US$8.1b
The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$14b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$232, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
NYSE:AAP Discounted Cash Flow October 25th 2021
The assumptions
We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Advance Auto Parts as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.0%, which is based on a levered beta of 1.379. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Moving On:
Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Advance Auto Parts, there are three essential aspects you should look at:
Risks: Case in point, we've spotted 1 warning sign for Advance Auto Parts you should be aware of.
Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AAP's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AAP's future outlook? In this article we are going to estimate the intrinsic value of Advance Auto Parts, Inc. (NYSE:AAP) by taking the expected future cash flows and discounting them to their present value. NYSE:AAP Discounted Cash Flow October 25th 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.
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In this article we are going to estimate the intrinsic value of Advance Auto Parts, Inc. (NYSE:AAP) by taking the expected future cash flows and discounting them to their present value. NYSE:AAP Discounted Cash Flow October 25th 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AAP's future outlook?
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NYSE:AAP Discounted Cash Flow October 25th 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. In this article we are going to estimate the intrinsic value of Advance Auto Parts, Inc. (NYSE:AAP) by taking the expected future cash flows and discounting them to their present value. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AAP's future outlook?
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In this article we are going to estimate the intrinsic value of Advance Auto Parts, Inc. (NYSE:AAP) by taking the expected future cash flows and discounting them to their present value. NYSE:AAP Discounted Cash Flow October 25th 2021 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for AAP's future outlook?
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11025.0
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2021-10-22 00:00:00 UTC
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After Hours Most Active for Oct 22, 2021 : AM, PBR, PAGP, BABA, CMCSA, AUPH, PFF, CNP, MO, T, CSCO, AAPL
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AAP
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https://www.nasdaq.com/articles/after-hours-most-active-for-oct-22-2021-%3A-am-pbr-pagp-baba-cmcsa-auph-pff-cnp-mo-t-csco
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nan
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nan
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The NASDAQ 100 After Hours Indicator is down -7.63 to 15,347.44. The total After hours volume is currently 82,223,548 shares traded.
The following are the most active stocks for the after hours session:
Antero Midstream Corporation (AM) is unchanged at $11.45, with 8,347,701 shares traded.AM is scheduled to provide an earnings report on 10/27/2021, for the fiscal quarter ending Sep2021. The consensus earnings per share forecast is 0.2 per share, which represents a 25 percent increase over the EPS one Year Ago
Petroleo Brasileiro S.A.- Petrobras (PBR) is unchanged at $9.95, with 6,065,605 shares traded. As reported by Zacks, the current mean recommendation for PBR is in the "buy range".
Plains GP Holdings, L.P. (PAGP) is unchanged at $11.77, with 4,874,384 shares traded. As reported by Zacks, the current mean recommendation for PAGP is in the "buy range".
Alibaba Group Holding Limited (BABA) is -0.19 at $177.51, with 3,726,684 shares traded. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Comcast Corporation (CMCSA) is unchanged at $54.22, with 3,258,324 shares traded.CMCSA is scheduled to provide an earnings report on 10/28/2021, for the fiscal quarter ending Sep2021. The consensus earnings per share forecast is 0.76 per share, which represents a 65 percent increase over the EPS one Year Ago
Aurinia Pharmaceuticals Inc (AUPH) is +1.67 at $29.67, with 3,199,083 shares traded., following a 52-week high recorded in today's regular session.
iShares Preferred and Income Securities ETF (PFF) is +0.54 at $39.60, with 2,767,065 shares traded. This represents a 9.66% increase from its 52 Week Low.
CenterPoint Energy, Inc. (CNP) is -0.13 at $26.41, with 2,575,508 shares traded. As reported by Zacks, the current mean recommendation for CNP is in the "buy range".
Altria Group (MO) is unchanged at $48.22, with 2,335,971 shares traded.MO is scheduled to provide an earnings report on 10/28/2021, for the fiscal quarter ending Sep2021. The consensus earnings per share forecast is 1.27 per share, which represents a 119 percent increase over the EPS one Year Ago
AT&T Inc. (T) is -0.02 at $25.47, with 2,318,857 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $0.76. T's current last sale is 82.16% of the target price of $31.
Cisco Systems, Inc. (CSCO) is unchanged at $55.11, with 2,104,380 shares traded. As reported by Zacks, the current mean recommendation for CSCO is in the "buy range".
Apple Inc. (AAPL) is -0.04 at $148.65, with 1,877,943 shares traded.AAPL is scheduled to provide an earnings report on 10/28/2021, for the fiscal quarter ending Sep2021. The consensus earnings per share forecast is 1.23 per share, which represents a 73 percent increase over the EPS one Year Ago
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 -0.04 at $148.65, with 1,877,943 shares traded.AAPL is scheduled to provide an earnings report on 10/28/2021, for the fiscal quarter ending Sep2021. Antero Midstream Corporation (AM) is unchanged at $11.45, with 8,347,701 shares traded.AM is scheduled to provide an earnings report on 10/27/2021, for the fiscal quarter ending Sep2021. Comcast Corporation (CMCSA) is unchanged at $54.22, with 3,258,324 shares traded.CMCSA is scheduled to provide an earnings report on 10/28/2021, for the fiscal quarter ending Sep2021.
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Apple Inc. (AAPL) is -0.04 at $148.65, with 1,877,943 shares traded.AAPL is scheduled to provide an earnings report on 10/28/2021, for the fiscal quarter ending Sep2021. The consensus earnings per share forecast is 0.2 per share, which represents a 25 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 0.76 per share, which represents a 65 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.04 at $148.65, with 1,877,943 shares traded.AAPL is scheduled to provide an earnings report on 10/28/2021, for the fiscal quarter ending Sep2021. The consensus earnings per share forecast is 0.2 per share, which represents a 25 percent increase over the EPS one Year Ago The consensus earnings per share forecast is 0.76 per share, which represents a 65 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is -0.04 at $148.65, with 1,877,943 shares traded.AAPL is scheduled to provide an earnings report on 10/28/2021, for the fiscal quarter ending Sep2021. The following are the most active stocks for the after hours session: AT&T Inc. (T) is -0.02 at $25.47, with 2,318,857 shares traded.
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11026.0
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2021-10-22 00:00:00 UTC
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AAP Crosses Above Average Analyst Target
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AAP
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https://www.nasdaq.com/articles/aap-crosses-above-average-analyst-target-2021-10-22
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nan
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nan
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $233.08, changing hands for $233.71/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 12 different analyst targets within the Zacks coverage universe contributing to that average for Advance Auto Parts Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $175.00. And then on the other side of the spectrum one analyst has a target as high as $276.00. The standard deviation is $29.159.
But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $233.08/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $233.08 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Advance Auto Parts Inc:
RECENT AAP ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 7 7 8 7
Buy ratings: 1 1 2 3
Hold ratings: 6 6 4 5
Sell ratings: 0 0 0 0
Strong sell ratings: 0 1 1 1
Average rating: 1.93 2.13 1.9 2.03
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAP — FREE.
10 ETFs With Most Upside To Analyst Targets »
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 recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $233.08, changing hands for $233.71/share. And so with AAP crossing above that average target price of $233.08/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $233.08 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $233.08, changing hands for $233.71/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $233.08/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $233.08 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with AAP crossing above that average target price of $233.08/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $233.08 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $233.08, changing hands for $233.71/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $233.08, changing hands for $233.71/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $233.08/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $233.08 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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11027.0
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2021-10-18 00:00:00 UTC
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Monday Sector Leaders: Services, Technology & Communications
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AAP
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https://www.nasdaq.com/articles/monday-sector-leaders%3A-services-technology-communications-2021-10-18
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nan
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nan
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The best performing sector as of midday Monday is the Services sector, up 0.5%. Within that group, Advance Auto Parts Inc (Symbol: AAP) and Tractor Supply Co. (Symbol: TSCO) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 0.7% on the day, and up 15.46% year-to-date. Advance Auto Parts Inc, meanwhile, is up 43.25% year-to-date, and Tractor Supply Co. is up 46.47% year-to-date. Combined, AAP and TSCO make up approximately 0.6% of the underlying holdings of IYC.
The next best performing sector is the Technology & Communications sector, up 0.4%. Among large Technology & Communications stocks, CDW Corp (Symbol: CDW) and Enphase Energy Inc. (Symbol: ENPH) are the most notable, showing a gain of 3.9% and 3.7%, respectively. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 0.6% in midday trading, and up 21.30% on a year-to-date basis. CDW Corp, meanwhile, is up 40.96% year-to-date, and Enphase Energy Inc. is up 2.17% year-to-date. Combined, CDW and ENPH make up approximately 0.5% of the underlying holdings of XLK.
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, four sectors are up on the day, while four sectors are down.
SECTOR % CHANGE
Services +0.5%
Technology & Communications +0.4%
Materials +0.3%
Industrial +0.2%
Financial -0.0%
Energy -0.2%
Consumer Products -0.3%
Healthcare -0.9%
Utilities -1.1%
10 ETFs With Stocks That Insiders Are Buying »
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 Tractor Supply Co. (Symbol: TSCO) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Combined, AAP and TSCO make up approximately 0.6% of the underlying holdings of IYC. Combined, CDW and ENPH make up approximately 0.5% of the underlying holdings of XLK.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and Tractor Supply Co. (Symbol: TSCO) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Combined, AAP and TSCO 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 0.7% on the day, and up 15.46% year-to-date.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and Tractor Supply Co. (Symbol: TSCO) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Combined, AAP and TSCO 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 0.7% on the day, and up 15.46% year-to-date.
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Within that group, Advance Auto Parts Inc (Symbol: AAP) and Tractor Supply Co. (Symbol: TSCO) are two large stocks leading the way, showing a gain of 3.7% and 3.6%, respectively. Combined, AAP and TSCO 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 0.7% on the day, and up 15.46% year-to-date.
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11028.0
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2021-10-15 00:00:00 UTC
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How CarParts.com Is Taking Advantage of the Supply Chain Crunch
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AAP
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https://www.nasdaq.com/articles/how-carparts.com-is-taking-advantage-of-the-supply-chain-crunch-2021-10-15
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nan
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nan
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Supply chain disruptions are hammering retailers big and small. A combination of factory shutdowns because of COVID-19, limited shipping capacity, delays at ports, and labor shortages are introducing unprecedented inventory challenges for a wide range of businesses. Retail giants like Walmart and Costco are chartering container ships to ensure they have sufficient inventory for the holiday season, and automakers are still reeling from a shortage of semiconductors.
CarParts.com (NASDAQ: PRTS) is small-cap online auto parts retailer. It's facing many of the same challenges as other retailers, including delays in shipping and higher freight costs, but the company also sees an opportunity to take advantage of the squeeze. Just as the stock soared during the early stages of pandemic, the supply chain disruptions could also present a good entry point for investors, especially with the stock down 20% in the last three months.
Every crisis is an opportunity
The supply chain is important in any industry, but it's crucial in auto parts. There are millions of SKU's (stock-keeping units) across the automotive world since every car requires a different set of components. Unlike some products, in auto parts there are no substitutes -- either you have the right part or you don't -- so having the right part in stock is the most important factor in making a sale.
In an interview with The Motley Fool, CEO Lev Peker underscored this point, and said that the company has paid a premium in shipping costs to ensure it has sufficient product in stock. Peker believes it can pass on some of those additional costs along to the customer, especially for items that have limited availability. The company entered the third quarter in a strong inventory position, with more than $100 million in inventory on its balance sheet, and with that bet to pay extra to keep inventory in stock, it's gunning to to gain market share during the supply chain crunch.
Unlike most online auto parts retailers, CarParts.com controls its own inventory. Competitors like CarID and Rock Auto use drop-shipping, an order fulfillment tactic in which the retailer doesn't hold inventory, but instead has a third-party provider fulfill its orders. While drop-shipping has advantages, including cost savings, it's vulnerable to inventory shortages such as the current one. That means CarParts.com should be able to pick up market share from online-only competitors that might not have as much inventory in stock. If the company can peel away those customers, it should be able to keep some of them as more than 30% of its purchases came from repeat customers over the last year.
Image source: Getty Images.
CarParts.com vs. the major chains
Controlling its own inventory gives CarParts.com an edge over small online retailers, but the auto parts industry is dominated by a few major chains, including AutoZone, O'Reilly Automotive, and Advance Auto Parts. Those chains are also struggling with supply shortages and shipping delays. AutoZone CEO William Rhodes said on the company'searnings calljust a few weeks ago, "This is the most difficult supply chain environment that I have ever seen."
The major chains generally rely on wholesale distributors to provide their merchandise, while CarParts.com buys its inventory directly from the manufacturer, eliminating a number of steps in the typical industry distribution chain and therefore the markups that go with them. Because of that, Peker says, many of his company's products sell for half of what they would with one of the major chains. CarParts.com can do that because it has private-label versions of many of the same products that industry leaders sell under name brands, like Dorman Products, a parts supplier for Advance Auto Parts and AutoZone.
In addition to the shake-up from the supply disruptions, the auto shortage is also ensuring prices of new and used cars remain elevated. That's encouraging consumers to keep their current car and spend on repairs, a boon for CarParts.com and the industry more broadly. With no end in sight to the automotive chip shortage, that tailwind should persist for at least the next few quarters for CarParts.com.
Its shares are up more than 600% since the start of 2020 as sales soared during the pandemic, but the company faces a new test as it laps that strong growth from a year ago. With its focus on ensuring sufficient inventory and absorbing higher shipping costs, the company is making a smart move to grab market share and build its customer base for the long term. We'll learn more when it reports third-quarter earnings next month, but during a difficult time for many of its peers, CarParts.com looks to be in an enviable position.
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Jeremy Bowman owns shares of CarParts.com, Inc. The Motley Fool owns shares of and recommends Costco Wholesale. 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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A combination of factory shutdowns because of COVID-19, limited shipping capacity, delays at ports, and labor shortages are introducing unprecedented inventory challenges for a wide range of businesses. In an interview with The Motley Fool, CEO Lev Peker underscored this point, and said that the company has paid a premium in shipping costs to ensure it has sufficient product in stock. With its focus on ensuring sufficient inventory and absorbing higher shipping costs, the company is making a smart move to grab market share and build its customer base for the long term.
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Unlike most online auto parts retailers, CarParts.com controls its own inventory. CarParts.com vs. the major chains Controlling its own inventory gives CarParts.com an edge over small online retailers, but the auto parts industry is dominated by a few major chains, including AutoZone, O'Reilly Automotive, and Advance Auto Parts. With its focus on ensuring sufficient inventory and absorbing higher shipping costs, the company is making a smart move to grab market share and build its customer base for the long term.
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Unlike some products, in auto parts there are no substitutes -- either you have the right part or you don't -- so having the right part in stock is the most important factor in making a sale. The company entered the third quarter in a strong inventory position, with more than $100 million in inventory on its balance sheet, and with that bet to pay extra to keep inventory in stock, it's gunning to to gain market share during the supply chain crunch. CarParts.com vs. the major chains Controlling its own inventory gives CarParts.com an edge over small online retailers, but the auto parts industry is dominated by a few major chains, including AutoZone, O'Reilly Automotive, and Advance Auto Parts.
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It's facing many of the same challenges as other retailers, including delays in shipping and higher freight costs, but the company also sees an opportunity to take advantage of the squeeze. In an interview with The Motley Fool, CEO Lev Peker underscored this point, and said that the company has paid a premium in shipping costs to ensure it has sufficient product in stock. 10 stocks we like better than CarParts.com, Inc.
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11029.0
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2021-10-13 00:00:00 UTC
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Notable Wednesday Option Activity: V, NOC, AAP
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AAP
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-v-noc-aap-2021-10-13
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Visa Inc (Symbol: V), where a total volume of 44,255 contracts has been traded thus far today, a contract volume which is representative of approximately 4.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.9% of V's average daily trading volume over the past month, of 7.0 million shares. Particularly high volume was seen for the $230 strike call option expiring October 15, 2021, with 2,783 contracts trading so far today, representing approximately 278,300 underlying shares of V. Below is a chart showing V's trailing twelve month trading history, with the $230 strike highlighted in orange:
Northrop Grumman Corp (Symbol: NOC) saw options trading volume of 4,482 contracts, representing approximately 448,200 underlying shares or approximately 58.9% of NOC's average daily trading volume over the past month, of 760,710 shares. Particularly high volume was seen for the $385 strike call option expiring October 15, 2021, with 476 contracts trading so far today, representing approximately 47,600 underlying shares of NOC. Below is a chart showing NOC's trailing twelve month trading history, with the $385 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,286 contracts thus far today. That number of contracts represents approximately 328,600 underlying shares, working out to a sizeable 58.4% of AAP's average daily trading volume over the past month, of 562,300 shares. Especially high volume was seen for the $230 strike call option expiring November 19, 2021, with 1,508 contracts trading so far today, representing approximately 150,800 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $230 strike highlighted in orange:
For the various different available expirations for V options, NOC options, or AAP options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $230 strike call option expiring November 19, 2021, with 1,508 contracts trading so far today, representing approximately 150,800 underlying shares of AAP. Below is a chart showing NOC's trailing twelve month trading history, with the $385 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,286 contracts thus far today. That number of contracts represents approximately 328,600 underlying shares, working out to a sizeable 58.4% of AAP's average daily trading volume over the past month, of 562,300 shares.
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Below is a chart showing NOC's trailing twelve month trading history, with the $385 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,286 contracts thus far today. That number of contracts represents approximately 328,600 underlying shares, working out to a sizeable 58.4% of AAP's average daily trading volume over the past month, of 562,300 shares. Especially high volume was seen for the $230 strike call option expiring November 19, 2021, with 1,508 contracts trading so far today, representing approximately 150,800 underlying shares of AAP.
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Below is a chart showing NOC's trailing twelve month trading history, with the $385 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,286 contracts thus far today. That number of contracts represents approximately 328,600 underlying shares, working out to a sizeable 58.4% of AAP's average daily trading volume over the past month, of 562,300 shares. Especially high volume was seen for the $230 strike call option expiring November 19, 2021, with 1,508 contracts trading so far today, representing approximately 150,800 underlying shares of AAP.
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That number of contracts represents approximately 328,600 underlying shares, working out to a sizeable 58.4% of AAP's average daily trading volume over the past month, of 562,300 shares. Below is a chart showing NOC's trailing twelve month trading history, with the $385 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,286 contracts thus far today. Especially high volume was seen for the $230 strike call option expiring November 19, 2021, with 1,508 contracts trading so far today, representing approximately 150,800 underlying shares of AAP.
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11030.0
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2021-10-05 00:00:00 UTC
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Is Now The Time To Look At Buying Advance Auto Parts, Inc. (NYSE:AAP)?
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AAP
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https://www.nasdaq.com/articles/is-now-the-time-to-look-at-buying-advance-auto-parts-inc.-nyse%3Aaap-2021-10-05
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nan
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nan
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Advance Auto Parts, Inc. (NYSE:AAP) had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of US$199 to US$218. However, is this the true valuation level of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Advance Auto Parts’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
What is Advance Auto Parts worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 9.6% below my intrinsic value, which means if you buy Advance Auto Parts today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $229.06, then there isn’t much room for the share price grow beyond what it’s currently trading. Although, there may be an opportunity to buy in the future. This is because Advance Auto Parts’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Advance Auto Parts?
NYSE:AAP Earnings and Revenue Growth October 5th 2021
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 33% over the next couple of years, the future seems bright for Advance Auto Parts. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? AAP’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping tabs on AAP, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. At Simply Wall St, we found 1 warning sign for Advance Auto Parts and we think they deserve your attention.
If you are no longer interested in Advance Auto Parts, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Advance Auto Parts, Inc. (NYSE:AAP) had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of US$199 to US$218. NYSE:AAP Earnings and Revenue Growth October 5th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. AAP’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.
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Advance Auto Parts, Inc. (NYSE:AAP) had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of US$199 to US$218. NYSE:AAP Earnings and Revenue Growth October 5th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. AAP’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.
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Advance Auto Parts, Inc. (NYSE:AAP) had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of US$199 to US$218. NYSE:AAP Earnings and Revenue Growth October 5th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. AAP’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.
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Advance Auto Parts, Inc. (NYSE:AAP) had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of US$199 to US$218. NYSE:AAP Earnings and Revenue Growth October 5th 2021 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. AAP’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value.
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11031.0
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2021-10-01 00:00:00 UTC
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The Math Shows FTXD Can Go To $38
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AAP
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https://www.nasdaq.com/articles/the-math-shows-ftxd-can-go-to-%2438-2021-10-01
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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 First Trust Nasdaq Retail ETF (Symbol: FTXD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $37.50 per unit.
With FTXD trading at a recent price near $34.11 per unit, that means that analysts see 9.93% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FTXD's underlying holdings with notable upside to their analyst target prices are Dollar Tree Inc (Symbol: DLTR), RH (Symbol: RH), and Advance Auto Parts Inc (Symbol: AAP). Although DLTR has traded at a recent price of $95.71/share, the average analyst target is 12.39% higher at $107.57/share. Similarly, RH has 11.82% upside from the recent share price of $666.91 if the average analyst target price of $745.71/share is reached, and analysts on average are expecting AAP to reach a target price of $229.83/share, which is 10.03% above the recent price of $208.89. Below is a twelve month price history chart comparing the stock performance of DLTR, RH, and AAP:
Combined, DLTR, RH, and AAP represent 6.92% of the First Trust Nasdaq Retail ETF. 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
First Trust Nasdaq Retail ETF FTXD $34.11 $37.50 9.93%
Dollar Tree Inc DLTR $95.71 $107.57 12.39%
RH RH $666.91 $745.71 11.82%
Advance Auto Parts Inc AAP $208.89 $229.83 10.03%
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 »
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 a twelve month price history chart comparing the stock performance of DLTR, RH, and AAP: Combined, DLTR, RH, and AAP represent 6.92% of the First Trust Nasdaq Retail ETF. Advance Auto Parts Inc AAP $208.89 $229.83 10.03% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FTXD's underlying holdings with notable upside to their analyst target prices are Dollar Tree Inc (Symbol: DLTR), RH (Symbol: RH), and Advance Auto Parts Inc (Symbol: AAP).
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Three of FTXD's underlying holdings with notable upside to their analyst target prices are Dollar Tree Inc (Symbol: DLTR), RH (Symbol: RH), and Advance Auto Parts Inc (Symbol: AAP). Similarly, RH has 11.82% upside from the recent share price of $666.91 if the average analyst target price of $745.71/share is reached, and analysts on average are expecting AAP to reach a target price of $229.83/share, which is 10.03% above the recent price of $208.89. Below is a twelve month price history chart comparing the stock performance of DLTR, RH, and AAP: Combined, DLTR, RH, and AAP represent 6.92% of the First Trust Nasdaq Retail ETF.
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Similarly, RH has 11.82% upside from the recent share price of $666.91 if the average analyst target price of $745.71/share is reached, and analysts on average are expecting AAP to reach a target price of $229.83/share, which is 10.03% above the recent price of $208.89. Three of FTXD's underlying holdings with notable upside to their analyst target prices are Dollar Tree Inc (Symbol: DLTR), RH (Symbol: RH), and Advance Auto Parts Inc (Symbol: AAP). Below is a twelve month price history chart comparing the stock performance of DLTR, RH, and AAP: Combined, DLTR, RH, and AAP represent 6.92% of the First Trust Nasdaq Retail ETF.
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Three of FTXD's underlying holdings with notable upside to their analyst target prices are Dollar Tree Inc (Symbol: DLTR), RH (Symbol: RH), and Advance Auto Parts Inc (Symbol: AAP). Below is a twelve month price history chart comparing the stock performance of DLTR, RH, and AAP: Combined, DLTR, RH, and AAP represent 6.92% of the First Trust Nasdaq Retail ETF. Similarly, RH has 11.82% upside from the recent share price of $666.91 if the average analyst target price of $745.71/share is reached, and analysts on average are expecting AAP to reach a target price of $229.83/share, which is 10.03% above the recent price of $208.89.
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11032.0
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2021-09-15 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Ex-Dividend Date Scheduled for September 16, 2021
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-ex-dividend-date-scheduled-for-september-16-2021-2021-09-15
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nan
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nan
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Advance Auto Parts Inc (AAP) will begin trading ex-dividend on September 16, 2021. A cash dividend payment of $1 per share is scheduled to be paid on October 01, 2021. Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. This represents an 300% increase over prior dividend payment. At the current stock price of $201.17, the dividend yield is 1.99%.
The previous trading day's last sale of AAP was $201.17, representing a -7.59% decrease from the 52 week high of $217.69 and a 41.21% increase over the 52 week low of $142.46.
AAP is a part of the Consumer Services sector, which includes companies such as O'Reilly Automotive, Inc. (ORLY) and Carvana Co. (CVNA). AAP's current earnings per share, an indicator of a company's profitability, is $9.33. Zacks Investment Research reports AAP's forecasted earnings growth in 2021 as 33.23%, compared to an industry average of 33.4%.
For more information on the declaration, record and payment dates, visit the AAP Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
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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AAP is a part of the Consumer Services sector, which includes companies such as O'Reilly Automotive, Inc. (ORLY) and Carvana Co. (CVNA). Zacks Investment Research reports AAP's forecasted earnings growth in 2021 as 33.23%, compared to an industry average of 33.4%. For more information on the declaration, record and payment dates, visit the AAP Dividend History page.
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. AAP's current earnings per share, an indicator of a company's profitability, is $9.33. Advance Auto Parts Inc (AAP) will begin trading ex-dividend on September 16, 2021.
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. The previous trading day's last sale of AAP was $201.17, representing a -7.59% decrease from the 52 week high of $217.69 and a 41.21% increase over the 52 week low of $142.46. For more information on the declaration, record and payment dates, visit the AAP Dividend History page.
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. Advance Auto Parts Inc (AAP) will begin trading ex-dividend on September 16, 2021. The previous trading day's last sale of AAP was $201.17, representing a -7.59% decrease from the 52 week high of $217.69 and a 41.21% increase over the 52 week low of $142.46.
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11033.0
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2021-09-15 00:00:00 UTC
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Don't Ignore The Fact That This Insider Just Sold Some Shares In Advance Auto Parts, Inc. (NYSE:AAP)
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AAP
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https://www.nasdaq.com/articles/dont-ignore-the-fact-that-this-insider-just-sold-some-shares-in-advance-auto-parts-inc.
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nan
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nan
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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Robert Cushing, the Executive Vice President of Professional recently netted about US$708k selling shares at an average price of US$202. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.
Advance Auto Parts Insider Transactions Over The Last Year
In fact, the recent sale by Robert Cushing was the biggest sale of Advance Auto Parts shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$201. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Over the last year we saw more insider selling of Advance Auto Parts shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
NYSE:AAP Insider Trading Volume September 15th 2021
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Advance Auto Parts Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of Advance Auto Parts shares, worth about US$46m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Advance Auto Parts Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Advance Auto Parts, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Advance Auto Parts is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Advance Auto Parts.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Robert Cushing, the Executive Vice President of Professional recently netted about US$708k selling shares at an average price of US$202. NYSE:AAP Insider Trading Volume September 15th 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. Advance Auto Parts Insider Transactions Over The Last Year In fact, the recent sale by Robert Cushing was the biggest sale of Advance Auto Parts shares made by an insider individual in the last twelve months, according to our records.
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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Robert Cushing, the Executive Vice President of Professional recently netted about US$708k selling shares at an average price of US$202. NYSE:AAP Insider Trading Volume September 15th 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. Advance Auto Parts Insider Transactions Over The Last Year In fact, the recent sale by Robert Cushing was the biggest sale of Advance Auto Parts shares made by an insider individual in the last twelve months, according to our records.
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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Robert Cushing, the Executive Vice President of Professional recently netted about US$708k selling shares at an average price of US$202. NYSE:AAP Insider Trading Volume September 15th 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. Advance Auto Parts Insider Transactions Over The Last Year In fact, the recent sale by Robert Cushing was the biggest sale of Advance Auto Parts shares made by an insider individual in the last twelve months, according to our records.
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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Robert Cushing, the Executive Vice President of Professional recently netted about US$708k selling shares at an average price of US$202. NYSE:AAP Insider Trading Volume September 15th 2021 If you are like me, then you will not want to miss this free list of growing companies that insiders are buying. Over the last year we saw more insider selling of Advance Auto Parts shares, than buying.
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11034.0
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2021-09-01 00:00:00 UTC
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Pre-Market Most Active for Sep 1, 2021 : LCID, LU, GBS, SKLZ, NIO, DADA, FUTU, AMC, SQQQ, SNAP, UBER, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-sep-1-2021-%3A-lcid-lu-gbs-sklz-nio-dada-futu-amc-sqqq-snap-uber
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 55.99 to 15,638.5. The total Pre-Market volume is currently 46,067,878 shares traded.
The following are the most active stocks for the pre-market session:
Lucid Group, Inc. (LCID) is -3.46 at $16.50, with 20,151,203 shares traded.
Lufax Holding Ltd (LU) is -0.19 at $8.48, with 6,954,489 shares traded. As reported by Zacks, the current mean recommendation for LU is in the "buy range".
GBS Inc. (GBS) is +1.59 at $4.83, with 6,411,538 shares traded.
Skillz Inc. (SKLZ) is +1.7299 at $13.50, with 5,182,455 shares traded. SKLZ's current last sale is 56.25% of the target price of $24.
NIO Inc. (NIO) is -1.97 at $37.34, with 2,656,976 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Dada Nexus Limited (DADA) is -0.08 at $23.60, with 2,000,978 shares traded.DADA is scheduled to provide an earnings report on 9/7/2021, for the fiscal quarter ending Jun2021. The consensus earnings per share forecast is -0.41 per share, which represents a -65 percent increase over the EPS one Year Ago
Futu Holdings Limited (FUTU) is +1 at $96.19, with 1,719,560 shares traded. As reported by Zacks, the current mean recommendation for FUTU is in the "strong buy range".
AMC Entertainment Holdings, Inc. (AMC) is +0.17 at $47.30, with 1,302,382 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $-0.07. AMC's current last sale is 630.67% of the target price of $7.5.
ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $7.25, with 1,207,675 shares traded. This represents a -.41% decrease from its 52 Week Low.
Snap Inc. (SNAP) is +0.38 at $76.49, with 1,079,519 shares traded. As reported by Zacks, the current mean recommendation for SNAP is in the "buy range".
Uber Technologies, Inc. (UBER) is +0.37 at $39.51, with 1,060,758 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $-0.43. As reported by Zacks, the current mean recommendation for UBER is in the "buy range".
Apple Inc. (AAPL) is +0.71 at $152.54, with 1,016,547 shares traded. 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 +0.71 at $152.54, with 1,016,547 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 FUTU is in the "strong buy range".
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Apple Inc. (AAPL) is +0.71 at $152.54, with 1,016,547 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -0.41 per share, which represents a -65 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.71 at $152.54, with 1,016,547 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 46,067,878 shares traded.
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Apple Inc. (AAPL) is +0.71 at $152.54, with 1,016,547 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 55.99 to 15,638.5.
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11035.0
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2021-08-31 00:00:00 UTC
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Analysts Anticipate RPV Will Reach $85
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AAP
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https://www.nasdaq.com/articles/analysts-anticipate-rpv-will-reach-%2485-2021-08-31
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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 Invesco S&P 500— Pure Value ETF (Symbol: RPV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $84.61 per unit.
With RPV trading at a recent price near $77.23 per unit, that means that analysts see 9.56% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RPV's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), PVH Corp (Symbol: PVH), and Tyson Foods Inc (Symbol: TSN). Although AAP has traded at a recent price of $201.14/share, the average analyst target is 13.64% higher at $228.58/share. Similarly, PVH has 12.15% upside from the recent share price of $106.70 if the average analyst target price of $119.67/share is reached, and analysts on average are expecting TSN to reach a target price of $86.83/share, which is 11.07% above the recent price of $78.18. Below is a twelve month price history chart comparing the stock performance of AAP, PVH, and TSN:
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
Invesco S&P 500— Pure Value ETF RPV $77.23 $84.61 9.56%
Advance Auto Parts Inc AAP $201.14 $228.58 13.64%
PVH Corp PVH $106.70 $119.67 12.15%
Tyson Foods Inc TSN $78.18 $86.83 11.07%
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 »
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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Although AAP has traded at a recent price of $201.14/share, the average analyst target is 13.64% higher at $228.58/share. Invesco S&P 500— Pure Value ETF RPV $77.23 $84.61 9.56% Advance Auto Parts Inc AAP $201.14 $228.58 13.64% PVH Corp PVH $106.70 $119.67 12.15% Tyson Foods Inc TSN $78.18 $86.83 11.07% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RPV's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), PVH Corp (Symbol: PVH), and Tyson Foods Inc (Symbol: TSN).
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Three of RPV's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), PVH Corp (Symbol: PVH), and Tyson Foods Inc (Symbol: TSN). Invesco S&P 500— Pure Value ETF RPV $77.23 $84.61 9.56% Advance Auto Parts Inc AAP $201.14 $228.58 13.64% PVH Corp PVH $106.70 $119.67 12.15% Tyson Foods Inc TSN $78.18 $86.83 11.07% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AAP has traded at a recent price of $201.14/share, the average analyst target is 13.64% higher at $228.58/share.
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Three of RPV's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), PVH Corp (Symbol: PVH), and Tyson Foods Inc (Symbol: TSN). Although AAP has traded at a recent price of $201.14/share, the average analyst target is 13.64% higher at $228.58/share. Below is a twelve month price history chart comparing the stock performance of AAP, PVH, and TSN: Below is a summary table of the current analyst target prices discussed above:
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Invesco S&P 500— Pure Value ETF RPV $77.23 $84.61 9.56% Advance Auto Parts Inc AAP $201.14 $228.58 13.64% PVH Corp PVH $106.70 $119.67 12.15% Tyson Foods Inc TSN $78.18 $86.83 11.07% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RPV's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), PVH Corp (Symbol: PVH), and Tyson Foods Inc (Symbol: TSN). Although AAP has traded at a recent price of $201.14/share, the average analyst target is 13.64% higher at $228.58/share.
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11036.0
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2021-08-25 00:00:00 UTC
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After Hours Most Active for Aug 25, 2021 : MXIM, CRWD, MSFT, QQQ, PYPL, AAPL
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AAP
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https://www.nasdaq.com/articles/after-hours-most-active-for-aug-25-2021-%3A-mxim-crwd-msft-qqq-pypl-aapl-2021-08-25
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The NASDAQ 100 After Hours Indicator is down -4.92 to 15,364. The total After hours volume is currently 72,271,465 shares traded.
The following are the most active stocks for the after hours session:
Maxim Integrated Products, Inc. (MXIM) is +1.01 at $104.15, with 6,572,643 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $0.89. MXIM's current last sale is 104.15% of the target price of $100.
CrowdStrike Holdings, Inc. (CRWD) is unchanged at $270.00, with 2,891,552 shares traded.CRWD is scheduled to provide an earnings report on 8/31/2021, for the fiscal quarter ending Jul2021. The consensus earnings per share forecast is -0.14 per share, which represents a -13 percent increase over the EPS one Year Ago
Microsoft Corporation (MSFT) is unchanged at $302.01, with 2,229,264 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $2.06. MSFT's current last sale is 91.52% of the target price of $330.
Invesco QQQ Trust, Series 1 (QQQ) is -0.22 at $374.58, with 1,301,059 shares traded. This represents a 44.01% increase from its 52 Week Low.
PayPal Holdings, Inc. (PYPL) is unchanged at $277.69, with 1,259,295 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $0.96. As reported by Zacks, the current mean recommendation for PYPL is in the "buy range".
Apple Inc. (AAPL) is -0.01 at $148.35, with 1,180,549 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $1.23. 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 -0.01 at $148.35, with 1,180,549 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021.
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Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. Apple Inc. (AAPL) is -0.01 at $148.35, with 1,180,549 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is -0.01 at $148.35, with 1,180,549 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021.
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Apple Inc. (AAPL) is -0.01 at $148.35, with 1,180,549 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 After Hours Indicator is down -4.92 to 15,364.
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11037.0
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2021-08-25 00:00:00 UTC
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Pre-Market Most Active for Aug 25, 2021 : CPOP, AMC, EDU, MCHI, SQQQ, JFIN, EXPR, JWN, NVS, DIDI, MXIM, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-aug-25-2021-%3A-cpop-amc-edu-mchi-sqqq-jfin-expr-jwn-nvs-didi
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The NASDAQ 100 Pre-Market Indicator is up 16.31 to 15,373.99. The total Pre-Market volume is currently 15,856,399 shares traded.
The following are the most active stocks for the pre-market session:
Pop Culture Group Co., Ltd (CPOP) is +1.09 at $5.28, with 3,311,460 shares traded.
AMC Entertainment Holdings, Inc. (AMC) is +1.24 at $45.50, with 3,198,858 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022. The consensus EPS forecast is $-0.07. AMC's current last sale is 606.67% of the target price of $7.5.
New Oriental Education & Technology Group, Inc. (EDU) is -0.03 at $2.12, with 2,800,800 shares traded. EDU's current last sale is 40% of the target price of $5.3.
iShares MSCI China ETF (MCHI) is -0.63 at $69.89, with 1,206,855 shares traded. This represents a 6.01% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +0.02 at $7.69, with 844,404 shares traded., following a 52-week high recorded in prior regular session.
Jiayin Group Inc. (JFIN) is +0.6 at $4.53, with 621,167 shares traded. As reported by Zacks, the current mean recommendation for JFIN is in the "strong buy range".
Express, Inc. (EXPR) is +0.48 at $7.74, with 617,973 shares traded. EXPR's current last sale is 154.8% of the target price of $5.
Nordstrom, Inc. (JWN) is -4.19 at $33.62, with 533,434 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2021. The consensus EPS forecast is $0.54. JWN's current last sale is 87.32% of the target price of $38.5.
Novartis AG (NVS) is -0.46 at $91.69, with 509,776 shares traded. NVS's current last sale is 87.32% of the target price of $105.
DiDi Global Inc. (DIDI) is -0.16 at $8.54, with 432,977 shares traded. DIDI's current last sale is 34.16% of the target price of $25.
Maxim Integrated Products, Inc. (MXIM) is unchanged at $104.37, with 410,201 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $0.89. MXIM's current last sale is 104.37% of the target price of $100.
Apple Inc. (AAPL) is +0.12 at $149.74, with 388,532 shares traded. Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $1.23. 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 $149.74, with 388,532 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2022.
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Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. Apple Inc. (AAPL) is +0.12 at $149.74, with 388,532 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Over the last four weeks they have had 6 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. Apple Inc. (AAPL) is +0.12 at $149.74, with 388,532 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range".
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Apple Inc. (AAPL) is +0.12 at $149.74, with 388,532 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AMC's current last sale is 606.67% of the target price of $7.5.
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11038.0
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2021-08-24 00:00:00 UTC
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Advance Auto Parts, inc (AAP) Q2 2021 Earnings Call Transcript
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-q2-2021-earnings-call-transcript-2021-08-24
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Image source: The Motley Fool.
Advance Auto Parts, inc (NYSE: AAP)
Q2 2021 Earnings Call
Aug 24, 2021, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Advance Auto Parts Second Quarter 2021 Conference Call. Before we begin, Ms. Elisabeth Eisleben, Senior Vice President, Communications and Investor Relations, will make a brief statement concerning forward-looking statements that will be discussed on this call.
I will now turn the call over to Ms. Elisabeth Eisleben. Please go ahead.
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Elisabeth Eisleben -- Senior Vice President, Communications, Investor Relations & Community Affairs
Good morning and thank you for joining us to discuss our Q2 2021 results that we highlighted in our earnings release this morning. I am joined by Tom Greco, our President and Chief Executive Officer and Jeff Shepherd, our Executive Vice President and Chief Financial Officer. Following their prepared remarks, we'll turn our attention to answering your questions.
Before we begin, please be advised that our remarks today may contain forward-looking statements. All statements other than those of historical fact are forward-looking statements, including but not limited to statements regarding our initiatives, plans, projections, guidance and future performance. Actual results could differ materially from those projected or implied by the forward-looking statements.
Additional information about factors that could cause actual results to differ can be found under the caption, forward-looking statements and risk factors in our most recent Annual Report on Form 10-K and subsequent filings made with the Securities and Exchange Commission.
Now, let me turn the call over to Tom Greco.
Tom Greco -- President & Chief Executive Officer
Thanks, Elisabeth, and good morning. We hope you're all healthy and safe amid the ongoing pandemic and recent surge of the delta variant. I'd like to start by thanking the entire Advance and Carquest independent family for your hard work to serve our customers throughout the quarter. It's because of you that we're reporting the positive growth in sales, profit and earnings per share we're reviewing today.
In Q2, we continued to deliver strong financial performance on both the one and two year stack, as we began lapping more difficult comparisons. In the quarter, we delivered comparable store sales growth of 5.8% and adjusted operating income margin of 11.4%, an increase of 11 basis points versus 2020.
As a reminder, we lapped a highly unusual quarter from 2020 where we significantly reduced hours of operation and professional delivery expenses reflective of the channel shift from pro to DIY. As we anticipated, the professional business accelerated in Q2 2021, and between our ongoing strategic initiatives and additional actions, we expanded margins. Our actions offset known headwinds within SG&A and an extremely competitive environment for talent.
On a two-year stack, our comp sales improved 13.3% and margins expanded 227 basis points compared to Q2 2019. Adjusted diluted EPS of $3.40 increased 15.3% compared to Q2 2020 and 56.7% compared to 2019. Year-to-date, free cash flow more than doubled, which led to a higher than anticipated return of cash to shareholders in the first half of the year, returning $661.4 [Phonetic] million through a combination of share repurchases and quarterly cash dividends.
Our sales growth and margin expansion were driven by a combination of industry-related factors as well as internal operational improvements. On the industry side, the macroeconomic backdrop remained positive in the quarter as consumers benefited from the impact of government stimulus.
Meanwhile, long-term industry drivers of demand continued to improve. This includes a gradual recovery in miles driven along with an increase in used car sales, which contributes to an aging fleet. While we delivered positive comp sales in all three periods of Q2 our year-over-year growth slowed late in the quarter as we lapped some of our highest growth weeks of 2020. Our category growth was led by strength in brakes, motor oil and filters, with continued momentum in key hard part professional categories.
Regionally, the West led our growth benefiting from an unusually hot summer, followed by the Southwest, Northeast and Florida. To summarize channel performance, we saw double-digit growth in our professional business and a slight decline in our DIY omnichannel business. To understand the shift in our channel mix, it's important to look back at 2020 to provide context.
Beginning in Q2, we saw abrupt shifts in consumer behavior across our industry due to the pandemic, resulting from the implementation of stay-at-home orders. This led to more consumers repairing their own vehicles, which drove DIY growth. In addition, our DIY online business surged as many consumers chose to shop from home and leverage digital services.
Finally, as we discussed last year, our research indicated that large box retailers temporarily deprioritized long tail items, such as auto parts, in response to the pandemic. These and other factors resulted in robust sales growth and market share gains for our DIY business in 2020.
Contrary to historical trends, the confluence of these factors also led to a slight decline in our professional business in Q2 2020. As we began to lap this highly unusual time, we leveraged our extensive research on customer decision journeys. This enabled us move quickly as customer shifted how they repaired and maintained their vehicles.
Our sales growth and margin expansion in Q2 demonstrates the flexibility of our diversified asset base as we adapted to a very different environment in 2021. Specific to our professional business, we began to see improving demand late in Q1 2021, which continued into Q2, resulting in double-digit comp sales growth. This is directly related to the factors just discussed, along with improved mobility trends as more people returned to work and miles driven increased versus the previous year.
Strategic investments are strengthening our professional customer value proposition. It starts with improved availability and getting parts closer to the customer as we leverage our dynamic assortment machine learning platform. Within our Advance Pro catalog, we saw improved key performance indicators across the board including, more online traffic, increased assortment and conversion rates and ultimately growth in transaction counts and average ticket.
We also continued to invest in our technical training programs to help installers better serve their customers. Our TechNet program is also performing well as we continue to expand our North American TechNet members, providing them with a broad range of services. Each of these pro-focused initiatives have been a differentiator for Advance, enabling us to increase first call status with both national strategic accounts and local independent shops.
Finally, we're pleased that through the first half of the year, we added 28 net new independent Carquest stores. We also announced the planned conversion of an additional 29 locations in the West as Baxter Auto Parts joins the Carquest family. We're excited to combine our differentiated pro customer value proposition with an extremely strong family business, highlighted by Baxter's excellent relationships with their customers in this growing market. In summary, all of our professional banners performed at or above our expectations in Q2, including our Canadian business, despite stringent lockdowns.
Moving to DIY omnichannel, our business performed in line with expectations, considering our strong double-digit increases in 2020. While Q2 DIY comp sales were down slightly, DIY omnichannel was still the larger contributor to our two-year growth. DIY growth versus a year ago gradually moderated throughout the quarter as some consumers returned to professional garages.
Within DIY omnichannel, we saw a shift in consumer behavior back to in-store purchases, consistent with broader retail. We've also been working to optimize and reduce inefficient online discounts. These factors along with highly effective advertising contributed to an increase in our DIY in-store mix and a significant increase in gross margins versus prior year.
We remain focused on improving the DIY experience to increase share of wallet through our Speed Perks loyalty platform. We made several upgrades to our mobile app to make it easier for Speed Perks members to see their status and access rewards. We continue to see positive graduation rates among our existing Speed Perks members. In Q2, our VIP membership grew by 8% and our Elite members representing the highest tier of customer spend, increased 21%.
Shifting to operating income, we expanded margin in the quarter on top of significant margin expansion in Q2 2020. This was led by our category management initiatives, which drove strong gross margin expansion in the quarter. First, our work on strategic sourcing remains a key focus as consistent sales growth over several quarters resulted in an increase in supplier incentives.
Secondly, we've talked about growing own brands as a percent of our total sales. This has been a thoughtful and gradual conversion and we began to see the benefits of several quarters of hard work in Q2. This was highlighted by our first major category conversion with steering and suspension, where we saw extremely strong unit growth for our high margin Carquest premium products. In addition, the CQ product is highly regarded by our professional installers. With consistent high level of quality standards, they are now delivering lower defect rates and improved customer satisfaction.
We also recently celebrated the one-year anniversary of the DieHard battery launch. Following strong year one share gains in DIY omnichannel, we've now extended DieHard distribution into the professional sales channel, where we're off to a terrific start. Further expansion of the DieHard and Carquest brands is planned for other relevant categories.
In terms of strategic pricing, we significantly improved our capabilities, leveraging our new enterprise pricing platform. This platform enabled us to respond quickly as inflation escalated beyond our initial expectations for the year.
Moving to supply chain, while we're continuing to execute our initiatives, we faced several unplanned, offsetting headwinds in Q2. Like most retailers, we experienced disruption within the global supply chain, wage inflation in our distribution centers and an overall shortage of workers to process the continued high level of demand. In addition, our suppliers experienced labor challenges and raw material shortages.
Despite a challenging external environment, we continue to execute our internal supply chain initiatives. This includes the implementation of our new Warehouse Management System or WMS, which we're on track to complete in 2022. In the DCs that we've converted, we're delivering improvements in fill rates, on-hand accuracy, and productivity.
The implementation of WMS is a critical component of our new Labor Management System or LMS. Once completed, LMS will standardize operating procedures and enable performance-based compensation. We also continue to execute our Cross Banner Replenishment or CBR initiative, transitioning stores to the most freight logical servicing DC.
In Q2, we converted nearly 150 additional stores and remain on track with the completion of the originally planned stores by the end of Q3 2021. In addition to CBR, we're on track with the integration of Worldpac and Autopart International, which is expected to be completed early next year.
Shifting to SG&A, we lapped several cost reduction actions in Q2 2020, which we knew we would not replicate in 2021. We discussed these actions on our Q2 call last year, primarily a reduction in delivery costs as a result of a substantial channel mix shift along with the reduction in store labor costs at the beginning of the pandemic. Jeff will discuss these in more detail in a few minutes.
In terms of our initiatives, we continue to make progress on sales and profit per store. Our team delivered sales per store improvement and we remain on track to reach our goal of $1.8 million average sales per store within our timeline. Our profit per store is also growing faster than sales per store, enabling four wall margin expansion.
In addition to the positive impacts of operational improvements we've implemented to drive sales and profit per store, we've also done a lot of work pruning underperforming stores and we're back to store growth. In the first half of the year, we opened six Worldpac branches, 12 Advance and Carquest stores and added 28 net new Carquest independents, as discussed earlier.
We also announced the planned conversion of 109 Pep Boys locations in California. We're very excited about our California expansion with the opening of our first group of stores scheduled this fall. The resurgence of the delta variant has resulted in some construction related delays in our store opening schedule. We expect to complete the successful conversion of all stores to the Advance banner by the end of the first quarter 2022.
Finally, we are focused on reducing our corporate and other SG&A costs, including a continued focus on safety. Our total recordable injury rate decreased 19% compared to Q2 2020 and 36% compared to Q2 2019. We're also finishing up our finance ERP consolidation, which is expected to be completed by the end of the year. Separately, we are in the early stages of integrating our merchandising systems to a single platform. Both of these large scale technology platforms are expected to drive SG&A savings over time.
The last component of our SG&A cost reduction was a review of our corporate structure. In terms of the restructuring of our corporate functions announced earlier this year, savings were limited in Q2 due to the timing of the actions. We expect SG&A savings associated with the restructure beginning in Q3.
In summary, we're very pleased with our team's dedication to caring for our customers and delivering strong financial performance in Q2. We're optimistic as the industry-related drivers of demand continue to indicate a favorable long-term outlook for the automotive aftermarket. We remain focused on executing our long-term strategy to grow above the market, expand margins and return significant excess cash back to shareholders.
Now let me pass it to Jeff to discuss more details on our financial results.
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Thanks, Tom, and good morning. I want to echo Tom's thanks to our team members who continued to prioritize the health and safety of our customers and their fellow team members, while helping to deliver solid results for the quarter.
In Q2, our net sales increased 5.9% to $2.6 billion. Adjusted gross profit margin expanded 239 basis points to 46.4%, primarily as a result of the ongoing execution of our category management initiatives, including strategic sourcing, strategic pricing and own brand expansion.
We also experienced favorable inventory-related costs versus the prior year. These benefits were partially offset by inflationary costs in supply chain and unfavorable channel mix. In the quarter, same SKU inflation was approximately 2% and we expect this will increase through the balance of the year. We're working with our supplier partners to mitigate costs where possible. Year-to-date, gross margin improved 156 basis points compared to the first half of 2020.
As anticipated, Q2 adjusted SG&A expenses increased year-over-year and were up $109 million versus 2020. This deleveraged 228 basis points and was a result of three primary factors. First, our incentive compensation was much higher than the prior year, primarily in our professional business as we lapped a very challenging quarter in 2020 when pro sales were negative. Second, we experienced wage inflations beyond our expectations in stores.
We remain focused on attracting, retaining and developing the very best part people in the business and we'll continue to be competitive. We expect both headwinds to continue in the back half of the year. Third, and as expected, we incurred incremental costs associated with professional delivery and normalized hours of operations when compared to Q2 2020.
These increases in Q2 were partially offset by a decrease in COVID-19 related expenses to approximately $4 million compared to $15 million in the prior year. As a result of these factors, our SG&A expenses increased 13.3% to $926.4 million. As a percent of net sales, our SG&A was 35% compared to 32.7% in the prior year quarter. Year-to-date, SG&A as a percent of net sales improved 88 basis points compared to the first half of 2020.
While we've seen a decrease in COVID-19 related costs year-to-date, the health and safety of our team members and customers will continue to be our top priority. As the current environment remains volatile and the delta variant remains a concern, we may see increased COVID-19 expenses in the back half of the year.
Our adjusted operating income increased to $302 million compared to $282 million one year ago. On a rate basis, our adjusted OI margin expanded by 11 basis points to 11.4%. Finally, our adjusted diluted earnings per share increased 15.3% to $3.40 compared to $2.95 in Q2 of 2020.
Our free cash flow for the first half of the year was $646.6 million, an increase of $338.4 million compared to last year. This increase was driven in part by our operating income growth along with continued momentum in our working capital initiatives. Our capital spending was $58.7 million for the quarter and $129.6 million year to-date.
We expect our investments to ramp up in the back half of the year. And in line with our guidance, we estimate we will spend between $300 million and $350 million in 2021. Due to favorable market conditions along with our improved free cash flow in Q2, we returned nearly $458 million to our shareholders through the repurchase of 2 million shares at an average price of $197.52 and our recently increased quarterly cash dividend of $1 per share.
We're pleased with our performance during the first half of the year and moving into the first four weeks of Q3 on a two-year stack, our comparable store sales are in line with Q2. We're continuing to monitor the COVID-19 situation as well as other macro factors, which may put pressure on our results, including, inflationary cost in commodities, wages and transportation. Based on all these factors, we are increasing our full year 2021 guidance ranges, including net sales in the range of $10.6 billion to $10.8 billion, comparable store sales of 6% to 8% and adjusted operating income margin of 9.2% to 9.4%.
As you heard from Tom on our new store openings, we've encountered some delays in the construction process of converting Pep Boys stores, primarily permitting and obtaining building materials related to the ongoing pandemic. As a result, we're lowering our guidance range and now expect to open 80 to 120 new stores this year.
Additionally, given the improvement of our free cash flow and our accelerated share repurchases in the first half of the year, we are also increasing our guidance for free cash flow to a minimum of $700 million and an expected range for share repurchases of $700 million to $900 million. We remain committed to delivering against our long-term strategy as we execute against our plans to deliver strong and sustainable total shareholder return.
Now, let's open the call for your questions. Operator?
Questions and Answers:
Operator
[Operator Instructions] Our first question comes from the line of Michael Lasser of UBS. Your line is open.
Michael Lasser -- UBS -- Analyst
Good morning. Thanks a lot for taking my question. Tom, you're still -- performance in 2Q trail behind some in the industry as well as some indicators of how the industry performs. So, what would you attribute that to and is this a sign that it's just going to be harder to realize the top line expectation that you have outlined as part of your long-term plan?
Tom Greco -- President & Chief Executive Officer
Hey. Good morning, Michael. On the contrary, we're very pleased with our sales performance in the quarter. This is one of those unusual quarters, where the timing of the quarter makes a very big difference. If you think about our quarter that started on April the 25th, we didn't have the first 24 days of April, that three-week period, we can see our growth that was over 50% in those weeks and they get replaced by a couple of weeks in July, our quarter ended on July the 17th.
So, it's really around the timing piece. As far as we're concerned, it's -- we've normalize the calendar for the months of April through June, we're performing very well in relative terms. So, in general, this is a very fragmented industry as well. There's lots of room for everyone to grow. We have just 7% of the total market. We are also pleased that we were able to grow margins, gross margins in the quarter on top of the sales growth. So, again, when we normalize our quarter relative to our peers, we feel very good about our sales performance.
Michael Lasser -- UBS -- Analyst
Understood. My follow-up question is on your operating expenses, SG&A versus 2019 in the quarter was up around 14%, following an 11% increase in the first quarter. How much of this has been due to wages inflating more than you expected? And what's the reasonable expectation for us to assume wages are going to continue to increase in the next couple of quarters? And then how much is this going be offset by other potential sources of savings or even the gross margin expansion that seem sustainable as you generated in the second quarter?
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Yeah. Well, specific to SG&A, when you compare it to 2019, you got to remember we do have the COVID-related costs in '21 that we didn't experience in 2019. And I think that just about evens it out, in fact it might actually be a little bit better on a relative basis when you take out those $4 million.
In terms of inflation, we certainly experienced inflation throughout the P&L and the wage inflation was higher than our expectations. Certainly, the product costs are well within our expectations, they are a little over 2%. But just kind of stepping back, if we continue to execute our margin expansion initiatives, especially in gross margins may of what you saw this quarter, we think that's going to continue into the back half of the year.
And keep in mind, a lot of our SG&A initiatives that we laid out in April either don't start in '21 at all or just begin in the back half of '21. So, for example, that $30 million of restructuring, we're not going to start seeing that until the back half. So, that will help us somewhat, but SG&A is going to be challenged throughout the balance of the year, but we're confident we can continue with our gross margins and hopefully continue to show positive operating margins.
Michael Lasser -- UBS -- Analyst
Thank you and good luck.
Tom Greco -- President & Chief Executive Officer
Thanks, Michael.
Operator
Your next question comes from the line of Simeon Gutman of Morgan Stanley. Your line is open.
Simeon Gutman -- Morgan Stanley -- Analyst
Hey. Thanks. Good morning, everyone. My first question is on gross margin. This quarter, it looked like there was a pretty strong inflection on that line item. Can you talk about if it's reflective of the collective initiatives that you're working on? And then is there any part of it that may not be repeatable?
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Yeah. Thanks, Simeon. The short answer is, yes, it's directly attributable to our category management initiatives. It's the combination of our strategic sourcing, our strategic pricing. And as Tom mentioned, we rolled out our own brands. And so, if you take those and put them together, that not only offset the inflation, which as I just mentioned was a little over 2% that we saw in product cost, it drove all of our gross margin improvement in the quarter.
And we absolutely believe that these are sustainable in the back half of the year. Now, we did see favorability with some of those inventory-related items, namely capitalized supply chain costs, but those were essentially offset by the supply chain headwinds and channel mix. So, overall, we're very pleased with how our initiatives drove gross margin improvement in Q2 and we expect that to continue.
Simeon Gutman -- Morgan Stanley -- Analyst
Okay, that's helpful. And then maybe, Jeff, I'm going to stick with supply chain costs because I know you just mentioned it now and I think it was in the press release. Because these costs are getting capitalized and we know what -- container rates and freight rates are moving up, have we seen the peak level of these costs reflected or we have to wait as your inventory turns, means we're going to see a little bit incremental pressure from these items down the road?
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Over time, down the road, you would see these come back through. Remember, we've got $4 billion of inventory sitting on our balance sheet. So I wouldn't expect a wave to come back in any of the next few quarters and it really varies by the velocity of the various SKUs. So, it does get on to your balance sheet, it does come back off overtime. But overall we're not anticipating anything, at least not in the back half of the year.
Simeon Gutman -- Morgan Stanley -- Analyst
And just related to the same -- related to my first and the second question, this inflection in terms of magnitude of gross margin combined with maybe some higher supply chain costs. Is there any rule of thumb where the business should be doing 30 basis points, 50 basis points, 70 basis points of margin or is that you're not going to draw a line in the sand, that specifically?
Tom Greco -- President & Chief Executive Officer
Yeah. We're not going to draw lines in the sand that specifically. We're really pleased with the initiatives that we have in place. They're absolutely going to continue and we're going to try our best to manage the inflation as we go through the balance of the year.
Simeon Gutman -- Morgan Stanley -- Analyst
Okay, thanks. Appreciate it. Take care.
Tom Greco -- President & Chief Executive Officer
Thanks, Simeon.
Operator
Your next question comes from the line of Christopher Horvers of J.P. Morgan. Your line is open.
Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst
Thanks, guys, and good morning. So, my first question is on the commentary around quarter-to-date, the DIY compares really start to ease off going forward. If our math is right, you were running sort of a low-double digit through the end of August last year and then it eased down to sort of mid-single-digit plus in the latter part of the quarter. Is that fair and does that imply that you're running sort of, like a low-single-digit one year positive at this point?
Tom Greco -- President & Chief Executive Officer
Good morning Chris. You're in the ballpark. What we said was we're in line with the two-year stack in the second quarter, which as we reported this morning was over 13%. So our third quarter was 10%. So you're in that ballpark. And I think your cadence is right as well. I mean, July and August were very strong last year and started to gradually moderate through the fall.
Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst
Understood, makes sense. And then as a follow-up, just helicoptering up, you know you did a -- in the first quarter, you had a 9% operating margin. In the second quarter, you got 11.4% operating margin. What's the new sustainable level? Or maybe asked differently, what's not sustainable in the 11.4%? I understand some quarter is seasonally light, so less sort of leveraged on the fixed cost side, but what sort of the build point that we're going from as we think about the second quarter and forward?
Tom Greco -- President & Chief Executive Officer
Yeah. A couple of things, Chris. We're pleased with the -- not only the one year, but the two-year improvement in the second quarter on margin expansion of over 200 bps. The big thing that's starting to kick in for us and is sustainable is the category management initiatives. I mean, we've been working on those for a couple of years. We've said all along, it's going to take time.
We've had several quarters, five quarters in a row of growth now. The last couple of years we've only had, the one difficult quarter in early 2020 and that's helped us on the sourcing side and vendor incentives piece. The rollout of our own brands, which as you know, given the turns in our category has taken time. But that is really starting to benefit our P&L. There is a significant difference in the margin rate between the Carquest premium own brand products and some of the alternatives that we have there.
And as you know, we implemented that pricing tool in the middle of last year, and that also has then enabled us to be a lot smarter in how we price, whether that's regionally or by channel or by account, all of those things. So, clearly, the category management initiatives are going to be sustainable for us. The supply chain initiatives, we're going to continue to execute against, they're very much on track. What we're dealing with on the unknown side is just the ongoing inflationary environment.
And in the second quarter, we saw that coming; we dealt with it. We feel confident. This is an industry that's been able to deal with unplanned inflation very successfully over many years. So, that's the approach that we're going to take. But the gross margin initiatives, we feel very strong -- very good about and we believe are sustainable and we're going to continue to execute them.
Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst
So, I guess, said another way, ex sort of seasonality and overall sales levels, there was nothing unusual in the 11.4%?
Tom Greco -- President & Chief Executive Officer
Yeah. We called out the inventory-related costs that were basically fully offset, as Jeff just said, by the channel mix and the supply chain headwinds. But other than that, it was equal, Jeff?
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
The only thing I would add to that Chris is, in the back half, we're going to continue to invest in marketing as long as it makes sense. We're seeing a really good return on our advertising spend. It was relatively flat in Q2, just so you know, but in the back half, we got some plans to invest further into marketing. So, we're going to see some of that in the back half.
Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst
Got it. Thanks very much.
Tom Greco -- President & Chief Executive Officer
Thank you.
Operator
Your next question comes from the line of Elizabeth Suzuki of Bank of America. Your line is open.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Hey, good morning. Thanks for taking our question. This is Jason Haas on for Liz Suzuki. So, I wanted to focus in on the DIY business. I'm curious what you could say about the health of that customer? We know they've been plush with cash with stimulus and high saving rates for a while. So, it sounds like you're starting to see a moderation in that business. I'm curious to what extent you think that folks shifting over to the do-it-for-me channel or do you think maybe there is just some slowdown in their spending after the stimulus dollars start to run out?
Tom Greco -- President & Chief Executive Officer
Well, we've actually been pretty pleased with the performance in DIY. We fully anticipated the shift back to DIFM at some point this year, given what happened last year, again in the second quarter of 2020 people were locked in their homes, they had time on their hands. They were doing things that they wouldn't normally do, including DIY automotive.
So, as we get back into more of a normalized environment here where people are commuting, they're going out to baseball games and traveling on airplanes and all the things that they do, they lose that time and then they're going to obviously get their car repaired and maintained by a professional. It's more likely that they would do that.
And also, in the second quarter last year, many of the professional garages were closed for a period of time, so they couldn't even get them repaired at a garage. So it's really held up more than we would have expected, and we're very pleased by the performance in the quarter. We can see that we held on to customers that joined us last year, that came on to our -- to the Advance team, if you will, last year. We maintained those customers and the DIY business has held up. So it hasn't -- we haven't given back a whole lot of the gains from last year.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Thanks, that's great to hear. And then, on your inventory position, I know you mentioned and it's been widely reported, some supply chain challenges. So, I'm just curious how that looks from here on out if you are getting a sense that things are just starting to improve from here? And then just the state of your inventory and how you feel for the remaining quarters of the year.
And then if it's related at all -- I did want to follow up on the free cash flow guidance. Just curious what the drivers, if that's inventory-related? I don't know if the delayed store openings has an impact? Just any color on that would be helpful as well. Thanks.
Tom Greco -- President & Chief Executive Officer
Okay. Well, I'll take the supply chain question and then I'll flip the cash flow over to Jeff. I think, in general, we would say our store and stocks are not where we'd like them to be. At the same time, we're very well positioned competitively. I've been out in the market a lot, I can see what's going on in the DIFM network and in DIY. I feel very good about our competitive position.
I think everyone is experiencing some level of difficulties there. I'm very proud of our merchant inventory and supply chain teams, they've leveraged long-term relationships that we have with our partners to keep the product moving. So, we're going to continue to work with them to build our inventory back and make sure that we're at the level of service that we want to be for our stores. But I feel very good competitively. Jeff?
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Yeah, sure. On the free cash flow, really there's three things that are going to impact us in the back half that we didn't see as much in the first half. So, first of all, we do think we're going to still generate meaningful operating cash in the back half, but that's going to be largely offset by three things.
First is our capital expenditures. We still have a very robust plan in the back half to invest back in the business, investing in our margin expansion objectives. And so, the capex spend will be elevated as compared to the second half. As you saw, we held our guidance there at $300 million to $350 million for the year.
Second and related to the first question, we are going to be making investments in inventory that will likely increase our inventory in the back half to support what Tom just said, both the in-stocks as well as our new store openings. So, that will put some pressure on our working capital.
And then the last thing is, we should have a couple of expenditures that we didn't see in the first half. We have to repay half of the CARES Act. So, if you recall, we didn't have to make the cash payment on the employer payroll tax last year. We have to pay back half of that this year in the fourth quarter. And then, we do have an additional rent payment due to the timing of our fiscal year end. So, those are really the drivers for the lower free cash flows compared to the first half.
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Got it. That's helpful. Thank you.
Operator
Your next question comes from the line of Steven Zaccone of Citigroup. Your line is open.
Steven Zaccone -- Citi Research -- Analyst
Great. Good morning, everyone. Thanks for taking my question. I guess, I wanted to start on the outlook for parts inflation. If you could elaborate a little bit more on how you're thinking about the full year? I think the prior expectation was for 2% to 4% benefit to the full year comps, so just talk about that. And then I guess more broadly on the pricing environment, have you really seen any issues with passing cost on to the pro customer or the DIY consumer?
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Yeah. So, I'll take the first part. I think you mentioned the parts inflation. As I said, in the quarter, we saw product costs at a little over 2%. When we started the year, we were estimating inflation at 1% to 2%. We now think it's going to be 2% to 4%. We do know there is more inflation coming, we're planning for that. So that 2% to 4% range we feel like it's going to be still in that range.
Tom Greco -- President & Chief Executive Officer
Yeah. And on the pricing piece, we've been able to leverage our tools much better this year. We're being a lot more strategic in how we pass on pricing. We leverage all of the work we do on the customer decision journey, whether that's in DIY or in DIFM. And with that in mind, we've been able to pass it on very successfully. And it's kind of a tradition within our industry, we feel confident we'll be able to continue to do that.
Steven Zaccone -- Citi Research -- Analyst
Great. Then just the second question on the broader like macro backdrop and some of the industry drivers, how do you see demand playing out over the balance of the year? I guess, in particular, we've seen the strength in used car sales, do you think that's a tailwind that can continue here in the back half of the year?
Tom Greco -- President & Chief Executive Officer
We definitely do. I mean, that's a very important number to see that used car growth and we do believe that's going to continue to contribute to an aging fleet, which in turn means more part sales. So, that's a strength. And the traditional drivers of demand, all of them are relatively positive.
We're seeing a recovery in miles driven, the car parks are growing, the fleet is aging, so all of those contribute to incremental part sales. So, we do believe the industry continues to grow. And as you saw from our April investor presentation, as you get into '22, '23, we think that continues in the 4% range.
Steven Zaccone -- Citi Research -- Analyst
Great, thanks very much guys.
Operator
Your next question comes from the line of Kate McShane of Goldman Sachs. Your line is open.
Kate McShane -- Goldman Sachs -- Analyst
Hi, good morning. Thanks for taking my question. I just wanted to go back to the wage inflation piece. Just curious, why maybe it was higher than expected in Q2? And I wondered if you could talk a little bit about turnover currently at the DCs versus stores and where your average hourly wage is currently?
Tom Greco -- President & Chief Executive Officer
Well, first of all, we definitely have planned some level of wage inflation for the year, Kate. It is a little bit high -- I mean, you're very familiar with the labor situation nationally [Phonetic], which was really challenged in the second quarter. So we're surgical with how we invested in wages. We look at them market-by-market and we look at it on an ongoing basis. We want to make sure we've got the very best people that we can get into our stores to work with our customers. And that's been a multi-year effort.
We've been investing in our front line team members for several years. We got a very unique program called Fuel the Frontline, which provides stock to our frontline team members, no one else in the industry has that. We've invested over $60 million there. And as we look at our store team, we want to keep that turnover number down as low as possible. So, there are markets where we made investments in the quarter in the stores.
Supply chain is a very challenging situation. We are seeing inflation there as we called out more than we expected. The turnover, I think, has peaked and started to come down, is what I would tell you there. Obviously, as some of the benefits, the unemployment benefits, etc. start to come off, we are seeing more applicants and able to source the people that we need. So, I think the difficult environment is going to continue, but it's going to be less challenging, I think, than it was in the second quarter.
Kate McShane -- Goldman Sachs -- Analyst
Thank you.
Operator
Your next question comes from the line of Bret Jordan of Jefferies. Your line is open.
Bret Jordan -- Jefferies -- Analyst
Hi, good morning guys.
Tom Greco -- President & Chief Executive Officer
Good morning, Bret.
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Good morning.
Bret Jordan -- Jefferies -- Analyst
On the category initiatives, I guess, do you think that they are having any impact on your in-stocks as you put more of those supply chain on your own place as opposed to third party distributors, suppliers?
Tom Greco -- President & Chief Executive Officer
No. I think, in general, we're transitioning certain categories. But it's a -- in general, it's a challenging environment for our suppliers, getting people to work, getting containers, obviously we've got sourced products from China, there is a lot of variables in there, Bret. So, I think it's really a broader issue.
Bret Jordan -- Jefferies -- Analyst
Okay. And then I guess on the Pep Boys topic, you talked about some of those store conversions. Could you give us any color as how -- any early feedback on how those stores are performing if you've converted? And I guess on those that you're having a problem with, may they never convert, is it something that you're just not getting approval on the zoning for and they may get left out or it's just going to be slower?
Tom Greco -- President & Chief Executive Officer
First of all, no, we will get them all converted, what we said was, by the end of the first quarter of '22. We obviously want to get this right as quickly as we can. We've run into some challenges with permitting and construction and things like that in California that are quite unique to that market. But I got to tell you, we're so excited about this opportunity, Bret. I've been out there a couple of times. I've been through the stores, meeting the team members.
These are experienced team members, they know the LA market. They know the California market. We're going to bring them all of our initiatives. We're going to bring them DieHard batteries, Carquest premium products, all of our professional customer base. We're very excited about this opportunity and you're going to hear more about it this fall. I mean, we are going to be starting opening soon.
Bret Jordan -- Jefferies -- Analyst
Okay, great. Then one quick housekeeping question. I guess, on the accounts payable to inventory now in the 80s, years ago we talked about this maybe being a target. Do you think that number goes higher or are there just structural headwinds like Worldpac that would prevent your accounts payable north of a 100%?
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Yeah, we've said in the past that we think we can get our AP ratio into the low 90s. For the balance of the year, we think it will moderate to some extent versus what you're seeing in Q2. And that's largely driven by the inventory investments that I had mentioned earlier.
Bret Jordan -- Jefferies -- Analyst
Okay, great. Thank you.
Operator
Your next question comes from the line of Daniel Imbro of Stephens. Your line is open.
Daniel Imbro -- Stephens, Inc. -- Analyst
Yeah, good morning, everybody. Thanks for taking our questions. I want to start on the expense side. I think in recent quarters Jeff and Tom you've mentioned taking up your advertising dollars. I think you've noted that's probably skewed toward more driving DIY sales and DIY mix. With DIY sales slowing and becoming a smaller percentage going forward, can you maybe talk about how you're planning those advertising dollars and frankly how you're measuring ROI just given the channel shifts going on in the business?
Tom Greco -- President & Chief Executive Officer
Yeah, good morning, Daniel. We measure it based on the ability to drive the P&L and margin expansion, incremental sales dollars are in the equation, obviously, but we've been very, very successful at refining our marketing spend. DieHard has been a home run. We've launched DieHard last year, we gradually reduced our discounts online on batteries. Our gross margin improvement in batteries is significant.
Part of our gross margin benefit in the quarter was related to batteries, where on a year-to-date basis we're still gaining unit share and growing gross margin. So, when those marketing dollars which show up in SG&A are spent against -- on initiatives such as DieHard, we look at the total picture, not just the SG&A investment, obviously, to the extent we can drive the entire P&L, we do that and that's how we look at it.
Daniel Imbro -- Stephens, Inc. -- Analyst
Got it. That's helpful. And then to -- just on the DIY customer. First, you talked about moving customers up your loyalty tiers, what are the reward redemptions looking like at each level and is there a different gross margin impact? Is there a positive benefit for moving up tier with customers? And then the last DIY question is just, with gas prices much higher maybe year-over-year and frankly staying here at levels we haven't seen in a while, have you seen any impacts on that lower end DIY customer and any pullback in discretionary spending you attribute to that vector?
Tom Greco -- President & Chief Executive Officer
Well, first of all, on Speed Perks, we're pleased we're starting to grow share of transactions again. We saw nice increase on that. We're seeing, what we call, graduation. So the increases in our elite members, increases in our VIP members. So the short answer is, we want that, right. We want to capture a higher share of wallet with our DIY customers. And when we do that, we make more gross profit dollars. The discounts are not -- are obviously factored into that, but you're getting a higher share of wallet in total, you are very happy with that outcome.
We haven't seen anything yet in terms of DIY customers trading down. We're very cognizant of that, though, Daniel, to your question. And in some cases, where -- as we roll out Carquest premium own brand, we are seeing that naturally and that's actually a good thing for us because it drives gross margin. However, in general, I don't think we can say we've seen a broad trend to trade down yet, but we're cognizant of it, given the environment, and given the stimulus coming off and all of those things.
Daniel Imbro -- Stephens, Inc. -- Analyst
Got it. Thanks so much guys. Best of luck.
Operator
Your next question comes from the line of Michael Montani of Evercore ISI. Your line is open.
Michael Montani -- Evercore ISI -- Analyst
Hey, good morning, and thanks for taking the question. I just wanted to ask for some incremental color, if I could, Tom, in terms of transaction counts. Can you just give us a sense for how that played out on DIY, DIFM and then that 5.8% comp, how much was traffic versus ticket there?
Tom Greco -- President & Chief Executive Officer
Sure. Yeah, pro was strong across the board, strong ticket growth, strong average ticket. DIY was down in terms of transactions lapping huge growth last year. So, in terms of our overall performance, we're pleased with both in terms of our expectations and what we -- how we thought the quarter was going to play out. Average ticket was strong in DIY as well, by the way. So, bit of a tale of two cities and -- but not different than we expected.
Michael Montani -- Evercore ISI -- Analyst
And just the follow-up was, if we look at the back half of last year, it's kind of 100 bps, 150 bps higher EBIT margin in aggregate versus the back half of '19. And just thinking about this year's back half, we're talking about kind of double-digit trends in terms of two-year sales productivity list. So, just wondering if there is any structural impediment that would kind of prevent the retention of much or all of that kind of benefit that you all had last year?
Tom Greco -- President & Chief Executive Officer
Well, I mean, our back half guide represents a combination of factors. I mean, we've looked at the environment, it's obviously a pretty dynamic environment right now, there's a lot of unknowns in the back half, so we have reflected that in the guide. But based on the tailwinds we had in the second quarter and all of those headwinds that we see, we did increase the guide for the third time on all the key financial metrics.
And we're pleased that through the first four weeks on a two-year stack, our sales performances is in line with Q2 of roughly 13%. So, all of that's positive, Michael. So, we're going to continue to execute our plan. We want to grow faster than the market. We want to expand our margins. We're going to return the excess cash back to our investors and continue to do what we believe we're capable of doing over the next couple of years. And we're cognizant of the dynamic nature of the environment.
Michael Montani -- Evercore ISI -- Analyst
Makes sense. Thank you and good luck.
Operator
Thank you. And I'm showing no further questions in the queue at this time. I'll hand the call back to Mr. Tom Greco for closing remarks.
Tom Greco -- President & Chief Executive Officer
Well, thanks again for joining us today. As you heard this morning, we're very proud of our performance in the first half of the year and we're extremely grateful for nearly 70,000 team members who are dedicated to serving the customer, while working to keep our Advance family safe and healthy amid a very challenging environment.
We're committed to continue to execute our long-term strategy to deliver strong and sustainable total shareholder return and we're confident in our ability to deliver against our strategic initiatives. I'd also like to announce that starting September 1st, we're launching our annual American Heart Association fundraising campaign at our stores as well as our independently owned Carquest stores in the U.S. and Puerto Rico.
The funds we raise will go toward the American Heart Association's fight against heart disease and stroke. We believe that by increasing awareness of heart health and raising critical funds for research, we can help improve the lives of our team members, customers and members of our communities. We hope you'll join us in supporting this important mission. Thank you.
Operator
[Operator Closing Remarks]
Duration: 54 minutes
Call participants:
Elisabeth Eisleben -- Senior Vice President, Communications, Investor Relations & Community Affairs
Tom Greco -- President & Chief Executive Officer
Jeff Shepherd -- Executive Vice President & Chief Financial Officer
Michael Lasser -- UBS -- Analyst
Simeon Gutman -- Morgan Stanley -- Analyst
Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst
Jason Haas -- Bank of America Merrill Lynch -- Analyst
Steven Zaccone -- Citi Research -- Analyst
Kate McShane -- Goldman Sachs -- Analyst
Bret Jordan -- Jefferies -- Analyst
Daniel Imbro -- Stephens, Inc. -- Analyst
Michael Montani -- Evercore ISI -- Analyst
More AAP analysis
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Advance Auto Parts, inc (NYSE: AAP) Q2 2021 Earnings Call Aug 24, 2021, 8:00 a.m. Operator [Operator Closing Remarks] Duration: 54 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications, Investor Relations & Community Affairs Tom Greco -- President & Chief Executive Officer Jeff Shepherd -- Executive Vice President & Chief Financial Officer Michael Lasser -- UBS -- Analyst Simeon Gutman -- Morgan Stanley -- Analyst Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Steven Zaccone -- Citi Research -- Analyst Kate McShane -- Goldman Sachs -- Analyst Bret Jordan -- Jefferies -- Analyst Daniel Imbro -- Stephens, Inc. -- Analyst Michael Montani -- Evercore ISI -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Within our Advance Pro catalog, we saw improved key performance indicators across the board including, more online traffic, increased assortment and conversion rates and ultimately growth in transaction counts and average ticket.
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Operator [Operator Closing Remarks] Duration: 54 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications, Investor Relations & Community Affairs Tom Greco -- President & Chief Executive Officer Jeff Shepherd -- Executive Vice President & Chief Financial Officer Michael Lasser -- UBS -- Analyst Simeon Gutman -- Morgan Stanley -- Analyst Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Steven Zaccone -- Citi Research -- Analyst Kate McShane -- Goldman Sachs -- Analyst Bret Jordan -- Jefferies -- Analyst Daniel Imbro -- Stephens, Inc. -- Analyst Michael Montani -- Evercore ISI -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts, inc (NYSE: AAP) Q2 2021 Earnings Call Aug 24, 2021, 8:00 a.m. See the 10 stocks *Stock Advisor returns as of August 9, 2021 Elisabeth Eisleben -- Senior Vice President, Communications, Investor Relations & Community Affairs Good morning and thank you for joining us to discuss our Q2 2021 results that we highlighted in our earnings release this morning.
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Operator [Operator Closing Remarks] Duration: 54 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications, Investor Relations & Community Affairs Tom Greco -- President & Chief Executive Officer Jeff Shepherd -- Executive Vice President & Chief Financial Officer Michael Lasser -- UBS -- Analyst Simeon Gutman -- Morgan Stanley -- Analyst Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Steven Zaccone -- Citi Research -- Analyst Kate McShane -- Goldman Sachs -- Analyst Bret Jordan -- Jefferies -- Analyst Daniel Imbro -- Stephens, Inc. -- Analyst Michael Montani -- Evercore ISI -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts, inc (NYSE: AAP) Q2 2021 Earnings Call Aug 24, 2021, 8:00 a.m. Based on all these factors, we are increasing our full year 2021 guidance ranges, including net sales in the range of $10.6 billion to $10.8 billion, comparable store sales of 6% to 8% and adjusted operating income margin of 9.2% to 9.4%.
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Operator [Operator Closing Remarks] Duration: 54 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications, Investor Relations & Community Affairs Tom Greco -- President & Chief Executive Officer Jeff Shepherd -- Executive Vice President & Chief Financial Officer Michael Lasser -- UBS -- Analyst Simeon Gutman -- Morgan Stanley -- Analyst Christopher Horvers -- J.P. Morgan Securities, Inc. -- Analyst Jason Haas -- Bank of America Merrill Lynch -- Analyst Steven Zaccone -- Citi Research -- Analyst Kate McShane -- Goldman Sachs -- Analyst Bret Jordan -- Jefferies -- Analyst Daniel Imbro -- Stephens, Inc. -- Analyst Michael Montani -- Evercore ISI -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts, inc (NYSE: AAP) Q2 2021 Earnings Call Aug 24, 2021, 8:00 a.m. We expect both headwinds to continue in the back half of the year.
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Trending Stocks To Buy Today? 3 Retail Stocks To Know
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3 Top Retail Stocks To Watch Ahead Of September 2021
After a stellar week for the retail industry, retail stocks could be among the most trending stocks today within the stock market. This seems to be the case even as Delta fears continue to linger over the current reopening trade. Evidently, some of the biggest names in the sector reported solid figures across the board. Just last week, Walmart (NYSE: WMT) beat its earnings expectations while Target (NYSE: TGT) had a blowout quarter. If anything, some would argue that these retail giants among others would be factors contributing to the current strength of the broader stock market now.
Similarly, this trend appears to be holding strong this week as well. Earlier today, Best Buy (NYSE: BBY) smashed Wall Street’s estimates in its second-quarter fiscal. Namely, the company posted an earnings per share of $2.98 on revenue of $11.85 billion for the quarter. This compares to projections of $1.85 and $11.45 billion respectively. According to Best Buy, sales for the quarter rose by almost 20% as consumers upgraded their household devices. The likes of which range from better work-from-home equipment to streaming TVs.
Not to mention, even niche retail names like Camping World (NYSE: CWH) are making headlines in the market today. In detail, the recreational vehicle retailer announced that it would be doubling its quarterly dividend from $0.25 to $0.50. With the retail space showing no signs of slowing, could one of these stocks be worth watching?
Best Retail Stocks To Buy [Or Sell] This Week
Apple Inc. (NASDAQ: AAPL)
JD.com Inc. (NASDAQ: JD)
Advance Auto Parts Inc. (NYSE: AAP)
Apple Inc.
First up, we have Apple, a tech retailer that has essentially revolutionized personal technology. Today, the company’s premium products are used by millions all over the world. It also provides a wide number of tech services like Apple TV, Apple Music, and the App Store. The company is one of the most valuable tech companies in the world and has very strong brand loyalty. AAPL stock currently trades at $150.37 as of 10:44 a.m. ET.
In late July, the company reported its third-quarter financials for fiscal 2021. To begin with, it posted record revenue of $81.4 billion, up by 36% year-over-year and quarterly earnings per diluted share of $1.30. The company said that its operating performance for the quarter included new revenue records in each of its geographic segments. Apple also enjoyed double-digit growth in each of its product categories and a new all-time high for its installed base of active devices. Also, the company’s board of directors has declared a cash dividend of $0.22 per share of the company’s common stock.
Last week, the company was also ranked highest among the Midsize Credit Card segment for its Apple Card by the J.D. Power 2021 U.S. Credit Card Satisfaction Study. It received a chart-topping score of 864. The Apple Card disrupted the credit card industry when it launched in 2019 as the first credit card designed for the iPhone. The card provides customers with a secure and seamless way to manage their finances right from Apple Wallet on their Apple products. The company also expanded the benefits of the card to share an account with the Family Sharing group. All things considered, will you consider buying AAPL stock right now?
Source: TD Ameritrade TOS
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JD.com Inc.
Following that, we have JD.com, a leading China tech stock in the e-commerce market today. In fact, it is one of the largest e-commerce presences in the Chinese market. This would be in terms of transaction volume and revenue. As it stands, JD stock currently trades at $73.84 a share as of 10:44 a.m. ET. This would be after skyrocketing by over 10% at today’s opening bell.
Accordingly, the current hype around JD would be thanks to its stellar earnings figures. For starters, the company reported a total revenue of $39.3 billion for the quarter, marking a sizable 26% year-over-year increase. At the same time, JD also saw its annual active customers count surge by over 27% to 531.9 million. The company cites improving consumer spending even against the backdrop of regulatory pressures.
By and large, would all of this make JD stock a top retail stock to own now? If anything, Cathie Wood appears to believe so. Earlier today, news broke that Wood’s Ark Investment Management firm bought up over 164,000 American depository receipts (ADRs). While the company’s shares still trade below its 52-week high, would you consider buying JD stock on the dip?
Source: TD Ameritrade TOS
[Read More] 4 Robotics Stocks To Watch Amid Rising Shifts To Automation
Advance Auto Parts Inc.
Advance Auto Parts (AAP) is an automotive aftermarket parts provider with headquarters in North Carolina. In fact, it is a leading parts retailer that serves both professional installers and do-it-yourself customers. Impressively, the company operates over 4,600 stores and has 178 Worldpac branches in the U.S., Canada, and Puerto Rico. AAP stock currently trades at $209.50 as of 10:45 a.m. ET. Today, the company reported impressive second-quarter results today.
Firstly, it posted net sales of $2.6 billion, a 5.9% increase. Comparable store sales increased by 5.8%. Secondly, AAP also posted a diluted earnings per share of $2.74. The company says that it is committed to a balanced approach in returning cash to shareholders. It returned a record $57.9 million to its shareholders through a combination of share repurchases and its quarterly cash dividend. Also, the company says that it will remain focused on executing its long-term strategy. This includes growth at or above the industry and capitalizing on its unique margin expansion opportunity.
CEO Tom Greco had this to say, “Our top-line improvement was led by the professional business with a recovery in miles driven fueling demand as we lapped double-digit DIY omnichannel growth in the prior year. Our Adjusted operating income margin expanded 11 basis points to 11.4%. When compared with the second quarter of 2019, our Adjusted operating income margin increased 227 basis points demonstrating progress against our margin expansion initiatives.” On top of that, the company also increased its full-year 2021 guidance. For these reasons, will you consider adding AAP stock to your portfolio?
Source: TD Ameritrade TOS
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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Best Retail Stocks To Buy [Or Sell] This Week Apple Inc. (NASDAQ: AAPL) JD.com Inc. (NASDAQ: JD) Advance Auto Parts Inc. (NYSE: AAP) Apple Inc. First up, we have Apple, a tech retailer that has essentially revolutionized personal technology. AAPL stock currently trades at $150.37 as of 10:44 a.m. All things considered, will you consider buying AAPL stock right now?
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Best Retail Stocks To Buy [Or Sell] This Week Apple Inc. (NASDAQ: AAPL) JD.com Inc. (NASDAQ: JD) Advance Auto Parts Inc. (NYSE: AAP) Apple Inc. First up, we have Apple, a tech retailer that has essentially revolutionized personal technology. Source: TD Ameritrade TOS [Read More] 4 Robotics Stocks To Watch Amid Rising Shifts To Automation Advance Auto Parts Inc. Advance Auto Parts (AAP) is an automotive aftermarket parts provider with headquarters in North Carolina. AAPL stock currently trades at $150.37 as of 10:44 a.m.
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Best Retail Stocks To Buy [Or Sell] This Week Apple Inc. (NASDAQ: AAPL) JD.com Inc. (NASDAQ: JD) Advance Auto Parts Inc. (NYSE: AAP) Apple Inc. First up, we have Apple, a tech retailer that has essentially revolutionized personal technology. AAPL stock currently trades at $150.37 as of 10:44 a.m. All things considered, will you consider buying AAPL stock right now?
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Best Retail Stocks To Buy [Or Sell] This Week Apple Inc. (NASDAQ: AAPL) JD.com Inc. (NASDAQ: JD) Advance Auto Parts Inc. (NYSE: AAP) Apple Inc. First up, we have Apple, a tech retailer that has essentially revolutionized personal technology. AAPL stock currently trades at $150.37 as of 10:44 a.m. All things considered, will you consider buying AAPL stock right now?
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11040.0
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2021-08-24 00:00:00 UTC
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Advance Auto Parts Raises 2021 Guidance; Q2 Comps. Up 5.8% - Quick Facts
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-raises-2021-guidance-q2-comps.-up-5.8-quick-facts-2021-08-24
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nan
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nan
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(RTTNews) - Advance Auto Parts, Inc. (AAP) said its second-quarter adjusted earnings per share increased 15.3% year-on-year, and adjusted operating income margin expanded 11 basis points to 11.4%. The company delivered a 5.8% increase in comparable store sales led by a strong recovery in the professional business. For full year 2021, the company updated its financial guidance to reflect the positive first-half results.
For full year 2021, the company now expects comparable store sales in a range of 6.0% to 8.0%, revised from prior guidance of 4.0% to 6.0%. Adjusted operating income margin is now expected to be 9.2% to 9.4%, revised from prior outlook of 9.0% to 9.2%. Net sales are anticipated to be $10.60 billion to $10.80 billion, updated from previous guidance of $10.40 billion to $10.60 billion. Analysts polled by Thomson Reuters expect the company to report revenue of $10.66 billion. Analysts' estimates typically exclude special items.
Second-quarter adjusted EPS increased 15.3% to $3.40. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $3.03, for the quarter. Analysts' estimates typically exclude special items. On a GAAP basis, EPS was $2.74, flat with last year.
Second-quarter net sales were up 5.9% to $2.65 billion. Analysts expected revenue of $2.62 billion, for the quarter.
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) said its second-quarter adjusted earnings per share increased 15.3% year-on-year, and adjusted operating income margin expanded 11 basis points to 11.4%. On a GAAP basis, EPS was $2.74, flat with last year. The company delivered a 5.8% increase in comparable store sales led by a strong recovery in the professional business.
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Analysts' estimates typically exclude special items. (RTTNews) - Advance Auto Parts, Inc. (AAP) said its second-quarter adjusted earnings per share increased 15.3% year-on-year, and adjusted operating income margin expanded 11 basis points to 11.4%. On a GAAP basis, EPS was $2.74, flat with last year.
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(RTTNews) - Advance Auto Parts, Inc. (AAP) said its second-quarter adjusted earnings per share increased 15.3% year-on-year, and adjusted operating income margin expanded 11 basis points to 11.4%. On a GAAP basis, EPS was $2.74, flat with last year. For full year 2021, the company now expects comparable store sales in a range of 6.0% to 8.0%, revised from prior guidance of 4.0% to 6.0%.
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(RTTNews) - Advance Auto Parts, Inc. (AAP) said its second-quarter adjusted earnings per share increased 15.3% year-on-year, and adjusted operating income margin expanded 11 basis points to 11.4%. On a GAAP basis, EPS was $2.74, flat with last year. For full year 2021, the company now expects comparable store sales in a range of 6.0% to 8.0%, revised from prior guidance of 4.0% to 6.0%.
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11041.0
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2021-08-23 00:00:00 UTC
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Notable Monday Option Activity: AAP, ITW, LRCX
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AAP
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-aap-itw-lrcx-2021-08-23
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,978 contracts have traded so far, representing approximately 1.3 million underlying shares. That amounts to about 261.8% of AAP's average daily trading volume over the past month of 495,800 shares. Especially high volume was seen for the $210 strike put option expiring September 17, 2021, with 2,718 contracts trading so far today, representing approximately 271,800 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange:
Illinois Tool Works, Inc. (Symbol: ITW) options are showing a volume of 10,679 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 133.4% of ITW's average daily trading volume over the past month, of 800,605 shares. Especially high volume was seen for the $200 strike put option expiring September 17, 2021, with 3,943 contracts trading so far today, representing approximately 394,300 underlying shares of ITW. Below is a chart showing ITW's trailing twelve month trading history, with the $200 strike highlighted in orange:
And Lam Research Corp (Symbol: LRCX) saw options trading volume of 15,720 contracts, representing approximately 1.6 million underlying shares or approximately 115.6% of LRCX's average daily trading volume over the past month, of 1.4 million shares. Especially high volume was seen for the $590 strike call option expiring August 27, 2021, with 3,321 contracts trading so far today, representing approximately 332,100 underlying shares of LRCX. Below is a chart showing LRCX's trailing twelve month trading history, with the $590 strike highlighted in orange:
For the various different available expirations for AAP options, ITW options, or LRCX options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $210 strike put option expiring September 17, 2021, with 2,718 contracts trading so far today, representing approximately 271,800 underlying shares of AAP. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,978 contracts have traded so far, representing approximately 1.3 million underlying shares. That amounts to about 261.8% of AAP's average daily trading volume over the past month of 495,800 shares.
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Especially high volume was seen for the $210 strike put option expiring September 17, 2021, with 2,718 contracts trading so far today, representing approximately 271,800 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange: Illinois Tool Works, Inc. (Symbol: ITW) options are showing a volume of 10,679 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,978 contracts have traded so far, representing approximately 1.3 million underlying shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,978 contracts have traded so far, representing approximately 1.3 million underlying shares. Especially high volume was seen for the $210 strike put option expiring September 17, 2021, with 2,718 contracts trading so far today, representing approximately 271,800 underlying shares of AAP. That amounts to about 261.8% of AAP's average daily trading volume over the past month of 495,800 shares.
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Below is a chart showing LRCX's trailing twelve month trading history, with the $590 strike highlighted in orange: For the various different available expirations for AAP options, ITW options, or LRCX options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,978 contracts have traded so far, representing approximately 1.3 million underlying shares. That amounts to about 261.8% of AAP's average daily trading volume over the past month of 495,800 shares.
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11042.0
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2021-08-13 00:00:00 UTC
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Noteworthy Friday Option Activity: AAP, LVS, WM
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AAP
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-aap-lvs-wm-2021-08-13
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 2,276 contracts have traded so far, representing approximately 227,600 underlying shares. That amounts to about 45.4% of AAP's average daily trading volume over the past month of 501,690 shares. Especially high volume was seen for the $185 strike put option expiring September 17, 2021, with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $185 strike highlighted in orange:
Las Vegas Sands Corp (Symbol: LVS) saw options trading volume of 44,667 contracts, representing approximately 4.5 million underlying shares or approximately 44.6% of LVS's average daily trading volume over the past month, of 10.0 million shares. Especially high volume was seen for the $42 strike call option expiring August 20, 2021, with 3,565 contracts trading so far today, representing approximately 356,500 underlying shares of LVS. Below is a chart showing LVS's trailing twelve month trading history, with the $42 strike highlighted in orange:
And Waste Management, Inc. (Symbol: WM) saw options trading volume of 5,543 contracts, representing approximately 554,300 underlying shares or approximately 43.6% of WM's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $150 strike put option expiring August 20, 2021, with 2,107 contracts trading so far today, representing approximately 210,700 underlying shares of WM. Below is a chart showing WM's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for AAP options, LVS options, or WM options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $185 strike put option expiring September 17, 2021, with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of AAP. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 2,276 contracts have traded so far, representing approximately 227,600 underlying shares. That amounts to about 45.4% of AAP's average daily trading volume over the past month of 501,690 shares.
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Below is a chart showing AAP's trailing twelve month trading history, with the $185 strike highlighted in orange: Las Vegas Sands Corp (Symbol: LVS) saw options trading volume of 44,667 contracts, representing approximately 4.5 million underlying shares or approximately 44.6% of LVS's average daily trading volume over the past month, of 10.0 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 2,276 contracts have traded so far, representing approximately 227,600 underlying shares. That amounts to about 45.4% of AAP's average daily trading volume over the past month of 501,690 shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 2,276 contracts have traded so far, representing approximately 227,600 underlying shares. Below is a chart showing AAP's trailing twelve month trading history, with the $185 strike highlighted in orange: Las Vegas Sands Corp (Symbol: LVS) saw options trading volume of 44,667 contracts, representing approximately 4.5 million underlying shares or approximately 44.6% of LVS's average daily trading volume over the past month, of 10.0 million shares. That amounts to about 45.4% of AAP's average daily trading volume over the past month of 501,690 shares.
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Below is a chart showing AAP's trailing twelve month trading history, with the $185 strike highlighted in orange: Las Vegas Sands Corp (Symbol: LVS) saw options trading volume of 44,667 contracts, representing approximately 4.5 million underlying shares or approximately 44.6% of LVS's average daily trading volume over the past month, of 10.0 million shares. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 2,276 contracts have traded so far, representing approximately 227,600 underlying shares. That amounts to about 45.4% of AAP's average daily trading volume over the past month of 501,690 shares.
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11043.0
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2021-08-11 00:00:00 UTC
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Has Advance Auto Parts, Inc. (NYSE:AAP) Stock's Recent Performance Got Anything to Do With Its Financial Health?
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AAP
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https://www.nasdaq.com/articles/has-advance-auto-parts-inc.-nyse%3Aaap-stocks-recent-performance-got-anything-to-do-with-its
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nan
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nan
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Advance Auto Parts' (NYSE:AAP) stock up by 3.4% over the past three months. As most would know, long-term fundamentals have a strong correlation with market price movements, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. In this article, we decided to focus on Advance Auto Parts' ROE.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.
How Do You Calculate Return On Equity?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Advance Auto Parts is:
18% = US$635m ÷ US$3.5b (Based on the trailing twelve months to April 2021).
The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.18 in profit.
What Has ROE Got To Do With Earnings Growth?
Thus far, we have learned that ROE measures how efficiently a company is generating its profits. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
Advance Auto Parts' Earnings Growth And 18% ROE
At first glance, Advance Auto Parts seems to have a decent ROE. Yet, the fact that the company's ROE is lower than the industry average of 25% does temper our expectations. Additionally, the low net income growth of 2.8% seen by Advance Auto Parts over the past five years doesn't paint a very bright picture. Not to forget, the company does have a decent ROE to begin with, just that it is lower than the industry average. Therefore, the low earnings growth could be the result of other factors. These include low earnings retention or poor capital allocation.
Next, on comparing with the industry net income growth, we found that Advance Auto Parts' reported growth was lower than the industry growth of 10% in the same period, which is not something we like to see.
NYSE:AAP Past Earnings Growth August 11th 2021
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is AAP fairly valued? This infographic on the company's intrinsic value has everything you need to know.
Is Advance Auto Parts Making Efficient Use Of Its Profits?
Advance Auto Parts' low three-year median payout ratio of 4.1% (or a retention ratio of 96%) should mean that the company is retaining most of its earnings to fuel its growth. This should be reflected in its earnings growth number, but that's not the case. Therefore, there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
Moreover, Advance Auto Parts has been paying dividends for at least ten years or more suggesting that management must have perceived that the shareholders prefer dividends over earnings growth. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 30% over the next three years. Regardless, the future ROE for Advance Auto Parts is speculated to rise to 27% despite the anticipated increase in the payout ratio. There could probably be other factors that could be driving the future growth in the ROE.
Summary
In total, it does look like Advance Auto Parts has some positive aspects to its business. Although, we are disappointed to see a lack of growth in earnings even in spite of a moderate ROE and and a high reinvestment rate. We believe that there might be some outside factors that could be having a negative impact on the business. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Advance Auto Parts' (NYSE:AAP) stock up by 3.4% over the past three months. NYSE:AAP Past Earnings Growth August 11th 2021 Earnings growth is a huge factor in stock valuation. Is AAP fairly valued?
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Advance Auto Parts' (NYSE:AAP) stock up by 3.4% over the past three months. NYSE:AAP Past Earnings Growth August 11th 2021 Earnings growth is a huge factor in stock valuation. Is AAP fairly valued?
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Advance Auto Parts' (NYSE:AAP) stock up by 3.4% over the past three months. NYSE:AAP Past Earnings Growth August 11th 2021 Earnings growth is a huge factor in stock valuation. Is AAP fairly valued?
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Advance Auto Parts' (NYSE:AAP) stock up by 3.4% over the past three months. NYSE:AAP Past Earnings Growth August 11th 2021 Earnings growth is a huge factor in stock valuation. Is AAP fairly valued?
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11044.0
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2021-07-22 00:00:00 UTC
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There's Reason For Concern Over Advance Auto Parts, Inc.'s (NYSE:AAP) Price
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AAP
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https://www.nasdaq.com/articles/theres-reason-for-concern-over-advance-auto-parts-inc.s-nyse%3Aaap-price-2021-07-22
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nan
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nan
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Advance Auto Parts, Inc.'s (NYSE:AAP) price-to-earnings (or "P/E") ratio of 22.4x might make it look like a sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 18x and even P/E's below 10x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's lofty.
With earnings growth that's superior to most other companies of late, Advance Auto Parts has been doing relatively well. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. If not, then existing shareholders might be a little nervous about the viability of the share price.
NYSE:AAP Price Based on Past Earnings July 22nd 2021
Want the full picture on analyst estimates for the company? Then our free report on Advance Auto Parts will help you uncover what's on the horizon.
Does Growth Match The High P/E?
The only time you'd be truly comfortable seeing a P/E as high as Advance Auto Parts' is when the company's growth is on track to outshine the market.
If we review the last year of earnings growth, the company posted a terrific increase of 67%. The latest three year period has also seen an excellent 37% overall rise in EPS, aided by its short-term performance. So we can start by confirming that the company has done a great job of growing earnings over that time.
Looking ahead now, EPS is anticipated to climb by 11% per year during the coming three years according to the analysts following the company. With the market predicted to deliver 14% growth per year, the company is positioned for a weaker earnings result.
In light of this, it's alarming that Advance Auto Parts' P/E sits above the majority of other companies. Apparently many investors in the company are way more bullish than analysts indicate and aren't willing to let go of their stock at any price. There's a good chance these shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook.
The Final Word
While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
We've established that Advance Auto Parts currently trades on a much higher than expected P/E since its forecast growth is lower than the wider market. Right now we are increasingly uncomfortable with the high P/E as the predicted future earnings aren't likely to support such positive sentiment for long. This places shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.
Having said that, be aware Advance Auto Parts is showing 1 warning sign in our investment analysis, you should know about.
Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a P/E below 20x.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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NYSE:AAP Price Based on Past Earnings July 22nd 2021 Want the full picture on analyst estimates for the company? Advance Auto Parts, Inc.'s (NYSE:AAP) price-to-earnings (or "P/E") ratio of 22.4x might make it look like a sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 18x and even P/E's below 10x are quite common. The Final Word While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
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Advance Auto Parts, Inc.'s (NYSE:AAP) price-to-earnings (or "P/E") ratio of 22.4x might make it look like a sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 18x and even P/E's below 10x are quite common. NYSE:AAP Price Based on Past Earnings July 22nd 2021 Want the full picture on analyst estimates for the company? The only time you'd be truly comfortable seeing a P/E as high as Advance Auto Parts' is when the company's growth is on track to outshine the market.
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Advance Auto Parts, Inc.'s (NYSE:AAP) price-to-earnings (or "P/E") ratio of 22.4x might make it look like a sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 18x and even P/E's below 10x are quite common. NYSE:AAP Price Based on Past Earnings July 22nd 2021 Want the full picture on analyst estimates for the company? With earnings growth that's superior to most other companies of late, Advance Auto Parts has been doing relatively well.
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Advance Auto Parts, Inc.'s (NYSE:AAP) price-to-earnings (or "P/E") ratio of 22.4x might make it look like a sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 18x and even P/E's below 10x are quite common. NYSE:AAP Price Based on Past Earnings July 22nd 2021 Want the full picture on analyst estimates for the company? The only time you'd be truly comfortable seeing a P/E as high as Advance Auto Parts' is when the company's growth is on track to outshine the market.
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11045.0
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2021-07-15 00:00:00 UTC
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March 2022 Options Now Available For Advance Auto Parts
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AAP
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https://www.nasdaq.com/articles/march-2022-options-now-available-for-advance-auto-parts-2021-07-15
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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 March 2022 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 246 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 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $200.00 strike price has a current bid of $14.60. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $200.00, but will also collect the premium, putting the cost basis of the shares at $185.40 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $208.82/share today.
Because the $200.00 strike represents an approximate 4% 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 100%. 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 7.30% return on the cash commitment, or 10.83% 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 $200.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $210.00 strike price has a current bid of $16.60. If an investor was to purchase shares of AAP stock at the current price level of $208.82/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $210.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.51% if the stock gets called away at the March 2022 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 $210.00 strike highlighted in red:
Considering the fact that the $210.00 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 7.95% boost of extra return to the investor, or 11.79% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $208.82) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
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 $210.00 strike highlighted in red: Considering the fact that the $210.00 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 March 2022 expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $210.00 strike highlighted in red: Considering the fact that the $210.00 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 March 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new March 2022 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 $210.00 strike highlighted in red: Considering the fact that the $210.00 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 March 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new March 2022 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 March 2022 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 $210.00 strike highlighted in red: Considering the fact that the $210.00 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 March 2022 expiration.
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11046.0
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2021-07-02 00:00:00 UTC
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Advance Auto Parts (NYSE:AAP) Could Easily Take On More Debt
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-nyse%3Aaap-could-easily-take-on-more-debt-2021-07-02
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nan
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nan
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Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. We note that Advance Auto Parts, Inc. (NYSE:AAP) does have debt on its balance sheet. But should shareholders be worried about its use of debt?
When Is Debt A Problem?
Debt is a tool to help businesses grow, but if a business is incapable of paying off its lenders, then it exists at their mercy. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, debt can be an important tool in businesses, particularly capital heavy businesses. When we think about a company's use of debt, we first look at cash and debt together.
What Is Advance Auto Parts's Net Debt?
As you can see below, Advance Auto Parts had US$1.03b of debt at April 2021, down from US$1.74b a year prior. However, it also had US$880.2m in cash, and so its net debt is US$153.1m.
NYSE:AAP Debt to Equity History July 2nd 2021
How Strong Is Advance Auto Parts' Balance Sheet?
The latest balance sheet data shows that Advance Auto Parts had liabilities of US$4.79b due within a year, and liabilities of US$3.57b falling due after that. Offsetting this, it had US$880.2m in cash and US$804.8m in receivables that were due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$6.68b.
While this might seem like a lot, it is not so bad since Advance Auto Parts has a huge market capitalization of US$13.6b, and so it could probably strengthen its balance sheet by raising capital if it needed to. But it's clear that we should definitely closely examine whether it can manage its debt without dilution. But either way, Advance Auto Parts has virtually no net debt, so it's fair to say it does not have a heavy debt load!
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). Thus we consider debt relative to earnings both with and without depreciation and amortization expenses.
Advance Auto Parts has a low net debt to EBITDA ratio of only 0.12. And its EBIT covers its interest expense a whopping 21.6 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. In addition to that, we're happy to report that Advance Auto Parts has boosted its EBIT by 53%, thus reducing the spectre of future debt repayments. There's no doubt that we learn most about debt from the balance sheet. But it is future earnings, more than anything, that will determine Advance Auto Parts's ability to maintain a healthy balance sheet going forward. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
Finally, a business needs free cash flow to pay off debt; accounting profits just don't cut it. So we clearly need to look at whether that EBIT is leading to corresponding free cash flow. Over the most recent three years, Advance Auto Parts recorded free cash flow worth 78% of its EBIT, which is around normal, given free cash flow excludes interest and tax. This cold hard cash means it can reduce its debt when it wants to.
Our View
Advance Auto Parts's interest cover suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper. But truth be told we feel its level of total liabilities does undermine this impression a bit. Zooming out, Advance Auto Parts seems to use debt quite reasonably; and that gets the nod from us. While debt does bring risk, when used wisely it can also bring a higher return on equity. There's no doubt that we learn most about debt from the balance sheet. However, not all investment risk resides within the balance sheet - far from it. Case in point: We've spotted 1 warning sign for Advance Auto Parts you should be aware of.
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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We note that Advance Auto Parts, Inc. (NYSE:AAP) does have debt on its balance sheet. NYSE:AAP Debt to Equity History July 2nd 2021 How Strong Is Advance Auto Parts' Balance Sheet? However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet.
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We note that Advance Auto Parts, Inc. (NYSE:AAP) does have debt on its balance sheet. NYSE:AAP Debt to Equity History July 2nd 2021 How Strong Is Advance Auto Parts' Balance Sheet? The latest balance sheet data shows that Advance Auto Parts had liabilities of US$4.79b due within a year, and liabilities of US$3.57b falling due after that.
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We note that Advance Auto Parts, Inc. (NYSE:AAP) does have debt on its balance sheet. NYSE:AAP Debt to Equity History July 2nd 2021 How Strong Is Advance Auto Parts' Balance Sheet? When we think about a company's use of debt, we first look at cash and debt together.
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We note that Advance Auto Parts, Inc. (NYSE:AAP) does have debt on its balance sheet. NYSE:AAP Debt to Equity History July 2nd 2021 How Strong Is Advance Auto Parts' Balance Sheet? It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses.
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11047.0
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2021-06-21 00:00:00 UTC
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Snatch This Bargain Even Cheaper Than Director Bailo Did
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AAP
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https://www.nasdaq.com/articles/snatch-this-bargain-even-cheaper-than-director-bailo-did-2021-06-21
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nan
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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 16, Advance Auto Parts Inc's Director, Carla Jean Bailo, invested $79,118.92 into 400 shares of AAP, for a cost per share of $197.80. 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 1.5% cheaper than Bailo, with shares changing hands as low as $194.76 per share. It should be noted that Bailo has collected $1.00/share in dividends since the time of their purchase, so they are currently down 1.0% on their purchase from a total return basis. Advance Auto Parts Inc shares are currently trading up about 2.6% 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 $131.90 per share, with $210.18 as the 52 week high point — that compares with a last trade of $198.12. 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
06/16/2021 Carla Jean Bailo Director 400 $197.80 $79,118.92
The current annualized dividend paid by Advance Auto Parts Inc is $4/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 06/17/2021. 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. 2.1% annualized yield is likely to continue.
Click here to find out which 9 other dividend bargains you can buy cheaper than insiders »
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 $131.90 per share, with $210.18 as the 52 week high point — that compares with a last trade of $198.12. By comparison, below is a table showing the prices at which AAP insider buying was recorded over the last six months: Back on June 16, Advance Auto Parts Inc's Director, Carla Jean Bailo, invested $79,118.92 into 400 shares of AAP, for a cost per share of $197.80.
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Back on June 16, Advance Auto Parts Inc's Director, Carla Jean Bailo, invested $79,118.92 into 400 shares of AAP, for a cost per share of $197.80. In trading on Monday, bargain hunters could buy shares of Advance Auto Parts Inc (Symbol: AAP) and achieve a cost basis 1.5% cheaper than Bailo, with shares changing hands as low as $194.76 per share. 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 $131.90 per share, with $210.18 as the 52 week high point — that compares with a last trade of $198.12.
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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 1.5% cheaper than Bailo, with shares changing hands as low as $194.76 per share. 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 $131.90 per share, with $210.18 as the 52 week high point — that compares with a last trade of $198.12. Back on June 16, Advance Auto Parts Inc's Director, Carla Jean Bailo, invested $79,118.92 into 400 shares of AAP, for a cost per share of $197.80.
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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 $131.90 per share, with $210.18 as the 52 week high point — that compares with a last trade of $198.12. Back on June 16, Advance Auto Parts Inc's Director, Carla Jean Bailo, invested $79,118.92 into 400 shares of AAP, for a cost per share of $197.80. In trading on Monday, bargain hunters could buy shares of Advance Auto Parts Inc (Symbol: AAP) and achieve a cost basis 1.5% cheaper than Bailo, with shares changing hands as low as $194.76 per share.
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11048.0
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2021-06-14 00:00:00 UTC
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Notable Monday Option Activity: WCC, OMF, AAP
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AAP
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-wcc-omf-aap-2021-06-14
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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 Wesco International, Inc. (Symbol: WCC), where a total of 1,554 contracts have traded so far, representing approximately 155,400 underlying shares. That amounts to about 50.6% of WCC's average daily trading volume over the past month of 307,120 shares. Particularly high volume was seen for the $105 strike put option expiring June 18, 2021, with 678 contracts trading so far today, representing approximately 67,800 underlying shares of WCC. Below is a chart showing WCC's trailing twelve month trading history, with the $105 strike highlighted in orange:
OneMain Holdings Inc (Symbol: OMF) options are showing a volume of 5,254 contracts thus far today. That number of contracts represents approximately 525,400 underlying shares, working out to a sizeable 49.6% of OMF's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $65 strike call option expiring July 16, 2021, with 2,531 contracts trading so far today, representing approximately 253,100 underlying shares of OMF. Below is a chart showing OMF's trailing twelve month trading history, with the $65 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,112 contracts, representing approximately 511,200 underlying shares or approximately 49.5% of AAP's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $180 strike put option expiring July 16, 2021, with 991 contracts trading so far today, representing approximately 99,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for WCC options, OMF options, or AAP options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $180 strike put option expiring July 16, 2021, with 991 contracts trading so far today, representing approximately 99,100 underlying shares of AAP. Below is a chart showing OMF's trailing twelve month trading history, with the $65 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,112 contracts, representing approximately 511,200 underlying shares or approximately 49.5% of AAP's average daily trading volume over the past month, of 1.0 million shares. Below is a chart showing AAP's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for WCC options, OMF options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing OMF's trailing twelve month trading history, with the $65 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,112 contracts, representing approximately 511,200 underlying shares or approximately 49.5% of AAP's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $180 strike put option expiring July 16, 2021, with 991 contracts trading so far today, representing approximately 99,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for WCC options, OMF options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing OMF's trailing twelve month trading history, with the $65 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,112 contracts, representing approximately 511,200 underlying shares or approximately 49.5% of AAP's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $180 strike put option expiring July 16, 2021, with 991 contracts trading so far today, representing approximately 99,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for WCC options, OMF options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing OMF's trailing twelve month trading history, with the $65 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,112 contracts, representing approximately 511,200 underlying shares or approximately 49.5% of AAP's average daily trading volume over the past month, of 1.0 million shares. Below is a chart showing AAP's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for WCC options, OMF options, or AAP options, visit StockOptionsChannel.com. Especially high volume was seen for the $180 strike put option expiring July 16, 2021, with 991 contracts trading so far today, representing approximately 99,100 underlying shares of AAP.
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11049.0
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2021-06-12 00:00:00 UTC
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Natalie Schechtman Is The Executive VP & Chief Human Resources Officer of Advance Auto Parts, Inc. (NYSE:AAP) And They Just Sold 51% Of Their Shares
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AAP
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https://www.nasdaq.com/articles/natalie-schechtman-is-the-executive-vp-chief-human-resources-officer-of-advance-auto-parts
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nan
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nan
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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Natalie Schechtman, the Executive VP & Chief Human Resources Officer recently netted about US$632k selling shares at an average price of US$198. That diminished their holding by a very significant 51%, which arguably implies a strong desire to reallocate capital.
Advance Auto Parts Insider Transactions Over The Last Year
The President Thomas Greco made the biggest insider purchase in the last 12 months. That single transaction was for US$992k worth of shares at a price of US$136 each. We do like to see buying, but this purchase was made at well below the current price of US$199. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NYSE:AAP Insider Trading Volume June 12th 2021
Advance Auto Parts is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Advance Auto Parts Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Advance Auto Parts insiders own 0.3% of the company, worth about US$44m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Advance Auto Parts Insiders?
An insider hasn't bought Advance Auto Parts stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Advance Auto Parts you should know about.
But note: Advance Auto Parts may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Natalie Schechtman, the Executive VP & Chief Human Resources Officer recently netted about US$632k selling shares at an average price of US$198. NYSE:AAP Insider Trading Volume June 12th 2021 Advance Auto Parts is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Natalie Schechtman, the Executive VP & Chief Human Resources Officer recently netted about US$632k selling shares at an average price of US$198. NYSE:AAP Insider Trading Volume June 12th 2021 Advance Auto Parts is not the only stock that insiders are buying. Does Advance Auto Parts Boast High Insider Ownership?
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NYSE:AAP Insider Trading Volume June 12th 2021 Advance Auto Parts is not the only stock that insiders are buying. We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Natalie Schechtman, the Executive VP & Chief Human Resources Officer recently netted about US$632k selling shares at an average price of US$198. Advance Auto Parts Insider Transactions Over The Last Year The President Thomas Greco made the biggest insider purchase in the last 12 months.
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We wouldn't blame Advance Auto Parts, Inc. (NYSE:AAP) shareholders if they were a little worried about the fact that Natalie Schechtman, the Executive VP & Chief Human Resources Officer recently netted about US$632k selling shares at an average price of US$198. NYSE:AAP Insider Trading Volume June 12th 2021 Advance Auto Parts is not the only stock that insiders are buying. So What Does This Data Suggest About Advance Auto Parts Insiders?
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11050.0
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2021-06-11 00:00:00 UTC
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Friday Sector Leaders: Services, Consumer Products
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AAP
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https://www.nasdaq.com/articles/friday-sector-leaders%3A-services-consumer-products-2021-06-11
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nan
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nan
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Looking at the sectors faring best as of midday Friday, shares of Services companies are outperforming other sectors, up 0.8%. Within the sector, The Gap Inc (Symbol: GPS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 2.6% and 2.3%, respectively. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 0.5% on the day, and up 8.64% year-to-date. The Gap Inc, meanwhile, is up 60.37% year-to-date, and Advance Auto Parts Inc is up 27.34% year-to-date. Combined, GPS and AAP make up approximately 0.5% of the underlying holdings of IYC.
The next best performing sector is the Consumer Products sector, up 0.3%. Among large Consumer Products stocks, VF Corp. (Symbol: VFC) and PVH Corp (Symbol: PVH) are the most notable, showing a gain of 3.5% and 3.2%, respectively. One ETF closely tracking Consumer Products stocks is the iShares U.S. Consumer Goods ETF (IYK), which is up 0.1% in midday trading, and up 4.30% on a year-to-date basis. VF Corp., meanwhile, is down 3.62% year-to-date, and PVH Corp is up 19.47% year-to-date. Combined, VFC and PVH make up approximately 1.0% of the underlying holdings of IYK.
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, seven sectors are up on the day, while two sectors are down.
SECTOR % CHANGE
Services +0.8%
Consumer Products +0.3%
Materials +0.3%
Energy +0.3%
Financial +0.2%
Industrial +0.2%
Technology & Communications +0.1%
Utilities -0.1%
Healthcare -0.7%
10 ETFs With Stocks That Insiders Are Buying »
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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Combined, GPS and AAP make up approximately 0.5% of the underlying holdings of IYC. Within the sector, The Gap Inc (Symbol: GPS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 2.6% and 2.3%, respectively. 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.
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Within the sector, The Gap Inc (Symbol: GPS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 2.6% and 2.3%, respectively. Combined, GPS and AAP make up approximately 0.5% 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 0.5% on the day, and up 8.64% year-to-date.
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Within the sector, The Gap Inc (Symbol: GPS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 2.6% and 2.3%, respectively. Combined, GPS and AAP make up approximately 0.5% 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 0.5% on the day, and up 8.64% year-to-date.
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Within the sector, The Gap Inc (Symbol: GPS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 2.6% and 2.3%, respectively. Combined, GPS and AAP make up approximately 0.5% 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 0.5% on the day, and up 8.64% year-to-date.
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11051.0
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2021-06-10 00:00:00 UTC
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Top Stocks To Buy Now? 5 Dividend Stocks To Watch
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AAP
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https://www.nasdaq.com/articles/top-stocks-to-buy-now-5-dividend-stocks-to-watch-2021-06-10
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nan
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nan
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5 Trending Dividend Stocks To Watch For Your Long-Term Income Investing Portfolio
When looking for the best dividend stocks to buy in the stock market, the yield isn’t everything. While a high yield is certainly enticing, the reality is that it could be short-lived. If you are an income investor in it for the long run, you would know that steadily rising payouts are equally as important when it comes to locating high dividend stocks to buy in 2021. After all, when it comes to dividend stocks, stability is the name of the game.
Of course, dividend stocks may not come close to keeping pace with top growth stocks as of late. Then again, when you combine the robust financial results, strong price gains, and a high dividend yield, an investment in dividend stocks wouldn’t fare too far off. More importantly, rising dividends allow investors to benefit from the magic of compounding. As Ben Franklin famously said, “Money makes money. And the money that money makes, makes money.” That’s what makes the high-yielding dividend stocks so attractive to value and long-term investors. Considering all these, do you have a list of top dividend stocks to buy in the stock market today?
Best Dividend Stocks To Watch Right Now
Lumen Technologies (NYSE: LUMN)
Microsoft Corporation (NASDAQ: MSFT)
NextEra Energy Inc. (NYSE: NEE)
Coca-Cola Co. (NYSE: KO)
Advance Auto Parts (NYSE: AAP)
Lumen Technologies
First, up on the list, Lumen Technologies is a telecommunications company that pays a substantial dividend. As it stands, the company has a dividend yield of around 7%. But that doesn’t mean it comes without risk. Its path to grow over the medium term is still quite uncertain, but the upside is that the company is posting consistent profits. Therefore, you might say that LUMN stock could enjoy significant upside should the company’s growth continue to show signs of progress.
From its first-quarter results, revenue fell 3.8% year-over-year, and adjusted EBITDA fell 2%. Given these declines, how could LUMN stock still have gains of over 50% year-to-date? Well, that could be because of the company’s disclosure of its new product breakdown that perhaps encouraged investors. In brief, the company’s fiber-based products grew year-over-year across all channels. As a result, the growth in these newer segments has led some investors to believe that Lumen’s declining top line will eventually stabilize. The company also highlighted partnerships with major companies like IBM (NYSE: IBM) Cloud and T-Mobile. If you believe that the company could bump up its revenue growth through these partnerships, would you include LUMN stock on your watchlist today?
Source: TD Ameritrade TOS
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Microsoft Corporation
Microsoft is a leader in artificial intelligence and cloud computing. Not many tech stocks could claim the same track record of success that Microsoft has. From its most recent quarter fiscal, the company posted annualized revenue growth of 19%. This marks its biggest quarterly increase since 2018. According to CEO Satya Nadella, massive strides in Microsoft’s gaming and cloud divisions are to thank for this performance. Its dividend yield of 0.9% may not attract serious income investors, but its low cash dividend payout ratio indicates there is plenty of room for future hikes.
Recently, LaLiga, Spain’s premier football association, and Microsoft announced an expansion of their partnership focused on digitally transforming the sports experience globally. The companies will also collaborate on developing technology solutions for the media and entertainment industry through LaLiga’s technology offering, LaLiga Tech. This deepens their engagement with millions of people around the world, while potentially bringing new business models to the market with Microsoft’s cloud and AI capabilities. By and large, could all this make MSFT stock a top dividend stock to buy right now?
Source: TD Ameritrade TOS
[Read More] 4 Artificial Intelligence Stocks To Watch Right Now
NextEra Energy
NextEra is a renewable energy company headquartered in Florida. The company owns Florida Power & Light Company, which is the largest rate-regulated electric utility in the U.S. It also owns a competitive energy subsidiary, NextEra Energy Resources, which is the world’s largest producer of solar and wind energy today. NEE stock has been trading sideways since the start of the year. However, this could be a buying opportunity for investors who believe in the long-term potential of clean energy. The company’s latest dividend yield is 2.13%.
NextEra Energy Resources is one of the company’s divisions that provides long-term, contract-based renewable power to others. The company claims it is the largest generator of solar and wind power in the world. This Florida utility is very much leading the charge in renewables and should be a major growth engine for years to come. On top of that, the company along with OPAL Fuels announced plans to build Minnesota’s first renewable natural gas facility. In detail, this could produce over 6 million gas gallon equivalents of renewable natural gas per year. With these developments, would you consider investing in NEE stock now?
Source: TD Ameritrade TOS
[Read More] 5 Financial Stocks To Watch In A Rising Interest Rate Environment
Coca-Cola
Coca-Cola is a familiar name that requires no further introduction. The beverage giant has a presence in more than 200 countries and territories. Also, the company’s portfolio of brands includes Coca-Cola, Sprite, and Fanta among others. Coca-Cola is also a dividend company that paid $7 billion to shareowners in 2020 alone. The beverage giant is also Berkshire Hathaway’s (NYSE: BRK.B) longest-tenured holding. It also makes up a significant portion of Buffett’s annual dividend income. As it stands, Coca-Cola has a dividend yield of around 3%.
From its first-quarter report, net revenue came in 5% higher year-over-year to $9 billion. The company also posted earnings per share of $0.52. Coca-Cola also ended the quarter with $1.4 billion in cash. In addition, it cited that volume trends are steadily improving each month throughout the quarter. Despite its global brand and improving fundamentals, Coca-Cola is not resting on its laurels. This is apparent with its new expansion into the hard seltzer market. With the beverage giant making a mark in the alcoholic beverage industry, will you add KO stock into your portfolio?
Source: TD Ameritrade TOS
[Read More] Top Electric Vehicle Stocks To Buy Today? 4 In Focus
Advance Auto Parts
Advance Auto Parts (Advance) is an auto parts retailer that has been resilient throughout the pandemic. The company’s stock price recently surged to an all-time high. That could simply be because the company is seeing strong demand for its products. If you have been paying close attention to the automotive market, you would know that the rise in car prices is far outstripping inflation, deterring consumers from buying new cars. As it stands, Advance currently yields a 2.1% dividend annually.
From Advance’s first-quarter earnings, sales came in 23% higher to $3.3 billion. This came as comparable-store sales surged nearly 25% from the year-ago period. Advance’s CEO mentioned that “both DIY and professional customers turned to Advance for their automotive needs amid a strong industry backdrop.” While many investors remain focused on near-term tailwinds, it’s also worth keeping in mind that a speedy transition to electric vehicles could weigh on the demand for these auto parts. But with chip shortages and production shutdowns affecting new cars, investing in AAP stock could still turn out to be a profitable endeavor.
Source: TD Ameritrade TOS
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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Best Dividend Stocks To Watch Right Now Lumen Technologies (NYSE: LUMN) Microsoft Corporation (NASDAQ: MSFT) NextEra Energy Inc. (NYSE: NEE) Coca-Cola Co. (NYSE: KO) Advance Auto Parts (NYSE: AAP) Lumen Technologies First, up on the list, Lumen Technologies is a telecommunications company that pays a substantial dividend. But with chip shortages and production shutdowns affecting new cars, investing in AAP stock could still turn out to be a profitable endeavor. If you are an income investor in it for the long run, you would know that steadily rising payouts are equally as important when it comes to locating high dividend stocks to buy in 2021.
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Best Dividend Stocks To Watch Right Now Lumen Technologies (NYSE: LUMN) Microsoft Corporation (NASDAQ: MSFT) NextEra Energy Inc. (NYSE: NEE) Coca-Cola Co. (NYSE: KO) Advance Auto Parts (NYSE: AAP) Lumen Technologies First, up on the list, Lumen Technologies is a telecommunications company that pays a substantial dividend. But with chip shortages and production shutdowns affecting new cars, investing in AAP stock could still turn out to be a profitable endeavor. Source: TD Ameritrade TOS [Read More] 4 Artificial Intelligence Stocks To Watch Right Now NextEra Energy NextEra is a renewable energy company headquartered in Florida.
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Best Dividend Stocks To Watch Right Now Lumen Technologies (NYSE: LUMN) Microsoft Corporation (NASDAQ: MSFT) NextEra Energy Inc. (NYSE: NEE) Coca-Cola Co. (NYSE: KO) Advance Auto Parts (NYSE: AAP) Lumen Technologies First, up on the list, Lumen Technologies is a telecommunications company that pays a substantial dividend. But with chip shortages and production shutdowns affecting new cars, investing in AAP stock could still turn out to be a profitable endeavor. 5 Trending Dividend Stocks To Watch For Your Long-Term Income Investing Portfolio When looking for the best dividend stocks to buy in the stock market, the yield isn’t everything.
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Best Dividend Stocks To Watch Right Now Lumen Technologies (NYSE: LUMN) Microsoft Corporation (NASDAQ: MSFT) NextEra Energy Inc. (NYSE: NEE) Coca-Cola Co. (NYSE: KO) Advance Auto Parts (NYSE: AAP) Lumen Technologies First, up on the list, Lumen Technologies is a telecommunications company that pays a substantial dividend. But with chip shortages and production shutdowns affecting new cars, investing in AAP stock could still turn out to be a profitable endeavor. 5 Trending Dividend Stocks To Watch For Your Long-Term Income Investing Portfolio When looking for the best dividend stocks to buy in the stock market, the yield isn’t everything.
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11052.0
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2021-06-08 00:00:00 UTC
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3 Dividend Stocks That Had a Record Year and Are Just Getting Started
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AAP
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https://www.nasdaq.com/articles/3-dividend-stocks-that-had-a-record-year-and-are-just-getting-started-2021-06-08
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nan
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nan
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Investors often buy dividend-paying stocks for the revenue stream they produce, knowing the share price might not appreciate the same as a growth-oriented company.
Yet when you can combine record financial results, significant stock value gains, and a more than modest dividend, it's an investing triple play that shouldn't be ignored. Below are three stocks that achieved all three and appear ready to keep on performing too.
Image source: Getty Images.
Franklin Resources
It doesn't hurt Franklin Resources (NYSE: BEN) that we're still in the midst of a bull market, as the financial services provider does especially well in rising markets. That certainly played out in its fiscal second-quarter earnings results, as revenue rose 58% from the year-ago period and net income nearly quintupled as the benefits of its Legg Mason acquisition last summer continue to pay off.
Yet its alternative assets portfolio of real estate, alternative credit, and hedge fund business helped drive record net inflows of $2.9 billion, almost doubling the amount it realized last year.
That has helped lead Franklin Resources stock to gain 68.5% over the past year, with most of the gains occurring in 2021. The pandemic hurt the asset manager's performance last year as money was pulled out of accounts. It saw almost $62 billion in net long-term outflows, but adding the respected business of Legg Mason provides it with new, strategically important investment manager capabilities.
With an annual dividend of $1.12 per share that yields 3.2%, investors have good reason to believe Franklin Resources can continue on the path higher it's currently on.
Advance Auto Parts
The stock of aftermarket auto parts retailer Advance Auto Parts (NYSE: AAP) recently hit an all-time high, continuing a sharp march higher that began just over a year ago. Now it's starting to see growth accelerate and there's good reason to believe it's not going to stop anytime soon.
Despite the pandemic, new car prices are far outpacing the rise in inflation, rising 8% to $37,200, according to J.D. Power. That's also helped lift used car prices, which means vehicle owners thinking about trading in their old car for a new or used one will give it a second thought. It just may be cheaper to fix the one they have.
That played into Advance Auto Parts' first-quarter earnings results, which were a record for the retailer. President and CEO Tom Greco said strong industry trends helped deliver "record-breaking sales growth across our business, as both DIY and professional customers turned to Advance for their automotive needs."
What could drive sales even higher is the computer chip shortage playing out across the semiconductor industry and trickling down to almost all other businesses. Car manufacturers are shutting down production lines, which means fewer cars on dealer lots -- and this could cause prices for new and used cars to rise further.
Advance Auto Parts pays a dividend of $4 per share that looks as solid as ever and currently yields 2.1% annually.
Simon Property Group
Mall operator Simon Property Group (NYSE: SPG) is arguably the riskiest investment of the three because it is venturing into new territory few have tried: being both landlord and tenant by owning malls and some of the previously bankrupt retailers who occupy them.
Simon Property Group and its regular partner in these deals, Authentic Brands Group, picked a good time to go into the business. Coming out of the severe funk they were thrown into by the pandemic, retailers are rallying and Simon's portfolio of properties is by and large producing results well above expectations.
The group of distressed businesses outperformed on their sales plan by more than $135 million and their gross margin plan by more than $75 million, with even department store chain J.C. Penney operating above plan.
Being on both sides of the transaction, however, may become challenging in a market downturn as the impact of a recession could be multiplied. Fortunately Simon operates top tier Class A malls, which tend to hold up better than their Class B and C peers, and this new venture is still just a tiny part of its overall operations.
That suggests Simon's dividend of $5.20 per share yielding 3.9% is likely not at risk and it should still benefit from retail's recovery. While it may be a risky play, the rewards just might be worth it.
10 stocks we like better than Simon Property Group
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Rich Duprey owns shares of Franklin Resources. 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 The stock of aftermarket auto parts retailer Advance Auto Parts (NYSE: AAP) recently hit an all-time high, continuing a sharp march higher that began just over a year ago. That certainly played out in its fiscal second-quarter earnings results, as revenue rose 58% from the year-ago period and net income nearly quintupled as the benefits of its Legg Mason acquisition last summer continue to pay off. It saw almost $62 billion in net long-term outflows, but adding the respected business of Legg Mason provides it with new, strategically important investment manager capabilities.
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Advance Auto Parts The stock of aftermarket auto parts retailer Advance Auto Parts (NYSE: AAP) recently hit an all-time high, continuing a sharp march higher that began just over a year ago. With an annual dividend of $1.12 per share that yields 3.2%, investors have good reason to believe Franklin Resources can continue on the path higher it's currently on. Simon Property Group Mall operator Simon Property Group (NYSE: SPG) is arguably the riskiest investment of the three because it is venturing into new territory few have tried: being both landlord and tenant by owning malls and some of the previously bankrupt retailers who occupy them.
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Advance Auto Parts The stock of aftermarket auto parts retailer Advance Auto Parts (NYSE: AAP) recently hit an all-time high, continuing a sharp march higher that began just over a year ago. Simon Property Group Mall operator Simon Property Group (NYSE: SPG) is arguably the riskiest investment of the three because it is venturing into new territory few have tried: being both landlord and tenant by owning malls and some of the previously bankrupt retailers who occupy them. 10 stocks we like better than Simon Property Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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Advance Auto Parts The stock of aftermarket auto parts retailer Advance Auto Parts (NYSE: AAP) recently hit an all-time high, continuing a sharp march higher that began just over a year ago. Franklin Resources It doesn't hurt Franklin Resources (NYSE: BEN) that we're still in the midst of a bull market, as the financial services provider does especially well in rising markets. With an annual dividend of $1.12 per share that yields 3.2%, investors have good reason to believe Franklin Resources can continue on the path higher it's currently on.
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11053.0
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2021-06-07 00:00:00 UTC
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Notable Monday Option Activity: AAP, COST, UPS
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AAP
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-aap-cost-ups-2021-06-07
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,243 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 129% of AAP's average daily trading volume over the past month of 949,385 shares. Particularly high volume was seen for the $180 strike put option expiring July 16, 2021, with 3,233 contracts trading so far today, representing approximately 323,300 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $180 strike highlighted in orange:
Costco Wholesale Corp (Symbol: COST) options are showing a volume of 26,082 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 125.2% of COST's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $375 strike put option expiring July 16, 2021, with 2,594 contracts trading so far today, representing approximately 259,400 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $375 strike highlighted in orange:
And United Parcel Service Inc (Symbol: UPS) options are showing a volume of 22,061 contracts thus far today. That number of contracts represents approximately 2.2 million underlying shares, working out to a sizeable 81.9% of UPS's average daily trading volume over the past month, of 2.7 million shares. Especially high volume was seen for the $220 strike call option expiring June 18, 2021, with 2,748 contracts trading so far today, representing approximately 274,800 underlying shares of UPS. Below is a chart showing UPS's trailing twelve month trading history, with the $220 strike highlighted in orange:
For the various different available expirations for AAP options, COST options, or UPS options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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 $180 strike put option expiring July 16, 2021, with 3,233 contracts trading so far today, representing approximately 323,300 underlying shares of AAP. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,243 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 129% of AAP's average daily trading volume over the past month of 949,385 shares.
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Below is a chart showing AAP's trailing twelve month trading history, with the $180 strike highlighted in orange: Costco Wholesale Corp (Symbol: COST) options are showing a volume of 26,082 contracts thus far today. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,243 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 129% of AAP's average daily trading volume over the past month of 949,385 shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,243 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 129% of AAP's average daily trading volume over the past month of 949,385 shares. Particularly high volume was seen for the $180 strike put option expiring July 16, 2021, with 3,233 contracts trading so far today, representing approximately 323,300 underlying shares of AAP.
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Below is a chart showing UPS's trailing twelve month trading history, with the $220 strike highlighted in orange: For the various different available expirations for AAP options, COST options, or UPS options, visit StockOptionsChannel.com. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Advance Auto Parts Inc (Symbol: AAP), where a total of 12,243 contracts have traded so far, representing approximately 1.2 million underlying shares. That amounts to about 129% of AAP's average daily trading volume over the past month of 949,385 shares.
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11054.0
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2021-06-04 00:00:00 UTC
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Advance Auto Parts (NYSE:AAP) Will Pay A Larger Dividend Than Last Year At US$1.00
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-nyse%3Aaap-will-pay-a-larger-dividend-than-last-year-at-us%241.00-2021-06
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nan
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nan
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Advance Auto Parts, Inc. (NYSE:AAP) has announced that it will be increasing its dividend on the 2nd of July to US$1.00. Despite this raise, the dividend yield of 0.9% is only a modest boost to shareholder returns.
Advance Auto Parts' Earnings Easily Cover the Distributions
If it is predictable over a long period, even low dividend yields can be attractive. However, Advance Auto Parts' earnings easily cover the dividend. This means that most of what the business earns is being used to help it grow.
Over the next year, EPS is forecast to expand by 19.9%. If the dividend continues along recent trends, we estimate the payout ratio will be 19%, which is in the range that makes us comfortable with the sustainability of the dividend.
NYSE:AAP Historic Dividend June 4th 2021
Advance Auto Parts Has A Solid Track Record
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2011, the dividend has gone from US$0.24 to US$4.00. This works out to be a compound annual growth rate (CAGR) of approximately 32% a year over that time. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.
We Could See Advance Auto Parts' Dividend Growing
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Advance Auto Parts has impressed us by growing EPS at 7.3% per year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
We Really Like Advance Auto Parts' Dividend
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 22 Advance Auto Parts analysts we track are forecasting continued growth with our free report on analyst estimates for the company. We have also put together a list of global stocks with a solid dividend.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Advance Auto Parts, Inc. (NYSE:AAP) has announced that it will be increasing its dividend on the 2nd of July to US$1.00. NYSE:AAP Historic Dividend June 4th 2021 Advance Auto Parts Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Advance Auto Parts' Earnings Easily Cover the Distributions If it is predictable over a long period, even low dividend yields can be attractive.
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Advance Auto Parts, Inc. (NYSE:AAP) has announced that it will be increasing its dividend on the 2nd of July to US$1.00. NYSE:AAP Historic Dividend June 4th 2021 Advance Auto Parts Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Advance Auto Parts' Earnings Easily Cover the Distributions If it is predictable over a long period, even low dividend yields can be attractive.
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NYSE:AAP Historic Dividend June 4th 2021 Advance Auto Parts Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Advance Auto Parts, Inc. (NYSE:AAP) has announced that it will be increasing its dividend on the 2nd of July to US$1.00. We Could See Advance Auto Parts' Dividend Growing Investors who have held shares in the company for the past few years will be happy with the dividend income they have received.
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Advance Auto Parts, Inc. (NYSE:AAP) has announced that it will be increasing its dividend on the 2nd of July to US$1.00. NYSE:AAP Historic Dividend June 4th 2021 Advance Auto Parts Has A Solid Track Record The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. However, Advance Auto Parts' earnings easily cover the dividend.
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11055.0
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2021-06-02 00:00:00 UTC
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Advance Auto Parts Boosts FY21 Outlook - Quick Facts
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-boosts-fy21-outlook-quick-facts-2021-06-02
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nan
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nan
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(RTTNews) - While reporting financial results for the first quarter on Wednesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) raised its net sales and comparable store sales growth guidance for the full year 2021, reflecting continued top-line momentum.
For fiscal 2021, the company now projects net sales in a range of $10.40 billion to $10.60 billion, and comparable store sales increase in a range of 4 to 6 percent.
Previously, the company expected net sales in the range of $10.20 billion to $10.40 billion, and comparable store sales increase in the range of 2 to 4 percent.
On average, 22 analysts polled by Thomson Reuters expect the company to report sales of $10.46 billion for the year.
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) - While reporting financial results for the first quarter on Wednesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) raised its net sales and comparable store sales growth guidance for the full year 2021, reflecting continued top-line momentum. For fiscal 2021, the company now projects net sales in a range of $10.40 billion to $10.60 billion, and comparable store sales increase in a range of 4 to 6 percent. On average, 22 analysts polled by Thomson Reuters expect the company to report sales of $10.46 billion for the year.
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(RTTNews) - While reporting financial results for the first quarter on Wednesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) raised its net sales and comparable store sales growth guidance for the full year 2021, reflecting continued top-line momentum. For fiscal 2021, the company now projects net sales in a range of $10.40 billion to $10.60 billion, and comparable store sales increase in a range of 4 to 6 percent. Previously, the company expected net sales in the range of $10.20 billion to $10.40 billion, and comparable store sales increase in the range of 2 to 4 percent.
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(RTTNews) - While reporting financial results for the first quarter on Wednesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) raised its net sales and comparable store sales growth guidance for the full year 2021, reflecting continued top-line momentum. For fiscal 2021, the company now projects net sales in a range of $10.40 billion to $10.60 billion, and comparable store sales increase in a range of 4 to 6 percent. Previously, the company expected net sales in the range of $10.20 billion to $10.40 billion, and comparable store sales increase in the range of 2 to 4 percent.
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(RTTNews) - While reporting financial results for the first quarter on Wednesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) raised its net sales and comparable store sales growth guidance for the full year 2021, reflecting continued top-line momentum. Previously, the company expected net sales in the range of $10.20 billion to $10.40 billion, and comparable store sales increase in the range of 2 to 4 percent. 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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11056.0
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2021-06-02 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Q1 2021 Earnings Call Transcript
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-q1-2021-earnings-call-transcript-2021-06-02
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Advance Auto Parts Inc (NYSE: AAP)
Q1 2021 Earnings Call
Jun 2, 2021, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Advance Auto Parts First Quarter 2021 Conference Call.
Before we begin, Elisabeth Eisleben, Senior Vice President, Communications and Investor Relations will make a brief statement concerning forward-looking statements that will be discussed on this call. Please go ahead.
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Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Good morning, and thank you for joining us to discuss our Q1 2020 results that we highlighted in our earnings release this morning.
I'm joined by Tom Greco, our President and Chief Executive Officer; and Jeff Shepherd, our Executive Vice President and Chief Financial Officer. Following their prepared remarks, we'll turn our attention to answering your questions.
Before we begin, please be advised that our remarks today may contain forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including but not limited to, statements regarding our initiatives, plans, projections, guidance and future performance. Actual results could differ materially from those projected or implied by the forward-looking statements. Additional information about factors that could cause actual results to differ can be found under the caption Forward-Looking Statements and Risk Factors in our most recent annual report on Form 10-K and subsequent filings made with the commission.
Now, let me turn the call over to Tom Greco.
Tom Greco -- President and Chief Executive Officer
Thanks, Elisabeth, and good morning.
First, I'd like to thank our independent partners and team members all over the world for their passion and commitment to serve our customers throughout the pandemic. We also hope that you and your families are healthy and safe. The health and safety of our team members and customers has been a top priority over the past year.
As you saw earlier this morning, our final Q1 financial performance exceeded the estimated results we provided on April 20th. With strength across all channels, we delivered comparable store sales growth of 24.7%, and margin expansion of 478 basis points versus the prior year. On a two-year stack, our comp sales growth was 15.4%. Adjusted diluted EPS of $3.34 represented an all-time quarterly high for AAP, and improved more than 230% compared to Q1 2020. Free cash flow of $259 million was up significantly versus the prior year, and we returned over $203 million to our shareholders through a combination of share repurchases and our quarterly cash dividend. In addition, we recently announced an updated capital allocation framework targeting top quartile total shareholder return, highlighted by operating income growth, share repurchases and an increase in our dividend. This further reinforces our confidence in future cash generation and our commitment to returning excess cash to shareholders.
As outlined in April, we are building an ownership culture, as well as a differentiated operating model at Advance. Over the past few years, we've made substantial investments in our brands, our digital and physical assets, and our team. These investments, along with external factors, enabled us to post a strong start to 2021. Clearly, the federal stimulus package, along with our first real winter weather in three years, was a benefit to our industry.
From a category perspective, net sales growth was led by batteries, appearance chemicals and wipers. Geographically, all eight regions posted over 20% growth. Importantly, over the past year, the Northeast, our largest region, had been below our overall reported growth rate and well below that of our top-performing regions. In Q1, the gap narrowed, and in recent weeks, the Northeast has been leading our growth. This was in line with our expectations as mobility is increasing in large urban markets in the Northeast, which were disproportionately impacted by COVID-19 last year.
Both DIY omnichannel and Professional performed well, delivering double-digit comp sales growth in the quarter. We saw strong increases versus year ago with a double-digit increase in transactions and high single-digit increases in dollars per transaction in both channels. In terms of cadence, DIY led the way early in Q1. As the country began to reopen later in the quarter, Professional came on strong, resulting in Pro growth of over 20% in Q1, with continued momentum into Q2. The changes in channel performance highlights the importance of flexibility in our operating model, as we adapt to rapid shifts in consumer behavior relative to 2020.
Throughout AAP, our merchant, supply chain and store operations teams have been extremely agile in adjusting to this evolving environment to ensure we take care of our customers. Within the Pro sales channel, our overarching focus remains to get the right part in the right place at the right time. This enables us to compete on availability, customer service and speed of fulfillment, which are the primary drivers of choice for Pro-verizers [Phonetic]. To achieve these goals, we continued to strengthen our value proposition through improved availability as well as our Advance Pro catalog featuring tools like MotoLogic and Delivery Estimates [Phonetic].
As vaccinations rollout across the country, mobility is increasing across all income strata. As discussed in April, this is very good for AAP, as our diverse set of assets within Pro is uniquely positioned to capitalize on this trend. Specifically, WORLDPAC led our Professional growth in the quarter. With the customer base that serves higher end installers and more premium vehicles, WORLDPAC gained momentum throughout Q1. This is because, middle to high income motorists are becoming increasingly mobile, and in some cases, they are now returning to a daily commute. Saying it simply, they're driving more than they did a year ago. Secondly, we're seeing benefits from the own brand product offering expansion with the integration of Autopart International.
Further, we believe our independent Carquest stores are also well positioned. They're leveraging our enterprise assortment and have excellent relationships with customers. These relationships have been strengthened over the past year, given the support we provided to both independents and our Pro customers during a difficult time. We continue to grow our independent store base through a combination of greenfield locations and the conversion of existing independent location. Today, we're extremely excited to announce that we're adding 29 new independent locations to the Pacific Northwest to the Carquest family, the single largest convergence in our history. Baxter Auto Parts announced that they will bring over 80 years of automotive aftermarket experience and strong customer relationships to the Carquest banner. This is a testament to the strength of the Carquest Independent program, including product availability, differentiated brands, technology platforms and robust marketing plan.
We also grew our TechNet program across all Pro channels. TechNet enables independent service shops to create their own national network. We now have over 13,000 North American members, and we'll continue to leverage TechNet to differentiate our Pro offering and build loyalty.
In summary, we expect that as our Pro installers recover, our industry-leading assortment, customized Pro solutions, and dedicated Pro banners will enable us to drive market share gain in the growing segment throughout the balance of the year.
Meanwhile, our DIY omnichannel business led our growth for the fourth consecutive quarter. Stepping back and as a reminder, there was a significant increase in DIY penetration across the industry beginning in Q2 2020. According to syndicated data, an estimated 4 million new DIY buyers were added. Spend per buyer for 2020 grew close to 9%, led by online spend per buyer. DIY growth was led by project, recreation and more discretionary categories as people worked on their vehicles or even learned how to work on their vehicles. These trends generally continued through Q1, and the industry is now beginning to lap the significant increase from prior year in Q2.
From an Advance standpoint, we grew share of wallet and overall market share in Q1, led by DieHard batteries. DieHard continues to have strong momentum and our advertising is clearly resonating with customers. We plan to continue to invest behind this powerful brand in 2021 to further build awareness and association with Advance.
Our loyalty program remains focused on attracting, retaining and graduating Speed Perks members. Our loyalty program enables us to provide personalized offers and increase share of wallet as we leverage our customer data platform. In Q1, this helped drive growth in our VIP members by approximately 14% and our Elite members by 30%.
Consistent with broader retail, during Q1, we began to see a shift back to store sales from e-commerce, given the outsized growth of the online business during the onset of the pandemic in 2020. Our investments in digital and e-commerce have been another differentiator for our DIY business. We continue to strengthen our online experience on desktop, mobile and with our app, which recently crossed nearly 1.3 million downloads. The integration of our digital and physical assets is communicated through our Advance Same Day suite of services. This enables DIYers to find the right part from our industry-leading assortment, order it online, and either pick it up in one of our stores within 30 minutes or have it delivered in three hours or less.
Finally, we're very excited about our footprint expansion and new store opening plans for the year. We're targeting between 100 to 115 new stores in 2021. This includes the Pep Boys leases we're executing in California. The opening of the California locations will ramp up during the back half of the year and finish in 2022.
Now, I'd like to transition to the unique opportunity we have to significantly expand our margins. As we outlined in our strategic update, there are four broad initiatives: leveraging category management, streamlining our supply chain, improving sales and profit per store, and reducing corporate SG&A.
Our largest merchant expansion initiative is leveraging category management to drive gross margin improvement. This involves three components: material cost optimization, own brand expansion, and strategic pricing. Material cost optimization and strategic sourcing has been an ongoing effort for us and will continue to be a focus. Given the current inflationary environment, we are leveraging these capabilities to push back on cost increases, to keep our price to the customer low. We'll continue to work collaboratively with our supplier partners on managing input costs.
Own brand expansion as a percent of our mix is an important contributor to margin rate improvement. However, growing our DieHard and Carquest brand is not just about margin, it's also about differentiation. Our merchant team is building our capabilities and sourcing to develop high quality products, leveraging our strong supplier relationships. Two recent examples include our DieHard robust enhanced flooded battery and our Carquest Hub Assembly. Once equipped with a differentiated product, our marketing team is building the awareness and the reputation of our own brand as evidenced by our DieHardisBack advertising campaign.
Finally, we supplement innovative quality parts and breakthrough marketing with an improved [Technical Issues] and extensive team member training. This includes enhanced part, product and brand training to ensure our store team members are well positioned to provide our customers with trusted advice and an excellent in-store experience.
So, we're not only on track with margin expansion behind own brands, we're also leveraging these brands to enhance differentiation and improve store traffic. Our extensive research around customer journey highlights the role that brands play in customer purchase decisions. When a customers car won't start, we want them to think of DieHard first, such as this becomes a reason that they come to Advance. This is why collaborating with our supplier partners is so important to ensure high quality for our own brands. We are confident as we continue to invest in product quality, building our brands, and training our team members to drive own brands as a percent of mix, we will further deliver growth across AAP.
The final component of our category management initiatives is strategic pricing. By investing in new tools, we're now able to competitively price on a market-by-market basis using detailed analytics to improve rate. We're also realizing success in reducing discounts online through a rapid test and learn approach, which is driving significant margin expansion in key categories.
In total, our category management initiatives are currently on track to deliver up to 200 basis points of margin expansion through 2023. As we look beyond 2023, we plan to continue building out customer data and personalization platforms to further enhance the customer experience and expand margins. Same with gross margin, we once again leveraged supply chain in Q1 versus both 2020 and 2019. Despite the current environment, we remain focused on executing our primary margin expansion initiatives while working to mitigate the impact of global supply chain challenges. We expect to complete our warehouse management system implementation in 2022 with the majority of our largest buildings converted this year. In conjunction with WMS, we're also rolling out our labor management system, which allows us to implement common standard operating procedures across our DC network. This will also enable us to incentivize hourly team members based on their performance.
In terms of cross-banner replenishment, or CBR, we've converted over 70% of stores to date and expect to complete the remaining stores we originally planned by the end of Q3. CBR significantly reduces our miles driven, which is even more important today given rising fuel and labor costs. More importantly, CBR will complete the integration of the Advance and Carquest supply chains and enables us to service our approximately 4,800 corporate Advance stores and 1,300 independent Carquest stores from a single supply chain. We also continue to integrate the dedicated professional supply chain within WORLDPAC and Autopart International. In the quarter, we converted another five AI stores to the WORLDPAC system and are on track to complete this integration by the end of Q1 2022.
In April, we discussed two additional supply chain initiatives building on what will soon be a more streamlined supply chain network. This includes tiering our supply chain and transforming in-market delivery and customer fulfillment. Our tiered supply chain pools the slowest moving SKUs into four strategically located regional DCs. This will allow us to make room for faster moving SKUs and ultimately improve the availability of our higher turnover products.
Our second new initiative is transforming in-market delivery and customer fulfillment to improve service and productivity. The new delivery management system was selected for multiple modes of transportation to move and deliver parts at lower costs. Both of these initiatives are in their early stages, and we are targeting completion of these in 2023 and 2024, respectively.
In terms of SG&A improvements, our store operations team is executing initiatives to increase sales and profit per store. We've now increased sales per store for three straight years, and we're on track to get to our target of $1.8 million average sales per store by 2023. In Q1, with strong top-line growth and disciplined execution, we leveraged store payroll versus both 2019 and 2020. We've also made improvements in scheduling and task management to drive efficiency, which helps with our customer experience as it enables us to schedule our most tenured and knowledgeable team members when we need them most. We continued to invest in our store team members in terms of training, technology and in compensation, including our unique Fuel the Frontline stock ownership program. We believe these investments have enabled us to attract the very best parts people in the business and are enabling continued improvement in primary execution metrics like net promoter score, units per transaction and ultimately sales and profit per store.
Finally, we took steps to reduce corporate and other SG&A costs in the quarter. This includes three broad territories: integration, safety, and new ways of working. In terms of integration, our finance ERP is near completion and we continue to build proficiency in our global capability center at Hyderabad, India. I'd like to take this opportunity to recognize our India team, who stood up an entirely new operation literally in the middle of a global pandemic last year. We've been working hard to support them as COVID-19 infection rates have risen in India over the past few weeks. The GCC team including IT, Finance and HR team members today has certainly enabled us to reduce costs, both in terms of capex and OpEx. In addition, the IT team brings new skills in the area of software engineering, data analytics and artificial intelligence. These critical capabilities will help enable the successful implementation of our many tech initiatives.
Secondly, our safety performance continues as field leaders across Advance hold their teams accountable as we build a safety culture. We delivered a 9% reduction in our total recordable injury rate compared to the previous year, and reduced our lost-time injury rate 2%. By focusing on people, behavior and continuous improvement, we're reducing claims and overall cost.
Third, we recently completed a thorough review on the ways we work in our corporate offices and incorporated key learnings from working remotely for over a year. The objective was to ensure our corporate team is focused on our highest value priorities, while eliminating less productive work. From this work, we announced a restructure of our corporate functions and the reduction of our corporate office footprint. This will result in savings of approximately $30 million in SG&A, which will be realized over the next 12 months. We also believe the streamline approach will be more effective to supporting our field and supply chain teams.
While we're pleased with our Q1 performance, we're confident that there is so much more opportunity ahead. To fully realize our potential, we plan to continue to invest in our brands, the customer experience, our team members and market expansion to drive top-line growth above market. Our entire team also remains focused on the execution of our margin expansion initiatives. We're energized and focused on building on the momentum we saw in Q1 to execute our long-term strategy in the months to come.
Now, let me pass it over to Jeff, who will go into more details on our financial results.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Thanks, Tom, and good morning. And thanks to everyone joining us today, especially our team members, who continue to work tirelessly, which has contributed to the results that we're reporting today.
In Q1, our net sales increased 23.4% to $3.3 billion. Adjusted gross profit margin expanded 91 basis points to 44.8% as a result of improvement throughout gross margin, including supply chain, net pricing, channel mix and material cost optimization. These improvements were slightly offset by unfavorable inventory-related costs, product mix and headwinds associated with shrink and defectives.
Our Q1 adjusted SG&A expense was $1.2 billion. On a rate basis, this represented 35.8% of net sales, which improved 387 basis points compared to one year ago. The improvement was driven by sales leverage in both payroll and rent, as well as lower claim-related expenses from the Company's emphasis on safety.
We discussed our labor management system previously, but we really saw the benefit this quarter as we staffed our store based on customer needs, utilizing nights, weekends and an improved mix of full and part-time schedules. In addition, our ongoing focus on team member safety will always remain one of our highest priorities. The savings were partially offset by an increase in field bonus costs related to our improved performance.
In addition, as Tom outlined earlier, we invested in marketing during Q1, primarily associated with DieHard. This lap marketing cuts the previous year, which were made at the onset of the pandemic. We also saw an increase in third party and service contracts related to our transformational plans, primarily within IT.
Related to the increased COVID-19 cases we saw late in 2020 and early 2021, we incurred approximately $16 million in COVID-19 cost during the quarter, which is flat to the prior year. While the future impact of COVID-19 remains unknown, we expect these costs to subside throughout the year, assuming infection rates continue to decline.
Our adjusted operating income increased from $113 million last year to $299 million. On a rate basis, our adjusted OI margin expanded by 478 basis points to 9%.
Finally, our adjusted diluted earnings per share was $3.34, up from $1.00 a year ago.
Our free cash flow for the quarter was $259 million, an increase of $330 million compared to last year. The improvement was primarily driven by year-over-year operating income growth, as well as improvements we achieved from working capital initiatives, including higher utilization of our supply chain financing facilities that we began to see during the pandemic last year.
Our AP ratio improved by nearly 1,000 basis points to 84%, the highest we've achieved since the GPI acquisition. A portion of the improvement is attributable to the actions we took during the pandemic, and the continued partnerships we have with our suppliers.
In the quarter, we spent $71 million in capital expenditures versus $83 million in the prior year quarter. We expect to be within our guidance for capital expenditures, as we continue to invest in our transformation initiatives.
During Q1, we returned more than $200 million to our shareholders through the repurchase of 1.1 million shares and our quarterly cash dividend. We expect to be within our 2021 share repurchase guidance of $300 million to $500 million. Additionally, as you saw during our Investor Presentation in April, our Board approved our quarterly shareholder dividend of $1.00, payable on July 2nd.
As outlined in our press release this morning, we've seen continued momentum in the first four weeks of Q2 with our two-year comparable store sales growth rate in line with the two-year stack we reported in Q1. Miles driven are beginning to grow for the first time in over a year, and historically, this has been overall positive for our industry. In addition, our Professional business is accelerating, and we expect Pro to outperform DIY for the balance of the year. For these reasons, we're raising our comp sales guidance to up 4% to 6%.
We're also cognizant of several macroeconomic factors. This includes inflationary costs in commodities, transportation and wages, along with currency headwinds. As a reminder, our industry has historically been very rational and successful in passing on inflationary costs in the form of price, and that is our intention this year as well. Also our Pro business carries a lower margin rate than DIY, which may partially offset the gains we expect to see in sales. As a result of our top-line strength and current cost assumptions, we're updating our adjusted OI margin range to be between 9% and 9.2%. Our guide for comp sales is now up 3 full points, and our adjusted OI margin rate is now up 30 basis points compared to our initial guidance provided in February.
We remain committed to delivering against the strategy we laid out in April and are confident in our ability to execute our long-term strategic plans to deliver strong and sustainable total shareholder return.
Now, let's open the call for your questions. Operator?
Questions and Answers:
Operator
Thank you. [Operator Instructions] Your first question here comes from the line of Christopher Horvers from J.P. Morgan. Please go ahead. Your line is now open.
Christopher Horvers -- J.P. Morgan -- Analyst
Thanks. Good morning, everybody. So, a couple of questions here on the top line. Overall, in 1Q, did Pro outperformed DIY? And can you talk about how those two channels look on a quarter-to-date basis, i.e., is sort of DIY still positive? And then more broadly, on a quarterly basis, how are you thinking about cadence of comps for the balance of the year?
Tom Greco -- President and Chief Executive Officer
Hey, good morning, Chris. So, first of all, on the first quarter, DIY outperformed Pro. And as we outlined in the prepared remarks, it was really early in the quarter continuation of what we've seen all of last year, strong performance from DIY [Technical Issues]. And then obviously as we got toward the end of the quarter that started to change. And this is the beginning to lap the unusual events of last year. Clearly, April and May was the low point for Professional sales last year when the pandemic hit and work remote orders were put in place, and you really saw a difficult environment for the installer community. And I'm really proud of what we did at that point. I mean, we stayed with it. We supported our Pro installers. We didn't have anybody furloughed or anything like that. People are out on the street, helping them out. And that's really helped us through late in the year last year and into this year. And so now as we start to lap those results, Pro is significantly outperforming DIY, and we expect that to continue for the balance of this year. So, we're very excited about that, obviously, given the 60% of our business is Pro.
And then in terms of the cadence, we're obviously early on in the year. We know there was a huge surge on DIY in 2020. We talked about that throughout the year last year. There are some trends that some of which could be stickier than we initially thought when we planned the year. People have time on their hands. There was the stimulus impact last year. There was a shift from big box. How is it all going to unfold for the balance of the year is difficult to say. But clearly, we are off to a good start in Q2, and we'll keep monitoring it as the year goes on.
Christopher Horvers -- J.P. Morgan -- Analyst
Got it. Thank you. And then as a follow-up, Jeff, can you talk about what the unfavorable inventory costs are? And do you expect that to continue? And more broadly, what are you seeing in the pricing environment from your peers? Are cost being passed through at this point, or is there pressure on having to hold back? Thank you.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Sure. First on the inventory related, that's really the capitalized supply chain costs. And we had a really interesting phenomenon this quarter that we typically don't have in previous quarters where our inventory was down substantially over $60 million in the first quarter. And when we do that, we recognize the capitalized supply chain costs that are associated with that sitting on the balance sheet. If you contrast that to last year or even 2019, it's generally an inventory build. We're building inventory in the first quarter as we prepare for the spring selling season. In 2020, inventory was up over $90 million. And if you want to go back to 2019, that's up over $70 million. Now, the good news, Chris, is that translates into very favorable free cash flow, which you saw in terms of the good operating cash over 300 -- almost $330 million in operating cash, $259 million of free cash flow. So, realizing that it is very favorable for our cash balance.
In terms of pricing, we took a number of pricing actions during the end of last year, beginning of this year. We're seeing it flow through. We haven't seen any resistance there from a pricing standpoint, so we feel really good about that. We know there some inflationary factors that are coming, and we're planning to address those. But for the quarter, our pricing actions took hold and we were really pleased with the results.
Christopher Horvers -- J.P. Morgan -- Analyst
Thanks, guys. Best of luck.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Thanks, Chris.
Tom Greco -- President and Chief Executive Officer
Thank you.
Operator
Your next question comes from the line of Michael Lasser from UBS. Please go ahead. Your line is now open.
Michael Lasser -- UBS -- Analyst
Good morning. Thanks a lot for taking my question. On the capitalized inventory cost, have you been able to clean up some of your inventory? So, this is going to be less of a factor moving forward and could actually put the bias [Phonetic] to the upside for some of your long-term gross margin expectation?
Tom Greco -- President and Chief Executive Officer
Yeah. Over time we will see improvement. I wouldn't expect it this year. I think we're going to continue to see this over the course of the year. It's an area that's going to be a little bit fluid, which -- part of the reason we didn't change guidance associated with free cash flow is our inventory levels are down significantly compared to the end of last year. So we want to make sure we have the in-stock availabilities, the most important thing in this industry, making sure we've got the right part at the right place at the right time. And -- so we're looking at our in-stocks across the organization, making sure that this inventory is forward deployed. So, there is really going to be some puts and takes throughout the year. But over time, Michael, to your point, we do think those costs will come down as we take overall cost out of the supply chain.
Michael Lasser -- UBS -- Analyst
Okay. My follow-up question is, do you expect that we're going to see greater spread of your outperformance versus the industry in the back half of the year, given your lean toward the DIFM segment and the Northeast, which has underperformed? And if DIFM outperform for you in the back half of the year, how is that going to impact your gross margin, given the relative margin differential of those two segments? Thanks so much.
Tom Greco -- President and Chief Executive Officer
Sure. Good morning, Michael. I'll comment first on your previous question. I think the one thing I would add on the inventory is we're going to see a bit of an uneven recovery across the country. We're seeing it now. Geographically, we're seeing it differently -- played out differently by category. We're seeing it played out differently. So, we're obviously making some bets on inventory to make sure that we're able to delight the customer when they need us.
In terms of the performance in the back half, yes, I mean, we are a professional organization, with 60% of our business in there. We definitely would see us continuing to benefit from that trend in the back half of the year overall. Geographically, absolutely, we called out in our remarks that the Northeast was leading the country quarter-to-date, we haven't seen that in over a year. So those are two big factors that help us out. And, obviously, we're excited about both of those trends. We've got multiple banners on the Professional side that are all cranking right now. Our installers are covered up. We've got cars waiting out there to be repaired. People are getting back on the road. Miles driven are recovering. So, all of those things are very positive. And we fully contemplated the impact on gross margin. We, obviously, recognized that the Pro margins are lower than that of DIY, and that's fully contemplated in the guide. So, we'll continue to focus on expanding our margins with the initiatives we outlined in April.
Michael Lasser -- UBS -- Analyst
Okay. Thank you so much, and good luck.
Operator
Your next question comes from the line of Simeon Gutman from Morgan Stanley. Please go ahead. Your line is now open.
Simeon Gutman -- Morgan Stanley -- Analyst
Hi, everyone. Good morning. My first question is on the guidance raise. Can you talk about what you flowed through? It seems like there is the first quarter upside, maybe some incremental on the second quarter. And then did anything change with regard to the back half of the year?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. There's really four things that we were contemplating when we were taking another look at the guide. Obviously, it's a very fluid situation, given that this is the second time we've raised our guidance in the last 45 days. But the first is really what Tom mentioned, is really getting a better understanding of that shift from DIY to Pro. That's number one. The second and third is exactly what you just mentioned, Simeon, which is the clarity we have on Q1 in terms of the beat, beat coming in at 9% versus 8.5% to 8.7%, that's modeled in. And then the upside that we're seeing early on in Q2, we modeled some of that.
And then the last one that I would throw in there is our assessment around inflation. We're seeing inflation in a number of different categories. And so while that would benefit the top line in the form of higher comps, we wouldn't see that flow through as much as we generally we and the industry price to maintain margin rate. So those are the four things that we contemplated that were quite, frankly, different 45 days ago, and why we thought it was prudent to update guidance now.
Simeon Gutman -- Morgan Stanley -- Analyst
Okay. That's helpful. And then different topic, maybe for Tom. This is going back to margin opportunity over the next few years, and it seems like a lot of these initiatives or these transformations are starting to take hold. My question is the dependence on sales to drive margin is something we've talked about in the past. Do you feel better -- I don't think you'd be satisfied if sales aren't growing and I think that's the ultimate essence of transforming the business. But can you talk about how dependent your margin goals are on sales? Is there some portion of margin that you think this business can achieve without seeing consistent sales growth? And again, I'm not saying that's the goal, but curious if you can separate the two.
Tom Greco -- President and Chief Executive Officer
Sure. Well, the four territories that we talked about, Simeon, really the one that is most sales dependent is obviously sales and profit per store. There is a leverage component to that in our outlook. I mean, we talked about 240 basis points to 440 basis points of margin expansion, and the range of revenue growth that was contemplated was 3% on the low end and 6% on the high end, if you remember. So obviously, the one that swings the most is that particular one. Now, there are pure cost out initiatives in there without question, return, shrink, defectives. We've got ways of improving profit per store without sales, but that is the one that has a dependency there.
Supply chain, the vast majority of the supply chain initiatives are not sales dependent. These are just pure productivity opportunities. You're familiar with the cross-banner and warehouse management system implementation, but also the two new ones that Reuben outlined in the April presentation, neither of those are sales dependent. Those are just improving our current efficiency and how we get product from distribution centers to the stores and how we move product in market.
Category management is a pure rate play. There is really no sales dependency on category management. And then, obviously, the SG&A moves -- the ERP implementation and new ways of working, those are all -- none of those are sales dependent. So, the majority of the initiatives we have are not sales dependent. Obviously, the more sales we have, the more we get not just leverage on those that are contemplated in the initial low end of the guide, the 220 basis points, but we get leverage on other fixed costs, which takes us up to the 440 basis points. Hope that helps?
Simeon Gutman -- Morgan Stanley -- Analyst
Yeah. Thank you.
Operator
Your next question comes from the line of Kate McShane from Goldman Sachs. Please go ahead. Your line is now open.
Kate McShane -- Goldman Sachs -- Analyst
Hi. Thanks. Good morning. Thanks for taking my question. I was curious about the news with regards to the Pacific Northwest. I wonder if you could remind us of your exposure to the region before the new stores and what the opportunity is for expansion there? And then in the same vein, in terms of geography, I know you're in the process with the Pep Boys stores converting them and they're opening in 2022, but is there a timeframe in 2022 when they'll all be open?
Tom Greco -- President and Chief Executive Officer
Hey, good morning, Kate. First of all, we have limited exposure on the West Coast, is the short answer. And this is a huge opportunity for us. Essentially, we've been working at strengthening our core value proposition here for several years now as you know. And the investments we've made in that value proposition are now yielding comp sales performance at the kind of levels that we aspire to from the beginning. We've had three straight years of comp sales growth and we would say we've earned the right to expand and [Technical Issues] proposition elsewhere.
You think about bringing the work we've done on availability, making sure that our industry leading assortment of parts is available to people in Portland, just like it is in Boston. Bringing DieHard to the West Coast is a huge opportunity for us. Our team was on the ground the week we announced the Pep Boys leasing arrangements, and the first thing people talked about in the stores when we went out there was DieHard. They were very excited to hear that they would be selling DieHard batteries. All the digital investments that we've made in our online platform, whether that's the B2B website that Bob Cushing leads with Advance Pro, the B2C website that Jason leads, and our app, we bring that to these markets. We're able to supplement our Pro customers who are out there today, our large Professional customers that we sell to nationally, but cannot sell to in those geographies, because we don't have the presence to do so. So, we're able to integrate the digital and physical asset piece. So, we're very excited about the announcement with Baxter. They are a terrific organization. They've got tremendous track record. And they're very excited about converting to the Carquest banner here soon.
And then in terms of Southern California, as we -- as you heard, we have 109 locations. We're going to start converting those soon. And we expect to complete that in 2022. So that's really a quick rundown of what we're doing out there. And I got to tell you, our team is so excited about being able to open new stores after a couple of years where we were closing them, and clearly, that's something that brings a new energy to the organization overall.
Kate McShane -- Goldman Sachs -- Analyst
Thank you.
Operator
Your next question comes from the line of Greg Melich from Evercore ISI. Please go ahead. Your line is now open.
Greg Melich -- Evercore ISI -- Analyst
Hi. Thanks. I only had, I guess, two follow-ups. One was on the two-year stack trend of 15%, how -- could you break that down to DIY and Pro? I assume that on a two-year, DIY is still outperforming Pro, and do you think that's going to flip in the second quarter?
Tom Greco -- President and Chief Executive Officer
First of all, yes, DIY is still outperforming Pro on a two-year. The expectation is that that will start to moderate, obviously, Greg, as we go through it. I mean, the peak of the DIY surge, if you will, was kind of right now, right through the end of July. And through the end of the year, it didn't stay at these levels that we're about to see year-over-year, June and July, just to be clear. The full year number through the syndicated data that we can see is 6.6%. So, there is quite a variation in the categories within DIY. Those categories that rely on miles driven, they didn't do that well even inside of DIY. I mean, better than historical obviously, but nothing compared to batteries, where intermittent driving causes failure. So, we expect Pro to outperform. I think, as we get toward Q3 and Q4, you'll see those two-year stack start to come closer together. But, in general, the DIY business tends to be a little bit more volatile as you know.
Greg Melich -- Evercore ISI -- Analyst
Sure. But the gap is still like a 1,000 basis points on a two-year, would that be fair?
Tom Greco -- President and Chief Executive Officer
It's -- we haven't broken it out. It's -- I think it's still a pretty significant two-year gap.
Greg Melich -- Evercore ISI -- Analyst
Okay, great. And then second was on inflation. I know we asked in multiple ways, but I just want to make sure I got it right. The comp guide increase was a lot of inflation, or at least that was a chunk of it versus a few [Technical Issues]. Is -- how should we think about that as a holistic number? I think when we had the China tariffs few years back, it got up to around 3%, then maybe it was 1% last year. We -- are we back at sort of a 3% number, or is still more in between 1% and 3%?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. So, when we put out our original guidance in February, we had contemplated a inflation range of, call it, 1% to 2%. And as we're seeing some of the inflation coming in, whether it's the product cost, freight or labor, we're modeling an additional 1% to 2%. So you can take the 3% as the midpoint, and that sort of the way we're thinking about it right now.
Greg Melich -- Evercore ISI -- Analyst
And that's for calendar '22 run rate going forward...
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah.
Greg Melich -- Evercore ISI -- Analyst
I mean, calendar '21?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
For '21, yeah.
Greg Melich -- Evercore ISI -- Analyst
Okay, great. Thanks a lot, and good luck, guys.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Thanks.
Tom Greco -- President and Chief Executive Officer
Thanks, Greg.
Operator
Your next question comes from the line of Bret Jordan from Jefferies. Please go ahead. Your line is now open.
Bret Jordan -- Jefferies -- Analyst
Hey, good morning, guys.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Good morning.
Tom Greco -- President and Chief Executive Officer
Good morning.
Bret Jordan -- Jefferies -- Analyst
A question, I guess, on supply chain, it does sound like we've got some, I guess, disruption around availability whether it's shipping or materials or labor. How are you seeing in-stocks? And when you think about the cadence of supply chain disruption, are we on the sort of an improving trend as far as availability of inventory or are we still sort of challenged there?
Tom Greco -- President and Chief Executive Officer
Yeah. For sure, Bret, we have seen some slippage on in-stocks unfortunately. The peak of the -- let's say, more global impact of disruption was probably two months ago. So, we're not necessarily seeing what we saw two months ago, but we're still seeing some suppliers, and it's not necessarily that they're not trying to get us the product. They just can't -- they can't load a container or something like that in their location. They can't get people. You're familiar with the shortage of labor. So it's things like that that are causing the disruption. We're gradually picking it back up. I think we're very thankful our suppliers have really done everything they can to keep us in stock. We feel like we're well positioned competitively. We don't think this is a competitive disadvantage at all. If anything, we've got an advantage relative to some of our peers in the -- some of the key competitors in the Professional side of the business. But it's definitely improving. And we're continuing to work closely with our suppliers to close any gaps.
Bret Jordan -- Jefferies -- Analyst
Okay. Great. And then one question. Can't leave without mentioning price investment. I guess when you think about the cadence or the performance of the Pro business, are you seeing any outperformance versus a national accounts versus the independents? And do you see any level -- change in level of competition from peers relative to those Pro accounts?
Tom Greco -- President and Chief Executive Officer
We are seeing a huge surge in Pro, in general, OK. So there is strength across all of the professional sales channels. And some of the strategic accounts last year, I would say, took a little bit more drastic actions at this point in time than some of the independents, and that's contributing to the lap being a little bit lighter, I guess, on that side of the house. So, we are seeing a surge there. But we work really closely with our strategic, Bret, as you know, they are very important to us. We continue to see them growing in importance, and we make sure we're taking care of them, and we're going to continue to do that. But I do think as we look to the balance of the year, some of those strategic accounts that took some pretty significant actions last year could outperform.
Bret Jordan -- Jefferies -- Analyst
Okay. Great. Thank you.
Operator
Your next question comes from the line of Zach Fadem from Wells Fargo. Please go ahead. Your line is now open.
Zachary Fadem -- Wells Fargo -- Analyst
Hey, good morning. I just wanted to clarify some of the moving parts on the outlook. It looks like the higher end of the 4% comps on the prior outlook is now the low end. But if you look at the EBIT margin on the 4% comp, down from 9.1% to 9%. I'm hoping you can walk through the change in flows through assumption here in a little bit more detail in terms of whether this is more the Pro mix and inflation factors you mentioned, or is there any offsetting SG&A component as well?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
No, it's exactly what you just said. It's really given us some better color on the shift from DIY to Professional, which, as you know, carries an overall lower margin. And in addition to that, it really is a better understanding of what we were just talking about, which is the inflation. And we believe we know through past experience that we've been able to maintain rate, but we're not going to improve rate through pricing. So, we feel that those two items while it gives you a good top line, it doesn't necessarily translate to the bottom line. We just have better insight into that. In addition to that, we are cognizant of the potential for consumers to shift into more value categories. So, that was a factor we considered as well. Now, if those things go the other way, we're not going to be near the low end or meet closer to the high end, but those are the types of things that we consider when we took another look at the guidance.
Zachary Fadem -- Wells Fargo -- Analyst
Okay. So just to make sure I understand, you're sizing all of those factors as about 10 basis points, correct?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. Yes.
Zachary Fadem -- Wells Fargo -- Analyst
Okay. Perfect. And then in terms of the restructuring costs, can you talk a little bit more about what drove the step up here in Q1, and what you're now embedding going forward for the year?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. The Q1 was simply a function of the voluntary retirement program that we talked about during our Investor Day, that -- actually, our non-GAAP or below the line number would have been lower had it not been for that. And then, we expect it to be consistent with last year going forward.
Zachary Fadem -- Wells Fargo -- Analyst
Got it. Appreciate the time.
Operator
Your next question comes from the line of Brian Nagel from Oppenheimer. Please go ahead. Your line is now open.
Brian Nagel -- Oppenheimer -- Analyst
Hi, good morning.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Good morning.
Tom Greco -- President and Chief Executive Officer
Good morning.
Brian Nagel -- Oppenheimer -- Analyst
I've got a couple of questions. I'll kind of also merging them together, and then -- first, I know we've talked about inflation already, but clearly, inflation has become more of a factor in your business, in your sector broadly. As you look at the data, as you understand your consumer, is there a point at which the consumer sort of say pushes back and the ability of Advance to pass these costs along is no longer a significant or no longer, I guess, relevant?
And then the second question I have, with regard to the updated outlook here, and clearly, it's extraordinarily fluid, a lot of factors, but as you think about this, what could be the bigger surprise factor to the upside or downside? Toward end of the year in the guide and the result were different than what you expected, where would that variance you think likely come from?
Tom Greco -- President and Chief Executive Officer
Yeah. First of all, in terms of what point could inflation or pricing actions start to impact consumption, I think, is your question, Brian, right?
Brian Nagel -- Oppenheimer -- Analyst
That's correct.
Tom Greco -- President and Chief Executive Officer
Yeah. I mean, we really measure that by customer journey, if you will. If you look at a battery failure, as an example, my car won't start as compared to my breaks are squeaking as compared to I would like to accessorize my car or something like that. There's obviously different elements there of whether or not, somebody is going to defer anything. The reality is on failure related items, it's unlikely that it's going to have a big impact. It is certainly hasn't had a big impact historically. And as long as we're competitive, we'll continue to see growth there. There may be some things that end up getting deferred based on the job type, but in general, this industry has been incredibly resilient at being able to pass on pricing, and I think that's what you're going to continue to see.
Second question was on the outlook. I think, the short answer is we've obviously contemplated some level of pricing in the outlook. We've also contemplated how much of that's going to flow through all of the variables there. If the pricing flows through at what we've -- we've guided, we'll obviously be right there in the guide. If it's better than that, we'll be better. That's really the answer. It's -- that's probably the biggest variable that's out there, all the rest of the stuff is fully within our control. But to your point on the consumer receptiveness to pricing, we'll see.
Brian Nagel -- Oppenheimer -- Analyst
Got it. I appreciate. Thank you.
Operator
Your next question comes from the line of Daniel Imbro from Stephens Inc. Please go ahead. Your line is now open.
Daniel Imbro -- Stephens Inc. -- Analyst
Yeah. Good morning, guys. Thanks for taking my question. Tom, I want to start on the gross margin line. You mentioned continued success graduating loyalty tiers, moving customers up. Can you talk about the gross margin implication from that graduation? Will it be a headwind due to higher kind of earned customer rewards as we move through the year? And is that potentially another headwind as we move through the year and think about the gross margin trajectory?
Tom Greco -- President and Chief Executive Officer
Sure. Well, first of all, our Speed Perks platform, which is our loyalty program, is extremely important for us. We think we've got tremendous runway. We're still transacting in the mid-30%s range. And best-in-class would say that number could be dramatically higher than that. There are some retailers that are north of 80%. So, it's a platform that we're going to use to personalize our offer, and use first-party data to get much more relevant with how we engage our customers. Obviously, we do have discounts in there, but we managed that holistically. We managed that across the broader portfolio. And as people migrate up to these higher levels, that's fully contemplated in what discounts we use and how we offer value to those customers.
So, we won't see any kind of degradation on gross margin as we migrate people up to these higher tiers. What we will see is higher share of wallet, which is what the aspiration is, so that we can move from like in the case of VIPs, you're significantly under-penetrated in -- with your most loyal customers. So, you want to increase that share of wallet pretty significantly. And that first-party data that we get from them enables us to get much more relevant. We know their vehicle, we know their weather patterns in their geography, we know their driving patterns, that allows us to personalize.
Daniel Imbro -- Stephens Inc. -- Analyst
Helpful. And then you mentioned also marketing being a focus for your own brands and the growth we've seen there. Obviously, it's been higher given the DieHard rollout. That should presumably moderate from here given DieHard getting more known? I guess, one, is that a correct assumption on marketing expense? And then secondly, as industry demand does slow from these higher levels, do you think increased marketing will be needed or increased promotions will be needed to keep those sales rates up? Or how do you think the industry responds from a marketing or promotion expense -- promotional outlook as comps slow? Thanks.
Tom Greco -- President and Chief Executive Officer
Sure. Well, let me distinguish between those two, because I see them very differently. Promotions or pricing is very easy to replicate, right. Somebody drops their price, somebody else drop their price. I mean it's -- we measure our competitive price index literally every day. So, we're looking at what's going on inside of our industry and we have algorithms that help us determine how we're going to price with category and with geography and those kinds of things.
Marketing is an investment. I mean, marketing is an investment in driving margin expansion. When we invest behind a DieHard marketing campaign as we did last fall and in the first quarter, the intention there is to build loyalty, to build equity in the DieHard brand, to build awareness of the fact that DieHard is available at Advance Auto Parts. And when we do that what we find is we actually are able to reduce our promotional discounting and build the strength of that brand because it's trusted by the customer. So, they're very different. And one of them is relatively easy to replicate, the other one is more difficult to replicate. And that's -- we will invest in marketing when we get a return that expands margins. That's the focus of our marketing dollars.
Daniel Imbro -- Stephens Inc. -- Analyst
That's helpful. Best of luck, Tom.
Operator
Your next question comes from the line of David Bellinger from Wolfe Research. Please go ahead. Your line is now open.
David Bellinger -- Wolfe Research -- Analyst
Hey. Great. Thanks for taking the question. So, you and your larger competitors have all gained a significant amount of market share over the past, say, 18 months. So my question is what would really change that? Is there anything you're currently monitoring within the marketplace? Or is it simply just the new dynamic we're in and the payoff from all the investment spending over the past few years? Maybe just talk about the sustainability of these elevated share gains as well?
Tom Greco -- President and Chief Executive Officer
Yeah. I think it's a pretty unique time, David. I mean, obviously, we talked about this in our April presentation that this is a very fragmented market, particularly on the Professional side. And right or wrong, last year was a highly disruptive time for, well, everything, but certainly our industry. And at the time, if you think back to the second quarter, a lot of companies took some pretty drastic actions with their workforce and how they approach the pandemic, and we stayed with it. We stayed with it. We had people on the street, as I mentioned earlier. We had our training programs. Our people put on a mask every single day, and went out there and served our customers. And being an enduring time for the world, I mean, I think those Pro installers have remembered that. And so I do think that it's conceivable that the larger players who behaved in that manner could see share gains, outsized share performance for a period of time as a result of that. And when the larger players are a fairly small slice of the overall pie, and we have scale, we have parts availability, we've got great brands, we think that we can continue to show outsized performance relative to the industry for a period of time.
David Bellinger -- Wolfe Research -- Analyst
Yeah. It's a fair point. And I just wanted to follow up, so you talked a lot about private label, can you size the potential for your owned brands and maybe as a percentage of sales of what that could go to over time? And how do you balance that opportunity with your core consumer and Pro, who place a lot of value on branded OEM parts? Just help us bridge that gap.
Tom Greco -- President and Chief Executive Officer
Well, two things. First of all, let me start with the fact that now our national brand suppliers are extremely important for us. And they play a key role in our assortment and our availability. We have the largest number of stock parts in market of anyone in the industry. Terrific relationships with our national brand partners, terrific relationships with the OE suppliers that we have out there. So that gives us a competitive advantage. And we are going to continue to offer those brands where it makes sense for our business. This is about choice, not necessarily about, an either or, it's bit of an and.
So, that said, where we have a category where we can bring the Carquest trademark into that category, offer it to our customers with very, very high quality, and I want to really emphasize that. Our Carquest parts are OE quality. It's got a tremendous reputation. The Carquest brand has been around for a very long time. The professional installers love the Carquest brand and our merchant team goes out and works very closely with our suppliers to make sure when we put the Carquest name on that box, it's going to be OE quality. So we offer that. If the customer chooses on the lookup that they want Carquest, they choose Carquest, great. If they choose the national brand, they choose the national brand.
Now having said that, as we brought strength to some of these categories with Carquest, we are seeing our customers choose Carquest, which -- back to your initial question, we are roughly -- we think we're about 10 points under penetrated versus our potential. And while we won't get there in the next three years, 2023 is obviously the strategic plan timeline we outlined in April, it's a pretty significant number in the 200 basis points of margin expansion we expect from category management. So, that's fully contemplated. And as we rollout all the SKUs, we'll be in great shape to capture that margin opportunity.
David Bellinger -- Wolfe Research -- Analyst
Thank you, Tom. Much appreciated.
Tom Greco -- President and Chief Executive Officer
Thank you.
Operator
Your next question comes from the line of Seth Basham from Wedbush Securities. Please go ahead. Your line is now open.
Seth Basham -- Wedbush Securities -- Analyst
Thanks a lot, and good morning. Tom, if you could remind us what you see as the biggest contributors to margins improving on underlying basis this year and which ones you have the most confidence in, that would be great.
Tom Greco -- President and Chief Executive Officer
Sure. Well, I think we've said previously that gross margin is going to be the bigger contributor on a full year basis, very confidence in the category management initiatives. We'll leverage supply chain. There is obviously some things with supply chain this year, we are seeing some wage inflation on supply chain that we didn't plan if you go back to last fall. But we still believe we've got an opportunity to leverage supply chain based on the initiatives that we have there.
As you go into SG&A, I mean we're going to execute the initiatives we have, Seth, so we've already done the restructure. And I think the restructure -- just to be clear, it wasn't just the cost play. We've been able to really organize our corporate team around the highest value priorities. We streamlined and simplified the work. We've given more responsibility to the top people in this Company. And yes, we say what we outlined in the April meeting about $30 million, which will realize over the next 12 months. So, that's a AAA bond, we'll get that. There are some offsets though inside of SG&A this year as you know that we're -- that will minimize that benefit, I guess, that we're getting out of SG&A. But that's a quick run through. More from gross margin, not as much from SG&A.
Seth Basham -- Wedbush Securities -- Analyst
Got it. Thanks. So, it seems like there is a high degree of visibility for margin improvement this year and really over the next couple of years, of course, depending on the sales outlook. Is that an appropriate assessment?
Tom Greco -- President and Chief Executive Officer
Yeah. Yes, absolutely.
Seth Basham -- Wedbush Securities -- Analyst
Thank you.
Operator
And there are no further questions. I will turn the call back over to Tom Greco for closing comments.
Tom Greco -- President and Chief Executive Officer
Well, thanks to all of you for joining us this morning. And as you've heard, we're incredibly proud of how the AAP team continues to execute against our long-term priorities while serving the customer every day with care and speed. We're very confident in the strategic plan we outlined in April, and importantly, in the team we have here at AAP to deliver growth above the market, to capitalize on the unique margin expansion opportunity and to return a significant amount of cash to our shareholders, which over the next few years is going to enable us to achieve top quartile total shareholder returns.
Before we let you to go, having just celebrated Memorial Day this week, I'd like to take a moment and recognize and honor all the brave men and women who paid the ultimate sacrifice defending our country. On behalf of the entire Advance family, I'd like to express our sincere gratitude for their service and all they've done defending our freedom.
I hope that you all continue to be healthy and safe, and we look forward to speaking with you again in August.
Operator
[Operator Closing Remarks]
Duration: 69 minutes
Call participants:
Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Tom Greco -- President and Chief Executive Officer
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Christopher Horvers -- J.P. Morgan -- Analyst
Michael Lasser -- UBS -- Analyst
Simeon Gutman -- Morgan Stanley -- Analyst
Kate McShane -- Goldman Sachs -- Analyst
Greg Melich -- Evercore ISI -- Analyst
Bret Jordan -- Jefferies -- Analyst
Zachary Fadem -- Wells Fargo -- Analyst
Brian Nagel -- Oppenheimer -- Analyst
Daniel Imbro -- Stephens Inc. -- Analyst
David Bellinger -- Wolfe Research -- Analyst
Seth Basham -- Wedbush Securities -- Analyst
More AAP analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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 Inc (NYSE: AAP) Q1 2021 Earnings Call Jun 2, 2021, 8:00 a.m. Adjusted diluted EPS of $3.34 represented an all-time quarterly high for AAP, and improved more than 230% compared to Q1 2020. Throughout AAP, our merchant, supply chain and store operations teams have been extremely agile in adjusting to this evolving environment to ensure we take care of our customers.
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Operator [Operator Closing Remarks] Duration: 69 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President and Chief Financial Officer Christopher Horvers -- J.P. Morgan -- Analyst Michael Lasser -- UBS -- Analyst Simeon Gutman -- Morgan Stanley -- Analyst Kate McShane -- Goldman Sachs -- Analyst Greg Melich -- Evercore ISI -- Analyst Bret Jordan -- Jefferies -- Analyst Zachary Fadem -- Wells Fargo -- Analyst Brian Nagel -- Oppenheimer -- Analyst Daniel Imbro -- Stephens Inc. -- Analyst David Bellinger -- Wolfe Research -- Analyst Seth Basham -- Wedbush Securities -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts Inc (NYSE: AAP) Q1 2021 Earnings Call Jun 2, 2021, 8:00 a.m. Adjusted diluted EPS of $3.34 represented an all-time quarterly high for AAP, and improved more than 230% compared to Q1 2020.
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We're very confident in the strategic plan we outlined in April, and importantly, in the team we have here at AAP to deliver growth above the market, to capitalize on the unique margin expansion opportunity and to return a significant amount of cash to our shareholders, which over the next few years is going to enable us to achieve top quartile total shareholder returns. Operator [Operator Closing Remarks] Duration: 69 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President and Chief Financial Officer Christopher Horvers -- J.P. Morgan -- Analyst Michael Lasser -- UBS -- Analyst Simeon Gutman -- Morgan Stanley -- Analyst Kate McShane -- Goldman Sachs -- Analyst Greg Melich -- Evercore ISI -- Analyst Bret Jordan -- Jefferies -- Analyst Zachary Fadem -- Wells Fargo -- Analyst Brian Nagel -- Oppenheimer -- Analyst Daniel Imbro -- Stephens Inc. -- Analyst David Bellinger -- Wolfe Research -- Analyst Seth Basham -- Wedbush Securities -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts Inc (NYSE: AAP) Q1 2021 Earnings Call Jun 2, 2021, 8:00 a.m.
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Operator [Operator Closing Remarks] Duration: 69 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President and Chief Financial Officer Christopher Horvers -- J.P. Morgan -- Analyst Michael Lasser -- UBS -- Analyst Simeon Gutman -- Morgan Stanley -- Analyst Kate McShane -- Goldman Sachs -- Analyst Greg Melich -- Evercore ISI -- Analyst Bret Jordan -- Jefferies -- Analyst Zachary Fadem -- Wells Fargo -- Analyst Brian Nagel -- Oppenheimer -- Analyst Daniel Imbro -- Stephens Inc. -- Analyst David Bellinger -- Wolfe Research -- Analyst Seth Basham -- Wedbush Securities -- Analyst More AAP analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. Advance Auto Parts Inc (NYSE: AAP) Q1 2021 Earnings Call Jun 2, 2021, 8:00 a.m. Adjusted diluted EPS of $3.34 represented an all-time quarterly high for AAP, and improved more than 230% compared to Q1 2020.
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11057.0
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2021-06-02 00:00:00 UTC
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Advance Auto Parts Q1 21 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-q1-21-earnings-conference-call-at-8%3A00-am-et-2021-06-02
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(RTTNews) - Advance Auto Parts, Inc. (AAP) will host a conference call at 8:00 AM ET on June 2, 2021, to discuss Q1 21 earnings results.
To access the live webcast, log on to http://ir.AdvanceAutoParts.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) will host a conference call at 8:00 AM ET on June 2, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://ir.AdvanceAutoParts.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) will host a conference call at 8:00 AM ET on June 2, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://ir.AdvanceAutoParts.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) will host a conference call at 8:00 AM ET on June 2, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://ir.AdvanceAutoParts.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) will host a conference call at 8:00 AM ET on June 2, 2021, to discuss Q1 21 earnings results. To access the live webcast, log on to http://ir.AdvanceAutoParts.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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11058.0
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2021-06-02 00:00:00 UTC
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Is the Chip Shortage Responsible for Advance Auto Parts' Record Q1?
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AAP
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https://www.nasdaq.com/articles/is-the-chip-shortage-responsible-for-advance-auto-parts-record-q1-2021-06-02
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The global semiconductor shortage seeping through the automotive industry (and most other industries) is likely forcing consumers to fix and maintain their old cars rather than buy new ones.
That is trickling down to auto parts retailers like Advance Auto Parts (NYSE: AAP), which just reported record first-quarter results.
Image source: Getty Images.
Computer chips that run today's autos are in short supply, causing production disruptions at Ford, General Motors, and NIO.
With factories temporarily closed, fewer cars are being produced, and that may be causing car owners to hang on to their rust buckets a little while longer. Advance Auto Parts and other retailers including AutoZone and Genuine Parts, which owns the NAPA Auto Parts chain, are seeing sales and profits soar as a result.
Advance said first-quarter sales jumped 23% to $3.3 billion as comparable-store sales surged nearly 25% from the year-ago period while adjusted earnings of $3.34 per share more than tripled.
Average car prices are rising at rates that far outstrip inflation. J.D. Power says the average price of a new car was $37,200 in the first quarter, 8% higher than a year ago, while used-car prices are soaring 26% year over year.
No doubt that's what Advance Auto Parts CEO Tom Greco was referring to when he said "both [do-it-yourself] and professional customers turned to Advance for their automotive needs amid a strong industry backdrop."
Consumers were also flush with cash from a third stimulus check, which might make similar growth rates for automotive industry stocks much more difficult in the future. Yet as pressure from chip shortages, production shutdowns, and higher new- and used-car prices weigh on consumers, keeping the jalopy going one more year should help Advance Auto Parts' top and bottom lines.
10 stocks we like better than Advance Auto Parts
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See the 10 stocks
*Stock Advisor returns as of May 11, 2021
Rich Duprey owns shares of Genuine Parts Company. The Motley Fool owns shares of and recommends NIO Inc. 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 is trickling down to auto parts retailers like Advance Auto Parts (NYSE: AAP), which just reported record first-quarter results. Computer chips that run today's autos are in short supply, causing production disruptions at Ford, General Motors, and NIO. Consumers were also flush with cash from a third stimulus check, which might make similar growth rates for automotive industry stocks much more difficult in the future.
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That is trickling down to auto parts retailers like Advance Auto Parts (NYSE: AAP), which just reported record first-quarter results. Advance Auto Parts and other retailers including AutoZone and Genuine Parts, which owns the NAPA Auto Parts chain, are seeing sales and profits soar as a result. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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That is trickling down to auto parts retailers like Advance Auto Parts (NYSE: AAP), which just reported record first-quarter results. Advance Auto Parts and other retailers including AutoZone and Genuine Parts, which owns the NAPA Auto Parts chain, are seeing sales and profits soar as a result. 10 stocks we like better than Advance Auto Parts When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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That is trickling down to auto parts retailers like Advance Auto Parts (NYSE: AAP), which just reported record first-quarter results. Advance Auto Parts and other retailers including AutoZone and Genuine Parts, which owns the NAPA Auto Parts chain, are seeing sales and profits soar as a result. 10 stocks we like better than Advance Auto Parts When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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11059.0
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2021-06-02 00:00:00 UTC
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Advance Auto Parts Q1 adjusted earnings of $3.34 per share
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-q1-adjusted-earnings-of-%243.34-per-share-2021-06-02
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nan
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nan
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(RTTNews) - Advance Auto Parts (AAP) reported a profit for its first quarter that advanced from last year.
The company's earnings totaled $185.93 million, or $2.81 per share. This compares with $43.59 million, or $0.63 per share, in last year's first quarter.
Excluding items, Advance Auto Parts reported adjusted earnings of $220.90 million or $3.34 per share for the period.
The company's revenue for the quarter rose 23.3% to $3.33 billion from $2.70 billion last year.
Advance Auto Parts earnings at a glance:
-Earnings (Q1): $220.90 Mln. vs. $69.64 Mln. last year. -EPS (Q1): $3.34 vs. $1.00 last year. -Revenue (Q1): $3.33 Bln vs. $2.70 Bln last year.
-Guidance: Full year revenue guidance: $10,400- $10,600 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) reported a profit for its first quarter that advanced from last year. Excluding items, Advance Auto Parts reported adjusted earnings of $220.90 million or $3.34 per share for the period. Advance Auto Parts earnings at a glance: -Earnings (Q1): $220.90 Mln.
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(RTTNews) - Advance Auto Parts (AAP) reported a profit for its first quarter that advanced from last year. Excluding items, Advance Auto Parts reported adjusted earnings of $220.90 million or $3.34 per share for the period. Advance Auto Parts earnings at a glance: -Earnings (Q1): $220.90 Mln.
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(RTTNews) - Advance Auto Parts (AAP) reported a profit for its first quarter that advanced from last year. Excluding items, Advance Auto Parts reported adjusted earnings of $220.90 million or $3.34 per share for the period. -Guidance: Full year revenue guidance: $10,400- $10,600 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) reported a profit for its first quarter that advanced from last year. The company's earnings totaled $185.93 million, or $2.81 per share. This compares with $43.59 million, or $0.63 per share, in last year's first quarter.
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11060.0
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2021-05-28 00:00:00 UTC
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Notable Friday Option Activity: FDX, AAP, AZO
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AAP
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-fdx-aap-azo-2021-05-28
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in FedEx Corp (Symbol: FDX), where a total volume of 20,425 contracts has been traded thus far today, a contract volume which is representative of approximately 2.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 106.9% of FDX's average daily trading volume over the past month, of 1.9 million shares. Particularly high volume was seen for the $340 strike call option expiring June 18, 2021, with 3,567 contracts trading so far today, representing approximately 356,700 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $340 strike highlighted in orange:
Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,094 contracts, representing approximately 509,400 underlying shares or approximately 62.7% of AAP's average daily trading volume over the past month, of 811,875 shares. Especially high volume was seen for the $210 strike call option expiring June 18, 2021, with 1,524 contracts trading so far today, representing approximately 152,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange:
And AutoZone, Inc. (Symbol: AZO) options are showing a volume of 1,232 contracts thus far today. That number of contracts represents approximately 123,200 underlying shares, working out to a sizeable 59.5% of AZO's average daily trading volume over the past month, of 207,110 shares. Especially high volume was seen for the $1395 strike put option expiring May 28, 2021, with 45 contracts trading so far today, representing approximately 4,500 underlying shares of AZO. Below is a chart showing AZO's trailing twelve month trading history, with the $1395 strike highlighted in orange:
For the various different available expirations for FDX options, AAP options, or AZO options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $210 strike call option expiring June 18, 2021, with 1,524 contracts trading so far today, representing approximately 152,400 underlying shares of AAP. Below is a chart showing FDX's trailing twelve month trading history, with the $340 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,094 contracts, representing approximately 509,400 underlying shares or approximately 62.7% of AAP's average daily trading volume over the past month, of 811,875 shares. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange: And AutoZone, Inc. (Symbol: AZO) options are showing a volume of 1,232 contracts thus far today.
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Below is a chart showing FDX's trailing twelve month trading history, with the $340 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,094 contracts, representing approximately 509,400 underlying shares or approximately 62.7% of AAP's average daily trading volume over the past month, of 811,875 shares. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange: And AutoZone, Inc. (Symbol: AZO) options are showing a volume of 1,232 contracts thus far today. Especially high volume was seen for the $210 strike call option expiring June 18, 2021, with 1,524 contracts trading so far today, representing approximately 152,400 underlying shares of AAP.
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Below is a chart showing FDX's trailing twelve month trading history, with the $340 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,094 contracts, representing approximately 509,400 underlying shares or approximately 62.7% of AAP's average daily trading volume over the past month, of 811,875 shares. Especially high volume was seen for the $210 strike call option expiring June 18, 2021, with 1,524 contracts trading so far today, representing approximately 152,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange: And AutoZone, Inc. (Symbol: AZO) options are showing a volume of 1,232 contracts thus far today.
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Below is a chart showing FDX's trailing twelve month trading history, with the $340 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 5,094 contracts, representing approximately 509,400 underlying shares or approximately 62.7% of AAP's average daily trading volume over the past month, of 811,875 shares. Especially high volume was seen for the $210 strike call option expiring June 18, 2021, with 1,524 contracts trading so far today, representing approximately 152,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $210 strike highlighted in orange: And AutoZone, Inc. (Symbol: AZO) options are showing a volume of 1,232 contracts thus far today.
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11061.0
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2021-05-21 00:00:00 UTC
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Pre-Market Most Active for May 21, 2021 : AU, T, SQQQ, SPCE, AZN, F, TSLA, OTLY, TAK, YALA, QQQ, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-may-21-2021-%3A-au-t-sqqq-spce-azn-f-tsla-otly-tak-yala-qqq-aapl
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 47.19 to 13,541.28. The total Pre-Market volume is currently 8,914,800 shares traded.
The following are the most active stocks for the pre-market session:
AngloGold Ashanti Limited (AU) is +0.17 at $25.73, with 3,309,517 shares traded. AU's current last sale is 91.89% of the target price of $28.
AT&T Inc. (T) is +0.39 at $30.03, with 1,312,653 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $0.77. T's current last sale is 100.1% of the target price of $30.
ProShares UltraPro Short QQQ (SQQQ) is -0.13 at $11.49, with 943,327 shares traded. This represents a 10.06% increase from its 52 Week Low.
Virgin Galactic Holdings, Inc. (SPCE) is +0.809 at $20.62, with 896,034 shares traded. SPCE's current last sale is 68.73% of the target price of $30.
Astrazeneca PLC (AZN) is +0.23 at $57.67, with 708,297 shares traded. As reported in the last short interest update the days to cover for AZN is 11.4109; this calculation is based on the average trading volume of the stock.
Ford Motor Company (F) is +0.26 at $12.75, with 699,782 shares traded. As reported by Zacks, the current mean recommendation for F is in the "buy range".
Tesla, Inc. (TSLA) is +10.72 at $597.50, with 564,607 shares traded. TSLA's current last sale is 83.86% of the target price of $712.5.
Oatly Group AB (OTLY) is +1.49 at $21.69, with 529,321 shares traded.
Takeda Pharmaceutical Company Limited (TAK) is +0.17 at $17.49, with 514,301 shares traded. TAK's current last sale is 83.29% of the target price of $21.
Yalla Group Limited (YALA) is +1.84 at $17.80, with 473,028 shares traded. As reported by Zacks, the current mean recommendation for YALA is in the "strong buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +1.36 at $330.19, with 464,618 shares traded. This represents a 47.45% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.63 at $127.94, with 430,989 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021. The consensus EPS forecast is $0.97. 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 +0.63 at $127.94, with 430,989 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2021.
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Apple Inc. (AAPL) is +0.63 at $127.94, with 430,989 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 8,914,800 shares traded.
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Apple Inc. (AAPL) is +0.63 at $127.94, with 430,989 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 8,914,800 shares traded.
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Apple Inc. (AAPL) is +0.63 at $127.94, with 430,989 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AT&T Inc. (T) is +0.39 at $30.03, with 1,312,653 shares traded.
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11062.0
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2021-05-20 00:00:00 UTC
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AAP July 16th Options Begin Trading
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AAP
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https://www.nasdaq.com/articles/aap-july-16th-options-begin-trading-2021-05-20
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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 July 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new July 16th contracts and identified one put and one call contract of particular interest.
The put contract at the $195.00 strike price has a current bid of $7.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $195.00, but will also collect the premium, putting the cost basis of the shares at $188.00 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $196.55/share today.
Because the $195.00 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 100%. 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 3.59% return on the cash commitment, or 22.99% 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 $195.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $200.00 strike price has a current bid of $5.50. If an investor was to purchase shares of AAP stock at the current price level of $196.55/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $200.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 4.55% if the stock gets called away at the July 16th 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 $200.00 strike highlighted in red:
Considering the fact that the $200.00 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 2.80% boost of extra return to the investor, or 17.92% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $196.55) to be 28%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
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 $200.00 strike highlighted in red: Considering the fact that the $200.00 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 July 16th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $200.00 strike highlighted in red: Considering the fact that the $200.00 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 July 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new July 16th 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 $200.00 strike highlighted in red: Considering the fact that the $200.00 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 July 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new July 16th 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 $200.00 strike highlighted in red: Considering the fact that the $200.00 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 July 16th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new July 16th contracts and identified one put and one call contract of particular interest.
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11063.0
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2021-05-19 00:00:00 UTC
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Notable Wednesday Option Activity: REGN, URI, AAP
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AAP
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-regn-uri-aap-2021-05-19
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Regeneron Pharmaceuticals, Inc. (Symbol: REGN), where a total volume of 4,237 contracts has been traded thus far today, a contract volume which is representative of approximately 423,700 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 52.2% of REGN's average daily trading volume over the past month, of 812,420 shares. Especially high volume was seen for the $600 strike call option expiring January 20, 2023, with 477 contracts trading so far today, representing approximately 47,700 underlying shares of REGN. Below is a chart showing REGN's trailing twelve month trading history, with the $600 strike highlighted in orange:
United Rentals Inc (Symbol: URI) options are showing a volume of 3,153 contracts thus far today. That number of contracts represents approximately 315,300 underlying shares, working out to a sizeable 51% of URI's average daily trading volume over the past month, of 617,950 shares. Particularly high volume was seen for the $250 strike call option expiring January 21, 2022, with 150 contracts trading so far today, representing approximately 15,000 underlying shares of URI. Below is a chart showing URI's trailing twelve month trading history, with the $250 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,262 contracts, representing approximately 326,200 underlying shares or approximately 47.7% of AAP's average daily trading volume over the past month, of 684,185 shares. Especially high volume was seen for the $195 strike call option expiring May 21, 2021, with 1,551 contracts trading so far today, representing approximately 155,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $195 strike highlighted in orange:
For the various different available expirations for REGN options, URI options, or AAP options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $195 strike call option expiring May 21, 2021, with 1,551 contracts trading so far today, representing approximately 155,100 underlying shares of AAP. Below is a chart showing URI's trailing twelve month trading history, with the $250 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,262 contracts, representing approximately 326,200 underlying shares or approximately 47.7% of AAP's average daily trading volume over the past month, of 684,185 shares. Below is a chart showing AAP's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for REGN options, URI options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing URI's trailing twelve month trading history, with the $250 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,262 contracts, representing approximately 326,200 underlying shares or approximately 47.7% of AAP's average daily trading volume over the past month, of 684,185 shares. Especially high volume was seen for the $195 strike call option expiring May 21, 2021, with 1,551 contracts trading so far today, representing approximately 155,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for REGN options, URI options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing URI's trailing twelve month trading history, with the $250 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,262 contracts, representing approximately 326,200 underlying shares or approximately 47.7% of AAP's average daily trading volume over the past month, of 684,185 shares. Especially high volume was seen for the $195 strike call option expiring May 21, 2021, with 1,551 contracts trading so far today, representing approximately 155,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for REGN options, URI options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing URI's trailing twelve month trading history, with the $250 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,262 contracts, representing approximately 326,200 underlying shares or approximately 47.7% of AAP's average daily trading volume over the past month, of 684,185 shares. Especially high volume was seen for the $195 strike call option expiring May 21, 2021, with 1,551 contracts trading so far today, representing approximately 155,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $195 strike highlighted in orange: For the various different available expirations for REGN options, URI options, or AAP options, visit StockOptionsChannel.com.
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11064.0
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2021-05-19 00:00:00 UTC
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November 19th Options Now Available For Advance Auto Parts (AAP)
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AAP
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https://www.nasdaq.com/articles/november-19th-options-now-available-for-advance-auto-parts-aap-2021-05-19
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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 19th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 184 days until expiration the newly trading contracts represent a potential 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 November 19th contracts and identified one put and one call contract of particular interest.
The put contract at the $190.00 strike price has a current bid of $15.20. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $190.00, but will also collect the premium, putting the cost basis of the shares at $174.80 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $195.07/share today.
Because the $190.00 strike represents an approximate 3% 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 58%. 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 8.00% return on the cash commitment, or 15.87% 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 $190.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $200.00 strike price has a current bid of $14.40. If an investor was to purchase shares of AAP stock at the current price level of $195.07/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $200.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.91% if the stock gets called away at the November 19th 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 $200.00 strike highlighted in red:
Considering the fact that the $200.00 strike represents an approximate 3% 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 53%. 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 7.38% boost of extra return to the investor, or 14.64% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 40%, while the implied volatility in the call contract example is 36%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $195.07) to be 28%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
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 $200.00 strike highlighted in red: Considering the fact that the $200.00 strike represents an approximate 3% 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 19th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $200.00 strike highlighted in red: Considering the fact that the $200.00 strike represents an approximate 3% 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 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 19th 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 $200.00 strike highlighted in red: Considering the fact that the $200.00 strike represents an approximate 3% 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 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 19th 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 19th 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 $200.00 strike highlighted in red: Considering the fact that the $200.00 strike represents an approximate 3% 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 19th expiration.
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11065.0
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2021-04-28 00:00:00 UTC
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Should Advance Auto Parts (NYSE:AAP) Be Disappointed With Their 71% Profit?
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AAP
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https://www.nasdaq.com/articles/should-advance-auto-parts-nyse%3Aaap-be-disappointed-with-their-71-profit-2021-04-28
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nan
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nan
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By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, Advance Auto Parts, Inc. (NYSE:AAP) shareholders have seen the share price rise 71% over three years, well in excess of the market return (58%, not including dividends).
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Advance Auto Parts was able to grow its EPS at 3.7% per year over three years, sending the share price higher. In comparison, the 20% per year gain in the share price outpaces the EPS growth. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. It's not unusual to see the market 're-rate' a stock, after a few years of growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
NYSE:AAP Earnings Per Share Growth April 28th 2021
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of Advance Auto Parts' earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Advance Auto Parts' TSR for the last 3 years was 73%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We're pleased to report that Advance Auto Parts shareholders have received a total shareholder return of 64% over one year. And that does include the dividend. That's better than the annualised return of 5% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Advance Auto Parts that you should be aware of before investing here.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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For example, Advance Auto Parts, Inc. (NYSE:AAP) shareholders have seen the share price rise 71% over three years, well in excess of the market return (58%, not including dividends). NYSE:AAP Earnings Per Share Growth April 28th 2021 We like that insiders have been buying shares in the last twelve months. As it happens, Advance Auto Parts' TSR for the last 3 years was 73%, which exceeds the share price return mentioned earlier.
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For example, Advance Auto Parts, Inc. (NYSE:AAP) shareholders have seen the share price rise 71% over three years, well in excess of the market return (58%, not including dividends). NYSE:AAP Earnings Per Share Growth April 28th 2021 We like that insiders have been buying shares in the last twelve months. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off.
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For example, Advance Auto Parts, Inc. (NYSE:AAP) shareholders have seen the share price rise 71% over three years, well in excess of the market return (58%, not including dividends). NYSE:AAP Earnings Per Share Growth April 28th 2021 We like that insiders have been buying shares in the last twelve months. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
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For example, Advance Auto Parts, Inc. (NYSE:AAP) shareholders have seen the share price rise 71% over three years, well in excess of the market return (58%, not including dividends). NYSE:AAP Earnings Per Share Growth April 28th 2021 We like that insiders have been buying shares in the last twelve months. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
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11066.0
|
2021-04-21 00:00:00 UTC
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FOCUS-How a sweetheart deal gives GameStop CEO a $179 mln goodbye gift
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AAP
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https://www.nasdaq.com/articles/focus-how-a-sweetheart-deal-gives-gamestop-ceo-a-%24179-mln-goodbye-gift-2021-04-21
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nan
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nan
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By Jessica DiNapoli
April 21 (Reuters) - Gamestop Corp GME.N chief executive George Sherman can step down this summer with a $179 million windfall that dwarfs CEO salaries at many larger corporations thanks to a sweetheart deal that was turbocharged by this year's furious meme stock rally, compensation experts said.
GameStop said on Monday that Sherman would step down by July 31. The struggling U.S. videogame retailer has been seeking a new leader to work on its e-commerce transition with chairman Ryan Cohen, the billionaire co-founder and former chief executive of online pet supplies retailer Chewy Inc CHWY.N. .
GameStop decoupled some of Sherman's pay from his performance last year in the early months of the COVID-19 pandemic and granted him stock when its shares were worth a tiny fraction of their current value, according to a Reuters review of security filings and interviews with compensation consultants.
As a condition of his exit, GameStop is speeding up the time frame for Sherman to receive the shares, generating the award.
Sherman, who has been CEO since April 2019, forfeited $98 million worth of stock this month because he did not meet performance targets, GameStop disclosed last week.
Still, he stands to receive a stock payout currently worth $179 million because GameStop granted him more shares linked to his tenure at the company rather than to his performance as most companies do with their CEO, said Eric Hoffmann, a vice president at compensation consultant Farient Advisors LLC.
"Investors like awards that are performance-based, that have hard pre-established financial goals that the executives have to meet to earn, as opposed to time-based shares, where they just have to hang on to get them," Hoffmann said.
A spokesman at Grapevine, Texas-based GameStop declined to comment. Sherman did not respond to requests for comment. Cohen, GameStop's largest shareholder with a 13% stake, could not be reached for comment.
The value of Sherman's severance payout surpasses annual salaries given to many top U.S. CEOs. ViacomCBS Inc VIAC.O CEO Joseph Ianniello took home $112.9 million in realized pay in 2019, while JPMorgan Chase & Co's JPM.N Jamie Dimon's 2019 realized pay hit $107.8 million, according to the most recent tally by corporate governance data provider CGLytics.
Other GameStop employees will not share in Sherman's windfall. The retailer has been shuttering hundreds of stores, according to securities disclosures.
GameStop's shares closed at $158.53 on Tuesday, a stratospheric rise from around $5 last summer, when the company granted the bulk of the stock award to Sherman. They skyrocketed in January as individual traders on Reddit and other social media platforms snapped them up, squeezing short sellers.
Reuters reported last year how some companies were shielding executives from the financial fallout of the pandemic by moving from performance-based to time-based payouts. They reasoned that the market disruption made it difficult to meet financial targets, and Sherman will benefit from that trend.
Sherman, 59, has been credited internally with slashing costs and steering GameStop through the pandemic that put other retailers out of business, Reuters reported last week.
But his 25 years of experience have been largely with brick-and-mortar retailers, such as Advance Auto Parts Inc AAP.N and Home Depot Inc HD.N. Cohen wants a top executive with skills better suited for GameStop's digital transformation, Reuters reported.
VESTING OF SHARES
GameStop granted Sherman roughly 925,000 shares last June that he was set to receive in thirds over three years, according to regulatory filings.
He is set to receive them all at once upon his exit under terms of a "transition agreement" negotiated this month, as well as roughly 200,000 more shares that had not previously vested, the filings show. The filings do not disclose how GameStop's board decided on these awards.
Sherman also stood to eventually receive 308,477 shares awarded last June that were tied to his performance, separate from the stock he forfeited last week. He agreed to forgo those performance-based shares as well, one of the filings shows. It was not clear whether he would have met the performance targets.
GameStop has said Sherman plans to remain on the board of directors without pay to help the next CEO transition into the role.
(Reporting by Jessica DiNapoli in New York Editing by Greg Roumeliotis and David Gregorio)
((Jessica.DiNapoli@thomsonreuters.com; 646-223-4678;))
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 his 25 years of experience have been largely with brick-and-mortar retailers, such as Advance Auto Parts Inc AAP.N and Home Depot Inc HD.N. By Jessica DiNapoli April 21 (Reuters) - Gamestop Corp GME.N chief executive George Sherman can step down this summer with a $179 million windfall that dwarfs CEO salaries at many larger corporations thanks to a sweetheart deal that was turbocharged by this year's furious meme stock rally, compensation experts said. GameStop decoupled some of Sherman's pay from his performance last year in the early months of the COVID-19 pandemic and granted him stock when its shares were worth a tiny fraction of their current value, according to a Reuters review of security filings and interviews with compensation consultants.
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But his 25 years of experience have been largely with brick-and-mortar retailers, such as Advance Auto Parts Inc AAP.N and Home Depot Inc HD.N. By Jessica DiNapoli April 21 (Reuters) - Gamestop Corp GME.N chief executive George Sherman can step down this summer with a $179 million windfall that dwarfs CEO salaries at many larger corporations thanks to a sweetheart deal that was turbocharged by this year's furious meme stock rally, compensation experts said. Sherman, who has been CEO since April 2019, forfeited $98 million worth of stock this month because he did not meet performance targets, GameStop disclosed last week.
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But his 25 years of experience have been largely with brick-and-mortar retailers, such as Advance Auto Parts Inc AAP.N and Home Depot Inc HD.N. By Jessica DiNapoli April 21 (Reuters) - Gamestop Corp GME.N chief executive George Sherman can step down this summer with a $179 million windfall that dwarfs CEO salaries at many larger corporations thanks to a sweetheart deal that was turbocharged by this year's furious meme stock rally, compensation experts said. GameStop decoupled some of Sherman's pay from his performance last year in the early months of the COVID-19 pandemic and granted him stock when its shares were worth a tiny fraction of their current value, according to a Reuters review of security filings and interviews with compensation consultants.
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But his 25 years of experience have been largely with brick-and-mortar retailers, such as Advance Auto Parts Inc AAP.N and Home Depot Inc HD.N. By Jessica DiNapoli April 21 (Reuters) - Gamestop Corp GME.N chief executive George Sherman can step down this summer with a $179 million windfall that dwarfs CEO salaries at many larger corporations thanks to a sweetheart deal that was turbocharged by this year's furious meme stock rally, compensation experts said. Sherman, who has been CEO since April 2019, forfeited $98 million worth of stock this month because he did not meet performance targets, GameStop disclosed last week.
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11067.0
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2021-04-20 00:00:00 UTC
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Consumer Sector Update for 04/20/2021: AAP,UAL,YVR,FSR,CWRK.V
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-04-20-2021%3A-aapualyvrfsrcwrk.v-2021-04-20
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nan
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nan
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Consumer stocks still were broadly mixed late in Tuesday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% while the SPDR Consumer Discretionary Select Sector ETF was dropping 1.3%.
In company news, Advance Auto Parts (AAP) was 0.9% higher, easing from an earlier 3.1% rise to a best-ever $198.52 a share that followed the retailer announcing a three-fold increase in its quarterly dividend to $1.00 per share and authorizing a $1 billion increase to its current stock buyback program.
Liquid Media Group (YVR) climbed 4.3% after the electronic games company said it was partnering with blockchain and cryptocurrency technologies firm CurrencyWorks (CWRK.V) to develop the NFTainment.io nonfungible tokens platform. Pre-releases will be available beginning next month.
Fisker (FSR) rose 4.1% after BofA Securities began coverage of the electric vehicle manufacturer with a buy rating and a $31 price target.
Among decliners, United Airlines (UAL) fell 8.7% after reporting Q1 non-GAAP net loss widened to $7.50 per share and revenue fell 59.6% year over year to $3.22 billion.
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 company news, Advance Auto Parts (AAP) was 0.9% higher, easing from an earlier 3.1% rise to a best-ever $198.52 a share that followed the retailer announcing a three-fold increase in its quarterly dividend to $1.00 per share and authorizing a $1 billion increase to its current stock buyback program. Among decliners, United Airlines (UAL) fell 8.7% after reporting Q1 non-GAAP net loss widened to $7.50 per share and revenue fell 59.6% year over year to $3.22 billion. Liquid Media Group (YVR) climbed 4.3% after the electronic games company said it was partnering with blockchain and cryptocurrency technologies firm CurrencyWorks (CWRK.V) to develop the NFTainment.io nonfungible tokens platform.
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In company news, Advance Auto Parts (AAP) was 0.9% higher, easing from an earlier 3.1% rise to a best-ever $198.52 a share that followed the retailer announcing a three-fold increase in its quarterly dividend to $1.00 per share and authorizing a $1 billion increase to its current stock buyback program. Among decliners, United Airlines (UAL) fell 8.7% after reporting Q1 non-GAAP net loss widened to $7.50 per share and revenue fell 59.6% year over year to $3.22 billion. Consumer stocks still were broadly mixed late in Tuesday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% while the SPDR Consumer Discretionary Select Sector ETF was dropping 1.3%.
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In company news, Advance Auto Parts (AAP) was 0.9% higher, easing from an earlier 3.1% rise to a best-ever $198.52 a share that followed the retailer announcing a three-fold increase in its quarterly dividend to $1.00 per share and authorizing a $1 billion increase to its current stock buyback program. Among decliners, United Airlines (UAL) fell 8.7% after reporting Q1 non-GAAP net loss widened to $7.50 per share and revenue fell 59.6% year over year to $3.22 billion. Consumer stocks still were broadly mixed late in Tuesday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% while the SPDR Consumer Discretionary Select Sector ETF was dropping 1.3%.
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In company news, Advance Auto Parts (AAP) was 0.9% higher, easing from an earlier 3.1% rise to a best-ever $198.52 a share that followed the retailer announcing a three-fold increase in its quarterly dividend to $1.00 per share and authorizing a $1 billion increase to its current stock buyback program. Among decliners, United Airlines (UAL) fell 8.7% after reporting Q1 non-GAAP net loss widened to $7.50 per share and revenue fell 59.6% year over year to $3.22 billion. Consumer stocks still were broadly mixed late in Tuesday trading, with the SPDR Consumer Staples Select Sector ETF climbing 0.6% while the SPDR Consumer Discretionary Select Sector ETF was dropping 1.3%.
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11068.0
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2021-04-20 00:00:00 UTC
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Daily Dividend Report: JNJ,CARR,WHR,LNT,AAP
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AAP
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https://www.nasdaq.com/articles/daily-dividend-report%3A-jnjcarrwhrlntaap-2021-04-20
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nan
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nan
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Johnson & Johnson today announced that its Board of Directors has declared a 5.0% increase in the quarterly dividend, from $1.01 per share to $1.06 per share. "Despite a year of unprecedented disruption, Johnson & Johnson remained committed to its established financial principles that strengthen our ability to drive long-term value for stakeholders. In recognition of our notable 2020 results, strong financial position and confidence in the future of Johnson & Johnson, the Board of Directors has voted to increase the quarterly dividend for the 59th consecutive year," said Alex Gorsky, Chairman and Chief Executive Officer of the company. At the new rate, the indicated dividend on an annual basis is $4.24 per share compared to the previous rate of $4.04 per share. The next quarterly dividend is payable on June 8, 2021 to shareholders of record as of the close of business on May 25, 2021. The ex-dividend date is May 24, 2021.
Carrier Global announced today that its Board of Directors declared a quarterly dividend of $0.12 per outstanding share of Carrier common stock. The dividend will be payable on May 24, 2021 to shareowners of record at the close of business on May 3, 2021.
Today the board of directors of Whirlpool has authorized an additional $2 billion share repurchase program. The new authorization is in addition to the $531 million unused portion of the previous program as of December 31, 2020. The Company's board of directors also approved a $0.15 increase in the quarterly dividend on the Company's common stock to $1.40 per share from $1.25 per share. The dividend is payable June 15, 2021, to stockholders of record at the close of business on May 21, 2021.
The Alliant Energy Board of Directors today declared a quarterly cash dividend of $0.4025 per share payable on May 17, 2021, to shareowners of record as of the close of business on April 30, 2021. Dividends on common stock have been paid for 302 consecutive quarters since 1946.
Advance Auto Parts, a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, announced that on April 19, 2021, its Board of Directors approved an additional share repurchase authorization of $1 billion, bringing the total available repurchase authorization to approximately $1.3 billion. In addition, the Board of Directors declared a quarterly cash dividend of $1.00 per share, an increase from $0.25. This dividend is payable July 2, 2021, to shareholders of record as of June 18, 2021.
VIDEO: Daily Dividend Report: JNJ,CARR,WHR,LNT,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: Daily Dividend Report: JNJ,CARR,WHR,LNT,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 recognition of our notable 2020 results, strong financial position and confidence in the future of Johnson & Johnson, the Board of Directors has voted to increase the quarterly dividend for the 59th consecutive year," said Alex Gorsky, Chairman and Chief Executive Officer of the company. The Alliant Energy Board of Directors today declared a quarterly cash dividend of $0.4025 per share payable on May 17, 2021, to shareowners of record as of the close of business on April 30, 2021.
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VIDEO: Daily Dividend Report: JNJ,CARR,WHR,LNT,AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Johnson & Johnson today announced that its Board of Directors has declared a 5.0% increase in the quarterly dividend, from $1.01 per share to $1.06 per share. Carrier Global announced today that its Board of Directors declared a quarterly dividend of $0.12 per outstanding share of Carrier common stock.
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VIDEO: Daily Dividend Report: JNJ,CARR,WHR,LNT,AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Johnson & Johnson today announced that its Board of Directors has declared a 5.0% increase in the quarterly dividend, from $1.01 per share to $1.06 per share. The Company's board of directors also approved a $0.15 increase in the quarterly dividend on the Company's common stock to $1.40 per share from $1.25 per share.
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VIDEO: Daily Dividend Report: JNJ,CARR,WHR,LNT,AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Johnson & Johnson today announced that its Board of Directors has declared a 5.0% increase in the quarterly dividend, from $1.01 per share to $1.06 per share. Today the board of directors of Whirlpool has authorized an additional $2 billion share repurchase program.
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11069.0
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2021-04-12 00:00:00 UTC
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AAP Crosses Above Average Analyst Target
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AAP
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https://www.nasdaq.com/articles/aap-crosses-above-average-analyst-target-2021-04-12
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nan
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nan
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $182.54, changing hands for $183.97/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 13 different analyst targets contributing to that average for Advance Auto Parts Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $158.00. And then on the other side of the spectrum one analyst has a target as high as $208.00. The standard deviation is $14.11.
But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $182.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $182.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Advance Auto Parts Inc:
RECENT AAP ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 8 8 7 7
Buy ratings: 2 2 3 3
Hold ratings: 4 4 4 4
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 2 2
Average rating: 1.9 1.9 2.16 2.16
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAP — FREE.
10 ETFs With Most Upside To Analyst Targets »
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 recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $182.54, changing hands for $183.97/share. And so with AAP crossing above that average target price of $182.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $182.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $182.54, changing hands for $183.97/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $182.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $182.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with AAP crossing above that average target price of $182.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $182.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $182.54, changing hands for $183.97/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $182.54, changing hands for $183.97/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $182.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $182.54 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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11070.0
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2021-04-06 00:00:00 UTC
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Calculating The Fair Value Of Advance Auto Parts, Inc. (NYSE:AAP)
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AAP
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https://www.nasdaq.com/articles/calculating-the-fair-value-of-advance-auto-parts-inc.-nyse%3Aaap-2021-04-06
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nan
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nan
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How far off is Advance Auto Parts, Inc. (NYSE:AAP) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow.
We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.
Is Advance Auto Parts fairly valued?
We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years.
Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value:
10-year free cash flow (FCF) estimate
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Levered FCF ($, Millions) US$638.0m US$765.5m US$675.5m US$835.0m US$881.0m US$916.8m US$948.5m US$977.3m US$1.00b US$1.03b
Growth Rate Estimate Source Analyst x8 Analyst x7 Analyst x2 Analyst x1 Analyst x1 Est @ 4.07% Est @ 3.46% Est @ 3.03% Est @ 2.74% Est @ 2.53%
Present Value ($, Millions) Discounted @ 9.3% US$584 US$641 US$518 US$586 US$565 US$538 US$510 US$481 US$452 US$424
("Est" = FCF growth rate estimated by Simply Wall St)
Present Value of 10-year Cash Flow (PVCF) = US$5.3b
After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.0%. We discount the terminal cash flows to today's value at a cost of equity of 9.3%.
Terminal Value (TV)= FCF2030 × (1 + g) ÷ (r – g) = US$1.0b× (1 + 2.0%) ÷ (9.3%– 2.0%) = US$15b
Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$15b÷ ( 1 + 9.3%)10= US$6.0b
The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$11b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of US$183, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.
NYSE:AAP Discounted Cash Flow April 6th 2021
Important assumptions
Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Advance Auto Parts as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.3%, which is based on a levered beta of 1.384. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business.
Next Steps:
Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Advance Auto Parts, there are three pertinent items you should look at:
Financial Health: Does AAP have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Future Earnings: How does AAP's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered!
PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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For Advance Auto Parts, there are three pertinent items you should look at: Financial Health: Does AAP have a healthy balance sheet? How far off is Advance Auto Parts, Inc. (NYSE:AAP) from its intrinsic value? NYSE:AAP Discounted Cash Flow April 6th 2021 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.
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NYSE:AAP Discounted Cash Flow April 6th 2021 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. How far off is Advance Auto Parts, Inc. (NYSE:AAP) from its intrinsic value? For Advance Auto Parts, there are three pertinent items you should look at: Financial Health: Does AAP have a healthy balance sheet?
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NYSE:AAP Discounted Cash Flow April 6th 2021 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. How far off is Advance Auto Parts, Inc. (NYSE:AAP) from its intrinsic value? For Advance Auto Parts, there are three pertinent items you should look at: Financial Health: Does AAP have a healthy balance sheet?
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How far off is Advance Auto Parts, Inc. (NYSE:AAP) from its intrinsic value? NYSE:AAP Discounted Cash Flow April 6th 2021 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. For Advance Auto Parts, there are three pertinent items you should look at: Financial Health: Does AAP have a healthy balance sheet?
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11071.0
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2021-03-30 00:00:00 UTC
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Pre-Market Most Active for Mar 30, 2021 : VIPS, SQQQ, TME, VIAC, GSX, CAN, CS, NIO, QQQ, IQ, SOS, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-mar-30-2021-%3A-vips-sqqq-tme-viac-gsx-can-cs-nio-qqq-iq-sos-aapl
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -80.54 to 12,885.2. The total Pre-Market volume is currently 23,239,736 shares traded.
The following are the most active stocks for the pre-market session:
Vipshop Holdings Limited (VIPS) is +1.78 at $30.25, with 2,768,859 shares traded. As reported by Zacks, the current mean recommendation for VIPS is in the "buy range".
ProShares UltraPro Short QQQ (SQQQ) is +0.29 at $13.84, with 1,161,981 shares traded. This represents a 17.69% increase from its 52 Week Low.
Tencent Music Entertainment Group (TME) is +0.46 at $20.80, with 984,495 shares traded. As reported by Zacks, the current mean recommendation for TME is in the "buy range".
ViacomCBS Inc. (VIAC) is +1.16 at $46.17, with 858,732 shares traded. VIAC's current last sale is 95.2% of the target price of $48.5.
GSX Techedu Inc. (GSX) is +1.61 at $33.39, with 776,100 shares traded. GSX's current last sale is 64.83% of the target price of $51.5.
Canaan Inc. (CAN) is +1.29 at $18.90, with 751,416 shares traded.
Credit Suisse Group (CS) is -0.35 at $11.04, with 715,629 shares traded. CS's current last sale is 83.64% of the target price of $13.2.
NIO Inc. (NIO) is -0.43 at $35.08, with 651,835 shares traded. NIO's current last sale is 58.47% of the target price of $60.
Invesco QQQ Trust, Series 1 (QQQ) is -2.25 at $313.66, with 649,805 shares traded. This represents a 73.43% increase from its 52 Week Low.
iQIYI, Inc. (IQ) is +0.26 at $16.81, with 644,462 shares traded. IQ's current last sale is 75.38% of the target price of $22.3.
SOS Limited (SOS) is +0.1 at $5.70, with 643,961 shares traded.
Apple Inc. (AAPL) is -1.04 at $120.35, with 620,663 shares traded. 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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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -1.04 at $120.35, with 620,663 shares traded. ProShares UltraPro Short QQQ (SQQQ) is +0.29 at $13.84, with 1,161,981 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -1.04 at $120.35, with 620,663 shares traded. As reported by Zacks, the current mean recommendation for VIPS is in the "buy range".
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Apple Inc. (AAPL) is -1.04 at $120.35, with 620,663 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 23,239,736 shares traded.
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Apple Inc. (AAPL) is -1.04 at $120.35, with 620,663 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is down -80.54 to 12,885.2.
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11072.0
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2021-03-23 00:00:00 UTC
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Pre-Market Most Active for Mar 23, 2021 : AMC, RLX, SQQQ, LI, FREQ, QQQ, CCL, SOS, WFC, AAL, NIO, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-mar-23-2021-%3A-amc-rlx-sqqq-li-freq-qqq-ccl-sos-wfc-aal-nio-aapl
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is up 10.91 to 13,097.42. The total Pre-Market volume is currently 18,865,573 shares traded.
The following are the most active stocks for the pre-market session:
AMC Entertainment Holdings, Inc. (AMC) is -0.65 at $11.84, with 1,651,131 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021. The consensus EPS forecast is $-0.55. AMC's current last sale is 296% of the target price of $4.
RLX Technology Inc. (RLX) is +0.18 at $10.33, with 1,520,898 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro Short QQQ (SQQQ) is -0.04 at $13.21, with 1,470,635 shares traded. This represents a 12.33% increase from its 52 Week Low.
Li Auto Inc. (LI) is -0.94 at $25.88, with 1,457,045 shares traded. As reported by Zacks, the current mean recommendation for LI is in the "buy range".
Frequency Therapeutics, Inc. (FREQ) is -26.35 at $9.94, with 1,250,709 shares traded.FREQ is scheduled to provide an earnings report on 3/25/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is -0.3 per share, which represents a -19 percent increase over the EPS one Year Ago
Invesco QQQ Trust, Series 1 (QQQ) is +0.36 at $318.97, with 831,351 shares traded. This represents a 93.4% increase from its 52 Week Low.
Carnival Corporation (CCL) is -0.58 at $26.90, with 809,476 shares traded. CCL's current last sale is 89.67% of the target price of $30.
SOS Limited (SOS) is -0.08 at $6.82, with 781,570 shares traded.
Wells Fargo & Company (WFC) is -0.38 at $38.59, with 675,744 shares traded. WFC's current last sale is 105.73% of the target price of $36.5.
American Airlines Group, Inc. (AAL) is -0.51 at $23.32, with 623,839 shares traded. AAL's current last sale is 179.38% of the target price of $13.
NIO Inc. (NIO) is -0.52 at $42.42, with 584,631 shares traded. NIO's current last sale is 70.7% of the target price of $60.
Apple Inc. (AAPL) is -0.42 at $122.97, with 573,624 shares traded. 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 -0.42 at $122.97, with 573,624 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021.
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Apple Inc. (AAPL) is -0.42 at $122.97, with 573,624 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2021.
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Apple Inc. (AAPL) is -0.42 at $122.97, with 573,624 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 18,865,573 shares traded.
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Apple Inc. (AAPL) is -0.42 at $122.97, with 573,624 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 10.91 to 13,097.42.
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11073.0
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2021-03-17 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Ex-Dividend Date Scheduled for March 18, 2021
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-ex-dividend-date-scheduled-for-march-18-2021-2021-03-17
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nan
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nan
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Advance Auto Parts Inc (AAP) will begin trading ex-dividend on March 18, 2021. A cash dividend payment of $0.25 per share is scheduled to be paid on April 02, 2021. Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 5th quarter that AAP has paid the same dividend.
The previous trading day's last sale of AAP was $179.11, representing a -2.06% decrease from the 52 week high of $182.88 and a 151.11% increase over the 52 week low of $71.33.
AAP is a part of the Consumer Services sector, which includes companies such as JD.com, Inc. (JD) and O'Reilly Automotive, Inc. (ORLY). AAP's current earnings per share, an indicator of a company's profitability, is $7.15. Zacks Investment Research reports AAP's forecasted earnings growth in 2021 as 15.73%, compared to an industry average of .9%.
For more information on the declaration, record and payment dates, visit the AAP Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAP through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAP as a top-10 holding:
Direxion Daily Retail Bull 3X Shares ETF (RETL)
Direxion Daily Consumer Discretionary Bull 3X Shares (WANT).
The top-performing ETF of this group is RETL with an increase of 293.6% over the last 100 days.
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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AAP is a part of the Consumer Services sector, which includes companies such as JD.com, Inc. (JD) and O'Reilly Automotive, Inc. (ORLY). Zacks Investment Research reports AAP's forecasted earnings growth in 2021 as 15.73%, compared to an industry average of .9%. For more information on the declaration, record and payment dates, visit the AAP Dividend History page.
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have AAP as a top-10 holding: Direxion Daily Retail Bull 3X Shares ETF (RETL) Direxion Daily Consumer Discretionary Bull 3X Shares (WANT). Advance Auto Parts Inc (AAP) will begin trading ex-dividend on March 18, 2021.
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAP Dividend History page. The following ETF(s) have AAP as a top-10 holding: Direxion Daily Retail Bull 3X Shares ETF (RETL) Direxion Daily Consumer Discretionary Bull 3X Shares (WANT).
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Shareholders who purchased AAP prior to the ex-dividend date are eligible for the cash dividend payment. Advance Auto Parts Inc (AAP) will begin trading ex-dividend on March 18, 2021. This marks the 5th quarter that AAP has paid the same dividend.
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11074.0
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2021-03-16 00:00:00 UTC
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Monro Appoints Michael Broderick As CEO
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AAP
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https://www.nasdaq.com/articles/monro-appoints-michael-broderick-as-ceo-2021-03-16
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nan
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nan
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Monro Inc., an automotive undercar repair and tire services provider, has appointed Michael Broderick as president and chief executive officer (CEO) of the company.
Monro (MNRO) announced that Broderick will join the board and will take up the new role, effective from April 5. Robert Mellor has been serving as the company’s interim CEO since Aug. 2020, when Brett Ponton resigned from the CEO position to pursue other opportunities. Mellor will then continue as Monro’s chairman of the board.
The company said that Broderick has over 25 years of experience in the aftermarket parts and tire service industry, and has recently served as the executive vice president of merchandising and store operations support at Advance Auto Parts (AAP).
Following the new CEO appointment, Oppenheimer analyst Brian Nagel maintained a Hold rating on the stock. In a note to investors, the analyst said, “We are encouraged by the ability of MNRO and the company’s board of directors to recruit a seasoned executive with more than two decades of experience in auto parts and other areas of retail to lead the organization.”
On Jan. 27, Monro reported lower-than-expected 3Q results, wherein earnings of $0.22 per share fell short of analysts’ estimates of $0.38 per share. Revenues of $284.6 million also missed the consensus estimate of $299.4 million. (See Monro stock analysis on TipRanks)
Overall, consensus among analysts is a Hold based on 2 unanimous Holds. The average analyst price target of $62 implies downside potential of about 11.3% to current levels. Shares have gained 41.7% over the past year.
Related News:
PAR Technology’s Strong Bookings Drives 4Q Revenue Beat
Accel Entertainment’s 4Q Revenues Plunge 39%, Miss Estimates
Resonant 4Q Bottom Line Disappoints; Street Remains Bullish
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 said that Broderick has over 25 years of experience in the aftermarket parts and tire service industry, and has recently served as the executive vice president of merchandising and store operations support at Advance Auto Parts (AAP). Monro Inc., an automotive undercar repair and tire services provider, has appointed Michael Broderick as president and chief executive officer (CEO) of the company. In a note to investors, the analyst said, “We are encouraged by the ability of MNRO and the company’s board of directors to recruit a seasoned executive with more than two decades of experience in auto parts and other areas of retail to lead the organization.” On Jan. 27, Monro reported lower-than-expected 3Q results, wherein earnings of $0.22 per share fell short of analysts’ estimates of $0.38 per share.
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The company said that Broderick has over 25 years of experience in the aftermarket parts and tire service industry, and has recently served as the executive vice president of merchandising and store operations support at Advance Auto Parts (AAP). Monro Inc., an automotive undercar repair and tire services provider, has appointed Michael Broderick as president and chief executive officer (CEO) of the company. Revenues of $284.6 million also missed the consensus estimate of $299.4 million.
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The company said that Broderick has over 25 years of experience in the aftermarket parts and tire service industry, and has recently served as the executive vice president of merchandising and store operations support at Advance Auto Parts (AAP). Monro Inc., an automotive undercar repair and tire services provider, has appointed Michael Broderick as president and chief executive officer (CEO) of the company. In a note to investors, the analyst said, “We are encouraged by the ability of MNRO and the company’s board of directors to recruit a seasoned executive with more than two decades of experience in auto parts and other areas of retail to lead the organization.” On Jan. 27, Monro reported lower-than-expected 3Q results, wherein earnings of $0.22 per share fell short of analysts’ estimates of $0.38 per share.
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The company said that Broderick has over 25 years of experience in the aftermarket parts and tire service industry, and has recently served as the executive vice president of merchandising and store operations support at Advance Auto Parts (AAP). Mellor will then continue as Monro’s chairman of the board. Following the new CEO appointment, Oppenheimer analyst Brian Nagel maintained a Hold rating on the stock.
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11075.0
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2021-03-09 00:00:00 UTC
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AAP Crosses Above Average Analyst Target
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AAP
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https://www.nasdaq.com/articles/aap-crosses-above-average-analyst-target-2021-03-09
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nan
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nan
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $174.33, changing hands for $176.50/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 12 different analyst targets contributing to that average for Advance Auto Parts Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $125.00. And then on the other side of the spectrum one analyst has a target as high as $199.00. The standard deviation is $19.151.
But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $174.33/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $174.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover Advance Auto Parts Inc:
RECENT AAP ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 7 7 7 7
Buy ratings: 2 3 3 3
Hold ratings: 4 4 4 4
Sell ratings: 0 0 0 0
Strong sell ratings: 1 2 2 2
Average rating: 1.96 2.16 2.16 2.16
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAP — FREE.
10 ETFs With Most Upside To Analyst Targets »
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 recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $174.33, changing hands for $176.50/share. And so with AAP crossing above that average target price of $174.33/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $174.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $174.33, changing hands for $176.50/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $174.33/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $174.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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And so with AAP crossing above that average target price of $174.33/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $174.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $174.33, changing hands for $176.50/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $174.33, changing hands for $176.50/share. But the whole reason to look at the average AAP price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAP crossing above that average target price of $174.33/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $174.33 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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11076.0
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2021-03-03 00:00:00 UTC
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Pre-Market Most Active for Mar 3, 2021 : OVID, SOS, RKT, UWMC, HZON, NIO, SQQQ, PLTR, CAN, EBON, QQQ, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-mar-3-2021-%3A-ovid-sos-rkt-uwmc-hzon-nio-sqqq-pltr-can-ebon-qqq
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nan
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nan
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The NASDAQ 100 Pre-Market Indicator is down -40.92 to 13,019.03. The total Pre-Market volume is currently 48,307,476 shares traded.
The following are the most active stocks for the pre-market session:
Ovid Therapeutics Inc. (OVID) is +2.4 at $5.36, with 18,588,516 shares traded.OVID is scheduled to provide an earnings report on 3/10/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is -0.31 per share, which represents a -35 percent increase over the EPS one Year Ago
SOS Limited (SOS) is +0.86 at $7.66, with 6,172,366 shares traded.
Rocket Companies, Inc. (RKT) is -3.29 at $38.31, with 5,682,257 shares traded., following a 52-week high recorded in prior regular session.
UWM Holdings Corporation (UWMC) is +2.28 at $11.41, with 5,141,289 shares traded. As reported by Zacks, the current mean recommendation for UWMC is in the "strong buy range".
Horizon Acquisition Corporation II (HZON) is +2.01 at $12.13, with 3,356,146 shares traded.
NIO Inc. (NIO) is +1.03 at $44.32, with 1,734,317 shares traded. NIO's current last sale is 69.09% of the target price of $64.15.
ProShares UltraPro Short QQQ (SQQQ) is -0.07 at $13.75, with 1,261,952 shares traded. This represents a 16.92% increase from its 52 Week Low.
Palantir Technologies Inc. (PLTR) is +0.49 at $24.97, with 1,221,790 shares traded. PLTR's current last sale is 166.47% of the target price of $15.
Canaan Inc. (CAN) is +4.1 at $25.44, with 1,195,987 shares traded.
Ebang International Holdings Inc. (EBON) is +0.66 at $7.89, with 1,045,623 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is +0.59 at $318.99, with 936,224 shares traded. This represents a 93.41% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.29 at $125.41, with 790,141 shares traded. 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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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.29 at $125.41, with 790,141 shares traded. Rocket Companies, Inc. (RKT) is -3.29 at $38.31, with 5,682,257 shares traded., following a 52-week high recorded in prior regular session.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.29 at $125.41, with 790,141 shares traded. UWM Holdings Corporation (UWMC) is +2.28 at $11.41, with 5,141,289 shares traded.
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Apple Inc. (AAPL) is +0.29 at $125.41, with 790,141 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 48,307,476 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is +0.29 at $125.41, with 790,141 shares traded. The NASDAQ 100 Pre-Market Indicator is down -40.92 to 13,019.03.
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11077.0
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2021-02-25 00:00:00 UTC
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Pre-Market Most Active for Feb 25, 2021 : AMC, GME, NOK, CCIV, EXPR, PLTR, ASRV, SQQQ, LI, QQQ, AAL, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-feb-25-2021-%3A-amc-gme-nok-cciv-expr-pltr-asrv-sqqq-li-qqq-aal
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The NASDAQ 100 Pre-Market Indicator is down -87.4 to 13,214.79. The total Pre-Market volume is currently 31,817,491 shares traded.
The following are the most active stocks for the pre-market session:
AMC Entertainment Holdings, Inc. (AMC) is +1.3 at $10.39, with 26,065,570 shares traded. Business Wire Reports: AMC Completes At the Market Equity Program
Gamestop Corporation (GME) is +60.44 at $152.15, with 9,091,739 shares traded. GME's current last sale is 1,086.79% of the target price of $14.
Nokia Corporation (NOK) is +0.23 at $4.27, with 8,227,905 shares traded. NOK's current last sale is 88.04% of the target price of $4.85.
Churchill Capital Corp IV (CCIV) is +0.53 at $29.23, with 4,810,282 shares traded.
Express, Inc. (EXPR) is +0.33 at $3.58, with 4,253,862 shares traded. EXPR's current last sale is 238.67% of the target price of $1.5.
Palantir Technologies Inc. (PLTR) is -0.7 at $25.69, with 2,429,383 shares traded. PLTR's current last sale is 171.27% of the target price of $15.
AmeriServ Financial Inc. (ASRV) is +1.09 at $5.20, with 2,364,695 shares traded.
ProShares UltraPro Short QQQ (SQQQ) is +0.41 at $13.70, with 2,112,292 shares traded. This represents a 16.5% increase from its 52 Week Low.
Li Auto Inc. (LI) is +0.21 at $28.89, with 1,840,192 shares traded. GlobeNewswire Reports: Li Auto Inc. Announces Safety Evaluation Results
Invesco QQQ Trust, Series 1 (QQQ) is -3.24 at $320.89, with 1,258,060 shares traded. This represents a 94.56% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is +0.4 at $22.22, with 1,233,158 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $-0.49. AAL's current last sale is 170.92% of the target price of $13.
Apple Inc. (AAPL) is -0.98 at $124.37, with 1,006,070 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $0.99. 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 -0.98 at $124.37, with 1,006,070 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Business Wire Reports: AMC Completes At the Market Equity Program
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Apple Inc. (AAPL) is -0.98 at $124.37, with 1,006,070 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Li Auto Inc. (LI) is +0.21 at $28.89, with 1,840,192 shares traded.
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Apple Inc. (AAPL) is -0.98 at $124.37, with 1,006,070 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total Pre-Market volume is currently 31,817,491 shares traded.
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Apple Inc. (AAPL) is -0.98 at $124.37, with 1,006,070 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". PLTR's current last sale is 171.27% of the target price of $15.
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11078.0
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2021-02-24 00:00:00 UTC
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Pre-Market Most Active for Feb 24, 2021 : SYPR, RRD, SOS, SQQQ, AMC, PLTR, CCIV, FSR, EBON, FUTU, QQQ, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-feb-24-2021-%3A-sypr-rrd-sos-sqqq-amc-pltr-cciv-fsr-ebon-futu-qqq
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The NASDAQ 100 Pre-Market Indicator is up 28.55 to 13,223.26. The total Pre-Market volume is currently 37,269,920 shares traded.
The following are the most active stocks for the pre-market session:
Sypris Solutions, Inc. (SYPR) is +2.24 at $4.90, with 6,937,933 shares traded.
R.R. Donnelley & Sons Company (RRD) is +0.9 at $3.30, with 6,514,902 shares traded.
SOS Limited (SOS) is +1.19 at $8.86, with 2,979,369 shares traded.
ProShares UltraPro Short QQQ (SQQQ) is -0.12 at $13.51, with 2,736,794 shares traded. This represents a 14.88% increase from its 52 Week Low.
AMC Entertainment Holdings, Inc. (AMC) is -0.33 at $7.37, with 2,540,172 shares traded.AMC is scheduled to provide an earnings report on 2/25/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is -3.39 per share, which represents a 35 percent increase over the EPS one Year Ago
Palantir Technologies Inc. (PLTR) is +0.905 at $27.66, with 2,438,818 shares traded. PLTR's current last sale is 184.37% of the target price of $15.
Churchill Capital Corp IV (CCIV) is +1.76 at $36.97, with 2,325,739 shares traded.
Fisker Inc. (FSR) is +3.8999 at $20.19, with 2,072,597 shares traded.FSR is scheduled to provide an earnings report on 2/25/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is 999 per share, which represents a 99,900 percent increase over the EPS one Year Ago
Ebang International Holdings Inc. (EBON) is +0.93 at $7.63, with 1,774,062 shares traded.
Futu Holdings Limited (FUTU) is +0.31 at $167.50, with 1,715,003 shares traded. As reported by Zacks, the current mean recommendation for FUTU is in the "strong buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +1.04 at $322.52, with 1,261,725 shares traded. This represents a 95.55% increase from its 52 Week Low.
Apple Inc. (AAPL) is +0.74 at $126.60, with 1,252,393 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $0.99. 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 +0.74 at $126.60, with 1,252,393 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Fisker Inc. (FSR) is +3.8999 at $20.19, with 2,072,597 shares traded.FSR is scheduled to provide an earnings report on 2/25/2021, for the fiscal quarter ending Dec2020.
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Apple Inc. (AAPL) is +0.74 at $126.60, with 1,252,393 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AMC Entertainment Holdings, Inc. (AMC) is -0.33 at $7.37, with 2,540,172 shares traded.AMC is scheduled to provide an earnings report on 2/25/2021, for the fiscal quarter ending Dec2020.
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Apple Inc. (AAPL) is +0.74 at $126.60, with 1,252,393 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is -3.39 per share, which represents a 35 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.74 at $126.60, with 1,252,393 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The NASDAQ 100 Pre-Market Indicator is up 28.55 to 13,223.26.
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11079.0
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2021-02-17 00:00:00 UTC
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Advance Auto Parts, Inc. (NYSE:AAP) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc.-nyse%3Aaap-just-reported-annual-earnings%3A-have-analysts-changed
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Advance Auto Parts, Inc. (NYSE:AAP) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Advance Auto Parts reported in line with analyst predictions, delivering revenues of US$10b and statutory earnings per share of US$7.14, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Advance Auto Parts after the latest results.
NYSE:AAP Earnings and Revenue Growth February 18th 2021
Following last week's earnings report, Advance Auto Parts' 16 analysts are forecasting 2021 revenues to be US$10.2b, approximately in line with the last 12 months. Per-share earnings are expected to soar 37% to US$9.79. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$10.2b and earnings per share (EPS) of US$8.24 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the substantial gain in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$179, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Advance Auto Parts at US$202 per share, while the most bearish prices it at US$128. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Advance Auto Parts' rate of growth is expected to accelerate meaningfully, with the forecast 1.2% revenue growth noticeably faster than its historical growth of 0.5%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.9% next year. It seems obvious that, while the future growth outlook is brighter than the recent past, Advance Auto Parts is expected to grow slower than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Advance Auto Parts' earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Advance Auto Parts' revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$179, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Advance Auto Parts going out to 2025, and you can see them free on our platform here.
You can also view our analysis of Advance Auto Parts' balance sheet, and whether we think Advance Auto Parts is carrying too much debt, for free on our platform here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.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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Advance Auto Parts, Inc. (NYSE:AAP) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. NYSE:AAP Earnings and Revenue Growth February 18th 2021 Following last week's earnings report, Advance Auto Parts' 16 analysts are forecasting 2021 revenues to be US$10.2b, approximately in line with the last 12 months. There's been no major changes to the consensus price target of US$179, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.
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Advance Auto Parts, Inc. (NYSE:AAP) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. NYSE:AAP Earnings and Revenue Growth February 18th 2021 Following last week's earnings report, Advance Auto Parts' 16 analysts are forecasting 2021 revenues to be US$10.2b, approximately in line with the last 12 months. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Advance Auto Parts' revenues are expected to perform worse than the wider industry.
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NYSE:AAP Earnings and Revenue Growth February 18th 2021 Following last week's earnings report, Advance Auto Parts' 16 analysts are forecasting 2021 revenues to be US$10.2b, approximately in line with the last 12 months. Advance Auto Parts, Inc. (NYSE:AAP) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Advance Auto Parts reported in line with analyst predictions, delivering revenues of US$10b and statutory earnings per share of US$7.14, suggesting the business is executing well and in line with its plan.
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Advance Auto Parts, Inc. (NYSE:AAP) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. NYSE:AAP Earnings and Revenue Growth February 18th 2021 Following last week's earnings report, Advance Auto Parts' 16 analysts are forecasting 2021 revenues to be US$10.2b, approximately in line with the last 12 months. There's been no major changes to the consensus price target of US$179, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.
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11080.0
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2021-02-16 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Q4 2020 Earnings Call Transcript
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-q4-2020-earnings-call-transcript-2021-02-16
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Image source: The Motley Fool.
Advance Auto Parts Inc (NYSE: AAP)
Q4 2020 Earnings Call
Feb 16, 2021, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Advance Auto Parts Fourth Quarter Conference Call. Before we begin, Elisabeth Eisleben, Senior Vice President, Communications and Investor Relations will make a brief statement concerning the forward-looking statements that will be discussed on this call.
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Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Good morning, and thank you for joining us to discuss our Q4 and full year 2020 results as well as our 2021 outlook that we highlighted in our earnings release this morning. I am joined by Tom Greco, our President and Chief Executive Officer; and Jeff Shepherd, our Executive Vice President and Chief Financial Officer. Following their prepared remarks, we will turn our attention to answering your questions.
Before we begin, please be advised that our remarks today may contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements, including but not limited to, statements regarding our initiatives, plans, projection and future performance. Actual results could differ materially from those projected or implied by the forward-looking statements. Additional information about factors that could cause actual results to differ can be found under the caption, forward-looking statements and risk factors in our most recent annual report on Form 10-K and subsequent filings made with the commission.
Now, let me turn the call over to Tom Greco.
Tom Greco -- President and Chief Executive Officer
Thank you, Elizabeth, and good morning to all of you joining us today. I hope you and your families are healthy and safe amid all that we've endured over the past 12 months. Here at Advance, we are incredibly grateful for the way our entire team persevere. When the reality of COVID-19 defended on our communities in March of 2020, we found ways across AAP to meet new unfamiliar challenges with innovation and agility. I'd like to thank all of our team members as well as our independent partners for their commitment to safely serve our customers. As an essential business, their efforts have been critical to keep America moving during a time of great needs.
As you've heard from us throughout this pandemic, we remain focused on three overarching priorities. First, protect the health, safety and well being of our team members and customers. Second, preserve cash and protect the P&L during the crisis. And third, prepare to be even stronger following the crisis. Our results in Q4 and for the full year demonstrate that our unwavering focus on these priorities has enabled meaningful progress toward our long-term goals.
From the beginning, we've invested in compensation for our frontline and distribution center team members, enhanced benefits, cleaning, personal protective equipment and innovative ways to serve our customers. This helped ensure that our team members and customers feel safe coming into work and to shop. Our store and distribution center team members continuously stepped up throughout the year, and they are the true heroes for us. In spite of many obstacles for our team, we saw significant improvements in organizational health and increased engagement scores throughout the year.
Fundamentally, we are building trust in the Advance brand at an enduring time for the world and one that our team members and customers will always remember. We're confident our COVID-19-related investments, which we believe will subside over time, are strengthening our employment brand, our customer brand and our corporate reputation for the long-term.
In Q4, we delivered comparable store sales growth of 4.7% and margin expansion of 17 basis points. This includes an 82 basis point headwind related to COVID-19. Adjusted diluted EPS improvement of 14% to $1.87, including a $0.22 headwind related to COVID-19. For the full year, we delivered top-line growth resulting in record net sales of $10.1 billion. Adjusted operating income improvement of 4.1% to $827.3 million, including a $60 million headwind related to COVID-19. Record adjusted diluted EPS of $8.51, including a $0.66 headwind related to COVID-19. And we also returned $515 million to shareholders through share repurchases and our continued quarterly cash dividend.
Jeff will cover more on the details of our financials shortly, but first, let's review our operational performance. COVID-19-related factors continued to affect channel performance in Q4 across our industry. DIY omnichannel led the way, as it has since Q2. It's well documented that consumers are spending more of their time at home, likely contributing to the shift in discretionary spending from services to goods. Given economic uncertainty and elevated unemployment, many consumers are choosing lower cost options for vehicle repairs and maintenance, benefiting our DIY omnichannel business.
Our professional business continued to recover with positive comp sales in both Q3 and Q4. Miles driven remained below prior year, in particular, for higher income workers working remotely who generally take their cars to pro shops. This has limited growth in certain professional sales channels and in key categories like brakes. Geographically, all of our eight regions posted positive comps in the quarter, led by our southernmost regions, including both the Southeast and Southwest. Meanwhile, our Mid-Atlantic and Northeast regions remained below our reported growth rate.
As previously discussed, large urban markets in these regions have been more impacted by COVID-19 with the most significant decline in miles driven. The good news is that while there remains a gap between our highest and lowest performing regions that spread continues to narrow. We're cautiously optimistic this will further narrow in Q1 based on improving trends and more favorable winter weather early in the year.
As we highlighted in our earnings release this morning, through the first four weeks of Q1, our comp sales were trending in the low-double-digit range with strength across both DIY and professional. With respect to categories, DieHard is driving record battery sales and led our growth in Q4. In addition, appearance chemicals remained strong, a trend that began with the stay at home orders last April.
Across our professional business, our team continues to leverage our industry-leading assortment of national brands, OE parts and own brands. For pro customers, there is nothing more important than having the right part in the right place at the right time. To enable this, we continued to strengthen our Dynamic Assortment tool, which is now live in all our corporate stores and more than 700 independent locations that have opted in. This machine learning platform has enabled significant improvements in product availability, helping drive over 60 basis point improvement in Q4 close rates.
In addition, we continued to make enhancements to our online portal, MyAdvance. The ease of access and wide array of resources available now includes features like virtual training, which has been essential during the pandemic. The resources we provide through our Carquest and WorldPac technical institutes allow our pro customers, including all technicians within those shop to attend interactive virtual training.
Additionally, we continue to update our comprehensive catalog of technical service bulletins through our MotoLogic platform. We believe pro customers are recognizing and appreciating our investments to improve parts quality, product availability, delivery speed and the digital experience, resulting in higher enterprise pro online sales and share of wallet. These actions have also enabled growth of our Technet customer base with approximately 1,400 new Technets added in 2020. Finally, we continued increasing our Carquest Independent locations in 2020, welcoming 50 new stores. Our independents remain a valuable component of our overall strategy and our team remains focused on further expansion.
Moving on to DIY omnichannel, we gained share in every region and across most categories in both Q4 and for the full year based on the syndicated data available to us. We believe our share gains are the result of our focus in four areas. First, the launch of DieHard. Second, building awareness in regard of Advance through differentiation. Third, improving customer loyalty through Speed Perks. And fourth, improving store execution.
Starting with DieHard, despite the challenges of the pandemic, our team successfully launched DieHard as planned and executed a marketing plan unlike anything we've ever done before at AAP. Our DieHard is Back campaign, featuring Bruce Willis, let consumers know that the iconic DieHard brand was back and they can now buy DieHard at Advance and Carquest. This campaign is already improving top of mind and unaided awareness for DieHard.
Our Speed Perks program is an important tool to drive customer loyalty. Our team continues to invest in personalization for Speed Perks members, driving higher engagement, long-term loyalty and increased share of wallet. In 2020, we grew our VIP members, those with an annual spend of $250 to $500 by nearly 15%. And our Elite members, those with annual spend of more than $500 by more than 20%.
To wrap up the discussion on DIY omnichannel, we continue to see improvement from our initiatives, including our net promoter scores. This gives us confidence that we're on the right track to sustained sales and share momentum in 2021.
Moving on to an update of our four pillars of margin expansion, I'll begin with sales and profit per store. As a reminder, following three consecutive years of declining sales per store, we finished 2017 at approximately $1.5 million per store. Over the last three years, we've been optimizing our footprint, including the closure of 273 underperforming stores. Our sales per store have now grown for three consecutive years. And we finished 2020 at nearly $1.7 million per store.
We're also executing a focused agenda to leverage payroll, while reducing shrink, returns and the factors to drive four wall profit per store improvement. In addition, the ongoing focus on team members is enabling us to attract the very best parts people and to reduce turnover. Our team members are a differentiator for Advance. And four years ago, we made a commitment to dramatically improve retention. Continued investment in our unique Fuel the Frontline program with more than 22,000 stock grants awarded since inception is creating an ownership culture.
In the current environment, with an increased competition for talent, we are reducing store turnover and enhancing our employment brand. We now have three straight years of comp sales growth and the closure of underperforming stores behind us. We're excited to announce that we plan to expand our store base and geographic footprint this year and expect to open 50 to 100 new stores.
Our second margin expansion pillar is supply chain. While we paused our cross banner replenishment and warehouse management system initiatives early in 2020, our team found ways to innovate and make progress on these productivity opportunity later in the year. The expansion of cross banner replenishment is on track with the timing we communicated in November. As we finished the year with just over 40% of the originally planned stores completed, we are on track to complete the originally planned stores and DCs by the end of Q3 2021 and the full run rate savings will come beginning in Q4 2021. In addition, the implementation of our new warehouse management system or WMS continued in Q4. We converted our fourth DC by year end as planned and we're on track to complete our largest buildings this year. We believe we can capture roughly 75% of the savings from this initiative in 2022.
Moving on to category management, the expansion of our own brand assortment is a key component. This includes an increase of Carquest-branded assortment in engine management and undercar. Carquest has an excellent reputation with installers and new products have been very well received by both pro customers and Carquest Independents. In 2020, we also launched our strategic pricing initiative to enhance our capabilities, while incorporating customer decision journey insights into price and discount decision making.
Finally, our fourth pillar of margin expansion involves reducing and better leveraging SG&A. The successful execution of our field restructure, back office consolidations and safety initiatives benefited SG&A in the quarter and will enable further improvement in margin expansion going forward. As we called out in November, SG&A was elevated in Q4, primarily due to COVID-19-related expenses and other factors that Jeff will detail shortly.
To summarize, we're now in execution mode on our key growth and margin expansion initiatives. Our mission is Passion for Customers Passion for Yes. With the goal of serving them with care and speed, we've made many necessary changes at AAP in recent years. But one thing that has not changed is the current technology, the passion and the commitment of our team members and independent partners. Our actions have strengthened Advance, enabling us to compete more vigorously. Finally, we're very excited to share our third sustainability and social responsibility report next month, and we'll be providing a strategic update of our long-term plans on April 20.
With that, I'll pass the call to Jeff to discuss our financial results in greater detail as well as our 2021 guidance.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Thanks, Tom, and good morning. I too would like to begin by expressing my gratitude to all our team members for the extraordinary focus and effort throughout 2020 despite the unprecedented times. Our entire team adjusted, adapted and continued to execute our priorities. In Q4, our net sales of $2.4 billion increased 12%. Adjusted gross profit margin expanded 192 basis points to 45.9%. driven primarily by inventory-related items, cost and price improvements as well as supply chain leverage. As our primary focus throughout the year was on the health and safety of our team members and customers, we temporarily paused our physical inventory counts earlier this year. When we resumed these in Q4, our actual shrink rates were far better than we had anticipated. This resulted in a benefit in inventory-related costs due to a reduction in the reserve to reflect the positive result.
LIFO-related impacts were a tailwind this quarter versus prior year. This will be the last quarter we included LIFO impacts in our adjusted financial results as we will begin reporting in Q1 2021 excluding any benefits or expenses from LIFO and our adjusted financial measures. We believe this adjustment creates a more accurate picture of our operational results and is more in line with industry practices.
Our Q4 adjusted SG&A expense was $913.5 million. On a rate basis, this represented 38.6% of net sales compared to 36.9% in the fourth quarter of 2019. The single biggest driver of this increase was $19 million in COVID-related costs directly attributable to the unanticipated spike in case rates. We also incurred higher Q4 medical claims as a result of lower claims during the prior quarters. In addition, our short-term incentive compensation for both field and corporate team members was higher than prior year.
Separately, we invested behind the launch of The DieHard is Back campaign. We also incurred lease termination costs related to the ongoing optimization of our real estate footprint. We believe these expected investments in DieHard and lease optimization will result in top and bottom line improvements. Despite higher SG&A expenses, adjusted operating income increased 14.6% in Q4 to $171.8 million. On a rate basis, our adjusted OI margin expanded by 17 basis points.
Finally, our adjusted diluted earnings per share was $1.87, up 14% from prior year despite a $0.22 impact in the quarter from COVID expenses. For the full year, which includes an additional week versus 2019, we delivered record net sales of $10.1 billion, which increased 4.1%. The 53rd, added approximately $158 million to sales. Our adjusted gross profit increased 5% year-over-year and adjusted gross profit margin expanded 38 basis points.
Adjusted SG&A expense for full year 2020 increased 5.2% from 2019 results. This was primarily the result of COVID-related expenses discussed earlier as well as the 53rd week. We estimate the additional week resulted in a headwind of approximately 1.5% to our SG&A costs in the year. Our adjusted operating income increased 4.1% to $827.3 million. And our OI margins was 8.2%, flat compared to prior year.
Adjusting for the $60 million in COVID costs, our adjusted operating income margin expanded 59 basis points. Our full year 2020 adjusted diluted earnings per share was $8.51, which is a new record for Advance and includes a headwind of $0.66 related to COVID costs. We estimate the impact of the 53rd week was a tailwind from approximately $20 million to adjusted operating income and a benefit of approximately $0.23 to our reported adjusted EPS for the year.
Our capital expenditures in Q4 was $75 million for a total investment of $268 million for the year and in line with our previously stated expectations. As we've noted, some of the critical transformation investments we expected to make in 2020 will pause for a portion of the year. As a result, we expect our capital spending will increase this year compared to 2020.
Our free cash flow for the year was a record $702 million compared to $597 million in 2019. This increase was driven by several factors, including efforts we have made to improve working capital. We made meaningful progress on our AP ratio in 2020, delivered 300 basis points of improve and ended the year at 80.2%. This in addition to a $76 million tailwind associated with the CARES Act resulted in a significant improvement in our cash conversion cycle.
Our strong cash flow generation allowed us to continue our share repurchase activity in Q4. For the year, we repurchased more than $458 million of Advance stock. And including our quarterly cash dividend, we returned $515 million to shareholders. Our team remains disciplined throughout 2020 to ensure adequate liquidity, protect the P&L during the pandemic and strengthen our balance sheet, which resulted in meaningful improvement in our cash position, resulting in $835 million in cash on hand at year end. Further demonstrating our confidence in the long-term strength of our business and commitment to return cash to shareholders in a balanced approach utilizing both share repurchases and dividends, our board recently approved a continued payment of our quarterly cash dividend.
Turning to 2021. While uncertainty remains in the current environment, we believe that we can continue to carry the momentum we have seen in the back half of 2020 forward. As the economy continues to recover and with our planned new store openings, we expect to deliver increased net sales and additional margin expansion. Importantly, we expect miles driven to continue improving throughout 2021, which should enable year-over-year growth in our pro business.
We're encouraged by trends through the first four weeks of 2021. With strength across our DIY omnichannel and pro business, we delivered double-digit comparable sales growth to start the year. We recognized the importance of transparency. And based on what we know today, this morning we introduced our 2021 outlook. Despite continued uncertainty, we're pleased to provide our 2021 guidance. Based on the assumptions we outlined in our earnings release, our 2021 guidance includes net sales in the range of $10.1 billion to $10.3 billion. Comparable store sales growth of 1% to 3%. Adjusted operating income margin rate of 8.7% to 8.9%, which includes margin expansion of 60 to 80 basis points. That's compared to the 2020 adjusted operating income margin excluding the $20.1 million benefit from the 53rd week. Income tax rate of 24% to 26%. Capital expenditures of $275 million to $325 million. And a minimum of $600 million of free cash flow.
Finally, as Tom mentioned, following several years of closing underperforming stores and focusing on the improvement of operations across our footprint, we're excited to being actively growing our store base and expanding existing and new geographies. For the first time in four years, we're guiding to new store openings of 50 to 100 locations. I once again would like to thank the tremendous efforts of our team members in meeting the challenges of COVID-19, while still executing our strategic plan. We look forward to sharing more on those plans in the investor presentation we'll publish in April.
Now, let's open the call for your questions. Operator?
Questions and Answers:
Operator
Certainly. [Operator Instructions] Michael Lasser with UBS, your line is open.
Michael Lasser -- UBS -- Analyst
Good morning. Thanks a lot for taking my question. If we take the midpoint of your guide -- of your operating margin guidance for this year, it implies that you'll have achieved around 30 basis points of annual margin expansion between 2019 and 2021. Recognizing that there is some COVID costs in there, but why wouldn't there be more margin expansion given the investments you've made, the store closures and the year has started off strong with double-digit comps so far this year? And if you could also talk about the flow of margins over the course of this year, it would be very helpful? Thank you.
Tom Greco -- President and Chief Executive Officer
Good morning, Michael. First of all, yeah, we're very excited about the start of the year. In terms of the overall margin expansion, our long-term goal is to dramatically accelerate our margins, as you know. We're pretty excited that we're going to share an update with you on our long-term plans on April the 20. 2020 was our third consecutive year of comp sales and operating income growth. And we have said, as you highlighted, that 2021 and beyond it's going to have a significant acceleration of margin expansion and that's going to come from a number of areas that we've talked about before.
So we're going to talk more about that on April the 20. I mean, I think the biggest factor in what you described is the COVID-related costs that we still have embedded in our annual guide this year, and that remains an unknown at this point. We still have some uncertainty out there regarding COVID-related costs and we saw that late in the year spike significantly as infection rates across the country went up and we remain very focused on accelerating margin expansion. Once that comes out, as we've said, at $60 million for the full year that will be a big number for us to expand our margins with.
Michael Lasser -- UBS -- Analyst
Okay. And my follow is, Tom, you have the advantage of having more exposure to markets that were hit harder in 2020 as well as exposure to recovery in the professional market, which has been Florida to improve thus far. So as you think about 2021, compared to your peers, how much of the gap are you expecting that your sales should improve more than the industry this year? A bit of the -- you're recognizing that you guided to 1% to 3% comp, but that seems pretty modest in light of these benefits that you will have, especially relative to the rest of the industry?
Tom Greco -- President and Chief Executive Officer
Well, for sure, we definitely saw that difference last year. If you look at the miles driven, which is the most -- one of the significant drivers of demand in our industry, miles driven were down the most in the Northeast and Mid-Atlantic regions. The Southeast and Southwest were down the least. And then on the other hand, from a channel perspective, we know that DIY outperformed pro. So both of those things, we start to lap in April and May. And we do expect the Northeast and Mid-Atlantic to come back strong.
It's obviously once again a function of how quickly the economy returns to those markets, how quickly people start to return back to work. But there is an expectation that those markets will outperform and that pro will outperform DIY this year. So we feel we're very, very well positioned in that regard and we're going to watch it very closely. We've looked at the full year, the lapse for each geography and each channel. And we feel very good about how we're positioned to take advantage of that resurgence in demand in the Mid-Atlantic, the Northeast in our professional business.
Michael Lasser -- UBS -- Analyst
Okay. Thank you very much, and good luck.
Tom Greco -- President and Chief Executive Officer
Thanks.
Operator
Seth Sigman with Credit Suisse, your line is open.
Seth Sigman -- Credit Suisse -- Analyst
Hey, good morning, everybody. Thanks for taking the question. I wanted to just follow-up on that guidance for the full year for next year. Jeff, on the 8.7% to 8.9% EBIT margin, I assume that excludes the impact from LIFO. Can you just confirm whether LIFO was expected to be a headwind or a tailwind in '21? And just so we're all comparing apples-to-apples, if you exclude the LIFO benefit in '20, are we looking at EBIT margin in '20 more like 8%. So effectively you're guiding 70 to 90 basis points of expansion. I just wanted to confirm those numbers?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah, sure. First of all, we did exclude LIFO from the guidance that we provided in 2021. So we had that as a slight headwind as we were modeling it, but it's not in the AOP that we've put out -- the guidance that we've put out today. And then you're right, as it relates to 2020, you would have to back out that $14 million that we had in favorability in LIFO in 2020. So that gets you closer to an 8% on a 52-week basis.
Seth Sigman -- Credit Suisse -- Analyst
Okay, great. So effectively guiding a little bit more than that improvement. Okay. And then just on the gross margin, if we look at the drivers this quarter, LIFO was a factor. But can you just help us better understand some of the fundamental drivers that are supporting this improvement? And sort of within that guidance we just talked about, what are you assuming for gross margin and sort of the phasing of the benefits, really the supply chain and some of the other initiatives? Thank you.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah, sure. Our initiatives are really beginning to take shape. So as it relates to category management, for example, we saw improvements in both product costs as well as improvements in price. And then we once again leveraged supply chain as the initiatives around cross banner replenishment are continuing to remove costs and we're taking an advantage of that. So in addition to shrink in the LIFO, as you just called out, the channel mix was also positive, although I will tell you that that was offset by product mix, which is related to categories such as brakes, labors and lighting, similar to what we saw in the third quarter.
Now looking forward into the guidance, into '21, it's a lot of those same initiatives. And those are the reasons that gross margin is going to be the driver for our margin growth when we look at '21 compared to '20. So the strategic pricing. We've got it in place. We're starting to implement that. We're already starting to see early results. And similar to the category management with changing over into private label and we're going to start to see the impact of that early on and then throughout the year. So with those initiatives that are in place, we're taking the actions now and we're going to see that benefit going into '21, and those are going to be the drivers that lead our gross margin.
Seth Sigman -- Credit Suisse -- Analyst
Very helpful. Thank you very much.
Operator
Chris Horvers with J.P. Morgan, your line is open.
Chris Horvers -- J.P. Morgan Securities, Inc. -- Analyst
Thanks. Good morning, everybody. So I guess, a couple of questions on cadence. How are you thinking about overall same-store sales cadence over the year? And any additional detail on how you're thinking about pro versus DIY?
Tom Greco -- President and Chief Executive Officer
Hey, good morning, Chris. The cadence is much more volatile than historic, right? We're going to be -- pardon me. We're going to be lapping a minus 9% in the first quarter and then we go to a 7% plus and a plus 10% and then there is variation across the channels and there is variation across the geographies. So we've done a tremendous amount of work on this to try and understand what to expect for the year. Clearly, the first quarter will be very strong. We highlighted low-double-digit growth quarter-to-date, and that's prior to the widespread shutdowns that happened late period three and into period four.
Period -- sorry, the second quarter, you'll recall, the professional business was still challenged. DIY surged. That we're factoring in, etc. So I think about looking at the two year numbers, I mean that's what we're looking at closely obviously is the two year numbers to kind of factor out the volatility of last year. But even there, you've got to put some judgment against it. But we obviously expect to get off to a great start and build on the momentum. We're excited about the way the year has started off, and we're going to continue to build from here.
Chris Horvers -- J.P. Morgan Securities, Inc. -- Analyst
Got it. And then similar question on the margin. Given that the supply chain and WMS completes over the year, at least the supply chain and then WMS, does the gross margin expansion weight more to the back half? The inverse of that is the SG&A or SG&A dollars were flat in the first half, but up very high in the back half. So is there some inverse going on between gross margin and SG&A over the year?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
There will likely be some, Chris. The gross margin we, to your point, we continue to see improvements, cross banner replenishment is a great example of that. As you take out those stem miles, you get that savings immediately will be completed with the first set of stores that were identified in the end of the third quarter. So you get that full run rate in the fourth quarter. So we will continue to see that improvement throughout the year.
SG&A, again, that's a little bit more tricky. With the COVID costs, almost all of them are in SG&A. That one is a little bit more difficult to predict. Certainly, we saw a surge here late in the year and then early into '21. But as we've said, we are modeling less the COVID cost in '21 as compared to '20. When that happens, remains to be seen. And then we will be lapping some difficult dollars in SG&A in the second and third quarter around payroll.
So we had -- we were taking hours out, we were reducing time, we were closing early and we're going to be returning to normal ideally. And we'll have full store hours, which requires the store labor, it requires the training, it requires the normal replenishment and stocking and all the other types of things that we had to pause in the second and third quarter. So you're going to get some volatility throughout the year.
Chris Horvers -- J.P. Morgan Securities, Inc. -- Analyst
Got it. Thanks very much.
Operator
Seth Basham with Wedbush Securities, your line is open.
Seth Basham -- Wedbush -- Analyst
Thanks a lot, and good morning. My question is firstly around the fourth quarter inventory shrink. Did you call out how much shrink helped gross margins in the fourth quarter?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
We didn't call out the number. It was a significant number, which is why we wanted to call it out. It's a bit of an anomaly. Normally what happens is, we do these physical inventory counts throughout the year. And what that does is, it inform your -- what we call our shrink rate. What's been driving -- the type of reserve that you need on your balance sheet for the estimated shrink, that's out there. Because we were pausing that, as I just mentioned, in the second and third quarter, we had to catch all that up in the fourth quarter. It was a positive adjustment, but it took what we probably would have recognized in the second and third quarter and pushed it all into the fourth quarter.
So on balance, we still saw improvement on a year-over-year basis. We just saw that primarily in the fourth quarter. And we're going to continue to -- with our efforts around shrink, we're very pleased with the results, although it was -- all came in the fourth quarter. We're going to continue with those standard operating procedures and hope to get further benefits in shrink going into 2021.
Seth Basham -- Wedbush -- Analyst
Okay. So how material was shrink as a benefit for the fourth quarter and the year? And do you expect it to be a benefit in your margin guidance for 2021?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
It was a benefit for sure in the fourth quarter and the full year. As I said, we haven't called out exactly what the number is. For the full year, as I said, it was also a benefit. And we expect to get a further benefit in 2021. It won't be as significant. I wouldn't expect it to be a primary driver when you compare it to all of our other initiatives and gross margin, especially around category management and pricing and the efforts that were going into our supply chain initiatives.
Seth Basham -- Wedbush -- Analyst
Okay. Got you. And just to think through the outlook on gross margins in 2021 a little bit more, can you rank order the drivers of gross margin expansion in 2021? Would pricing be at the top of the list or would supply chain? How do we think about the most important drivers?
Tom Greco -- President and Chief Executive Officer
Hey, good morning, Seth. They're both very big. The category management initiative has the own brand expansion and the strategic pricing, which we're really getting traction on. And then the supply chain has some big initiatives in there that we're getting traction on. They're relatively close in size. So they're not that different, they're both meaningful. And we've got benefits from both of them this year. And that's why our margin expansion this year will be more gross margin-related than anything else.
Seth Basham -- Wedbush -- Analyst
Got it. Thank you very much.
Operator
Scot Ciccarelli with RBC Capital Markets, your line is open.
Scot Ciccarelli -- RBC Capital Markets -- Analyst
Good morning, guys. So wanted to follow-up on the shift toward store expansion. Basically, Tom, why do you think now is the time to shift toward expansion from your prior consolidation efforts?
Tom Greco -- President and Chief Executive Officer
Hey, good morning, Scot. Yeah, we really feel good about how the stores have come along and the leadership team, the field organization has put much more disciplined into how we're running the stores. The say/do ratio is very strong. We've had three straight years of, basically, closing stores, as we highlighted, about 250 stores closed. So we sort of optimized the underperforming stores inside of our fleet. And meanwhile, we've had comp sales growth in the same timeframe.
So we feel confident that we can start opening stores. We did open stores last year. We've got some experience back in doing so. We're ahead of our targets on the stores that we've opened. And the field is extremely excited about store openings. So we do feel it's the right time for us to inflect. We've got a lot of opportunity geographically to expand our footprint. We're advertising DieHard nationally. We're advertising Advance. These are things that can be scaled.
Our omnichannel catalog is available throughout the country. And providing not just a storefront, but a fulfillment node in these new geographies is something that we feel can allow us to grow. It's still a very fragmented industry, as you know. Clearly, we're in a position to gain share within the industry as I think the other players have done for a period of time. And then finally, the commercial real estate market is pretty attractive right now. So there's a number of factors that have led to this decision. But we're very excited about it, and it will help us add revenue growth on top of the comp sales growth.
Scot Ciccarelli -- RBC Capital Markets -- Analyst
I appreciate that. And then what geographies might we see prioritize?
Tom Greco -- President and Chief Executive Officer
We're not going to break that out, but we've got a pretty disciplined architecture in terms of how we look at the North American landscape, and each one of them presents a different opportunity. So more to come. We'll share a little bit more on April the 20 on that, Scot.
Scot Ciccarelli -- RBC Capital Markets -- Analyst
Great. Thanks, guys.
Operator
Greg Melich with Evercore ISI, your line is open.
Greg Melich -- Evercore ISI -- Analyst
Hi. Thanks, guys. I'll just start on looking back at how much was inflation a factor last year? Remember, we had tariffs the year before and some of that flowed through. Just sort of what it was last year? And in your guidance this year, what you're expecting on inflation?
Tom Greco -- President and Chief Executive Officer
Well, let me start, Greg, and I'll let Jeff get the inflation number. But what we saw last year was a big uptick in average price per transaction. We really did see a significant uptick there, and some of that was category-related. So as we saw migration to categories like batteries, your average selling price goes up pretty significantly, similarly in some of the hard parts categories. So we did see ASP go up quite a bit.
On a unit-per-unit basis, Jeff?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. 1.5% was the total for the year, and that's above what we're modeling for 2021. We're seeing some headwinds early on. And as we start the year here, we're seeing some pressures around commodities, currency and transportation. So we know we're going to get some early on headwind. But for the year, we're sort of modeling between 1% and 2%. So 1.5% at the midpoint.
The key component to remember to that is, we always try to negotiate the best cost possible. When we do have to take on a cost, we've been relatively successful in passing that along to the consumer in the form of price. That's obviously what we want to do last, but we have been successful in doing that, and 2020 was no exception.
Greg Melich -- Evercore ISI -- Analyst
[Technical Issue] last year, we heard from some of your competitors that in an attempt to maybe get a little more promotional in certain categories, to keep some of the traffic won on DIY, how would you guys describe the promotional environment? And how you're thinking about it currently and into this year?
Tom Greco -- President and Chief Executive Officer
Two things there, Greg. First of all, I would say, it's been rational. We obviously look at competitive price indices across all our categories routinely. I would say, this is one of many areas where we're catching up. I mean, our level of sophistication in pricing is just below that of our peers, to be blunt. And we're beginning to take some actions there that I think are going to really help our margins.
We haven't seen any kind of unit fall off as we started to initiate some of these pricing actions. We're getting more version. We're getting more regional on our pricing. We're getting smarter about how we leverage coupons. And all of that are things that we believe that over time can help us drive, not just margin expansion, but unit growth is what we're seeing. So we haven't experienced any major competitive dynamics. We haven't seen any major competitive dynamics category-by-category.
Greg Melich -- Evercore ISI -- Analyst
Great. And then last, just want to clarify, did you guys say that pro is now running as strong as DIY or that's your expectation for this year? In other words, has the year-to-date pro caught up?
Tom Greco -- President and Chief Executive Officer
Yeah. The year-to-date, we're off to a very good start on pro. I mean, we did see it begin to improve late in the year in December. We're off to a very good start. It's still underperforming DIY, but it's off to a very good start. And beginning in period four, period five of this calendar year, that's where we expect to really inflect because that's when the installer base that we serve essentially shut down as it pertains to remote work. And then that continued on, Greg, for several periods. And we started to recover in the third quarter, but we see lots of upside in pro. There are a lot of people that are not driving as much as they did. If you look at the major metro markets, like New York and Boston, you're still talking double-digit miles driven down and we expect to start lapping that in period four or five, which should be very good for our industry and very good for us.
Greg Melich -- Evercore ISI -- Analyst
That's great. Thanks. Good luck.
Operator
Kate McShane with Goldman Sachs, your line is open.
Kate McShane -- Goldman Sachs -- Analyst
Hi, good morning. Just a quick housekeeping question. I think you'd mentioned that there was maybe some deferred capex and that capex would be a little bit higher in 2021. Can you remind us what that number is and what it means for any additional opex as a result of that deferred capex from 2020 to 2021?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. What we had said previously is '19 and '20 were going to be our big investment years and then we would start to see a reduced level of capex. Obviously, that was a comment pre-pandemic. And as a result of having to temporarily pause many of our programs for several months, that's pushed it into 2021. So we're guiding $275 million to $325 million. We do think it will continue to attract a certain amount of opex, not the levels that we have seen in the past. I think we had done $80 million to $100 million in the past. It certainly won't be to that level. But the $275 million to $325 million, prior to the pandemic, we would have expected it to be something lower than what we were experiencing guiding for '20. So if we were at $300 million, we would have been something lower. Now we think we're going to be in that consistent range to get caught up.
Kate McShane -- Goldman Sachs -- Analyst
Okay. Thank you.
Operator
Simeon Gutman with Morgan Stanley, your line is open.
Simeon Gutman -- Morgan Stanley -- Analyst
Hey, good morning. My first question is on the adjusted operating margin guidance for '21. Did you say -- I know you said most of it's going to come from gross margin. Could you tell us what you're assuming for lower year-over-year COVID costs? And then second of all, I realized it's not in the guidance and it's not a reconciliating item, but the LIFO, can you say what's the slight headwind? Can you quantify that what you're assuming for '21?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. I'll start with the LIFO. I mean, it was -- it is a small number. And it's really just based on the fact that we were looking at what do we think our inventory was going to do from a year-over-year basis, and at this point, we're assuming slightly down. There's always factors that can change that quite dramatically. I mean, we saw that we were up here at the end of the fourth quarter, end of the year in terms of our inventory balance, but it would have been single-digit million, something like that.
Going back to the COVID, we're not going to guide on our COVID. We obviously believe it's going to be significant. We are saying it's less than what we incurred this year, which was $60 million. This is just an assumption we're making that certainly in the first half of the year, we're going to continue to incur COVID costs and they could likely be meaningful. We could be drastically right or drastically wrong. And we don't really want to put guidance out there and be held to that because I don't think anybody really knows where this is going to take us into '21.
Simeon Gutman -- Morgan Stanley -- Analyst
Yeah. Fair enough. My follow-up is on the top-line. I think Tom mentioned in the prepared remarks that the spread -- I forget if it was between DIFM and DIY or the spread between markets that were more impacted by miles driven was starting to narrow. My question is on geographies and some of the assumptions that are embedded in your 1% to 3% comp outlook? Can you talk about that mix? And I know, Tom, you mentioned you'll start to face easier comparison period four or five. But if you see a complete narrowing across markets and you see miles driven recovers in some of those more impacted regions, I'm trying to understand the conservatism in that 1% to 3%, if we can see a comp that's even better than that range?
Tom Greco -- President and Chief Executive Officer
Well, we certainly -- It's very early in the year, right, Simeon? I mean, that's the short answer. But there's no question that we believe the Northeast and Mid-Atlantic, which are huge geographies for us, very important geographies for us, we believe will accelerate in the second quarter and then balance of the year. The narrowing that we referenced, I mean, if you think back the second quarter of last year, I think we called out roughly 2,000 basis points gap and then it narrowed to about 1,000, and it's continuing to narrow. So, you're talking about meaningful differences in geographic performance, at least for us. And from everything we can see from syndicated data, really for the entire industry. Pro versus DIY, you can look at the reported results of the major players and infer from that.
So is there upside? Possibly. But it's February right now, there's still uncertainty out there. We're off to a terrific start. We've actually got a winter this year. I mean, across the country, if you look and see what's going on, it's very different than it's been the last two years. So there are some things that would lead you to believe there could be upside there. But it's early in the year and we want to be thoughtful about the uncertainty that's there. And we feel very confident in our guide at this point.
Simeon Gutman -- Morgan Stanley -- Analyst
Thank you.
Operator
Brian Nagel with Oppenheimer, your line is open.
Brian Nagel -- Oppenheimer -- Analyst
Hi. Good morning. Thanks for taking my questions. I appreciate all the guidance. So my first question is on the guidance. I guess, you're a little more qualitative in nature, but clearly, your sector benefited to a certain extent. You capitalized well upon improved DIY demand early in 2020. So as you look to 2021, how are you thinking about just the sustainability of that, either from a new customer acquisition standpoint or looking to the other side, just a potential phase as consumers potentially get back to more normal habits once COVID-19 headwinds or disruptions begin to abate here?
Tom Greco -- President and Chief Executive Officer
Yeah. Good question, Brian. We obviously have done a lot of work on the customer base that's been coming into our stores. Fortunately, we have a loyalty platform, Speed Perks. We mine that data. We're trying to continue to learn from the new customers that are coming in. And we've sort of outlined a number of reasons that have driven this. Everything from people looking for more efficient ways, inexpensive ways to repair and maintain their vehicles, the fact that people have time on their hands, the mass transportation aversion that's going on there, people not necessarily going to larger boxes, there's a number of factors that are out there.
And the question is, how sticky are those factors? And what we're trying to do is engage very closely with our customer base. What we know is that the new customers that have come in are a little bit younger than our traditional customers. They spend more time online. They're a little more affluent. We've got a pretty good idea of how to engage those customers, and personalization and leveraging first party data is very important for us. So our goal is to drive share of wallet.
Again, pretty fragmented industry, lots of opportunity for us out there. If you look at the broader DIY market, we're only roughly about $4 billion in sales in a market that's close to $60 billion. So we do see lots of upside for us on DIY yet, even though there was a surge last year and a bit of a pretty disruptive shift in consumer behavior.
Brian Nagel -- Oppenheimer -- Analyst
That's helpful. I appreciate it. My follow-up question, I guess, near-term in nature, but you talked a bit about or a lot about the uptick in sales trends here in early 2021 so far. So what are the actual drivers? Is it -- I mean, how -- just let me ask another question. To what extent are easier comparisons than the weather helping to drive or are there other factors at play?
Tom Greco -- President and Chief Executive Officer
Certainly, we believe the industry is off to a good start. The weather was not favorable in January of last year. I think it may have been the warmest and wettest January in many, many years. So that's been favorable overall for the industry. Stimulus happened early in this year. So there was money that came into the market. From our vantage point, we see market share data, and we like our market share data in the first part of the year.
We advertised DieHard very deliberately in the fourth quarter, knowing that that's going to build into the early part of the year. And we're continuing to advertise DieHard this week in a pretty significant cold snap across the country, which should drive battery failure. So we're pretty confident that the DieHard advertising is resonating with our customers. It's bringing new customers into our stores, we know that. And that's going to help us drive market share and traffic beyond the first quarter. So building awareness of the Advance brand is something that was very important to us. It's a key objective for us. And you're going to continue to see us focus on that.
Brian Nagel -- Oppenheimer -- Analyst
Got it. Thank you.
Operator
Bret Jordan with Jefferies, your line is open.
Bret Jordan -- Jefferies -- Analyst
Hey, good morning, guys.
Tom Greco -- President and Chief Executive Officer
Good morning.
Bret Jordan -- Jefferies -- Analyst
You talked about your merchandising or your supply chain initiatives around engine management and undercar. I guess, is this a shift to private label? And will you be using the DieHard brand there? And if you could maybe give us some feeling for size of those two categories and the margins you might pick up with this supplier shift?
Tom Greco -- President and Chief Executive Officer
Good morning, Bret. First of all, we're going to continue to have a pretty balanced approach in this area. National brands are very important to us. And we engage with our national brand suppliers routinely and are working very collaboratively with them to help build their brands. So it's a balanced approach. Now there are some categories where we saw an opportunity for own brand penetration. Clearly, engine management was one of them. Suspension and ride control is another area of focus for us.
And we're not going to give you exact numbers, but there is a significant difference in the margin profile of those categories from a branded perspective versus own brand. And we continue to work with the suppliers. We'd obviously like to continue to sell the national brands, but where it's an obvious economic gap for us potentially due to pricing across other channels, we're going to make those decisions.
It's a gradual migration over time. This is not a light switch. You've got to gradually make these changes. But I think our merchandising team is doing an excellent job transitioning where we are making those changes across categories. And it's driving not just margin expansion, but unit growth because our customers voting with their clicks and they are voting for Carquest. They love the Carquest brand. It's a great brand. It's got a great reputation with installers and you're going to continue to see us grow it.
Bret Jordan -- Jefferies -- Analyst
Okay, great. And then you commented you picked up about 50 new Carquest Independents in '20. Is there a particular distribution network you're picking up independents from or is it just random?
Tom Greco -- President and Chief Executive Officer
It's definitely not random. It's a very focused approach. We've got a very wide funnel at the top and we put every one of those potential new independent partners through that funnel. But I think the ones that have decided to come to Carquest are really happy with what they've decided. But it's really across a blend of various alternative banners. But the cool thing that our Head of Carquest Independents, Junior Word is doing a terrific job. He and his team have done is they've engaged the independents in the journey.
We've got an independent advisory council they meet with routinely. They are part of the solution. They're helping us get better as a company. And they work very closely with them to construct their plans. And by the way, help them strengthen their technology backbone in their operations. So it's a number of things that we leverage to make those changes. But there's a lot of independent auto parts stores out there, and you're going to continue to see us grow that business.
Bret Jordan -- Jefferies -- Analyst
Great. Thank you.
Operator
Elizabeth Suzuki with Bank of America, your line is open.
Liz Suzuki -- Bank of America Merrill Lynch -- Analyst
Great. Thank you. Just how did your e-commerce mix shake out for the year in terms of what percentage of customer orders were placed online and then what the year-over-year growth was in those orders? And then just the percentage of picked up in store, buy online, pick up in store, if you could share that?
Tom Greco -- President and Chief Executive Officer
Sure. First of all, it was quite a year on that front, Liz, as you recall. There was an early surge, a massive surge in March and April, a little bit into May when people were just -- they just didn't go out and they were afraid to go into a store. We jumped on that. As you'll remember, we launched Advance Same Day suite of fulfillment services. We offered curbside pickup. We offered same day delivery. And that enabled a surge in our e-commerce business in that timeframe. The good news is that, as time went on, those customers started to migrate into our stores. And we've been increasing -- our store traffic has been increasing since that point through the year.
The online order piece is still a substantial part of our business, but it is largely pick up in store. Even though we have same day delivery, shipped to home is a relatively small part of our overall business. And that's because the customer likes to come in and get the trusted advice from our team members who've been out there throughout the global pandemic, making sure that America is on the road. We've got a terrific set of general managers out there who engage with the customers and they prefer to come into our stores and get the trusted advice they need to repair their vehicle.
Liz Suzuki -- Bank of America Merrill Lynch -- Analyst
Great. Thank you.
Operator
David Bellinger with Wolfe Research, your line is open.
David Bellinger -- Wolfe Research -- Analyst
He, thank for taking the question. So your guidance embeds an expectation for miles driven to improve, but remain below 2019 levels. So can you walk us through how you get there? Is there a way to quantify how much lower miles driven are versus 2019 levels in your forecast? And are you expecting a faster pace to recover in the Northeast and Mid-Atlantic with overall miles in those regions to continue to lag other regions of the country?
Tom Greco -- President and Chief Executive Officer
Sure. I mean, it was a pretty rigorous process we went through. We did our best, David, to reach out to whatever industry sources we could to get a sense for this. And I'll caveat all of this with -- this is an estimate at this point and there is a lot of uncertainty out there. But if you look at what happened last year, the year-to-date number is at the kind of October-November timeframe, which is based on the sources we have, are the most relevant or most accurate numbers that we can get. They would show the Northeast and Mid-Atlantic down the most, as I said, like high-double-digits in that case and the Southeast and Southwest are down 13%, something like that and then the aggregate number is kind of in between.
So you start to lap that as you get into April-May, and we do believe that it edges back up. In other words, if you say the year is down double-digits, it's not going to get back to the level it was in 2019, but it's going to be greater than it was in 2020. That's the fundamental assumption. How much comes back, we've got an estimate in there, we're not going to put that out there. But it is improvement over 2020 as people gradually start to return to work.
We'd look at the return to office metrics, which are readily available out there. And you can see that people are gradually returning to office. Now many people are talking about hybrid approaches, people are talking about remote work, but there are more people coming back to the office now than there were at the height of the pandemic. So that's really the key assumptions underlying our estimate.
David Bellinger -- Wolfe Research -- Analyst
Okay. And my follow-up on wage rate. Just reminds us here, how much exposure do you have to a nationwide increase to $15 per hour? What actions have you taken over the year or so to sort of offset that? And also talking about your guidance, I believe it doesn't include any impact at this point. How much of a swing factor can this be on operating margins going forward?
Tom Greco -- President and Chief Executive Officer
Yeah. I mean, certainly, we would be impacted by a federal minimum wage. I think we would see more of an impact on the stores. So SG&A versus the gross margin or supply chain. We've invested heavily in supply chain. It's been highly competitive over the last year. And in order to be competitive, we've had to keep up with, among other things, increased wages in the DC. So it would largely be in the stores. Obviously, there's a number of factors, but we're assuming wage inflation anywhere from 2% to 5%. So we're going to continue to increase wages this year with or without a federal minimum wage.
So the big factor, it really depends on a couple of things. First, obviously, it has to pass. And then how that looks in terms of how it graduates over time. Is it $1 a year? What is it going to be to get to $15? So there's a number of variables there. It's clearly -- it's not in our guidance, but we're thinking about it and we're continuing to make investments. And I guess, the only other comment I would make is, it's going to be a level playing field. This is going to impact the entire industry. It's going to impact our competitors the way it's going to impact us. So we're monitoring it very closely. But to be clear, it is not baked in there that we will be paying everybody $15 an hour.
Operator
Your next question comes from the line of Zachary Fadem with Wells Fargo. Your line is open.
Zachary Fadem -- Wells Fargo -- Analyst
Hey, guys. Thanks for fitting me in. So last year at this time, you expected to spend about $90 million to $100 million for opex investments like IT and marketing in 2020. Now with the year behind us, could you talk about how much of this planned spend was completed? Does any get shift to 2021? And can you walk us through any new opex investments planned this year?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Many of the opex investments are going to be similar. It's largely attracted by the capex investments that we have, whether it be IT, supply chain, stores. We did not -- we came in under the guidance, largely because we had to pause those programs. So we came in under that guidance that we put out there last year. We don't anticipate that we're going to have that level going into 2021.
So it's certainly going to be south of that. And it's really just a continuation of those projects. We don't have anything new that we haven't spoken to you about other than new store opening. That's probably the only thing that's different that obviously attracts some capex and a little bit of opex. But our initiatives, our growth initiatives remain unchanged. We're laser focused on them. And those are going to continue to be the drivers for both capex and opex.
Zachary Fadem -- Wells Fargo -- Analyst
Got it. And then assuming at least 50 new store openings this year, it looks like you are guiding SG&A per store to be down year-over-year or maybe up slightly ex the extra week. Just wanted to confirm that that's accurate?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yeah. I'm sorry. The SG&A for 2020?
Zachary Fadem -- Wells Fargo -- Analyst
2021 SG&A per store. What the guidance implied?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
It would be down slightly.
Zachary Fadem -- Wells Fargo -- Analyst
Got it. Thanks for your time, guys.
Operator
Our final question comes from the line of Michael Baker with Davidson. Your line is open.
Michael Baker -- D.A. Davidson -- Analyst
Okay, thanks. Two quick ones because it's getting late. One, I appreciate that you're not guiding to COVID costs specifically, but those are ongoing in the first quarter, I assume, and maybe even who knows how the vaccines roll out, but maybe into the second quarter? So is it fair to say you're not assuming that that $60 million from last year goes to zero? Is that right? So you're going to save some money, but not the full $60 million. Is that right? And that's what's in the guidance?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
That's right. It is still going to be a meaningful number in '21. It's not zero. It's not $60 million. But it's going to be a meaningful number based off what we're estimating.
Tom Greco -- President and Chief Executive Officer
Yeah. I mean, we said, Mike, that we're going to prioritize the health, safety and well being of our team members and our customers, and that doesn't change. Clearly, we want to build trust. And we're very excited that our team members are appreciative of everything that we've done. Our org health scores are up. Our turnover is down. Our customers are rating us higher on net promoter scores. So we want people to feel safe coming into work and we want our customers to feel safe coming into shop. So this is something that we've got to continue doing. Now over time, we do expect this to go away. We hope it goes to zero. It's just a question of when.
Michael Baker -- D.A. Davidson -- Analyst
Yeah. Okay. That makes sense. One more, and I hate to ask a bigger picture question at 9:10, but hopefully, it's not too long of an answer. But it does seem perhaps that this whole industry will shift a little bit more toward DIY because some of those trends you talked about, people being averse to public transportation, lots of people think those will be with us for a while, even when a vaccine rolls out. On the other hand, a lot of people will do hybrid or work from home. For those higher end, those DIFM customers might just drive less permanently or at least for a number of years. So have you thought about that? And how does that impact any of your ongoing strategies or anything like that if the whole world does go a little bit more toward DIY versus DIFM versus pre-COVID?
Tom Greco -- President and Chief Executive Officer
We have. And the reality is, we agree with your statement that it doesn't go back to the way it was. I mean, that's underpinning your statement. Now how far does it go back to the way it was? Because it doesn't -- it's not going to -- we don't think it's going to be like it was in 2020 either, right? So it's somewhere between what we saw last year and what we saw in 2019 is the answer to the question. But the reason why we're planning on opening 50 to 100 stores is because of the reasons I said earlier, and we do believe DIY is going to have some legs in the near-term for sure. And this is an opportunity for us. We've got DieHard, which participates in the largest category for DIY. We're advertising this brand, so we're going to continue to drive. And DIY is a great business. It's a very profitable business. It's a margin accretive business, and one that we're going to continue to stay focused on.
Michael Baker -- D.A. Davidson -- Analyst
That makes perfect sense. Appreciate the color. Thanks.
Tom Greco -- President and Chief Executive Officer
Well, thanks again for joining us this morning. We're gaining a lot of confidence regarding our initiatives. Obviously, we're respecting the economic and operational landscape that we're competing in. And as increasing COVID-19 vaccinations happen throughout the year, we expect the stability to continue to improve. We're looking for continued recovery for critical factors such as miles driven and further increases in the average age of the car parts.
Operationally, we've narrowed and sharpened our focus on the most important initiatives to accelerate margin expansion and deliver increased value for our customers and for our shareholders. And we look forward to publishing our third sustainability and social responsibility report next month and sharing additional details on our strategic efforts at our upcoming investor event on April the 20. Thanks for joining.
Operator
[Operator Closing Remarks]
Duration: 72 minutes
Call participants:
Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Tom Greco -- President and Chief Executive Officer
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Michael Lasser -- UBS -- Analyst
Seth Sigman -- Credit Suisse -- Analyst
Chris Horvers -- J.P. Morgan Securities, Inc. -- Analyst
Seth Basham -- Wedbush -- Analyst
Scot Ciccarelli -- RBC Capital Markets -- Analyst
Greg Melich -- Evercore ISI -- Analyst
Kate McShane -- Goldman Sachs -- Analyst
Simeon Gutman -- Morgan Stanley -- Analyst
Brian Nagel -- Oppenheimer -- Analyst
Bret Jordan -- Jefferies -- Analyst
Liz Suzuki -- Bank of America Merrill Lynch -- Analyst
David Bellinger -- Wolfe Research -- Analyst
Zachary Fadem -- Wells Fargo -- Analyst
Michael Baker -- D.A. Davidson -- Analyst
More AAP analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
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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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Advance Auto Parts Inc (NYSE: AAP) Q4 2020 Earnings Call Feb 16, 2021, 8:00 a.m. When the reality of COVID-19 defended on our communities in March of 2020, we found ways across AAP to meet new unfamiliar challenges with innovation and agility. Starting with DieHard, despite the challenges of the pandemic, our team successfully launched DieHard as planned and executed a marketing plan unlike anything we've ever done before at AAP.
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Advance Auto Parts Inc (NYSE: AAP) Q4 2020 Earnings Call Feb 16, 2021, 8:00 a.m. When the reality of COVID-19 defended on our communities in March of 2020, we found ways across AAP to meet new unfamiliar challenges with innovation and agility. Starting with DieHard, despite the challenges of the pandemic, our team successfully launched DieHard as planned and executed a marketing plan unlike anything we've ever done before at AAP.
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Advance Auto Parts Inc (NYSE: AAP) Q4 2020 Earnings Call Feb 16, 2021, 8:00 a.m. When the reality of COVID-19 defended on our communities in March of 2020, we found ways across AAP to meet new unfamiliar challenges with innovation and agility. Starting with DieHard, despite the challenges of the pandemic, our team successfully launched DieHard as planned and executed a marketing plan unlike anything we've ever done before at AAP.
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Advance Auto Parts Inc (NYSE: AAP) Q4 2020 Earnings Call Feb 16, 2021, 8:00 a.m. When the reality of COVID-19 defended on our communities in March of 2020, we found ways across AAP to meet new unfamiliar challenges with innovation and agility. Starting with DieHard, despite the challenges of the pandemic, our team successfully launched DieHard as planned and executed a marketing plan unlike anything we've ever done before at AAP.
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11081.0
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2021-02-16 00:00:00 UTC
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Advance Auto Parts Sees FY21 Sales In Line With Estimates - Quick Facts
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-sees-fy21-sales-in-line-with-estimates-quick-facts-2021-02-16
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(RTTNews) - While reporting its financial results for the fourth quarter on Tuesday, Advance Auto Parts, Inc. (AAP) forecast fiscal 2021 net sales in a range of $10.10 billion to $10.30 billion, and comparable store sales in a range of 1.0 percent to 3.0 percent.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $9.61 per share for the year on revenues of $10.19 billion. Analysts' estimates typically exclude special items.
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) - While reporting its financial results for the fourth quarter on Tuesday, Advance Auto Parts, Inc. (AAP) forecast fiscal 2021 net sales in a range of $10.10 billion to $10.30 billion, and comparable store sales in a range of 1.0 percent to 3.0 percent. On average, analysts polled by Thomson Reuters expect the company to report earnings of $9.61 per share for the year on revenues of $10.19 billion. Analysts' estimates typically exclude special items.
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(RTTNews) - While reporting its financial results for the fourth quarter on Tuesday, Advance Auto Parts, Inc. (AAP) forecast fiscal 2021 net sales in a range of $10.10 billion to $10.30 billion, and comparable store sales in a range of 1.0 percent to 3.0 percent. On average, analysts polled by Thomson Reuters expect the company to report earnings of $9.61 per share for the year on revenues of $10.19 billion. 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) - While reporting its financial results for the fourth quarter on Tuesday, Advance Auto Parts, Inc. (AAP) forecast fiscal 2021 net sales in a range of $10.10 billion to $10.30 billion, and comparable store sales in a range of 1.0 percent to 3.0 percent. On average, analysts polled by Thomson Reuters expect the company to report earnings of $9.61 per share for the year on revenues of $10.19 billion. 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) - While reporting its financial results for the fourth quarter on Tuesday, Advance Auto Parts, Inc. (AAP) forecast fiscal 2021 net sales in a range of $10.10 billion to $10.30 billion, and comparable store sales in a range of 1.0 percent to 3.0 percent. On average, analysts polled by Thomson Reuters expect the company to report earnings of $9.61 per share for the year on revenues of $10.19 billion. Analysts' estimates typically exclude special items.
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11082.0
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2021-02-16 00:00:00 UTC
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Advance Auto Parts Q4 adjusted earnings Miss Estimates
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https://www.nasdaq.com/articles/advance-auto-parts-q4-adjusted-earnings-miss-estimates-2021-02-16
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(RTTNews) - Advance Auto Parts (AAP) announced a profit for its fourth quarter that rose from the same period last year.
The company's profit totaled $111.99 million, or $1.65 per share. This compares with $95.91 million, or $1.38 per share, in last year's fourth quarter.
Excluding items, Advance Auto Parts reported adjusted earnings of $126.94 million or $1.87 per share for the period.
Analysts had expected the company to earn $1.97 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 12.3% to $2.37 billion from $2.11 billion last year.
Advance Auto Parts earnings at a glance:
-Earnings (Q4): $126.94 Mln. vs. $113.713 Mln. last year. -EPS (Q4): $1.87 vs. $1.64 last year. -Analysts Estimate: $1.97 -Revenue (Q4): $2.37 Bln vs. $2.11 Bln last year.
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) announced a profit for its fourth quarter that rose from the same period last year. Excluding items, Advance Auto Parts reported adjusted earnings of $126.94 million or $1.87 per share for the period. Analysts had expected the company to earn $1.97 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - Advance Auto Parts (AAP) announced a profit for its fourth quarter that rose from the same period last year. Excluding items, Advance Auto Parts reported adjusted earnings of $126.94 million or $1.87 per share for the period. -Analysts Estimate: $1.97 -Revenue (Q4): $2.37 Bln vs. $2.11 Bln last year.
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(RTTNews) - Advance Auto Parts (AAP) announced a profit for its fourth quarter that rose from the same period last year. This compares with $95.91 million, or $1.38 per share, in last year's fourth quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $126.94 million or $1.87 per share for the period.
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(RTTNews) - Advance Auto Parts (AAP) announced a profit for its fourth quarter that rose from the same period last year. This compares with $95.91 million, or $1.38 per share, in last year's fourth quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $126.94 million or $1.87 per share for the period.
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11083.0
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2021-02-12 00:00:00 UTC
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Pre-Market Earnings Report for February 16, 2021 : CVS, ZTS, ECL, YNDX, VMC, TRU, BKI, IPGP, ALLE, AAP, BRKR, IAA
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AAP
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-16-2021-%3A-cvs-zts-ecl-yndx-vmc-tru-bki-ipgp-alle
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The following companies are expected to report earnings prior to market open on 02/16/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
CVS Health Corporation (CVS) is reporting for the quarter ending December 31, 2020. The drug store company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.24. This value represents a 28.32% decrease compared to the same quarter last year. In the past year CVS has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 23.88%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for CVS is 9.91 vs. an industry ratio of 19.00.
Zoetis Inc. (ZTS) is reporting for the quarter ending December 31, 2020. The drug company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.86. This value represents a 6.52% decrease compared to the same quarter last year. In the past year ZTS has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 23.6%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ZTS is 43.27 vs. an industry ratio of -7.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Ecolab Inc. (ECL) is reporting for the quarter ending December 31, 2020. The chemical company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.23. This value represents a 25.90% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ECL is 53.70 vs. an industry ratio of -269.00, implying that they will have a higher earnings growth than their competitors in the same industry.
Yandex N.V. (YNDX) is reporting for the quarter ending December 31, 2020. The internet content company's consensus earnings per share forecast from the 1 analyst that follows the stock is $-0.03. This value represents a 112.00% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for YNDX is 191.89 vs. an industry ratio of 88.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Vulcan Materials Company (VMC) is reporting for the quarter ending December 31, 2020. The building company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.99. This value represents a 8.33% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for VMC is 34.80 vs. an industry ratio of 12.50, implying that they will have a higher earnings growth than their competitors in the same industry.
TransUnion (TRU) is reporting for the quarter ending December 31, 2020. The business info service company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.72. This value represents a 9.09% increase compared to the same quarter last year. In the past year TRU has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 11.59%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for TRU is 32.79 vs. an industry ratio of 35.20.
Black Knight, Inc. (BKI) is reporting for the quarter ending December 31, 2020. The business info service company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.50. This value represents a 4.17% increase compared to the same quarter last year. In the past year BKI has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 9.3%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for BKI is 47.02 vs. an industry ratio of 35.20, implying that they will have a higher earnings growth than their competitors in the same industry.
IPG Photonics Corporation (IPGP) is reporting for the quarter ending December 31, 2020. The laser systems company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.96. This value represents a 5.49% increase compared to the same quarter last year. In the past year IPGP has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 44.94%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for IPGP is 72.81 vs. an industry ratio of -13.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Allegion plc (ALLE) is reporting for the quarter ending December 31, 2020. The protection safety company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.17. This value represents a 8.59% decrease compared to the same quarter last year. In the past year ALLE has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ALLE is 24.81 vs. an industry ratio of -57.60, 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 December 31, 2020. The wholesale retail company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.93. This value represents a 17.68% increase compared to the same quarter last year. AAP missed the consensus earnings per share in the 1st calendar quarter of 2020 by -43.48%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for AAP is 18.02 vs. an industry ratio of 12.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Bruker Corporation (BRKR) is reporting for the quarter ending December 31, 2020. The scientific instrument company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.56. This value represents a 5.66% increase compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for BRKR is 44.31 vs. an industry ratio of 35.50, implying that they will have a higher earnings growth than their competitors in the same industry.
IAA, Inc. (IAA) is reporting for the quarter ending December 31, 2020. The auto (domestic) company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.43. This value represents a 16.22% increase compared to the same quarter last year. In the past year IAA has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 32.26%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for IAA is 41.85 vs. an industry ratio of 27.10, 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 December 31, 2020. AAP missed the consensus earnings per share in the 1st calendar quarter of 2020 by -43.48%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for AAP is 18.02 vs. an industry ratio of 12.80, 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 December 31, 2020. AAP missed the consensus earnings per share in the 1st calendar quarter of 2020 by -43.48%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for AAP is 18.02 vs. an industry ratio of 12.80, 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 December 31, 2020. AAP missed the consensus earnings per share in the 1st calendar quarter of 2020 by -43.48%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for AAP is 18.02 vs. an industry ratio of 12.80, 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 December 31, 2020. AAP missed the consensus earnings per share in the 1st calendar quarter of 2020 by -43.48%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for AAP is 18.02 vs. an industry ratio of 12.80, implying that they will have a higher earnings growth than their competitors in the same industry.
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11084.0
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2021-02-03 00:00:00 UTC
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After Hours Most Active for Feb 3, 2021 : TME, VIPS, IQ, T, DISH, WEN, ZNGA, SPR, CRHC, QCOM, TWTR, AAPL
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AAP
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https://www.nasdaq.com/articles/after-hours-most-active-for-feb-3-2021-%3A-tme-vips-iq-t-dish-wen-znga-spr-crhc-qcom-twtr
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The NASDAQ 100 After Hours Indicator is up 7.18 to 13,409.55. The total After hours volume is currently 71,235,957 shares traded.
The following are the most active stocks for the after hours session:
Tencent Music Entertainment Group (TME) is unchanged at $26.28, with 8,977,842 shares traded. As reported by Zacks, the current mean recommendation for TME is in the "buy range".
Vipshop Holdings Limited (VIPS) is unchanged at $32.29, with 6,776,105 shares traded., following a 52-week high recorded in today's regular session.
iQIYI, Inc. (IQ) is unchanged at $22.82, with 4,250,288 shares traded. IQ's current last sale is 105.65% of the target price of $21.6.
AT&T Inc. (T) is +0.03 at $28.54, with 3,586,607 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2021. The consensus EPS forecast is $0.79. T's current last sale is 89.19% of the target price of $32.
DISH Network Corporation (DISH) is unchanged at $30.73, with 3,210,120 shares traded. As reported by Zacks, the current mean recommendation for DISH is in the "buy range".
Wendy's Company (The) (WEN) is unchanged at $20.74, with 2,712,516 shares traded. As reported by Zacks, the current mean recommendation for WEN is in the "buy range".
Zynga Inc. (ZNGA) is unchanged at $10.26, with 2,666,594 shares traded.ZNGA is scheduled to provide an earnings report on 2/10/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is 0.05 per share, which represents a 3 percent increase over the EPS one Year Ago
Spirit Aerosystems Holdings, Inc. (SPR) is -0.12 at $38.65, with 2,450,620 shares traded. SPR's current last sale is 97.85% of the target price of $39.5.
Cohn Robbins Holdings Corp. (CRHC) is +0.05 at $11.00, with 2,394,402 shares traded.
QUALCOMM Incorporated (QCOM) is -12.2 at $150.10, with 2,294,534 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $1.36. PR Newswire Reports: Qualcomm Schedules First Quarter Fiscal 2021 Earnings Release and Conference Call
Twitter, Inc. (TWTR) is unchanged at $54.58, with 2,101,302 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $0.19. TWTR is scheduled to provide an earnings report on 2/9/2021, for the fiscal quarter ending Dec2020. The consensus earnings per share forecast is 0.19 per share, which represents a 15 percent increase over the EPS one Year Ago
Apple Inc. (AAPL) is +0.09 at $134.03, with 1,757,903 shares traded. Over the last four weeks they have had 7 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2021. The consensus EPS forecast is $0.99. 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 +0.09 at $134.03, with 1,757,903 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Vipshop Holdings Limited (VIPS) is unchanged at $32.29, with 6,776,105 shares traded., following a 52-week high recorded in today's regular session.
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Apple Inc. (AAPL) is +0.09 at $134.03, with 1,757,903 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The consensus earnings per share forecast is 0.05 per share, which represents a 3 percent increase over the EPS one Year Ago
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Apple Inc. (AAPL) is +0.09 at $134.03, with 1,757,903 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Zynga Inc. (ZNGA) is unchanged at $10.26, with 2,666,594 shares traded.ZNGA is scheduled to provide an earnings report on 2/10/2021, for the fiscal quarter ending Dec2020.
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Apple Inc. (AAPL) is +0.09 at $134.03, with 1,757,903 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iQIYI, Inc. (IQ) is unchanged at $22.82, with 4,250,288 shares traded.
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11085.0
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2021-01-27 00:00:00 UTC
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Interesting AAP Put And Call Options For February 19th
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AAP
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https://www.nasdaq.com/articles/interesting-aap-put-and-call-options-for-february-19th-2021-01-27
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading this week, for the February 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new February 19th contracts and identified one put and one call contract of particular interest.
The put contract at the $140.00 strike price has a current bid of $4.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $140.00, but will also collect the premium, putting the cost basis of the shares at $136.00 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $145.34/share today.
Because the $140.00 strike represents an approximate 4% 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 64%. 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 2.86% return on the cash commitment, or 45.34% 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 $140.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $155.00 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 $145.34/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $155.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.71% if the stock gets called away at the February 19th 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 $155.00 strike highlighted in red:
Considering the fact that the $155.00 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 69%. 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 2.06% boost of extra return to the investor, or 32.76% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 62%, while the implied volatility in the call contract example is 56%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $145.34) to be 48%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
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 $155.00 strike highlighted in red: Considering the fact that the $155.00 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 begin trading this week, for the February 19th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $155.00 strike highlighted in red: Considering the fact that the $155.00 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 begin trading this week, for the February 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new February 19th 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 $155.00 strike highlighted in red: Considering the fact that the $155.00 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 begin trading this week, for the February 19th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new February 19th 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 February 19th 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 $155.00 strike highlighted in red: Considering the fact that the $155.00 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 begin trading this week, for the February 19th expiration.
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11086.0
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2021-01-12 00:00:00 UTC
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After Hours Most Active for Jan 12, 2021 : TME, ZNGA, PE, SLB, LYFT, KMI, NIO, IGSB, ON, LB, INTC, AAPL
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AAP
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https://www.nasdaq.com/articles/after-hours-most-active-for-jan-12-2021-%3A-tme-znga-pe-slb-lyft-kmi-nio-igsb-on-lb-intc
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The NASDAQ 100 After Hours Indicator is up .46 to 12,892.55. The total After hours volume is currently 67,044,515 shares traded.
The following are the most active stocks for the after hours session:
Tencent Music Entertainment Group (TME) is -0.16 at $21.30, with 6,113,605 shares traded. As reported by Zacks, the current mean recommendation for TME is in the "buy range".
Zynga Inc. (ZNGA) is -0.07 at $9.50, with 5,439,494 shares traded. As reported by Zacks, the current mean recommendation for ZNGA is in the "buy range".
Parsley Energy, Inc. (PE) is -0.15 at $16.78, with 4,980,010 shares traded. As reported by Zacks, the current mean recommendation for PE is in the "buy range".
Schlumberger N.V. (SLB) is unchanged at $26.14, with 3,493,037 shares traded. As reported by Zacks, the current mean recommendation for SLB is in the "buy range".
Lyft, Inc. (LYFT) is -0.08 at $50.60, with 3,425,132 shares traded. As reported by Zacks, the current mean recommendation for LYFT is in the "buy range".
Kinder Morgan, Inc. (KMI) is unchanged at $15.21, with 2,830,736 shares traded. KMI's current last sale is 95.06% of the target price of $16.
NIO Inc. (NIO) is +0.39 at $62.43, with 2,704,911 shares traded. NIO's current last sale is 189.18% of the target price of $33.
iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is -0.0057 at $55.06, with 2,527,289 shares traded. This represents a 16.64% increase from its 52 Week Low.
ON Semiconductor Corporation (ON) is +0.14 at $36.55, with 2,503,773 shares traded. As reported in the last short interest update the days to cover for ON is 8.04004; this calculation is based on the average trading volume of the stock.
L Brands, Inc. (LB) is unchanged at $47.29, with 2,236,230 shares traded. Over the last four weeks they have had 9 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2021. The consensus EPS forecast is $2.78. LB's current last sale is 105.09% of the target price of $45.
Intel Corporation (INTC) is +0.11 at $53.35, with 1,971,477 shares traded. INTC's current last sale is 95.27% of the target price of $56.
Apple Inc. (AAPL) is -0.1 at $128.70, with 1,879,020 shares traded. 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 -0.1 at $128.70, with 1,879,020 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". iShares 1-5 Year Investment Grade Corporate Bond ETF (IGSB) is -0.0057 at $55.06, with 2,527,289 shares traded.
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Apple Inc. (AAPL) is -0.1 at $128.70, with 1,879,020 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 67,044,515 shares traded.
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Apple Inc. (AAPL) is -0.1 at $128.70, with 1,879,020 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 67,044,515 shares traded.
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Apple Inc. (AAPL) is -0.1 at $128.70, with 1,879,020 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 TME is in the "buy range".
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11087.0
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2021-01-12 00:00:00 UTC
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Buy This Stock Before It Becomes a Dividend Aristocrat
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AAP
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https://www.nasdaq.com/articles/buy-this-stock-before-it-becomes-a-dividend-aristocrat-2021-01-12
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Dividend Aristocrats are elite stocks that have increased their dividends for at least 25 consecutive years. For obvious reasons, Dividend Aristocrats are extremely popular among investors who prioritize reliable and growing income from their portfolio.
Even stocks that haven't made it into the Dividend Aristocrats index yet can be great investments for income and growth, though. One stock that will likely get there within a few years is real estate investment trust W.P. Carey (NYSE: WPC). Here's why you might want to put it on your radar.
Image source: Getty Images.
What does W.P. Carey do?
W.P. Carey is a real estate investment trust, or REIT, that owns net-leased commercial properties. If you aren't familiar, a net lease is a form of commercial lease structure where the tenants pay property taxes, insurance, and maintenance expenses. Typically, net lease properties are occupied by a single tenant that signs a long-term (15-year or more) lease with gradual rent increases built in. In a nutshell, net leases are designed to produce reliable and growing income for a long time.
The company was founded in 1973 and has grown into one of the largest net-lease REITs in the market. As of the third quarter of 2020, W.P. Carey owns more than 1,200 properties with about 142 million square feet of space. Unlike most other REITs, though, the company doesn't limit itself to just one property type. Rather, W.P. Carey is one of the most diversified REITs in the market, with industrial, office, retail, and self-storage properties in its portfolio. Virtually all have rent increases built in. Better yet, most of these are tied to inflation, which provides another layer of protection. Top tenants include Amerco's (NASDAQ: UHAL) U-Haul, Extra Space Storage (NYSE: EXR), Marriott (NASDAQ: MAR), and Advance Auto Parts (NYSE: AAP), just to name a few, with no single tenant accounting for more than 3.3% of revenue. The company's properties are geographically diverse as well, with locations throughout the United States and Europe.
Further adding to the stability is W.P. Carey's rock-solid balance sheet. The company has an investment-grade credit rating and a below-average debt load that allow it to fund acquisitions and development at attractive costs of capital.
Finally, investors don't have to worry about the effects of the COVID-19 pandemic too much. W.P. Carey collected 98% of its billed third quarter rent, a statistic most other REITs (especially those with retail exposure) haven't come close to. Impressively, W.P. Carey collected 100% of its retail rent. The primary source of weakness was the roughly 2% of the portfolio made up of fitness, theater, and restaurant businesses.
The proof is in the numbers
The only reason W.P. Carey isn't already a Dividend Aristocrat is that it hasn't been a publicly traded company for long enough. Although the company has been around since the 1970s, W.P. Carey completed its IPO in 1998. It has increased its dividend every year since -- an impressive 22-year track record.
During its publicly traded history, W.P. Carey hasn't just been a great income stock. It has delivered a 1,320% total return for investors in just over 22 years (about 12.8% annualized), as compared with just over 500% for the S&P 500 during the same period.
A great choice for long-term investors
W.P. Carey is built to generate predictable and growing income for investors, year-after-year, no matter what the economy is doing. It isn't going to make you rich quickly -- that isn't the point of REITs, especially this one. If your investment priority is to gradually grow your money and produce a reliable income stream from your portfolio, though, this is definitely a stock to put on your radar.
10 stocks we like better than W. P. Carey
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and W. P. Carey 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 November 20, 2020
Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool recommends Amerco and Marriott International. 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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Top tenants include Amerco's (NASDAQ: UHAL) U-Haul, Extra Space Storage (NYSE: EXR), Marriott (NASDAQ: MAR), and Advance Auto Parts (NYSE: AAP), just to name a few, with no single tenant accounting for more than 3.3% of revenue. For obvious reasons, Dividend Aristocrats are extremely popular among investors who prioritize reliable and growing income from their portfolio. The company has an investment-grade credit rating and a below-average debt load that allow it to fund acquisitions and development at attractive costs of capital.
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Top tenants include Amerco's (NASDAQ: UHAL) U-Haul, Extra Space Storage (NYSE: EXR), Marriott (NASDAQ: MAR), and Advance Auto Parts (NYSE: AAP), just to name a few, with no single tenant accounting for more than 3.3% of revenue. One stock that will likely get there within a few years is real estate investment trust W.P. Carey is a real estate investment trust, or REIT, that owns net-leased commercial properties.
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Top tenants include Amerco's (NASDAQ: UHAL) U-Haul, Extra Space Storage (NYSE: EXR), Marriott (NASDAQ: MAR), and Advance Auto Parts (NYSE: AAP), just to name a few, with no single tenant accounting for more than 3.3% of revenue. Carey isn't already a Dividend Aristocrat is that it hasn't been a publicly traded company for long enough. Carey hasn't just been a great income stock.
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Top tenants include Amerco's (NASDAQ: UHAL) U-Haul, Extra Space Storage (NYSE: EXR), Marriott (NASDAQ: MAR), and Advance Auto Parts (NYSE: AAP), just to name a few, with no single tenant accounting for more than 3.3% of revenue. Carey do? Carey isn't already a Dividend Aristocrat is that it hasn't been a publicly traded company for long enough.
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11088.0
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2021-01-05 00:00:00 UTC
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This Leading Hedge Fund Has $1 Billion Invested in These 3 Stocks
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AAP
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https://www.nasdaq.com/articles/this-leading-hedge-fund-has-%241-billion-invested-in-these-3-stocks-2021-01-05
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The clue is in the description. Activist hedge fund Starboard Value tends to invest in companies with a view to helping them unlock the potential in the business. The formula usually involves encouraging management to restructure the company in order to improve profit margins in line with its peers. Successes include turnarounds at Darden Restaurants and Marvell Technology after Starboard placed directors on the board. Based on the fund's last 13F filing at the SEC, the fund holds over $1 billion in three stocks: auto parts retailer Advance Auto Parts (NYSE: AAP), engineering consultancy AECOM (NYSE: ACM), and agriscience company Corteva (NYSE: CTVA). Let's take a look.
Advance Auto Parts
It's fair to say that the auto parts retailer hasn't lived up to expectations since Starboard's involvement in 2015. Back then, the hope was that Advance would be able to raise its earnings margin toward its peers, O'Reilly Automotive and AutoZone. But the reality has been continued underperformance. For reference in the chart below, EBITDA is earnings before interest, taxation, depreciation, and amortization.
Data by YCharts
In addition, Starboard had hoped to improve Advance's cash flow generation by turning over inventories quicker and extending payables terms, again using its peers as a target. One way to look at it is to take the ratio of accounts payable to inventory.
A higher number for accounts payable implies the company is holding onto cash longer, and a lower number for inventory implies the company has less cash tied up in inventory. Therefore, a higher ratio number is better.
Unfortunately, Advance Auto Parts continues to lag behind its peers on this metric.
Data by YCharts
Given the evidence above, there's no compelling reason to buy Advance over O'Reilly or AutoZone right now, and Starboard actually reduced its stake in the company in the third quarter.
Consequently, Advance Auto Parts is probably worth avoiding for value investors right now.
AECOM
The restructuring at infrastructure consultancy and design company AECOM seems to be faring better than at Advance Auto Parts. Starboard's view was that AECOM had executed poorly in the past, and there was a significant opportunity to unlock value by improving operational performance and divesting less profitable businesses.
Management has clearly reacted to Starboard's criticisms and AECOM has been slimmed down over the last two years. For example, management sold the management services business for $2.4 billion in early 2020. Furthermore, its power construction business was sold in October, and an agreement to sell its civil construction business is in place for January.
Image source: Getty Images.
Alongside the divestitures, management has been reducing overhead by consolidating from nine regions to five and simplifying its decision-making processes. Many of these changes are in line with Starboard's recommendations and appear to follow the playbook set by AECOM's peer Jacobs Engineering Group when it turned its business around.
The changes at AECOM gave management the confidence to forecast a 9% increase in EBITDA in 2021 to $790 million-$830 million, with free cash flow in the range of $425 million-$625 million. The midpoint of these forecasts would put AECOM on an enterprise value (market cap plus net debt)-to-EBITDA multiple of less than 10 times, and a price-to-free cash flow multiple of around 14 times.
Those valuations make the stock look very attractive, and if you believe that infrastructure spending will remain strong in the coming years, then AECOM is worth buying.
Corteva
You guessed it. The case for buying agriscience company Corteva is based on the idea that it can, and should, increase its profit margin in line with its peers. The company, a spinoff from the former DowDuPont in 2019, generates around 45% of its revenue from crop protection and 55% from seeds. As Starboard's CEO Jeff Smith outlined at a presentation in October, Corteva's adjusted EBITDA margin is below its peers in both seeds and in crop protection.
Image source: Getty Images.
Smith has a point. After all, Wall Street analysts are expecting Corteva to report an EBITDA margin close to 14.1% in 2020. That's a figure significantly below Bayer Crop Science's (seeds and crop protection) adjusted EBITDA margin of 26.9% in the first nine months of 2020. In addition, a crop protection company, FMC, is expected to post an EBITDA margin of 27.6%.
Clearly, there's a lot of potential for Corteva to increase margins in the future. Indeed, the company's management is already planning for margin expansion to lead to 12%-16% EBITDA growth over the midterm.
Trading on an estimated EV/EBITDA multiple of 11.4 times 2021 earnings, and with the potential to significantly increase EBITDA in the future, Corteva is an attractive stock for investors looking to follow Starboard into a value opportunity.
10 stocks we like better than Corteva Inc.
When investing geniuses David and Tom Gardner have 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.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Corteva Inc. 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 November 20, 2020
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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Based on the fund's last 13F filing at the SEC, the fund holds over $1 billion in three stocks: auto parts retailer Advance Auto Parts (NYSE: AAP), engineering consultancy AECOM (NYSE: ACM), and agriscience company Corteva (NYSE: CTVA). Data by YCharts In addition, Starboard had hoped to improve Advance's cash flow generation by turning over inventories quicker and extending payables terms, again using its peers as a target. Starboard's view was that AECOM had executed poorly in the past, and there was a significant opportunity to unlock value by improving operational performance and divesting less profitable businesses.
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Based on the fund's last 13F filing at the SEC, the fund holds over $1 billion in three stocks: auto parts retailer Advance Auto Parts (NYSE: AAP), engineering consultancy AECOM (NYSE: ACM), and agriscience company Corteva (NYSE: CTVA). Data by YCharts In addition, Starboard had hoped to improve Advance's cash flow generation by turning over inventories quicker and extending payables terms, again using its peers as a target. Trading on an estimated EV/EBITDA multiple of 11.4 times 2021 earnings, and with the potential to significantly increase EBITDA in the future, Corteva is an attractive stock for investors looking to follow Starboard into a value opportunity.
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Based on the fund's last 13F filing at the SEC, the fund holds over $1 billion in three stocks: auto parts retailer Advance Auto Parts (NYSE: AAP), engineering consultancy AECOM (NYSE: ACM), and agriscience company Corteva (NYSE: CTVA). As Starboard's CEO Jeff Smith outlined at a presentation in October, Corteva's adjusted EBITDA margin is below its peers in both seeds and in crop protection. Trading on an estimated EV/EBITDA multiple of 11.4 times 2021 earnings, and with the potential to significantly increase EBITDA in the future, Corteva is an attractive stock for investors looking to follow Starboard into a value opportunity.
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Based on the fund's last 13F filing at the SEC, the fund holds over $1 billion in three stocks: auto parts retailer Advance Auto Parts (NYSE: AAP), engineering consultancy AECOM (NYSE: ACM), and agriscience company Corteva (NYSE: CTVA). For example, management sold the management services business for $2.4 billion in early 2020. Trading on an estimated EV/EBITDA multiple of 11.4 times 2021 earnings, and with the potential to significantly increase EBITDA in the future, Corteva is an attractive stock for investors looking to follow Starboard into a value opportunity.
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11089.0
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2020-12-23 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Cellectar Biosciences, CASI Pharmaceuticals, Pfizer
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AAP
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-cellectar-biosciences-casi-pharmaceuticals-pfizer-2020-12-23
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Eikon search string for individual stock moves: STXBZ
The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi
The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh
Wall Street indexes were set to rise on Wednesday as investors shrugged off President Donald Trump's threat to not sign a $900 billion COVID-19 stimulus package, while weekly jobless claims came in better than feared. .N
At 8:26 ET, Dow e-minis 1YMc1 were up 0.19% at 29,970. S&P 500 e-minis ESc1 were up 0.16% at 3,683.25, while Nasdaq 100 e-minis NQc1 were up 0.01% at 12,710.75. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Magna International Inc , up 19.0% ** Ethan Allen Interiors Inc , up 17.2% ** Ion Acquisition Corp 1 Ltd , up 14.2% The top three NYSE percentage losers premarket .PRPL.NQ: ** Advance Auto Parts Inc , down 11.1% ** Apple Hospitality REIT Inc , down 10.6% ** FuboTV Inc , down 10.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Yumanity Therapeutics Inc , up 1,540.5% ** Ocugen Inc , up 152.1% ** Onconova Therapeutics Inc , up 70.7% The top Nasdaq percentage losers premarket .PRPL.O: ** Cellectar Biosciences Inc , down 31.4% ** U.S. Well Services Inc , down 28.1%
** GameStop Corp GME.N: up 1.8% premarket BUZZ-Gamestop shares level up ** Spectrum Pharmaceuticals Inc SPPI.O: down 8.9% premarket BUZZ-Falls after mixed results from lung cancer trial ** Paysign Inc PAYS.O: down 2.4% premarket BUZZ-Canaccord Genuity downgrades on lower visibility of core businesses
** Kubient Inc KBNT.O: down 14.8% premarket BUZZ-Falls on $16.3 mln share offering
** Supernus Pharmaceuticals Inc SUPN.O: up 23.4% premarket BUZZ-Up as drug meets main goal of study in adults with ADHD
** Cellectar Biosciences Inc CLRB.O: down 31.4% premarket BUZZ-Plunges on plans to launch stock offering ** Cloudera Inc CLDR.N: up 5.0% premarket BUZZ-Soars after securing $500 mln loan ** Pfizer Inc PFE.N: up 0.8% premarket BUZZ-Rises on deal to supply 100 mln more vaccine doses to U.S. ** Lizhi Inc LIZI.O: up 30.9% premarket BUZZ-Jumps on tie-up with Chinese auto manufacturers ** CASI Pharmaceuticals Inc CASI.O: up 14.0% premarket BUZZ-Rises on China's breakthrough status for blood cancer therapy ** FuboTV Inc FUBO.N: down 10.2% premarket BUZZ-BMO downgrades to 'market perform'
(Compiled by Tiyashi Datta)
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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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street indexes were set to rise on Wednesday as investors shrugged off President Donald Trump's threat to not sign a $900 billion COVID-19 stimulus package, while weekly jobless claims came in better than feared. .N At 8:26 ET, Dow e-minis 1YMc1 were up 0.19% at 29,970. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Magna International Inc , up 19.0% ** Ethan Allen Interiors Inc , up 17.2% ** Ion Acquisition Corp 1 Ltd , up 14.2% The top three NYSE percentage losers premarket .PRPL.NQ: ** Advance Auto Parts Inc , down 11.1% ** Apple Hospitality REIT Inc , down 10.6% ** FuboTV Inc , down 10.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Yumanity Therapeutics Inc , up 1,540.5% ** Ocugen Inc , up 152.1% ** Onconova Therapeutics Inc , up 70.7% The top Nasdaq percentage losers premarket .PRPL.O: ** Cellectar Biosciences Inc , down 31.4% ** U.S. Well Services Inc , down 28.1% ** GameStop Corp GME.N: up 1.8% premarket BUZZ-Gamestop shares level up ** Spectrum Pharmaceuticals Inc SPPI.O: down 8.9% premarket BUZZ-Falls after mixed results from lung cancer trial ** Paysign Inc PAYS.O: down 2.4% premarket BUZZ-Canaccord Genuity downgrades on lower visibility of core businesses ** Kubient Inc KBNT.O: down 14.8% premarket BUZZ-Falls on $16.3 mln share offering ** Supernus Pharmaceuticals Inc SUPN.O: up 23.4% premarket BUZZ-Up as drug meets main goal of study in adults with ADHD ** Cellectar Biosciences Inc CLRB.O: down 31.4% premarket BUZZ-Plunges on plans to launch stock offering ** Cloudera Inc CLDR.N: up 5.0% premarket BUZZ-Soars after securing $500 mln loan ** Pfizer Inc PFE.N: up 0.8% premarket BUZZ-Rises on deal to supply 100 mln more vaccine doses to U.S. ** Lizhi Inc LIZI.O: up 30.9% premarket BUZZ-Jumps on tie-up with Chinese auto manufacturers ** CASI Pharmaceuticals Inc CASI.O: up 14.0% premarket BUZZ-Rises on China's breakthrough status for blood cancer therapy ** FuboTV Inc FUBO.N: down 10.2% premarket BUZZ-BMO downgrades to 'market perform' (Compiled by Tiyashi Datta) 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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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street indexes were set to rise on Wednesday as investors shrugged off President Donald Trump's threat to not sign a $900 billion COVID-19 stimulus package, while weekly jobless claims came in better than feared. S&P 500 e-minis ESc1 were up 0.16% at 3,683.25, while Nasdaq 100 e-minis NQc1 were up 0.01% at 12,710.75. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Magna International Inc , up 19.0% ** Ethan Allen Interiors Inc , up 17.2% ** Ion Acquisition Corp 1 Ltd , up 14.2% The top three NYSE percentage losers premarket .PRPL.NQ: ** Advance Auto Parts Inc , down 11.1% ** Apple Hospitality REIT Inc , down 10.6% ** FuboTV Inc , down 10.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Yumanity Therapeutics Inc , up 1,540.5% ** Ocugen Inc , up 152.1% ** Onconova Therapeutics Inc , up 70.7% The top Nasdaq percentage losers premarket .PRPL.O: ** Cellectar Biosciences Inc , down 31.4% ** U.S. Well Services Inc , down 28.1% ** GameStop Corp GME.N: up 1.8% premarket BUZZ-Gamestop shares level up ** Spectrum Pharmaceuticals Inc SPPI.O: down 8.9% premarket BUZZ-Falls after mixed results from lung cancer trial ** Paysign Inc PAYS.O: down 2.4% premarket BUZZ-Canaccord Genuity downgrades on lower visibility of core businesses ** Kubient Inc KBNT.O: down 14.8% premarket BUZZ-Falls on $16.3 mln share offering ** Supernus Pharmaceuticals Inc SUPN.O: up 23.4% premarket BUZZ-Up as drug meets main goal of study in adults with ADHD ** Cellectar Biosciences Inc CLRB.O: down 31.4% premarket BUZZ-Plunges on plans to launch stock offering ** Cloudera Inc CLDR.N: up 5.0% premarket BUZZ-Soars after securing $500 mln loan ** Pfizer Inc PFE.N: up 0.8% premarket BUZZ-Rises on deal to supply 100 mln more vaccine doses to U.S. ** Lizhi Inc LIZI.O: up 30.9% premarket BUZZ-Jumps on tie-up with Chinese auto manufacturers ** CASI Pharmaceuticals Inc CASI.O: up 14.0% premarket BUZZ-Rises on China's breakthrough status for blood cancer therapy ** FuboTV Inc FUBO.N: down 10.2% premarket BUZZ-BMO downgrades to 'market perform' (Compiled by Tiyashi Datta) 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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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street indexes were set to rise on Wednesday as investors shrugged off President Donald Trump's threat to not sign a $900 billion COVID-19 stimulus package, while weekly jobless claims came in better than feared. S&P 500 e-minis ESc1 were up 0.16% at 3,683.25, while Nasdaq 100 e-minis NQc1 were up 0.01% at 12,710.75. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Magna International Inc , up 19.0% ** Ethan Allen Interiors Inc , up 17.2% ** Ion Acquisition Corp 1 Ltd , up 14.2% The top three NYSE percentage losers premarket .PRPL.NQ: ** Advance Auto Parts Inc , down 11.1% ** Apple Hospitality REIT Inc , down 10.6% ** FuboTV Inc , down 10.2% The top three Nasdaq percentage gainers premarket .PRPG.O: ** Yumanity Therapeutics Inc , up 1,540.5% ** Ocugen Inc , up 152.1% ** Onconova Therapeutics Inc , up 70.7% The top Nasdaq percentage losers premarket .PRPL.O: ** Cellectar Biosciences Inc , down 31.4% ** U.S. Well Services Inc , down 28.1% ** GameStop Corp GME.N: up 1.8% premarket BUZZ-Gamestop shares level up ** Spectrum Pharmaceuticals Inc SPPI.O: down 8.9% premarket BUZZ-Falls after mixed results from lung cancer trial ** Paysign Inc PAYS.O: down 2.4% premarket BUZZ-Canaccord Genuity downgrades on lower visibility of core businesses ** Kubient Inc KBNT.O: down 14.8% premarket BUZZ-Falls on $16.3 mln share offering ** Supernus Pharmaceuticals Inc SUPN.O: up 23.4% premarket BUZZ-Up as drug meets main goal of study in adults with ADHD ** Cellectar Biosciences Inc CLRB.O: down 31.4% premarket BUZZ-Plunges on plans to launch stock offering ** Cloudera Inc CLDR.N: up 5.0% premarket BUZZ-Soars after securing $500 mln loan ** Pfizer Inc PFE.N: up 0.8% premarket BUZZ-Rises on deal to supply 100 mln more vaccine doses to U.S. ** Lizhi Inc LIZI.O: up 30.9% premarket BUZZ-Jumps on tie-up with Chinese auto manufacturers ** CASI Pharmaceuticals Inc CASI.O: up 14.0% premarket BUZZ-Rises on China's breakthrough status for blood cancer therapy ** FuboTV Inc FUBO.N: down 10.2% premarket BUZZ-BMO downgrades to 'market perform' (Compiled by Tiyashi Datta) 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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Eikon search string for individual stock moves: STXBZ The Day Ahead newsletter: http://tmsnrt.rs/2ggOmBi The Morning News Call newsletter: http://tmsnrt.rs/2fwPLTh Wall Street indexes were set to rise on Wednesday as investors shrugged off President Donald Trump's threat to not sign a $900 billion COVID-19 stimulus package, while weekly jobless claims came in better than feared. .N At 8:26 ET, Dow e-minis 1YMc1 were up 0.19% at 29,970. S&P 500 e-minis ESc1 were up 0.16% at 3,683.25, while Nasdaq 100 e-minis NQc1 were up 0.01% at 12,710.75.
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11090.0
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2020-12-15 00:00:00 UTC
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Ex-Dividend Reminder: Vodafone Group, Turning Point Brands and Advance Auto Parts
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AAP
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-vodafone-group-turning-point-brands-and-advance-auto-parts-2020-12
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Looking at the universe of stocks we cover at Dividend Channel, on 12/17/20, Vodafone Group plc New (Symbol: VODPF), Turning Point Brands Inc (Symbol: TPB), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Vodafone Group plc New will pay its semi-annual dividend of $0.045 on 2/5/21, Turning Point Brands Inc will pay its quarterly dividend of $0.05 on 1/8/21, and Advance Auto Parts Inc will pay its quarterly dividend of $0.25 on 1/4/21. As a percentage of VODPF's recent stock price of $1.75, this dividend works out to approximately 2.57%, so look for shares of Vodafone Group plc New to trade 2.57% lower — all else being equal — when VODPF shares open for trading on 12/17/20. Similarly, investors should look for TPB to open 0.12% lower in price and for AAP to open 0.16% lower, all else being equal.
Below are dividend history charts for VODPF, TPB, and AAP, showing historical dividends prior to the most recent ones declared.
Vodafone Group plc New (Symbol: VODPF):
Turning Point Brands Inc (Symbol: TPB):
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 5.14% for Vodafone Group plc New, 0.47% for Turning Point Brands Inc, and 0.63% for Advance Auto Parts Inc.
In Tuesday trading, Vodafone Group plc New shares are currently trading flat, Turning Point Brands Inc shares are off about 0.1%, and Advance Auto Parts Inc shares are trading flat on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
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 12/17/20, Vodafone Group plc New (Symbol: VODPF), Turning Point Brands Inc (Symbol: TPB), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for TPB to open 0.12% lower in price and for AAP to open 0.16% lower, all else being equal. Below are dividend history charts for VODPF, TPB, 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 12/17/20, Vodafone Group plc New (Symbol: VODPF), Turning Point Brands Inc (Symbol: TPB), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Vodafone Group plc New (Symbol: VODPF): Turning Point Brands Inc (Symbol: TPB): 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 TPB to open 0.12% lower in price and for AAP to open 0.16% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 12/17/20, Vodafone Group plc New (Symbol: VODPF), Turning Point Brands Inc (Symbol: TPB), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Vodafone Group plc New (Symbol: VODPF): Turning Point Brands Inc (Symbol: TPB): 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 TPB to open 0.12% lower in price and for AAP to open 0.16% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 12/17/20, Vodafone Group plc New (Symbol: VODPF), Turning Point Brands Inc (Symbol: TPB), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for TPB to open 0.12% lower in price and for AAP to open 0.16% lower, all else being equal. Below are dividend history charts for VODPF, TPB, and AAP, showing historical dividends prior to the most recent ones declared.
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11091.0
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2020-12-14 00:00:00 UTC
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After Hours Most Active for Dec 14, 2020 : PM, WMB, MO, AMRN, VIAC, V, T, KMI, INTC, GNTX, KDP, AAPL
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AAP
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https://www.nasdaq.com/articles/after-hours-most-active-for-dec-14-2020-%3A-pm-wmb-mo-amrn-viac-v-t-kmi-intc-gntx-kdp-aapl
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The NASDAQ 100 After Hours Indicator is up 5.08 to 12,467.29. The total After hours volume is currently 83,526,874 shares traded.
The following are the most active stocks for the after hours session:
Philip Morris International Inc (PM) is +0.1 at $84.50, with 4,553,405 shares traded. As reported by Zacks, the current mean recommendation for PM is in the "buy range".
Williams Companies, Inc. (The) (WMB) is unchanged at $21.51, with 4,461,137 shares traded. As reported by Zacks, the current mean recommendation for WMB is in the "buy range".
Altria Group (MO) is +0.03 at $42.93, with 4,102,330 shares traded. As reported by Zacks, the current mean recommendation for MO is in the "buy range".
Amarin Corporation plc (AMRN) is +0.01 at $5.10, with 4,015,739 shares traded. As reported by Zacks, the current mean recommendation for AMRN is in the "buy range".
ViacomCBS Inc. (VIAC) is unchanged at $34.67, with 3,217,481 shares traded. As reported in the last short interest update the days to cover for VIAC is 10.755232; this calculation is based on the average trading volume of the stock.
Visa Inc. (V) is unchanged at $207.25, with 2,775,109 shares traded. As reported by Zacks, the current mean recommendation for V is in the "buy range".
AT&T Inc. (T) is +0.0298 at $30.58, with 2,692,626 shares traded. T's current last sale is 92.67% of the target price of $33.
Kinder Morgan, Inc. (KMI) is -0.01 at $14.30, with 2,673,249 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $0.24. KMI's current last sale is 89.38% of the target price of $16.
Intel Corporation (INTC) is +0.04 at $50.51, with 2,451,971 shares traded. INTC's current last sale is 90.2% of the target price of $56.
Gentex Corporation (GNTX) is unchanged at $33.01, with 2,440,420 shares traded. As reported by Zacks, the current mean recommendation for GNTX is in the "buy range".
Keurig Dr Pepper Inc. (KDP) is +0.04 at $30.39, with 2,161,562 shares traded. KDP's current last sale is 90.72% of the target price of $33.5.
Apple Inc. (AAPL) is -0.03 at $121.75, with 2,020,770 shares traded. 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 -0.03 at $121.75, with 2,020,770 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 AMRN is in the "buy range".
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Apple Inc. (AAPL) is -0.03 at $121.75, with 2,020,770 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". The total After hours volume is currently 83,526,874 shares traded.
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As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Apple Inc. (AAPL) is -0.03 at $121.75, with 2,020,770 shares traded. The total After hours volume is currently 83,526,874 shares traded.
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Apple Inc. (AAPL) is -0.03 at $121.75, with 2,020,770 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 PM is in the "buy range".
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11092.0
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2020-12-12 00:00:00 UTC
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Why Stitch Fix Stock Is Soaring
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AAP
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https://www.nasdaq.com/articles/why-stitch-fix-stock-is-soaring-2020-12-12
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nan
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In this episode of MarketFoolery, Chris Hill chats with Motley Fool analyst Jason Moser about the latest headlines and earnings reports from Wall Street. They break down the numbers to see what's causing Stitch Fix's (NASDAQ: SFIX) run on Wall Street. They've also got the results of a luxury homebuilder, an auto parts aftermarket retailer announces strong same-store sales, and much more.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Stitch Fix wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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This video was recorded on December 8, 2020.
Chris Hill: It's Tuesday, December 8th. Welcome to MarketFoolery. I'm Chris Hill, with me today, Mr. Jason Moser. Good to see you my friend.
Jason Moser: Howdy!
Hill: We got housing, we got automotive. We're going to start with the stock of the day, and that is Stitch Fix.
Shares of Stitch Fix up 45% today. They reported a profit in the first quarter, that was a surprise. First quarter revenue was 10% higher than a year ago. That's good, that doesn't strike me as the kind of revenue growth that would spark a stock shooting up 45%. I'm assuming, at least part of what we're seeing today is short-covering.
Moser: Yeah. I think that's a safe assumption. And I was going to say, you're forgiven if you're wondering why the market is offering up such a strong reaction today to really what were just, kind of, OK results. This is a massive short squeeze. And according to Cap IQ data, there was around 37% of the float going into today was being sold short. That's a lot, you know, that's over a third of the shares, that float on the open market. And anytime you have something like that, you'll see these types of things happen. Certainly, when a company beats expectations or brings results that are a little bit better than the market was thinking or expecting, I mean, it seems like it's a decent business, I don't know that it's one that can really capitalize on some massive market opportunity, because frankly, it's totally replicable, and we've seen that with other retailers and similar offerings. I mean, I've never used it, so I can't speak to it as a service.
I think the big question, really, for this company, I mean, this is a good quarter, congratulations to them, it's nice to see the stock getting some love today, but the big question really is going to be, can they sustain these tailwinds that COVID has created this year? And I'm just not so sure with that. I mean, anecdotally, I speak with people who've used the service, and they stopped using it, they just didn't find it to be all that compelling. I'm just not sure about that longer-term relationship with the customer, and that's what really matters, because you pay a lot to acquire these customers, to get them to use your service. If you're not keeping them, that becomes a real problem down the line. And so, it's really important to be able to keep those customers. And that's the big question, I think, for investors today, and I don't know that I have a firm answer, but I kind of feel like maybe there isn't the same sense of loyalty with something like Stitch Fix based on what we've seen up to this point.
Hill: There have been countless examples of start-up businesses that get some success, get some growth, get some attention, and then someone will throw out, you know, the classic "what if" like, well, what if... and usually the "what if" is followed by the name of a big tech company. That is essentially like, well, what if... you know, we heard this for years about Netflix. Well, what if Apple decides to go into original programming? It's like, well, they could, they haven't yet. Like, we'll see how that's going. So, I'm loathe to, sort of, pull the same trigger with Stitch Fix, like, you know, well, what if Amazon decided they wanted to get into that?
That said, it is one of those things I do have in the back of my mind, and part of it is because I live close to a Whole Foods, and I have noticed [laughs] over the past year, that when I go into the Whole Foods, they have got their own, not clothing, but they've got their own, sort of, meal kit section of the Whole Foods. And every time I walk by it, I think to myself, boy! Are they just, is Amazon just gearing up for a push to just take over the Blue Apron market? You know, that sort of thing. You and I have talked before about the investments that Brian Cornell, in particular, has made at Target (NYSE: TGT) in apparel. I'm not saying that they are direct competitors, but you know, if we're going to play the "what if" game, Target seems like a likely candidate to go into this space. I mean, it's a tough space, and I think it's a credit to Katrina Lake that she's built the business that she has to this point. But to the point you were making, I do wonder about how high the ceiling is.
Moser: I agree. I mean, that I think is my trepidation as far as this is an investment, because I don't see this massive market opportunity, because there are so many potential competitors out there. But Target certainly could be one. I mean, Amazon is out there doing their own stuff in fashion. Walmart is getting into that line of work as well. And you got all sorts of retailers that are coping with a pandemic economy and going digital and omnichannel.
And so, it's certainly not to say that Stitch Fix is a bad business, I mean, it seems like it's a pretty decent little business, but it may be one where it makes more sense as part of something bigger. I think it's really easy for a bigger retailer to add a dynamic like this and really leverage the infrastructure and inventory that they already have. But, I mean, you know the argument for Stitch Fix, for a lot of folks, I think, is the data side and perhaps there's something there. I don't know. It's fashion retail. I mean, that's just a really difficult market. And 10% growth for the quarter in revenue and customers is fine. Revenue per active client was actually down. It is a constant juggling act with inventory and trying to understand the consumer.
And they're seeing some tailwinds from athleisure, for example, and really shifted a lot of inventory. I think they said on the call, it was something like 150% growth in athleisure inventory, because they saw these tailwinds, because of everybody working from home and just the nature of athleisure, because people don't have to get dressed up to go to work [laughs] so much anymore.
So, it is a very difficult business to manage over the long-haul. We've seen SG&A [Selling, General and Administrative Expense] costs were up a little bit more meaningfully this quarter, it's not a really high margin business. And again, we go back to that apparel industry, it's just a very difficult space. And so, I think, beyond the short squeeze that we see playing out here over the next couple of days or however long this draws out, again, I go back to that question of, is this something, are they going to be able to sustain the tailwinds they're feeling right now? Because if not, again, that revenue growth at 10%, eh! you know, they're calling for 25% for the year, they better deliver on that, because that's certainly part of what's going on today. We'll just have to wait and see, but certainly congratulations to them for chalking up a decent quarter and for getting a little love today in the market.
Hill: And you know, anyone can obviously completely ignore the conjecture [laughs] that I just, sort of, threw out there, like, well, what if Target... like, just put all that aside, you're absolutely right about the revenue. Like, at the end of the day, it doesn't matter who their competition is, if 10% revenue growth is what they're getting, you know, that is reason enough to be skeptical. But to your point, if they can deliver on the 25% growth, more power to them.
Let's move on to Toll Brothers (NYSE: TOL). Shares of the luxury home builder dropped 7%, despite the fact fourth quarter profits and revenue came in higher than expected. Help me understand this, I mean, mortgage rates are low, demand for more living space is up, this is a luxury homebuilder. Why is the stock down? [laughs]
Moser: Well, so this is a business where size matters, and we've seen that play out. If you compare Toll Brothers to something like a D.R. Horton. You can certainly see the advantages in D.R. Horton's model, just because it's so much bigger. But Toll Brothers, as you mentioned, a bit of a more specific market in that luxury home space. So, I think the market opportunity maybe is a little bit smaller, I think the sell-off today really is a valuation thing. It was a good quarter. And frankly, they painted a very nice picture for the coming year. I mean, just if you look back historically, the multiple expansion has been really strong here for this company over the past several years in relation to the growth that they've been recording. So, I think it's more of a valuation thing than anything else.
So, in the release, CEO, Doug Yearley noted, that they're experiencing the strongest housing market he's seen in his 30 years at the company. That's a strong language. [laughs] And so, yeah, I think that it's really shaping up to be a good year for this business. I think it's a bit of a more specific market in the product that they're putting out there, but again, to your point, they're saying that they see the housing market is strong as they've ever seen it, there are a lot of things coming together that's making it a very robust market. I mean, they saw nice growth for the quarter, home sales revenues were $2.5 billion, it was up 9%; homebuilding deliveries were up 10%; net signed contract value was up 63%; contracted homes, up 68%. So, they're seeing a lot of strength out there and they're benefiting from it. I think that really the valuation is what the source of the sell-off today is.
If you just look at the multiple expansion, it really just hasn't kept up with the growth. This is another growth company, it's growing, it's growing modestly, but it's something where the valuation still has to make sense. And this is housing, right, it's not a SaaS business, it's not Tesla, so, [laughs] I mean, we got to try to keep things in context, I guess. [laughs]
Hill: You're saying, it's not Luxury-homebuilding-as-a-Service?
Moser: I mean, we can invent that business model today, Chris, I'm sure, and probably get that stock back even for the day if we wanted to, but we're not going to do that.
Hill: We're not going to do that; that sounds exhausting. AutoZone's first quarter profits came in higher than expected, revenue looked good, same-store sales were up more than 12%. Same question, why is this stock down 7%?
Moser: Well, again, this is coming off of a really stellar quarter that they just recorded a few months ago. So, these businesses have actually, AutoZone, and O'Reilly, and Advance to a lesser degree, they've been pretty resilient through what's been a very difficult time for the retail space, and they don't have the same type of omnichannel presence that is helping other retailers cope. So, it's been a tough year, but the further out you look, the more sense these stocks make, the performance gets a little bit better.
For me, AutoZone and O'Reilly are really the two companies that rule the space. And it's a pretty attractive space when you consider the number of cars on the road today, and that's going to continue to be the case, I think, for a long time to come. It feels like to me, you could call AutoZone the Lowe's to O'Reilly's Home Depot. So, AutoZone is kind of that, I don't want to say a lesser competitor, because that's really doing a disservice to Lowe's, the success that Lowe's has been witnessing and what Marvin Ellison has done there, but I think that AutoZone is just -- O'Reilly is just a little bit of a stronger business I think.
But to your point, same-store sales up 12.3% for the quarter, but if you just look back at the last quarter, 22% same-store sales growth. So, maybe it was a little bit underwhelming compared to what they chalked up last quarter. But this is a business that keeps on doing just really good stuff. The Commercial business continues to grow at double-digit rates, that was 10% for the quarter, that was 17% a quarter ago.
And I think sequential results are important to look at. A lot of times we're comparing things year-over-year, but sequential results are more important this year because of what we've been going through with COVID. So, I just think it's always worth noting that stuff.
You know, they're seeing some operating leverage in the model which is really nice, traffic and transactions were up a little bit. They restarted their share repurchases. So, they brought down the share count about 20% over the last five years. But again, you go back to that omnichannel, that's still just a tiny percentage of the business, like this is like, below 5%. Maybe there's an opportunity for them, and maybe that would be something that could light a fire under the shares. But, hey, it was a respectable quarter in a difficult time.
Hill: Historically, they've done a good job in terms of repurchasing their own stock. And it is going to be interesting to see what 2021 holds for AutoZone, because as you said, they restarted that, you know, if more cars are getting back on the road then that is good for the auto parts business because more time on the road means more wear-and-tear and, you know, that's generally good for business. But we'll see where it goes.
All right. Jason Moser, always good talking to you; thanks for being here.
Moser: Yes, Sir. Thank you.
Hill: As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
That's going to do it for this edition of MarketFoolery. The show is mixed by Dan Boyd, I'm Chris Hill. 40 years ago, we lost John Lennon, but fortunately, his music and legacy live forever. So, rest in peace, John.
Chris Hill has no position in any of the stocks mentioned. Jason Moser has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Home Depot, Netflix, Stitch Fix, and Tesla. The Motley Fool recommends Lowe's. 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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In this episode of MarketFoolery, Chris Hill chats with Motley Fool analyst Jason Moser about the latest headlines and earnings reports from Wall Street. Hill: There have been countless examples of start-up businesses that get some success, get some growth, get some attention, and then someone will throw out, you know, the classic "what if" like, well, what if... and usually the "what if" is followed by the name of a big tech company. And so, I think, beyond the short squeeze that we see playing out here over the next couple of days or however long this draws out, again, I go back to that question of, is this something, are they going to be able to sustain the tailwinds they're feeling right now?
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They've also got the results of a luxury homebuilder, an auto parts aftermarket retailer announces strong same-store sales, and much more. AutoZone's first quarter profits came in higher than expected, revenue looked good, same-store sales were up more than 12%. The Motley Fool owns shares of and recommends Apple, Home Depot, Netflix, Stitch Fix, and Tesla.
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Certainly, when a company beats expectations or brings results that are a little bit better than the market was thinking or expecting, I mean, it seems like it's a decent business, I don't know that it's one that can really capitalize on some massive market opportunity, because frankly, it's totally replicable, and we've seen that with other retailers and similar offerings. I think the big question, really, for this company, I mean, this is a good quarter, congratulations to them, it's nice to see the stock getting some love today, but the big question really is going to be, can they sustain these tailwinds that COVID has created this year? Hill: As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
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And so, it's certainly not to say that Stitch Fix is a bad business, I mean, it seems like it's a pretty decent little business, but it may be one where it makes more sense as part of something bigger. I think it's a bit of a more specific market in the product that they're putting out there, but again, to your point, they're saying that they see the housing market is strong as they've ever seen it, there are a lot of things coming together that's making it a very robust market. Moser: I mean, we can invent that business model today, Chris, I'm sure, and probably get that stock back even for the day if we wanted to, but we're not going to do that.
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11093.0
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2020-12-10 00:00:00 UTC
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Pre-Market Most Active for Dec 10, 2020 : IMMP, TSLA, AAL, NIO, SQQQ, KODK, CHL, PFE, FSR, DKS, AZN, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-dec-10-2020-%3A-immp-tsla-aal-nio-sqqq-kodk-chl-pfe-fsr-dks-azn
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The NASDAQ 100 Pre-Market Indicator is down -72.87 to 12,291.77. The total Pre-Market volume is currently 53,633,461 shares traded.
The following are the most active stocks for the pre-market session:
Immutep Limited (IMMP) is +3.37 at $5.53, with 18,825,220 shares traded. IMMP's current last sale is 276.5% of the target price of $2.
Tesla, Inc. (TSLA) is -27.48 at $577.00, with 2,156,698 shares traded. TSLA's current last sale is 127.51% of the target price of $452.5.
American Airlines Group, Inc. (AAL) is -0.09 at $17.07, with 2,090,516 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $-3.95. AAL's current last sale is 170.7% of the target price of $10.
NIO Inc. (NIO) is -0.85 at $43.16, with 1,485,677 shares traded. NIO's current last sale is 130.79% of the target price of $33.
ProShares UltraPro Short QQQ (SQQQ) is +0.17 at $17.46, with 1,218,529 shares traded. This represents a 8.11% increase from its 52 Week Low.
Eastman Kodak Company (KODK) is +0.56 at $10.22, with 1,010,114 shares traded.
China Mobile (Hong Kong) Ltd. (CHL) is -0.02 at $28.97, with 943,228 shares traded., following a 52-week high recorded in prior regular session.
Pfizer, Inc. (PFE) is +0.28 at $42.13, with 881,470 shares traded. PFE's current last sale is 100.31% of the target price of $42.
Fisker Inc. (FSR) is -1.83 at $15.00, with 851,208 shares traded. As reported by Zacks, the current mean recommendation for FSR is in the "strong buy range".
Dick's Sporting Goods Inc (DKS) is +0.3125 at $54.45, with 846,700 shares traded. Over the last four weeks they have had 8 up revisions for the earnings forecast, for the fiscal quarter ending Jan 2021. The consensus EPS forecast is $2.18. DKS's current last sale is 85.08% of the target price of $64.
Astrazeneca PLC (AZN) is +0.09 at $54.13, with 758,274 shares traded. As reported by Zacks, the current mean recommendation for AZN is in the "buy range".
Apple Inc. (AAPL) is -0.7587 at $121.02, with 754,982 shares traded. 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 -0.7587 at $121.02, with 754,982 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020.
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Apple Inc. (AAPL) is -0.7587 at $121.02, with 754,982 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020.
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Apple Inc. (AAPL) is -0.7587 at $121.02, with 754,982 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020.
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Apple Inc. (AAPL) is -0.7587 at $121.02, with 754,982 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". IMMP's current last sale is 276.5% of the target price of $2.
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11094.0
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2020-12-02 00:00:00 UTC
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Notable Wednesday Option Activity: CVS, AAP, WBA
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AAP
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https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-cvs-aap-wba-2020-12-02
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in CVS Health Corporation (Symbol: CVS), where a total of 101,710 contracts have traded so far, representing approximately 10.2 million underlying shares. That amounts to about 89.9% of CVS's average daily trading volume over the past month of 11.3 million shares. Especially high volume was seen for the $70 strike call option expiring December 04, 2020, with 9,762 contracts trading so far today, representing approximately 976,200 underlying shares of CVS. Below is a chart showing CVS's trailing twelve month trading history, with the $70 strike highlighted in orange:
Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 8,889 contracts thus far today. That number of contracts represents approximately 888,900 underlying shares, working out to a sizeable 79.6% of AAP's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $135 strike put option expiring March 19, 2021, with 2,525 contracts trading so far today, representing approximately 252,500 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $135 strike highlighted in orange:
And Walgreens Boots Alliance Inc (Symbol: WBA) options are showing a volume of 77,207 contracts thus far today. That number of contracts represents approximately 7.7 million underlying shares, working out to a sizeable 78.5% of WBA's average daily trading volume over the past month, of 9.8 million shares. Especially high volume was seen for the $40 strike call option expiring December 18, 2020, with 12,405 contracts trading so far today, representing approximately 1.2 million underlying shares of WBA. Below is a chart showing WBA's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for CVS options, AAP options, or WBA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $135 strike put option expiring March 19, 2021, with 2,525 contracts trading so far today, representing approximately 252,500 underlying shares of AAP. Below is a chart showing CVS's trailing twelve month trading history, with the $70 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 8,889 contracts thus far today. That number of contracts represents approximately 888,900 underlying shares, working out to a sizeable 79.6% of AAP's average daily trading volume over the past month, of 1.1 million shares.
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That number of contracts represents approximately 888,900 underlying shares, working out to a sizeable 79.6% of AAP's average daily trading volume over the past month, of 1.1 million shares. Below is a chart showing CVS's trailing twelve month trading history, with the $70 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 8,889 contracts thus far today. Especially high volume was seen for the $135 strike put option expiring March 19, 2021, with 2,525 contracts trading so far today, representing approximately 252,500 underlying shares of AAP.
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Below is a chart showing CVS's trailing twelve month trading history, with the $70 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 8,889 contracts thus far today. That number of contracts represents approximately 888,900 underlying shares, working out to a sizeable 79.6% of AAP's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $135 strike put option expiring March 19, 2021, with 2,525 contracts trading so far today, representing approximately 252,500 underlying shares of AAP.
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Below is a chart showing WBA's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for CVS options, AAP options, or WBA options, visit StockOptionsChannel.com. Below is a chart showing CVS's trailing twelve month trading history, with the $70 strike highlighted in orange: Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 8,889 contracts thus far today. That number of contracts represents approximately 888,900 underlying shares, working out to a sizeable 79.6% of AAP's average daily trading volume over the past month, of 1.1 million shares.
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11095.0
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2020-11-19 00:00:00 UTC
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Notable Thursday Option Activity: AAP, URGN, TWLO
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AAP
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-aap-urgn-twlo-2020-11-19
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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 Advance Auto Parts Inc (Symbol: AAP), where a total volume of 18,497 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 196.1% of AAP's average daily trading volume over the past month, of 943,170 shares. Especially high volume was seen for the $145 strike call option expiring November 20, 2020, with 8,531 contracts trading so far today, representing approximately 853,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $145 strike highlighted in orange:
UroGen Pharma Ltd (Symbol: URGN) options are showing a volume of 2,372 contracts thus far today. That number of contracts represents approximately 237,200 underlying shares, working out to a sizeable 189% of URGN's average daily trading volume over the past month, of 125,535 shares. Especially high volume was seen for the $22.50 strike put option expiring November 20, 2020, with 1,100 contracts trading so far today, representing approximately 110,000 underlying shares of URGN. Below is a chart showing URGN's trailing twelve month trading history, with the $22.50 strike highlighted in orange:
And Twilio Inc (Symbol: TWLO) options are showing a volume of 40,307 contracts thus far today. That number of contracts represents approximately 4.0 million underlying shares, working out to a sizeable 147.5% of TWLO's average daily trading volume over the past month, of 2.7 million shares. Particularly high volume was seen for the $300 strike call option expiring November 20, 2020, with 10,959 contracts trading so far today, representing approximately 1.1 million underlying shares of TWLO. Below is a chart showing TWLO's trailing twelve month trading history, with the $300 strike highlighted in orange:
For the various different available expirations for AAP options, URGN options, or TWLO options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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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Especially high volume was seen for the $145 strike call option expiring November 20, 2020, with 8,531 contracts trading so far today, representing approximately 853,100 underlying shares of AAP. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 18,497 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 196.1% of AAP's average daily trading volume over the past month, of 943,170 shares.
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Below is a chart showing AAP's trailing twelve month trading history, with the $145 strike highlighted in orange: UroGen Pharma Ltd (Symbol: URGN) options are showing a volume of 2,372 contracts thus far today. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 18,497 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 196.1% of AAP's average daily trading volume over the past month, of 943,170 shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 18,497 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 196.1% of AAP's average daily trading volume over the past month, of 943,170 shares. Especially high volume was seen for the $145 strike call option expiring November 20, 2020, with 8,531 contracts trading so far today, representing approximately 853,100 underlying shares of AAP.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Advance Auto Parts Inc (Symbol: AAP), where a total volume of 18,497 contracts has been traded thus far today, a contract volume which is representative of approximately 1.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 196.1% of AAP's average daily trading volume over the past month, of 943,170 shares. Especially high volume was seen for the $145 strike call option expiring November 20, 2020, with 8,531 contracts trading so far today, representing approximately 853,100 underlying shares of AAP.
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11096.0
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2020-11-12 00:00:00 UTC
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Pre-Market Most Active for Nov 12, 2020 : XPEV, JWS, NIO, PDD, LI, AAL, PLTR, GE, CCL, SQQQ, QQQ, AAPL
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AAP
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https://www.nasdaq.com/articles/pre-market-most-active-for-nov-12-2020-%3A-xpev-jws-nio-pdd-li-aal-pltr-ge-ccl-sqqq-qqq-aapl
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The NASDAQ 100 Pre-Market Indicator is up 37.83 to 11,930.76. The total Pre-Market volume is currently 24,129,980 shares traded.
The following are the most active stocks for the pre-market session:
XPeng Inc. (XPEV) is +1.94 at $35.47, with 4,478,118 shares traded. Reuters Reports: BUZZ-U.S. STOCKS ON THE MOVE-Fossil, Sundial Growers, Nike
Jaws Acquisition Corp. (JWS) is +0.52 at $10.65, with 4,457,337 shares traded.
NIO Inc. (NIO) is +0.4 at $43.48, with 4,105,792 shares traded.NIO is scheduled to provide an earnings report on 11/17/2020, for the fiscal quarter ending Sep2020. The consensus earnings per share forecast is -0.17 per share, which represents a -33 percent increase over the EPS one Year Ago
Pinduoduo Inc. (PDD) is +25.54 at $137.00, with 1,701,810 shares traded. Reuters Reports: BUZZ-U.S. STOCKS ON THE MOVE-Fossil, Sundial Growers, Nike
Li Auto Inc. (LI) is +1.52 at $26.49, with 1,508,987 shares traded.LI is scheduled to provide an earnings report on 11/13/2020, for the fiscal quarter ending Sep2020. The consensus earnings per share forecast is -0.04 per share, which represents a 99,900 percent increase over the EPS one Year Ago
American Airlines Group, Inc. (AAL) is -0.1899 at $11.85, with 1,444,959 shares traded. AAL's current last sale is 118.5% of the target price of $10.
Palantir Technologies Inc. (PLTR) is +0.38 at $16.34, with 1,172,797 shares traded. Reuters Reports: Airbnb to make IPO filing public next week despite COVID-19 surge
General Electric Company (GE) is -0.13 at $8.76, with 1,152,591 shares traded. As reported by Zacks, the current mean recommendation for GE is in the "buy range".
Carnival Corporation (CCL) is -0.48 at $15.73, with 1,112,346 shares traded. CCL's current last sale is 112.36% of the target price of $14.
ProShares UltraPro Short QQQ (SQQQ) is -0.09 at $19.55, with 1,047,196 shares traded. This represents a 8.73% increase from its 52 Week Low.
Invesco QQQ Trust, Series 1 (QQQ) is +0.49 at $290.25, with 821,984 shares traded. This represents a 75.98% increase from its 52 Week Low.
Apple Inc. (AAPL) is -0.12 at $119.37, with 820,783 shares traded. Over the last four weeks they have had 5 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2020. The consensus EPS forecast is $1.39. 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 $119.37, with 820,783 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Reuters Reports: BUZZ-U.S. STOCKS ON THE MOVE-Fossil, Sundial Growers, Nike
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Apple Inc. (AAPL) is -0.12 at $119.37, with 820,783 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". Reuters Reports: BUZZ-U.S. STOCKS ON THE MOVE-Fossil, Sundial Growers, Nike
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Apple Inc. (AAPL) is -0.12 at $119.37, with 820,783 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". NIO Inc. (NIO) is +0.4 at $43.48, with 4,105,792 shares traded.NIO is scheduled to provide an earnings report on 11/17/2020, for the fiscal quarter ending Sep2020.
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Apple Inc. (AAPL) is -0.12 at $119.37, with 820,783 shares traded. As reported by Zacks, the current mean recommendation for AAPL is in the "buy range". AAL's current last sale is 118.5% of the target price of $10.
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11097.0
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2020-11-10 00:00:00 UTC
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Advance Auto Parts Q3 adjusted earnings Beat Estimates
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-q3-adjusted-earnings-beat-estimates-2020-11-10
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nan
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nan
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(RTTNews) - Advance Auto Parts (AAP) revealed a profit for its third quarter that advanced from the same period last year.
The company's profit came in at $147.48 million, or $2.13 per share. This compares with $123.67 million, or $1.75 per share, in last year's third quarter.
Excluding items, Advance Auto Parts reported adjusted earnings of $194.80 million or $2.81 per share for the period.
Analysts had expected the company to earn $2.66 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 10.0% to $2.54 billion from $2.31 billion last year.
Advance Auto Parts earnings at a glance:
-Earnings (Q3): $194.80 Mln. vs. $148.22 Mln. last year. -EPS (Q3): $2.81 vs. $2.10 last year. -Analysts Estimate: $2.66 -Revenue (Q3): $2.54 Bln vs. $2.31 Bln last year.
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 a profit for its third quarter that advanced from the same period last year. Excluding items, Advance Auto Parts reported adjusted earnings of $194.80 million or $2.81 per share for the period. Analysts had expected the company to earn $2.66 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - Advance Auto Parts (AAP) revealed a profit for its third quarter that advanced from the same period last year. Excluding items, Advance Auto Parts reported adjusted earnings of $194.80 million or $2.81 per share for the period. -Analysts Estimate: $2.66 -Revenue (Q3): $2.54 Bln vs. $2.31 Bln last year.
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(RTTNews) - Advance Auto Parts (AAP) revealed a profit for its third quarter that advanced from the same period last year. This compares with $123.67 million, or $1.75 per share, in last year's third quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $194.80 million or $2.81 per share for the period.
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(RTTNews) - Advance Auto Parts (AAP) revealed a profit for its third quarter that advanced from the same period last year. This compares with $123.67 million, or $1.75 per share, in last year's third quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $194.80 million or $2.81 per share for the period.
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11098.0
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2020-11-10 00:00:00 UTC
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Advance Auto Parts Q3 20 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-q3-20-earnings-conference-call-at-8%3A00-am-et-2020-11-10
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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 Nov. 10, 2020, to discuss Q3 20 earnings results.
To access the live webcast, log on to https://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 Nov. 10, 2020, to discuss Q3 20 earnings results. To access the live webcast, log on to https://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 Nov. 10, 2020, to discuss Q3 20 earnings results. To access the live webcast, log on to https://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 Nov. 10, 2020, to discuss Q3 20 earnings results. To access the live webcast, log on to https://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 Nov. 10, 2020, to discuss Q3 20 earnings results. To access the live webcast, log on to https://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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11099.0
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2020-10-19 00:00:00 UTC
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This Sleepy Sector Is Going Gangbusters, and No One's Talking About It
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AAP
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https://www.nasdaq.com/articles/this-sleepy-sector-is-going-gangbusters-and-no-ones-talking-about-it-2020-10-19
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nan
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nan
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Most investors have heard of the hot coronavirus stocks by now.
"Stay-at-home" favorites like Zoom Video Communications and Peloton Interactive have skyrocketed this year on the back of triple-digit revenue growth. Tech stocks similarly have crushed the market, especially in cloud computing and e-commerce. Even the mighty FAANG group has seen mouthwatering gains, pushing Apple to a $2 trillion market cap and Amazon past $1.6 trillion. Electric-vehicle stocks, led by Tesla, have also boomed.
However, the recovery may have already shifted gears. Stocks peaked more than six weeks ago, and concerns about a fading recovery in the job market and jitters around the election could rattle the market even further. Investors may want to look beyond the high-profile tech names to sectors that have been mostly ignored thus far, and one area that seems ready to take off is auto parts. Though the sector typically outperforms during a recession, the top auto parts stocks have only delivered average returns this year, essentially tracking with the S&P 500.
Data by YCharts.
As you can see, Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and AutoZone (NYSE: AZO) are actually all trailing the broad-market index slightly, but these companies have already begun to experience robust recoveries from the depths of the crisis.
Data by YCharts.
Revenue has bounced back, and all three of these companies saw profits jump by more than 30% in their most recent quarters with Advance and O'Reilly seeing gains in the 50% range. Better yet, there are a number of signs that their performance will only accelerate from here.
Auto-parts retailers tend to thrive during recessions and their aftermath, because they sell products consumers need, not just what they want. Most Americans need a vehicle to get to work or take care of regular errands, and especially during economic downturns, Americans tend to delay buying a new vehicle and instead focus on maintenance and repairs, which means trips to the auto-parts store.
However, this recession, brought about by a once-in-a-century pandemic, is also unique as it has spurred demand for personal vehicles as Americans look to avoid public transportation and ride-sharing services for safety reasons.
Image source: Getty Images.
Grab the wheel
Auto sales as a whole have jumped during the pandemic. According to the Census Bureau, sales of auto vehicles and parts surged 10.9% in September and 7.5% in the third quarter. The used car market has been the biggest driver of that growth.
Used car dealers like Carvana and Vroom have been unable to keep up with demand, and both companies have reported rising prices for used cars. Edmunds.com reported that August and September were the fastest months for used car inventory turnover in six years.
Those trends are likely to remain strong as a vaccine is at least months away, and the need for personal vehicles isn't changing. Many of the auto-parts companies are seeing similar trends.
AutoZone, which was the most recent of the group to report earnings, posted domestic comparable-sales growth of 21.8% in its fiscal fourth quarter (ended Aug. 29). Adjusted earnings per share were also up 47.6% year over year. CEO William Rhodes sounded bullish about the coming months on the earnings call, saying: "And if the economy enters a deep and protracted recessionary environment, we continue to believe our customers will focus more on maintaining their current vehicles, and it will benefit our business -- retail in particular -- as it has in the last three recessions." From fiscal 2009 to fiscal 2011, same-store sales growth averaged 5.4%. Rhodes also noted that August comps, which came after enhanced unemployment payments ended, showed strong growth at 16.5%, and he speculated that sales would remain elevated "for some time."
During the second quarter, when the global economy was cratering, O'Reilly's comparable sales rose 16.2%, and earnings per share jumped 57%. Management at O'Reilly and Advance echoed Rhodes' comments.
The price is right
Considering these stocks are seeing double-digit comparable-sales growth that's flowing to the bottom line, they look downright cheap. In fact, all three trade at a discount to the S&P 500 based on their price-to-earnings ratios: 23.8 for Advance, 22.9 for O'Reilly, and 16.6 for AutoZone. Meanwhile, the S&P 500 currently has a multiple of 35, which is elevated due to the decline in earnings during the first half of 2020.
Analyst estimates have been moving higher for the sector, but they still seem to be underestimating the tailwind of the pandemic and economic downturn. At AutoZone, for example, the consensus estimate is for just 4% earnings-per-share growth for the fiscal year that just started. Analysts expect to see a 21% gain at O'Reilly this year, but that figure declines to just 2% in 2021. And Advance is actually forecast to see flat earnings growth this year.
Keep in mind that these companies usually experience a surge in demand during a typical recession, and the additional impact of the pandemic means that they are likely to put up record growth during this time, as we saw in their most recent reports, all of which crushed estimates. The numbers from the Census Bureau also show that momentum in the auto sector accelerated in September, boding well for the parts sellers.
If these companies outperform once again in their upcoming reports, the stocks should take off.
10 stocks we like better than AutoZone
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jeremy Bowman owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon, Apple, Peloton Interactive, Tesla, and Zoom Video Communications and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. 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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As you can see, Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and AutoZone (NYSE: AZO) are actually all trailing the broad-market index slightly, but these companies have already begun to experience robust recoveries from the depths of the crisis. However, this recession, brought about by a once-in-a-century pandemic, is also unique as it has spurred demand for personal vehicles as Americans look to avoid public transportation and ride-sharing services for safety reasons. CEO William Rhodes sounded bullish about the coming months on the earnings call, saying: "And if the economy enters a deep and protracted recessionary environment, we continue to believe our customers will focus more on maintaining their current vehicles, and it will benefit our business -- retail in particular -- as it has in the last three recessions."
|
As you can see, Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and AutoZone (NYSE: AZO) are actually all trailing the broad-market index slightly, but these companies have already begun to experience robust recoveries from the depths of the crisis. Though the sector typically outperforms during a recession, the top auto parts stocks have only delivered average returns this year, essentially tracking with the S&P 500. According to the Census Bureau, sales of auto vehicles and parts surged 10.9% in September and 7.5% in the third quarter.
|
As you can see, Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and AutoZone (NYSE: AZO) are actually all trailing the broad-market index slightly, but these companies have already begun to experience robust recoveries from the depths of the crisis. Though the sector typically outperforms during a recession, the top auto parts stocks have only delivered average returns this year, essentially tracking with the S&P 500. See the 10 stocks *Stock Advisor returns as of September 24, 2020 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors.
|
As you can see, Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and AutoZone (NYSE: AZO) are actually all trailing the broad-market index slightly, but these companies have already begun to experience robust recoveries from the depths of the crisis. Revenue has bounced back, and all three of these companies saw profits jump by more than 30% in their most recent quarters with Advance and O'Reilly seeing gains in the 50% range. Adjusted earnings per share were also up 47.6% year over year.
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