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Why Isn’t Everyone Investing in Stocks?
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In this week's episode of Motley Fool Money, Chris Hill chats with Motley Fool analysts Jason Moser and Andy Cross about the latest headlines and quarterly reports from Wall Street. They've got the latest earnings breakdown from one of the big retailers, an aftermarket automotive retailer, a top apparel manufacturer, and more. Also, Chris chats with Wharton Professor Katy Milkman about financial behavior.
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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This video was recorded on September 25, 2020.
Chris Hill: We begin with big retail. Costco's first quarter report was pretty much everything a shareholder could want. Profits and revenues were higher than expected, digital sales nearly doubled, same-store sales up more than 11%. And, Jason, shares down a little bit on Friday; are we not entertained?
Jason Moser: [laughs] Well, I was definitely entertained; it was a good quarter. And again, the market is selling the stock modestly; I wouldn't read too much into it. I think part of the market's reaction here is, we're pretty far into this pandemic and I think we're closer to things getting back to somewhat normal or at least we're seeing that trend. And so, that ultimately means that shopping behaviors are going to start to normalize to a degree. And I think the big question, and maybe the question that the market is focused on really is, will Costco be able to hold on to the current behavior and then keep growing from here or is there going to be some kind of a reset for the business?
And going to the performance that you were talking about there; earnings per share of $3.13 versus $2.47 a year ago; very strong. Fourth quarter membership fee income was up modestly from a year ago. Total paid households, though, I thought this was really impressive, total paid households at the end of the quarter came in at 58.1 million, that compares to 53.9 million a year ago. So, clearly, they're getting more households to buy into that membership model. And I think the other concern is given the state of things today, you know, one of the big value props for Costco is gasoline. And as people don't go there to get as much gasoline, there is a little interplay there in traffic for the stores, and we certainly saw traffic on a worldwide basis down modestly. Although, in the U.S. it was up slightly, and transactions have grown a bit as people continue to stock up. So, all in all, a very good quarter. I think the market is just really looking forward and asking itself that question of, do we have to hit a reset button here at some point or not? And I think that's a fair question.
Andy Cross: I think what's interesting about Costco, we hear this a lot from a lot of retailers, and, Jason, you just touched on that a little bit, is that even though the traffic into the stores might be down, the amount they're buying once they're in is way up. We saw this big-time with Starbucks, and I think for others too. So, you start to see fewer trips to the stores, but when you're there you're stocking up, you're buying things. And I think that really bodes well for Costco, which [laughs] obviously has that history and the actual brand of going there and buying a lot of stuff, lots of big stuff. And the more and more we're stuck inside our houses, the more and more we actually need stuff that Costco sells. It's interesting, I don't know if they talked about their business traffic being up or down, Jason, but that might have been interesting too, because fewer people are now in offices, and Costco did serve a pretty good-sized business community.
Hill: First quarter digital sales for Nike (NYSE: NKE) rose 82%. Profits were higher than expected, and shares of Nike hitting are another all-time high this week, Andy?
Cross: Yeah, a great quarter from Nike. Revenues were flat, and that was ahead of estimates. But what we continue to see Nike do so well is really innovate on the digital side. They started investing in the digital space a few years ago. They brought on John Donahoe, CEO, who came over from ServiceNow, and before that in PayPal, he brought a real digital focus. Their digital sales were up 82% this quarter as compared to 75% the previous quarter. They added $900 million in incremental sales just from digital. They're seeing 200% growth in demand for the Nike commerce app, so that's just like buying on activity. They're seeing a 100% growth in monthly active users on that app.
And what's important with that, Chris, is that the direct business has a 10% higher gross margin than their wholesale business. So, overall, Nike continuing to really get it done and continuing to innovate in the space when it comes to their brand, launched Nike Maternity, launched Nike Yoga with a fabric that they've been in production for two years in development. They launched Space Hippie, of which we have a pair here, that's an incredible sell-through product, which is really sustainably sourced shoes. So, the direct-to-consumer business for Nike and the innovation they've been putting in there has really been helping.
And the connected fitness, Nike active members to the connected fitness app was up 60%. They hit an all-time high of percentage of users using the Nike Training app. So, you get the brand, the business, and the technology innovation, they're really doing and have been emphasizing and investing into, and that's been a really big win for Nike, and obviously for shareholders as the stock is doing really well.
Hill: You know, Andy, we're at that point in the year where people are trying to figure out what sort of holiday retail year we're going to be in for. Nike is talking pretty optimistically about the holidays, but I don't know if that necessarily bodes great things for the retail landscape or just Nike.
Cross: No, I think it bodes better for Nike. Just again, getting back to the innovation. But the push to direct-to-consumer, that's really been the innovation for them. Their stores are back open, but their retail traffic, as I mentioned before with the retail traffic in general, that's down for them. So, even though their traffic is down, they continue to boost growth into that really important direct-to-consumer and really tying together the digital experience and making it much more brand focused with their one Nike marketplace, I think that is a big innovation for one of the best branded consumer companies in the world, and now really becoming a technology powerhouse in the retail space.
Hill: Shares of AutoZone (NYSE: AZO) down 6% this week despite a strong fourth quarter report. Profits and revenue came in higher than expected. Jason, same-store sales are up more than 20%, my goodness!
Moser: Yeah. I mean, this was another one of those really excellent retail reports that we've seen recently; and there have been a few of them, Nike and now AutoZone. A bit of a home improvement angle here I think, in that the market they serve is a fairly resilient one, given the role that automobiles play in all of our lives. And AutoZone had noticed earlier on -- the stimulus, for example; the first round of stimulus helped their line of work and we saw the same thing play out with Advance and O'Reilly, an additional one will likely serve them well also.
And let's face it, the stores are open for business and there's a right way to go about things, so traffic is relatively OK. But they enjoyed, actually, their largest quarterly same-store sales performance ever since going public in 1991 at 22%. So, that tells you what kind of a quarter it was. But now going back to Costco, I think we have to ask ourselves the question, is this the new normal? Are we going to have to hit a reset button? And we're really not there yet, but we'll get some more clues as the quarters go.
But again, the numbers, I think, came across very nicely. If you look at actual topline revenue, it is only growing at around 21%, but then you see how well they were able to bring it down to the bottom-line with net income up 41.2%, earnings per share up 47.6%. They didn't make any share repurchases at all, and have kept inventory in line as well. So, when you look at this space, AutoZone and O'Reilly are the clear leaders, kind of like the Home Depot and Lowe's dynamic. And I suspect that even if they have to hit a reset button with the business later on, it's still going to be a very good business and one that shareholders should feel good about.
Hill: On the flipside, Stitch Fix (NASDAQ: SFIX) stumbled to the end of its fiscal year; the fourth quarter loss was much bigger than expected. You know, Andy, the stock is still up around 35% over the past year, but this was one of those quarters that you look at and you go, yeah, they've got their work cut out for them.
Cross: Yeah, Chris, it wasn't a bad quarter, they added 9% more new members; that about matches what they did in the third quarter. Their revenues were up about 11%. Revenue per client was up about 2%. But I think what people are focused on, I certainly am, is looking at the clients they brought in during that COVID period, between March and May, and they had those new clients. Typically, in their models, in their history, those clients come back and they order more and more, but they didn't see that. Stitch Fix really pulled back their marketing during that time to save money, and so that hurt their subsequent fix buys -- what they call their fixes -- subsequent buys for those members. And that's going to continue into the year.
So, I think that has some concerns with analysts and investors. This only means that's something to watch, otherwise they do continue to innovate, they do continue to have progress with the members they have been bringing in recently, so over the last couple of months, adding more and more to their baskets and buying more. But the concern about whether those members, and the ones they brought in this year, are going to be able to continue to add additional revenue, and is their lifetime value lower than what historically has been, I think has some concern on the analyst front and on the investor front.
Hill: How concerned should they be about the ways in which, I'm going to call it nontraditional apparel companies, and I'm thinking primarily of Target and the way Brian Cornell, the CEO there, has been so focused on apparel at Target over the last two to three years -- is that a major concern or is that, sort of, on the backburner?
Cross: No, I think it is a concern. The competitors are getting more and more sophisticated when it comes to digital experiences; we just talked about Nike, and there are many, many others out there. Stitch Fix has been pivoting, they had a lot of success with what they called their direct buy, so you no longer have to order something, wait for it to be delivered; you can actually now buy stuff directly from their website and that's outperforming their expectations. There is a lot of return purchase health there. So, they are continuing to innovate, they have these digital stylists that they work with, they have a lot of data scientists that they work with to help get the best measurements and the best fit, but they're not the only ones in the space, and there are a lot of innovation from some really good retailers out there. A lot of, obviously, challenges from the retail space too, but on the digital side, a lot of retailers are doing some really good things out there.
Hill: Shares of Tesla (NASDAQ: TSLA) are down 8% this week. The CEO, Elon Musk, made a number of announcements at the company's investor day, and apparently some investors didn't like what they heard. Andy, to the extent that there was a theme here, it was timelines being pushed back. The cheaper model of the vehicle is going to take a few years, the batteries that were unveiled at the event are not going to go into mass production until 2021. It seems like Musk was being pretty reasonable.
Cross: Yeah, I think there was also maybe -- from the Battery Day event -- that they didn't have quite the huge big announcement maybe some people were expecting, especially on addressing the so-called million-mile battery. But still, overall, a lot of innovation from Tesla. Coming out with the tabless battery, so they removed the tab that connects the cell into what it's powering, to increase that range by 16%, boost car power by 600%, to drop the kilowatt/hour -- that's the real key, they have to drop that kilowatt/hour because they want to be able to go to that $25,000 level for the mass market to really get the car down to a level the mass market can afford. From the leaked email about deliveries in Q3 of 2020 that will be at record levels, but not so much greater maybe than what they were the last record in the end of Q4.
So, overall, it is interesting when Tesla continues to, as Jason mentioned expectations, if it doesn't continue to really, kind of, boost those expectations for a massive growth, those growth momentum investors who've been getting involved, who don't have a long-term horizon, probably start selling off the stock.
Hill: Well, it could be worse. Nikola shares were down 40% this week after Founder Trevor Milton resigned as Chairman of the Board and deleted his Twitter account in the wake of fraud charges. Both the SEC and the Justice Department are investigating the electric truck maker on the potential that the company misled investors. Jason, this really isn't a good look. I mean, maybe it's all a big misunderstanding, but the immediate resignation combined with disappearing from social media, it really doesn't look good.
Moser: No, it doesn't. And I would tell you, there was a pretty good little trolling effort there on Twitter where somebody essentially turned him into a male version of Elizabeth Holmes and put him in like the black turtleneck with a little bit longer blond hair, and you're thinking, oh, my God! This is just [laughs] this is bad blood all over again. Maybe we are jumping the gun here, maybe this is not as bad as it looks. But you know what? Where there is smoke, there is often fire. And there are enough red flags here for investors to at least take a pause and say, you know what, there's no reason to rush in anything like this, they don't have a product, they don't make any money. And I'll tell you what, it's amazing [laughs] that it's still a $7 billion market capitalization company. I mean, that is the time that we're living in right now. It does make you realize, economics aside, what Tesla and what Elon Musk has done to-date and their ability, really, to keep on moving forward and all of these companies trying to play catch up. And you really start to see some desperation from competitors.
Hill: Andy, it really seems like there are other places to invest your money.
Cross: Yeah. I mean, his response to the Hindenburg Research report was, this is all you got, out on Twitter. I mean, really, this is another example of why you really shouldn't be chasing these stocks from founders that you just don't have the confidence in, that we really need to see if they're going to build a business. Like Jason said, a $7 billion company, no revenue, all hype, a lot of promises out there, SEC investigation, BP backed away from their partnership to build the hydrogen fuel station. So, there are so many high-quality growth companies out there that you can invest in that have so far less speculation.
Hill: Quibi, the fledgling video streaming service that launched earlier this year to much fanfare and very few subscribers, is reportedly exploring strategic alternatives. Among the alternatives being explored are an IPO or selling the company outright to Amazon, Apple, Disney, or Comcast. And Jason, all of those companies have deep pockets, and none of them should spend it on this business.
Moser: [laughs] Well, Chris, you know I won the drawing this week for our monthly pizza day, so I was lucky enough to have a pizza delivered here to our home thanks to The Motley Fool, and with my girls both here doing school for the day, that pizza is now gone. So, I'm exploring strategic alternatives as far as what I'm going to do for lunch, because it's resulting in nothing. And I think very much that Quibi is going to ultimately result in nothing. It feels like the question that should've been asked that probably was not asked when this business was started was, if the content is there but there's nobody to watch it, does it even exist? Because you can have content if you want, but if you don't have people watching it, who cares? I mean, they do have some content, I don't know if that is very compelling. And I think the biggest problem is that I don't think anyone, including Mr. Katzenberg, really knows what Quibi is to begin with. It was never very well defined. I don't know if it's supposed to be social or streaming or social-streaming, what void it is trying to fill.
And so, much like investing, sometimes you just have to be able to call it, admit the mistake and move on or you just keep burning money. And I have a feeling that is what we're watching play out here. Perhaps, with his connections in the industry, there is some type of interest in making an acquisition. But I'll tell you what, any company that jumps in there to make an acquisition of this business, I would hold that against them, because I think it's essentially a writedown to zero in very short order.
Hill: Security is a priority for any homeowner, and Amazon is here to help. Remember back in early 2018 when Amazon bought Ring, the smart doorbell company? Well, this week Amazon unveiled the Ring Always Home Cam, a flying drone camera that patrols the inside of your house. Andy, it's coming in 2021, it's a cool $250. How many do you think you'll be buying?
Cross: Well, we don't even have an Alexa in our house, so I think the answer is zero. I have to say, when I first saw it, it was pretty cool. [laughs] The little thing pops out when you're gone, flies away. The commercial that they have out there, the one that I saw is not, I think, super-inspiring [laughs] with what it shows with the criminal breaking into the house, but I do think the technology looks kind of neat for those who really care about their monitoring. It gets to the big questions of privacy and data and who is owning what and what are they seeing, and do I really need this?
Hill: She's a tenured Professor of Behavioral Sciences at the Wharton School of the University of Pennsylvania and host of the podcast Choiceology. We'll pick things up when I ask Professor Milkman about financial windfalls and how we should deal with them when they come our way.
[...]
Katy Milkman: You know, I think one of the things that behavioral science has shown people do poorly is, think about financial windfalls. We tend not to make the best use of these opportunities. The first and best use of that windfall is to look at your debt. And if you have debt, you want to pay that down and you want to start with the highest interest debt and pay as much of that down as possible and if you can pay that off completely then go to your second-highest interest source of debt and so on, because debts are something that can become a vicious cycle, right? That interest just accumulates and accumulates and it's part of the reason why half of Americans didn't have that $400 they might need for an emergency when surveyed just a couple of years ago. And so, that is my No. 1 most important piece of advice.
Right. After you've paid down your debt, I think having that emergency fund would be the next place you think about if putting a windfall is really important, because we don't actually appreciate how often we are likely to run into emergencies. There's this really fascinating research led by Abby Sussman, who's a Professor at the University of Chicago's Booth School of Business, showing that when people look at their inflows and outflows into accounts over the course of a year, they'll see, like, all these weird things. Every month, they sort of think, oh, you know, I have to pay my rent, I have to pay these other consistent bills, my car insurance and so on. They recognize that those are recurring expenses and they think about that as their budget, but then they'll see these, like, weird things that come up every month. Oh, you know, I had an unexpected doctor's appointment. Well, that's just unexpected, that doesn't happen normally, they don't think about that in their budget. Oh, then the next month their drain broke and they had to pay a plumber to come in to repair, but that was an emergency.
Basically, what they do is they look over the year and they discount all these things that come up. And they say, that's not something I have to plan for, but it turns out they come up every month, [laughs] they're different every month, but something always happens. And that's part of why I think people don't make the wisest budgets, because of this mentality that if it is a constant and consistent payment, I'm not going to think of it as something I need to account for. But these surprises are predictable, they come up over and over again. So, we need to have that emergency cash reserve to cover that in our budget. So, that'll be my second piece of advice.
And I think that's enough, [laughs] I'll let you ask any other questions you have, but I hope that helps.
Hill: It absolutely does help. One of the things that you've written about deals with how we can change habits, and obviously, change habits that aren't great into more positive habits, that is something you call temptation bundling. Before I ask you to explain temptation bundling, just out of curiosity, because you have this expertise, how many of your students or maybe what percentage of your students in a given year will say to you in an office setting, like, a one-on-one setting, hey, by the way, aside from the curriculum I've got this one habit ... like, how many are seeking out your advice for how to improve a single bad habit that they have?
Milkman: That's very common. And by the way, I welcome it. And the classes I teach are about behavior change, and I think my students, you know, take insights from class as useful for their careers. You know, how can they manage a team at work and try to help people make better decisions, how can they make better decisions in their finances, how can they make better decisions in their personal lives. And you know, they solve little problems that come up over and over. I think that's great, I want it to be all of the above. So, it's very common for students to come and talk to me about personal problems, as well as professional ones. And I hope I am consistently [laughs] helpful with both.
Hill: Temptation bundling. What is it and how can I make it work for my benefit?
Milkman: [laughs] So, temptation bundling is actually -- by the way, I should say, I do what I call me search. [laughs] Many scholars study problems they have and try to figure out like, oh, what are systematic solutions? So, you'll see people who struggle with social interactions, a social psychologist trying to figure out how they can be better at a cocktail party. Or economists who struggle with their finances, like, becoming experts in this area. So, I do that too. I definitely struggle with maintaining good habits, and I study it in part because I think that it's so weird and quirky and interesting and that we can come up with solutions.
Temptation bundling is a solution to a problem I had when I was a graduate student and I realized I could help other people too. So, when I was a graduate student, I had two problems. One problem was, at the end of a really long day, I was incredibly tired and I found it really hard to motivate myself to go to the gym, even though I know it was good for me in the long-term and that I needed to exercise to have energy; it just wasn't where I wanted to be after all those classes. But then the other problem was that what I really wasted time doing when I should've been studying was that I was really into reading lowbrow fiction. So, I would curl up with a page-turner when I should have been doing my homework. And I realized I could actually solve both of those problems at once if I did the following. I only let myself read page-turners while I was at the gym exercising. And by doing that, all of a sudden, I stopped wasting time at home reading these books when I should have been working on my problem sets for my classes. And at the end of a long day, I found myself craving a trip to the gym, like, eager to find out what happens next in my novel. And when I was at the gym, I didn't even notice the time passing and it wasn't even painful to work out, because I was so engaged in this gripping thriller that I just didn't notice.
So, it solved all of these problems for me. And I realized maybe that actually -- I started calling it temptation bundling. I was like, maybe I'm not the only one who has dual problems that could be solved this way. What if we, one, could systematically study this and see if it helps people to combine something that is really tempting to them with something that they know they should do but sort of resist. They often feel they shouldn't -- you know, they're too lazy to actually get to doing. So, can we make these combinations?
And I started seeing other opportunities to do it in other parts of life. So, we studied it and showed that actually if you, for instance, lock people's tempting audio novels at the gym and tell them they can only access them at the gym, it helps people exercise up to 50% more. Those are some results from a big experiment we ran early on, this kind of combination helps people a lot. And then we also have recognized that it's not just exercise and tempting books or binge-watching TV, there's all sorts of other ways in life you can combine things.
So, my students only let themselves pick up their favorite drink at Starbucks that they crave every morning when they're heading to the library to study, and those two things are combined for them. Or you could imagine only allowing yourself to binge-watch your favorite TV show while you're doing household chores, and listen to your favorite podcast while you're out for a run. So, you can sort of pick what are these things that you might be able to combine to get the best of both worlds.
Hill: When I was doing some research, I came across a piece that you wrote for The Washington Post a few years ago. Time got away from me, so I didn't read it, but the headline was amazing, so I'm going to ask you about it now. The headline was Heat doesn't just make us cranky. It makes us dumb shoppers. Now, I'm very familiar with the concept that you should never go grocery shopping when you're hungry, I'm aware of that one and I try not to do that. And now that I've come across this headline, I'm grateful that the weather has turned, you know, wonderfully autumnal here in Northern Virginia. What is it about the heat that makes us so dumb when it comes to shopping?
Milkman: Oh, my gosh! That's such a funny headline. And by the way, I should say, if you write op-eds for newspapers, they pick the headlines, you don't. I think they have some optimization algorithm [laughs] that they --
Hill: That's a good headline.
Milkman: I guess. [laughs] It was an article, actually, about research. And I was, sort of, reviewing other people's research showing that our emotions are triggered by the weather. And that on unusually hot days, we actually are angrier and we make a lot of bad decisions. So actually, my favorite study is not about shopping, and it was featured prominently in this, it was about baseball players. Pitchers are more likely to hit hitters on hot days, on unusually hot days. And the analysis was really carefully [laughs] done to control for like, oh, are they sweatier? It was like unusually hot days, unexpected heat that seemed to make people angry or more likely to try to hurt players from the opposing team.
We make bad decisions about all sorts of things when we're overheated, when the weather is unseasonable. We also, by the way, are more likely to believe in climate change, it turns out, on days that are unseasonably warm. So, it's really interesting how we're affected by these fluctuations in temperature. Our environment shapes our decisions in all sorts of interesting ways.
Hill: It really seems like the more I learn about your field of expertise, almost like the more self-aware we all have to be if we want to, sort of, optimize who we are at work, who we are in our personal lives. It can sound both rewarding, but also a little daunting.
Milkman: Yes, I think that's true. The field that I'm part of, I'm a behavioral scientist, and what we do really is we study the imperfections in human nature, the ways that people deviate from being perfect, optimal, rational decision-makers who are just like calculators, like Captain Spock from Star Trek, right, who never make a silly move. And recognizing all your mistakes and all your flaws can be [laughs] a little bit overwhelming because there are a lot of them. But I think a more useful way to think about it is, one, recognize it's OK, humans, and it's not just you, we're all flawed, we don't come with a perfect operating system, so cut yourself some slack when you screw up, when you yell at someone when you shouldn't have. Or you make an impulsive purchase or buy a stock that you wish you hadn't or whatever. It's not like you are the most flawed human in the world, we're all flawed, everybody is screwed, [laughs] it's human nature.
So, I think that, No. 1, is empowering; and then, two, it actually doesn't matter most of the time, because most of our decisions are low stakes. If you pick the wrong flavor of ice cream, it's not going to be the end of the world. If you pick the wrong spouse, that's a bigger deal. You know, if you really make the wrong choice of career, that's a bigger deal. If you buy the wrong house, that's a bigger deal. So, I think it's useful to say don't worry about or don't sweat the small stuff. And the fact that you will goof, that's human nature. But it can be useful to learn more about making good decisions and really focus and try to talk to experts when you're making those big life decisions.
Hill: How have you applied this to your financial life? How does Katy Milkman invest?
Milkman: I buy index funds, and I sit on them. [laughs] And that is what I do. So, I do not believe that I know how to do better, frankly, on the stock market than a monkey throwing darts. And so, I have a diversified portfolio of index funds. And my retirement portfolio, I contribute the maximum amount to my 403(b) plan at my university, and it's in a target date fund. [laughs] And that is my mantra. Like, I don't think I can pick the right stocks, I never cash out when there's a crisis, I leave it. I don't look at it regularly, there's research showing that when you check your stock portfolio more frequently, you're also more likely to invest in bonds rather than stocks. And stocks, obviously, there's a premium for equity, so you want to -- you know, I just don't look, I don't look during these bumps, because I want to smooth over those periods.
Actually, sorry, I'm quoting that research wrong, it's a paper on the equity premium puzzles, and here's what it was. It's by Richard Thaler, from University of Chicago, and Shlomo Benartzi. And I was giving you the punchline, but not actually the finding. So, the finding is that you can explain away the equity premium puzzle, which is like, why isn't everyone investing in stocks, everyone should be investing and they dramatically outperform bonds. And the answer is, if people looked at their portfolio once-a-year that would be often enough, given our degree of loss aversion, which is like how much we hate seeing our portfolio go down. Once-a-year would be enough to explain the equity premium puzzle in terms of people's feelings of loss that they would experience and their aversion to that, that could explain the whole thing.
So, that leads me to say, like, the less often we look, [laughs] the less often we'll experience that loss and the less likely we will be to pull out of stocks and make the wrong decision to be heavily in bonds.
[...]
Hill: Our email address is Radio@Fool.com. Question from Adam Travis in Brooklyn. He writes, "I'm a new investor with just one year of experience so far. Aurora Cannabis was the first stock I bought last year and it's done just about as badly as a stock can possibly do. Any advice for a stock market novice like myself?"
Andy, Adam's got an experience that I think is common for a lot of people who are just starting out. All the more reason you want to build out that portfolio as soon as you possibly can.
Cross: Yeah, you really want to be able to diversify that portfolio. So yes, that one, that stock has not worked out. We do have those sometimes that don't work out in our portfolio. I certainly do, and I know many of us do. So, you want to make sure you diversify that portfolio, building out your highest quality candidates, continuing to save and invest as a new investor. That's really important.
Also, make sure when you diversify, you can also think about very local index funds and ETFs too to really get that broad diversification in your portfolio, don't be a one-stock wonder.
Hill: Yeah, Jason, we've seen that before, right? We've heard from people who've said, I bought one stock, it went down, and I'm out of the stock market for life.
Moser: Yeah. And that's the challenge too, right, for new investors. Especially because when you're getting started, really, you're starting from zero. And so, for a while you are not going to be diversified, because you're going to buy one stock and then another and another. So, it does take some time, and I think that's why when you're getting started, like Andy said, you either start with something like an index fund or you start with companies in more reliable spaces, with more reliable business models and more history of success. Something like, you know, we're talking about Costco. I mean, that's been a wonderful investment for so many folks for so long. So, just be aware that when you pursue those new markets like marijuana, for example, there's potential, but they have a lot to prove still.
Hill: All right. Let's get to the stocks on our radar. Our man behind the glass, Dan Boyd, is going to hit you with a question. Andy Cross, you're up first, what are you looking at this week?
Cross: Oh, great. I'm going with Inspire Medical Systems (NYSE: INSP), symbol INSP. A $3.3 billion technology health company that aims to help the 100 million people worldwide who suffer from sleep apnea. It created their first closed-loop implantable stimulator to monitor breathing and deliver a little pulse if it notices a little block in the breathing pattern. So, it's helping 17 million potential people in the U.S., it's an alternative to the CPAP machine that you damn may have seen advertised on TV and is currently widely used.
It's addressing a $10 billion market opportunity, which is more than 500,000/year who are qualified for this kind of device. So, it's not a lot of revenue, very innovative, really focused on helping sleep apnea around the world. So, I'm looking at Inspire Medical, INSP, Dan.
Hill: Dan, question about Inspire Medical.
Boyd: Well, Chris, not so much of a question as a comment. Sometimes I go to conventions and sometimes I share a room with people to cut down on costs. And one time I shared a room with the guy who brought his CPAP machine and I was sent to the underworld every night for the entirety of that con, because it was like a fan but 3X as loud.
Cross: That person should be one of the 9,000 people who Inspire has helped with their sleep apnea problem to date, Dan.
Hill: Jason Moser, what are you looking at this week?
Moser: Yeah, I'm excited to see Unity Software (NYSE: U), ticker U, finally go public. They are now trading on the public markets as of this week. And Unity Software operates a 3D development platform. Ultimately, they have software for creators. They create, run, monetize interactive and real-time content. 2D, 3D, mobile phones, tablets, PCs, consoles, very large presence in augmented reality and virtual reality devices. Reputation for a really strong presence in the gaming industry, but they have done a very good job of stepping beyond just the gaming industry. So, whether it's healthcare or engineering, aviation, anything, Unity is becoming a platform for creators everywhere.
And we're seeing a lot of impressive numbers as of June of this year. They had approximately 1.5 million monthly active creators in just about every country around the globe. And the applications developed were downloaded over three billion times per month in 2019, on over 1.5 billion unique devices. So, clearly a company with a very big reach, and glad to see it out there for investors now.
Hill: Dan, question about Unity Software?
Boyd: Absolutely. Jason, the video game space is very crowded, very competitive, and also very expensive to produce. What makes Unity special, how does it stand out?
Moser: Yeah, I think that really is in the immersive content, right? The augmented and virtual reality content that they're able to help produce, that really is seen as the next leap forward in gaming and in other types of immersive experiences.
Hill: What do you want to add to your watchlist, Dan?
Boyd: I'm looking at Inspire. I mean, if anything, that cut down on snoring in the wild, man, I'm all for it.
Hill: [laughs] All right. We're out of time. That's going to do it for this week's show. Thanks for listening, we'll see you next week.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Andy Cross owns shares of PayPal Holdings, ServiceNow, Inc., Starbucks, and Stitch Fix. Chris Hill owns shares of Amazon, PayPal Holdings, Starbucks, and Walt Disney. David Gardner owns shares of Amazon, Apple, Starbucks, Tesla, and Walt Disney. Jason Moser owns shares of Amazon, PayPal Holdings, and Starbucks. Tom Gardner owns shares of Starbucks, Stitch Fix, Tesla, and Twitter. The Motley Fool owns shares of Amazon, Apple, Inspire Medical Systems, Nike, PayPal Holdings, ServiceNow, Inc., Starbucks, Stitch Fix, Tesla, Twitter, and Walt Disney. 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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And I would tell you, there was a pretty good little trolling effort there on Twitter where somebody essentially turned him into a male version of Elizabeth Holmes and put him in like the black turtleneck with a little bit longer blond hair, and you're thinking, oh, my God! There's this really fascinating research led by Abby Sussman, who's a Professor at the University of Chicago's Booth School of Business, showing that when people look at their inflows and outflows into accounts over the course of a year, they'll see, like, all these weird things. The field that I'm part of, I'm a behavioral scientist, and what we do really is we study the imperfections in human nature, the ways that people deviate from being perfect, optimal, rational decision-makers who are just like calculators, like Captain Spock from Star Trek, right, who never make a silly move.
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In this week's episode of Motley Fool Money, Chris Hill chats with Motley Fool analysts Jason Moser and Andy Cross about the latest headlines and quarterly reports from Wall Street. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Andy Cross owns shares of PayPal Holdings, ServiceNow, Inc., Starbucks, and Stitch Fix. Chris Hill owns shares of Amazon, PayPal Holdings, Starbucks, and Walt Disney. David Gardner owns shares of Amazon, Apple, Starbucks, Tesla, and Walt Disney. Jason Moser owns shares of Amazon, PayPal Holdings, and Starbucks. Tom Gardner owns shares of Starbucks, Stitch Fix, Tesla, and Twitter. The Motley Fool owns shares of Amazon, Apple, Inspire Medical Systems, Nike, PayPal Holdings, ServiceNow, Inc., Starbucks, Stitch Fix, Tesla, Twitter, and Walt Disney.
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So, overall, it is interesting when Tesla continues to, as Jason mentioned expectations, if it doesn't continue to really, kind of, boost those expectations for a massive growth, those growth momentum investors who've been getting involved, who don't have a long-term horizon, probably start selling off the stock. And when I was at the gym, I didn't even notice the time passing and it wasn't even painful to work out, because I was so engaged in this gripping thriller that I just didn't notice. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Andy Cross owns shares of PayPal Holdings, ServiceNow, Inc., Starbucks, and Stitch Fix. Chris Hill owns shares of Amazon, PayPal Holdings, Starbucks, and Walt Disney. David Gardner owns shares of Amazon, Apple, Starbucks, Tesla, and Walt Disney. Jason Moser owns shares of Amazon, PayPal Holdings, and Starbucks. Tom Gardner owns shares of Starbucks, Stitch Fix, Tesla, and Twitter.
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They started investing in the digital space a few years ago. Jason, this really isn't a good look. Hill: [laughs] All right.
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11101.0
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2020-09-17 00:00:00 UTC
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After A 300% Rally, Sonic Automotive's Stock Looks Expensive
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AAP
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https://www.nasdaq.com/articles/after-a-300-rally-sonic-automotives-stock-looks-expensive-2020-09-17
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nan
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nan
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Sonic Automotiveâs stock (NYSE: SAH) has rallied nearly 315% since late March (vs. about 49% for the S&P 500) to its current level around $41. This is after falling to levels of $10 in late March, as a rapid increase in the number of Covid-19 cases outside China spooked investors, and resulted in heightened fears of an imminent global economic downturn. The stock is currently above its February 2020 high of $29. Are the gains warranted or are investors getting ahead of themselves? We believe that the stock recovery is justified, but the stock has very little upside remaining in the near term. Why is that? Sonic Automotive, an automotive retailer, saw its stock price recover after the Fedâs multi-billion dollar stimulus package announced on March 23rd which lifted market sentiments. The company also saw better than expected earnings in Q2 2020 which further helped in the rise. The company announced a strategic partnership with Cox Automotive and Darwin Automotive to develop a proprietary e-commerce platform and user interface. This digital retailing partnership should help EchoPark expansion plans and elevate the online retail guest experience on the companyâs franchised dealership websites and EchoPark.com beginning in the fourth quarter of 2020. The market seems to have factored this in with the stock recovering past its 19th February level. We also have a detailed comparison of Sonic Automotiveâs stock performance during the current crisis with that during the 2008 recession in our dashboard analysis.
How Did Sonic Automotive Fare During The 2008 Downturn?
We see SAHâs stock declined from levels of around $20 in October 2007 (the pre-crisis peak) to roughly $1 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 93% of its value from its approximate pre-crisis peak. This marked a drop that was higher than the broader S&P, which fell by about 51%.
Further, SAHâs stock rose steadily post the 2008 crisis to about $10 in early 2010 â rising by about 626% between March 2009 and January 2010, as against the S&P which bounced back by about 48% over the same period.
In comparison, this year SAHâs stock lost 65% of its value between 19th February and 23rd March 2020, and has nearly recovered 315% since then. The S&P over the same time, fell by about 34% and rebounded by about 49%.
Is The Recovery Warranted & Can We Expect Further Gains?
The rally across industries over recent months can primarily be attributed to the Fed stimulus which largely quieted investor concerns about the near-term survival of companies. The flattening of Covid cases in the worst hit U.S. and European cities is also giving investors confidence that developed markets have put the worst of the pandemic behind them.
Sonic Automotive revenues saw a fall in Q2 2020 of this year, due to the pandemic lockdowns and social distancing measures. Revenue fell by 20% to $2.1 billion y-o-y. Earnings for the quarter improved to $0.72 compared to $0.62 in the previous year because of lower Finance costs and a lower effective tax rate.
Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to boost market expectations. Following the Fed stimulus â which helped set a floor on fear â the market has been willing to âlook throughâ the current weak period and take a longer-term view, with investors focusing their attention on 2021 results.
What if instead you are looking for a more balanced portfolio? Hereâs a top quality portfolio to outperform the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk. It has outperformed the broader market year after year, consistently.
Â
See all Trefis Price Estimates and Download Trefis Data here
Whatâs behind Trefis? See How Itâs Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
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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This is after falling to levels of $10 in late March, as a rapid increase in the number of Covid-19 cases outside China spooked investors, and resulted in heightened fears of an imminent global economic downturn. The rally across industries over recent months can primarily be attributed to the Fed stimulus which largely quieted investor concerns about the near-term survival of companies. Following the Fed stimulus â which helped set a floor on fear â the market has been willing to âlook throughâ the current weak period and take a longer-term view, with investors focusing their attention on 2021 results.
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Sonic Automotive, an automotive retailer, saw its stock price recover after the Fedâs multi-billion dollar stimulus package announced on March 23rd which lifted market sentiments. In comparison, this year SAHâs stock lost 65% of its value between 19th February and 23rd March 2020, and has nearly recovered 315% since then. It has outperformed the broader market year after year, consistently.
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Sonic Automotive, an automotive retailer, saw its stock price recover after the Fedâs multi-billion dollar stimulus package announced on March 23rd which lifted market sentiments. We see SAHâs stock declined from levels of around $20 in October 2007 (the pre-crisis peak) to roughly $1 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 93% of its value from its approximate pre-crisis peak. Following the Fed stimulus â which helped set a floor on fear â the market has been willing to âlook throughâ the current weak period and take a longer-term view, with investors focusing their attention on 2021 results.
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Sonic Automotive, an automotive retailer, saw its stock price recover after the Fedâs multi-billion dollar stimulus package announced on March 23rd which lifted market sentiments. Revenue fell by 20% to $2.1 billion y-o-y. Following the Fed stimulus â which helped set a floor on fear â the market has been willing to âlook throughâ the current weak period and take a longer-term view, with investors focusing their attention on 2021 results.
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11102.0
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2020-09-16 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Ex-Dividend Date Scheduled for September 17, 2020
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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-17-2020-2020-09-16
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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 17, 2020. A cash dividend payment of $0.25 per share is scheduled to be paid on October 02, 2020. 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 $156.88, the dividend yield is .64%.
The previous trading day's last sale of AAP was $156.88, representing a -8.49% decrease from the 52 week high of $171.43 and a 119.94% 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 $6.5. Zacks Investment Research reports AAP's forecasted earnings growth in 2020 as -.42%, compared to an industry average of -5.9%.
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.
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 2020 as -.42%, compared to an industry average of -5.9%. 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. AAP's current earnings per share, an indicator of a company's profitability, is $6.5. Advance Auto Parts Inc (AAP) will begin trading ex-dividend on September 17, 2020.
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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. 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 17, 2020. This marks the 3rd quarter that AAP has paid the same dividend.
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11103.0
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2020-09-15 00:00:00 UTC
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CarParts.com To Benefit From Shift To E-commerce?
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AAP
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https://www.nasdaq.com/articles/carparts.com-to-benefit-from-shift-to-e-commerce-2020-09-15
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nan
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nan
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CarParts.comâs stock (formerly U.S. Auto Parts Network) (NASDAQ: PRTS) has rallied around 500% since 23rd March (vs. about 52% for the S&P 500) to its current level near $10. This is after falling to $2 in late March, as a rapid increase in the number of Covid-19 cases outside China spooked investors, and resulted in heightened fears of an imminent global economic downturn. The stock hit an all-time high recently. Are the gains warranted or are investors getting ahead of themselves? We believe that the stock recovery is justified, but the stock has very small upside in the near term. Why is that? One of the reasons for the high recovery was the Fedâs multi-billion dollar stimulus package announced on March 23rd which lifted market sentiments. The stock was boosted during the pandemic as people are shifting to e-commerce for buying car parts as they are averse to traditional in-person buys. In June 2020 the company announced it would open a new 210,000 square foot distribution center in Grand Prairie, Texas which will create a minimum of 150 new jobs and $10 million in economic impact in its first 18 months. We also have a detailed comparison of CarParts.com stock performance during the current crisis with that during the 2008 recession in our dashboard analysis.
Â
How Did CarParts.com Fare During 2008 Downturn?
We see PRTSâs stock declined from levels of around $9 in October 2007 (the pre-crisis peak) to roughly $1 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 85% of its value from its approximate pre-crisis peak. This marked a drop that was higher than the broader S&P, which fell by about 51%.
Further, PRTSâs stock rose steadily post the 2008 crisis to about $5 in early 2010 â rising by about 300% between March 2009 and January 2010, as against the S&P which bounced back by about 48% over the same period.
In comparison, this year PRTSâs stock lost 43% of its value between 19th February and 23rd March 2020, and has already recovered nearly 515% since then. The S&P in comparison fell by about 34% and rebounded by about 52%.
Is The Recovery Warranted & Can We Expect Further Gains?
The rally across industries over recent months can primarily be attributed to the Fed stimulus which largely quieted investor concerns about the near-term survival of companies. The flattening of Covid cases in the worst hit U.S. and European cities is also giving investors confidence that developed markets have put the worst of the pandemic behind them.
The global spread of coronavirus has led to lockdown in various cities across the globe, which has affected industrial and economic activity. This is likely to adversely affect consumption and consumer spending. As people are currently averse to in-person buying and public transport, there has been an increase in the demand of online car purchase (28% of Total retail sales in Q2 2020). This is expected to lead to higher online demand for car parts which the company is well placed to take advantage of. CarParts.com reported record Revenue at $119 million (up 61% y-o-y) and Gross Profit at $41 million (up 88% y-o-y) for Q2 2020.
Over the coming weeks, we expect continued improvement in demand and subdued growth in the number of new Covid-19 cases in the U.S. to boost market expectations. Following the Fed stimulus â which helped set a floor on fear â the market has been willing to âlook throughâ the current weak period and take a longer-term view, with investors focusing their attention on 2021 results.
So, while CarParts.com seems to have very little upside in the near term, what if youâre looking for a more balanced portfolio instead? Hereâs a top quality portfolio to outperform the market, with over 100% return since 2016, versus 55% for the S&P 500. Comprised of companies with strong revenue growth, healthy profits, lots of cash, and low risk. It has outperformed the broader market year after year, consistently.
Â
See all Trefis Price Estimates and Download Trefis Data here
Whatâs behind Trefis? See How Itâs Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
This is after falling to $2 in late March, as a rapid increase in the number of Covid-19 cases outside China spooked investors, and resulted in heightened fears of an imminent global economic downturn. In June 2020 the company announced it would open a new 210,000 square foot distribution center in Grand Prairie, Texas which will create a minimum of 150 new jobs and $10 million in economic impact in its first 18 months. Following the Fed stimulus â which helped set a floor on fear â the market has been willing to âlook throughâ the current weak period and take a longer-term view, with investors focusing their attention on 2021 results.
|
This is after falling to $2 in late March, as a rapid increase in the number of Covid-19 cases outside China spooked investors, and resulted in heightened fears of an imminent global economic downturn. As people are currently averse to in-person buying and public transport, there has been an increase in the demand of online car purchase (28% of Total retail sales in Q2 2020). This is expected to lead to higher online demand for car parts which the company is well placed to take advantage of.
|
This is after falling to $2 in late March, as a rapid increase in the number of Covid-19 cases outside China spooked investors, and resulted in heightened fears of an imminent global economic downturn. We believe that the stock recovery is justified, but the stock has very small upside in the near term. We see PRTSâs stock declined from levels of around $9 in October 2007 (the pre-crisis peak) to roughly $1 in March 2009 (as the markets bottomed out) â implying that the stock lost as much as 85% of its value from its approximate pre-crisis peak.
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This is after falling to $2 in late March, as a rapid increase in the number of Covid-19 cases outside China spooked investors, and resulted in heightened fears of an imminent global economic downturn. The stock hit an all-time high recently. Is The Recovery Warranted & Can We Expect Further Gains?
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11104.0
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2020-08-24 00:00:00 UTC
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Noteworthy Monday Option Activity: ISRG, GPS, AAP
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AAP
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-isrg-gps-aap-2020-08-24
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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 Intuitive Surgical Inc (Symbol: ISRG), where a total of 1,921 contracts have traded so far, representing approximately 192,100 underlying shares. That amounts to about 43.7% of ISRG's average daily trading volume over the past month of 439,415 shares. Particularly high volume was seen for the $770 strike call option expiring September 18, 2020, with 125 contracts trading so far today, representing approximately 12,500 underlying shares of ISRG. Below is a chart showing ISRG's trailing twelve month trading history, with the $770 strike highlighted in orange:
The Gap Inc (Symbol: GPS) options are showing a volume of 40,843 contracts thus far today. That number of contracts represents approximately 4.1 million underlying shares, working out to a sizeable 43.1% of GPS's average daily trading volume over the past month, of 9.5 million shares. Especially high volume was seen for the $18 strike call option expiring October 16, 2020, with 12,330 contracts trading so far today, representing approximately 1.2 million underlying shares of GPS. Below is a chart showing GPS's trailing twelve month trading history, with the $18 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 4,339 contracts thus far today. That number of contracts represents approximately 433,900 underlying shares, working out to a sizeable 43.1% of AAP's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $160 strike call option expiring September 18, 2020, with 1,313 contracts trading so far today, representing approximately 131,300 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange:
For the various different available expirations for ISRG options, GPS 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 $160 strike call option expiring September 18, 2020, with 1,313 contracts trading so far today, representing approximately 131,300 underlying shares of AAP. Below is a chart showing GPS's trailing twelve month trading history, with the $18 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 4,339 contracts thus far today. That number of contracts represents approximately 433,900 underlying shares, working out to a sizeable 43.1% of AAP's average daily trading volume over the past month, of 1.0 million shares.
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That number of contracts represents approximately 433,900 underlying shares, working out to a sizeable 43.1% of AAP's average daily trading volume over the past month, of 1.0 million shares. Below is a chart showing GPS's trailing twelve month trading history, with the $18 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 4,339 contracts thus far today. Especially high volume was seen for the $160 strike call option expiring September 18, 2020, with 1,313 contracts trading so far today, representing approximately 131,300 underlying shares of AAP.
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Below is a chart showing GPS's trailing twelve month trading history, with the $18 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 4,339 contracts thus far today. That number of contracts represents approximately 433,900 underlying shares, working out to a sizeable 43.1% of AAP's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $160 strike call option expiring September 18, 2020, with 1,313 contracts trading so far today, representing approximately 131,300 underlying shares of AAP.
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That number of contracts represents approximately 433,900 underlying shares, working out to a sizeable 43.1% of AAP's average daily trading volume over the past month, of 1.0 million shares. Especially high volume was seen for the $160 strike call option expiring September 18, 2020, with 1,313 contracts trading so far today, representing approximately 131,300 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange: For the various different available expirations for ISRG options, GPS options, or AAP options, visit StockOptionsChannel.com.
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11105.0
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2020-08-19 00:00:00 UTC
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Why Is Home Depot Stock Down?
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AAP
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https://www.nasdaq.com/articles/why-is-home-depot-stock-down-2020-08-19
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nan
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nan
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In this episode of MarketFoolery, host Chris Hill chats with analyst Jason Moser about the latest news stories and earnings reports from Wall Street. They look at the general retail landscape through the lens of earnings, and how DIY and pro segments are helping home improvement sales. They also discuss the boost in auto repair, what it means for future new car 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.
10 stocks we like better than Walmart
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This video was recorded on Aug. 18, 2020.
Chris Hill: It's Tuesday, Aug. 18th. Welcome to MarketFoolery. I'm Chris Hill, with me today, the one and only, Jason Moser. Good to see you, sir.
Jason Moser: Happy Tuesday!
Hill: Happy Tuesday, indeed. We are going to look at automotive and home improvement, and we're going to do it through the lens of earnings, but we're going to start with general retail and that means Walmart (NYSE: WMT).
And let me start with this, Jason. Early in the pandemic, the first show that I binge-watched with my family was Parks and Recreation. My favorite character on the show is Ron Swanson. And in the universe of Parks and Rec, Ron Swanson's favorite retail location is a store called Food and Stuff. And as he says on the show, it's where I buy all of my food and most of my stuff. And I say all that, because if Walmart's first-quarter report was about food -- and it was -- this second-quarter report that we got this morning seems to be about stuff. Walmart sold a lot of stuff, so much stuff that their [laughs] e-commerce sales nearly doubled.
Moser: Yeah. Well, I stand by the scenario I kicked you guys earlier in the Slack channel. I mean, this is for any Family Guy fans out there, this is basically like the Ollie Weather Report. Like, how's the weather out there, Ollie? It's raining. Thanks, Ollie. Well, how was Walmart's quarter, Ollie? They sold more stuff. Thanks, Ollie. [laughs] Because it is basically that simple: They sold more stuff.
But when you dig into the numbers, I think it really does show you a business that is continuing to perform very well in what is, obviously, a very difficult economic climate. Top line grew 5.6%. I wouldn't say that was a knock-it-out-of-the-park quarter compared to some of the other retail concepts out there. But when you look at U.S. comps, U.S. comps up 9.3%, that's on top of 10% a quarter ago. And if you remember that 10% that they chalked up a quarter ago, that marked their best quarter one comp in nine years. So, yeah, while retailers out there are having a difficult time, but Walmart seems to be coping very well. A lot of that, as you mentioned, has to do with their investments in their e-commerce business. I mean, 97% on top of 74% just a quarter ago. And that 74% a quarter ago, if you compare that to a year ago, it was just 37%. So, this all just shows you that the investments they're making in this business are really working out for them right now in a difficult time, and I suspect that they'll come out of this situation owning a little bit more market share than they did going into it.
Hill: Doug McMillon, the CEO, talked about their supply chain, how it's improving; I think that's good news in general, whether you're a Walmart shareholder or not, you want to hear about the supply chain getting better. They're not out of the woods, they're still doing everything they can to make sure that the groceries are stocked, some of the sporting equipment as well. Didn't really give us a whole lot on Walmart+, which is their membership service they are working on. I don't begrudge him that; I mean, if I were a Walmart shareholder, [laughs] I would want him to continue to keep his cards close to the vest like he's doing, but it's going to be interesting to see what form and shape that takes, how they roll that out. But if they get that right, you know, that's one more lever they can pull.
Moser: Yeah, no question about it. I mean, in regard to supply chain, I'm glad you brought that up, because that's something they certainly pointed out last quarter, calling their supply chain among the most capable in the world. But even in this environment they've stretched it, if you look at inventory levels this past quarter, total U.S. inventory levels were actually down 4.6%, which is just, you know, that's something to note, because while the supply chain volatility is starting to settle down, I mean, over the quarter and over the first half of the year, they've seen some shortages in certain things and some stuff, right? [laughs] That they're selling an awful lot of stuff. But they are managing that supply chain really, really well.
And certainly, a theme of the call earlier today was membership. I mean, that word "member" or "membership" was mentioned an awful lot on that call. And, yeah, I mean they're playing their cards close to the vest right now on what that potential membership model looks like for Walmart+; I mean, keep a little mystery out there, right? Anytime you throw a "+" [laughs] on the end of the name, as we're seeing Disney really pulled that off pretty well. So, you know, hey, listen, this Walmart+, let's have a little mystery out there about what kind of value it will bring. But I mean, they've got some blueprints to go by with businesses that have been very successful with these membership models. So, I suspect they're being mysterious, they're playing those cards close to the vest for a reason. I mean, I think that when they're ready, they'll announce it. I don't think they're going into this half-hearted, I think this is going to be a key strategy to the business going forward, so I suspect they really want to make sure they get it right.
Hill: Last thing before we move on. You look at the stock, it's down a little bit today, you know, it's up somewhere in the neighborhood of 15% year to date. It seems like not an overly expensive stock.
Moser: No. But I mean, it never is really. I mean, when you look at something like a Walmart and you try to get an idea of expensive versus cheap, I mean, we're living in this world now of businesses that make no money and trade for 30X to 40X sales and that's, kind of, become the new normal, which makes a Walmart trading at 20X earnings seem almost absurd. But you own a stock like Walmart really more for the, I think the slow-and-steady income growth there, right? I mean, there are going to be some capital gains that come with a stock like this, but clearly, when you look at how the market values something like a Walmart versus an Amazon, you start to understand the discrepancies there. And so, if you own a Walmart, it's going to be for a little bit of a different reason than a lot of those growth stocks that are out there today.
Hill: Second-quarter profits for Home Depot (NYSE: HD) rose 25%. This was, in some ways, a surprisingly good quarter in terms of both profit and revenue for Home Depot, although they did acknowledge, and this is kind of what we heard three months ago out of Home Depot, they talked about the costs. Their costs are going up for all of the right reasons, whether it's safety measures in their stores and warehouses or employee pay.
Moser: Yeah, well, you know, I think that when you look at both Walmart and Home Depot, the one constant that you take away from reading through those releases and the calls is, the priority on their associates first and foremost. I mean, obviously, you're looking out for all stakeholders, and the business doesn't really exist if you don't have customers, but it definitely doesn't exist if you don't have associates to help you run that business. And so, much like Walmart, Home Depot, big focus on making sure that they're taking care of their own, investing in the stores, investing in safety, investing in their associates, understanding that they already have just such a phenomenal competitive position, they know they can afford to do that, they know that the market is going to accept that. I mean, it's a reasonable thing to be doing.
We talk about, through this entire pandemic, the opportunity for a lot of these strong businesses to come out of this situation even stronger. I present to you exhibit A in Home Depot, because this was a really impressive quarter. Sales closing in on $40 billion, up 23.4%, comp sales up 23.4%. U.S. comps up 25%. Earnings for the second quarter up close to 27%. They just are doing so many things right, and they are benefiting from the situation. You know, there's just no other way to put it. I mean, when you have everything shut down and people have a little time on their hands, they start doing stuff like home renovations and repairs and whatnot, you focus on those projects that you didn't have time for before, and Home Depot is one of the leaders in the space when it comes to this with, both, a very strong do-it-yourself presence and the pro side of the business as well. So, they're helping out homeowners like us, and they're helping out contractors that are able to get back to work. And you put those things together, transactions, tickets, both up double-digits in the quarter. This is just a business that's really doing a lot of things right.
Hill: Well, and if you look at the stock today. I mean, anyone who hears what you're saying about Home Depot's quarter, how impressive it was, you look at the stock trading down a little bit today, you may look at that and say, well, wait a minute, what's going on here? Craig Menear, the CEO, made some comments that I think were smart of him to make, and I think he's doing what a lot of CEOs are doing, which is to essentially say, hey, don't read too much into this. Like, you know, you read between the lines of what Menear said. And my takeaway is, yeah, there's still a tremendous amount [laughs] of uncertainty. Whether it's supply chain issues, whether it's just what is happening with a vaccine in terms of what is happening with testing, like, there are so many X factors, some of which are brand-new. You know, supply chain issues aren't new. Global pandemic, yeah, that's a new wrinkle that all CEOs have to deal with. So, I think Menear is smart to just say, yep, this is a great quarter, let's not try to, you know...and he's pointing at the Wall Street analysts, just saying, let's not extrapolate this for the next two quarters.
Moser: Yeah. I mean, there's a level of humility that's coming in with a lot of these CEOs, a lot of these leadership teams this quarter, where the businesses are fundamentally strong going into something like this, they're able to cope with the given situation, and do OK in what is a difficult time. And they certainly understand that, hey, there's still a lot of uncertainty out there, we don't know how sustainable this is. I mean, certainly, it seems very reasonable to assume that the cost of doing business for a lot of these companies is going to go up permanently going forward. I mean, there are going to be new safety measures, new policies and procedures put into place for the way these retail concepts operate, they're going to have to make more investments, obviously, in omnichannel and fulfillment. And so that's something that will play out on those expenses over the coming, really not just quarters, the coming years. And you got to figure that over the course of that time, they're going to witness some headwinds and consumer behavior, whatnot.
So, things look good today; given what we know, it also seems like we'd probably run into a situation here, a few quarters down the road, where they maybe don't look so great. But yeah, I think that still, the way we invest here at the Fool, you know, we're talking about a three- to five-year time horizon, if not longer. The longer you own companies like this, the more sense it makes, right? These investments that they're making today are the right ones, even if they play out on the bottom line in the near term; in the longer term, I think it's just going to help them strengthen their competitive positions -- and a good thing for investors, of course.
Hill: And I don't know about you, but I've been to Home Depot a few times over the last couple of months, and it doesn't matter whether I'm going during the day, at night, weekend, weekday, it doesn't matter, the parking lot is always full. Like, it's just always full.
Moser: It's like a Costco or an airport; or it's like a Costco and an airport hooked up. I mean, it is just never not busy. And I'm with you, I mean, I've gone to Home Depot, and number of times since this [laughs] pandemic started, and it is never not busy, and I just think, you know what, I get it, I mean, I do get it, it's a great situation to be in. I mean, whether you're a homeowner or renter, you've got stuff you've got to get done. And you know, these are the times where people start to get a little bit of an itch to become a little bit more creative, learn something new, and that really plays into favor for companies like a Home Depot.
Hill: I bet the airlines, and anyone who owns an airline stock, wishes that the airports were as busy as Home Depot. [laughs]
Moser: Man! You want to talk about a juxtaposition, when I flew down to Atlanta, I guess it was about a month ago now, I mean that was a different situation. Man! I went into Dallas airport; I have never seen Dallas airport look more like a ghost town. I mean, everything closed, not very many people. I mean, obviously, we understand why that's the case, but yeah, two very different scenes.
Hill: Let's move on to Advance Auto Parts (NYSE: AAP). Second-quarter profits and revenue came in higher than expected. And another great comp number, Jason, same-store sales for Advance Auto Parts up 7.5%.
Moser: Yeah. And you know, we were talking about Advance, I think, toward the end of last year. And you know, this stock, I mean, the business and the stock itself, it's been, sort of, this long-drawn-out decline, going into the bear market back in March. Stock really got hammered for that short period. And since then, it's essentially doubled. So, it's recovered more or less, all of what it's lost, but I think the business is still more or less where it was going into the end of last year. I mean, it's just a very mediocre situation. Flat sales, flat comps, no real catalyst.
Fast-forward to today, there was a catalyst. And management certainly called that out. They said on the call, without question they benefited from a surge in the industry demand fueled by government stimulus, unemployment benefits, the impact that COVID had on consumer behavior. So, this was a quarter that -- you know, there were tailwinds for this business, much like Home Depot. I mean, folks getting out there and doing what they need to do to their car, trying to extend the life of that, maybe learning a little something new. So, it worked out well for them. But I think the big question that remains is, is this type of performance sustainable? And I'm a little bit less glass-half-full, when it comes to that.
Hill: Do you think it tells us anything about the automotive market? Because, and maybe this is a misread on my part, but anytime I see good numbers, whether it's AutoZone, Advance Auto Parts, O'Reilly, that sort of thing, one of my first thoughts is, uh, this probably isn't going to be good for car sales; you know, for new car sales. If people are just looking to get more out of, more years out of the vehicles that they have, and there's less wear and tear on them, because in general, people have been driving a lot less over the last six months. I wonder if it bodes ill.
Moser: I think it could in the near term. Now, I will say, I'd liken what's going on in automobiles right now, it's a nice little microcosm of this greater rollout to 5G. And, yeah, I mean I know, 5G is mostly phones and whatnot, but ultimately what 5G is doing, it's connecting everything, right? I mean, you're talking about the Internet of Things and connecting all of these devices, whether it's phones, watches, cars, cities, buildings. And so, automakers around the world are really investing a lot in bringing these automobiles to the next level from a tech perspective.
And so, what we've seen over the past several years in regard to phones, for example is, shipments for smartphones, really, globally speaking, have been flat to actually declining as 4G is more or less becoming the standard, everybody has got it. Now, we know 5G is coming out, so people are kind of holding off and they're going to wait and they're going to start buying new phones when the tech gets better.
I think that in time, it'll probably take a little bit longer, but not much longer, I think that we will see these cars really up their game from a tech perspective. And that will help, I think, those new car sales. But by the same token, you're right, cars last longer today than ever before, and we have a lot of ways that we can get out there and take care of them. And when I say a lot of ways, and we were talking at Advance Auto here, they deal with some very competitive companies in the space. I mean, you're talking about Advance versus AutoZone versus O'Reilly. And if you look over the last five years these, three companies, side by side by side, I mean, Advance is just the clear laggard, O'Reilly shares up 84%, AutoZone up 64%, Advance I think is, with today's pop, maybe breaking about even over that stretch.
So, it's a difficult time for Advance in this market. And I feel like, as tech gets better, if that plays out well for new cars, that's, I think, going to play out probably a little bit worse for a company like Advance, that's really already in third place as far as its competitive landscape.
Hill: Jason Moser, appreciate you being here. Thanks.
Moser: Hey, always happy to do it. Thank you.
Hill: As always, people on the program may have interests 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, thanks for listening, we'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Chris Hill owns shares of Amazon and Walt Disney. Jason Moser owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon, Home Depot, Slack Technologies, and Walt Disney. The Motley Fool recommends Costco Wholesale and recommends the following options: long January 2021 $60 calls on Walt Disney, long January 2021 $120 calls on Home Depot, short January 2021 $210 calls on Home Depot, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and short October 2020 $125 calls on Walt Disney. 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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Hill: Let's move on to Advance Auto Parts (NYSE: AAP). In this episode of MarketFoolery, host Chris Hill chats with analyst Jason Moser about the latest news stories and earnings reports from Wall Street. I don't begrudge him that; I mean, if I were a Walmart shareholder, [laughs] I would want him to continue to keep his cards close to the vest like he's doing, but it's going to be interesting to see what form and shape that takes, how they roll that out.
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Hill: Let's move on to Advance Auto Parts (NYSE: AAP). And so, much like Walmart, Home Depot, big focus on making sure that they're taking care of their own, investing in the stores, investing in safety, investing in their associates, understanding that they already have just such a phenomenal competitive position, they know they can afford to do that, they know that the market is going to accept that. The Motley Fool owns shares of and recommends Amazon, Home Depot, Slack Technologies, and Walt Disney.
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Hill: Let's move on to Advance Auto Parts (NYSE: AAP). I mean, when you have everything shut down and people have a little time on their hands, they start doing stuff like home renovations and repairs and whatnot, you focus on those projects that you didn't have time for before, and Home Depot is one of the leaders in the space when it comes to this with, both, a very strong do-it-yourself presence and the pro side of the business as well. Hill: And I don't know about you, but I've been to Home Depot a few times over the last couple of months, and it doesn't matter whether I'm going during the day, at night, weekend, weekday, it doesn't matter, the parking lot is always full.
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Hill: Let's move on to Advance Auto Parts (NYSE: AAP). Well, how was Walmart's quarter, Ollie? So, this all just shows you that the investments they're making in this business are really working out for them right now in a difficult time, and I suspect that they'll come out of this situation owning a little bit more market share than they did going into it.
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11106.0
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2020-08-19 00:00:00 UTC
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Validea Kenneth Fisher Strategy Daily Upgrade Report - 8/19/2020
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AAP
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https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-8-19-2020-2020-08-19
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The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
THE HACKETT GROUP, INC. (HCKT) is a small-cap growth stock in the Business Services industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: The Hackett Group, Inc. is an advisory and technology consulting company. The Company's services include business transformation, enterprise performance management, working capital management and global business services. The Company is engaged in providing business and technology consulting services. It focuses on business strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology, including Oracle Enterprise Performance Management (EPM) and SAP practices. It offers a range of services, including executive advisory programs, benchmarking, business transformation and technology consulting services. Its advisory programs include a mix of the deliverables, such as Best Practice Intelligence Center, Best Practice Accelerators, Advisor Inquiry, Best Practice Research and Peer Interaction. Its Business Transformation programs help clients develop a coordinated strategy for achieving performance improvements across the enterprise.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: FAIL
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS
Detailed Analysis of THE HACKETT GROUP, INC.
Full Guru Analysis for HCKT
Full Factor Report for HCKT
ADVANCE AUTO PARTS, INC. (AAP) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Kenneth Fisher changed from 50% to 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Advance Auto Parts, Inc. provides automotive aftermarket parts in North America, serving do-it-for-me (Professional) and do-it-yourself (DIY), customers. The Company's stores and branches offer a selection of brand name, original equipment manufacturer (OEM) and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. It serves through various channels ranging from traditional brick and mortar store locations to self-serving e-commerce sites. As of December 31, 2016, it operated 5,062 total stores and 127 branches primarily under the trade names Advance Auto Parts, Autopart International, Carquest and Worldpac. As of December 31, 2016, its Advance Auto Parts operations consisted of three geographic divisions, which included the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of ADVANCE AUTO PARTS, INC.
Full Guru Analysis for AAP
Full Factor Report for AAP
CAL-MAINE FOODS INC (CALM) is a mid-cap growth stock in the Fish/Livestock industry. The rating according to our strategy based on Kenneth Fisher changed from 48% to 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Cal-Maine Foods, Inc. is a producer and marketer of shell eggs in the United States. The Company operates through the segment of production, grading, packaging, marketing and distribution of shell eggs. It offers shell eggs, including specialty and non-specialty eggs. It classifies cage free, organic and brown eggs as specialty products. It classifies all other shell eggs as non-specialty products. The Company markets its specialty shell eggs under the brands, including Egg-Land's Best, Land O' Lakes, Farmhouse and 4-Grain. The Company, through Egg-Land's Best, Inc. (EB), produces, markets and distributes Egg-Land's Best and Land O' Lakes branded eggs. It markets cage-free eggs under its Farmhouse brand and distributes them throughout southeast and southwest regions of the United States. It markets organic, wholesome, cage-free, vegetarian and omega-3 eggs under its 4-Grain brand. It also produces, markets and distributes private label specialty shell eggs to customers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
PRICE/SALES RATIO: FAIL
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL
Detailed Analysis of CAL-MAINE FOODS INC
Full Guru Analysis for CALM
Full Factor Report for CALM
More details on Validea's Kenneth Fisher strategy
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Detailed Analysis of THE HACKETT GROUP, INC. Full Guru Analysis for HCKT Full Factor Report for HCKT ADVANCE AUTO PARTS, INC. (AAP) is a large-cap growth stock in the Retail (Specialty) industry. Detailed Analysis of ADVANCE AUTO PARTS, INC. Full Guru Analysis for AAP Full Factor Report for AAP CAL-MAINE FOODS INC (CALM) is a mid-cap growth stock in the Fish/Livestock industry. The Company's stores and branches offer a selection of brand name, original equipment manufacturer (OEM) and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks.
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Detailed Analysis of THE HACKETT GROUP, INC. Full Guru Analysis for HCKT Full Factor Report for HCKT ADVANCE AUTO PARTS, INC. (AAP) is a large-cap growth stock in the Retail (Specialty) industry. Detailed Analysis of ADVANCE AUTO PARTS, INC. Full Guru Analysis for AAP Full Factor Report for AAP CAL-MAINE FOODS INC (CALM) is a mid-cap growth stock in the Fish/Livestock industry. Detailed Analysis of CAL-MAINE FOODS INC Full Guru Analysis for CALM Full Factor Report for CALM More details on Validea's Kenneth Fisher strategy About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist.
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Detailed Analysis of THE HACKETT GROUP, INC. Full Guru Analysis for HCKT Full Factor Report for HCKT ADVANCE AUTO PARTS, INC. (AAP) is a large-cap growth stock in the Retail (Specialty) industry. Detailed Analysis of ADVANCE AUTO PARTS, INC. Full Guru Analysis for AAP Full Factor Report for AAP CAL-MAINE FOODS INC (CALM) is a mid-cap growth stock in the Fish/Livestock industry. The rating according to our strategy based on Kenneth Fisher changed from 58% to 80% based on the firm’s underlying fundamentals and the stock’s valuation.
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Detailed Analysis of THE HACKETT GROUP, INC. Full Guru Analysis for HCKT Full Factor Report for HCKT ADVANCE AUTO PARTS, INC. (AAP) is a large-cap growth stock in the Retail (Specialty) industry. Detailed Analysis of ADVANCE AUTO PARTS, INC. Full Guru Analysis for AAP Full Factor Report for AAP CAL-MAINE FOODS INC (CALM) is a mid-cap growth stock in the Fish/Livestock industry. Company Description: Cal-Maine Foods, Inc. is a producer and marketer of shell eggs in the United States.
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11107.0
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2020-08-18 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Q2 2020 Earnings Call Transcript
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-q2-2020-earnings-call-transcript-2020-08-18
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Image source: The Motley Fool.
Advance Auto Parts Inc (NYSE: AAP)
Q2 2020 Earnings Call
Aug 18, 2020, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Advance Auto Parts Second Quarter 2020 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.
Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Good morning and thank you for joining us to discuss our second quarter 2020 results.
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 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, 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 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
Good morning to everyone joining us today.
Before we get to the specifics of our quarter, I want to start with an acknowledgment to our Advance team members and independent partners. They've shown incredible perseverance and support for each other and for our customers over the past few months. Never has the term essential business meant so much to us.
Throughout Q2, our team members responded to the pandemic with an exemplary level of customer care. At the same time, our entire organization responded with a remarkable level of speed and agility. Every week, we hear stories from both customers and team members on how Advance has helped keep America on the road during this crisis along with commendations on the safeguards we put in place to protect them while in our stores. Our sincere thanks and appreciation goes out to every single AAP team member and Carquest Independent partner who delivered the strong performance we are about to review.
Since the onset of COVID-19, we established three overarching priorities. First, prioritize the health and safety of our team members and customers; second, preserve cash and protect the P&L during the crisis; and third, prepare to be stronger following the crisis.
At the beginning of the pandemic, we stood up a team dedicated to the health and safety of our team members and customers. This cross-functional team organized daily stand-up calls throughout our organization which allowed us to respond with a tremendous sense of urgency to help keep people safe and healthy. As examples, we installed Plexiglass care shields in our stores in a matter of weeks. We institutionalized entirely new standard operating procedures across our stores and DC network. Our technology team enabled work remote capabilities for corporate functions and for our field team. We significantly increased communication through virtual town halls and regular video updates. And importantly, we provided enhanced compensation and benefits on top of our industry-leading Fuel the Frontline stock compensation program to help our team members during this time.
Health and safety has been a top priority for the leadership team here at Advance over the past few years. While none of us wanted COVID-19, the foundational processes that were put in place prior to COVID were instrumental in enabling us to not only respond to the global crisis but to provide outstanding customer support within it. As a result of our health and safety focus, we're very pleased that AAP has been well below the national average infection rate for COVID-19. We remain laser-focused on taking the necessary steps to enable our team members to feel safe coming to work and to ensure our customers feel safe shopping in our stores, which is more important than ever right now.
When we provided our quarter-to-date results during our Q1 call, we indicated that our sales results had sequentially improved every week during the first four weeks of Q2. As you saw in our results this morning, our sales momentum continued through the remainder of the quarter. Our sales grew 7.3% to $2.5 billion compared to the prior year. Comparable store sales increased by 7.5%, the highest quarterly growth rate in close to 10 years. Our adjusted operating income increased by 42% to $279 million, and our adjusted operating income margin rate increased 274 basis points to 11.2% while free cash flow in the quarter was up 60%.
Nearly all regions had positive comparable store sales, with the Gulf Coast, Central and Appalachia regions posting strong double-digit growth. The Northeast, Mid-Atlantic and West Coast regions, which were more impacted by the pandemic, significantly trailed our other regions. In fact, we had an extremely wide distribution performance geographically, with over 2000 basis points separating the highest and lowest growth regions. As you've heard from others, our professional business was more negatively impacted by COVID-19 than DIY in the quarter. This was primarily due to the temporary closure of garages across North America.
In addition, we have a disproportionate amount of our professional business in the Northeast, Mid-Atlantic and the West Coast. These regions represent over 30% of our Pro sales, and they were all well behind the rest of the country in terms of their professional growth rate. However, as the quarter progressed and stay home orders began to lift, we saw sequential improvement in our professional business each period. In the final four weeks of Q2, Pro sales were up mid single digits.
During the quarter, we continued to support our professional customers, including the rollout of our enhanced MotoLogic platform. This repair and diagnostic tool was built from the ground up by industry and technology experts and provides access to complete unedited OEM information. Since 2018, 3,700 new vehicles and 14 million plus articles have been added. Our most recent upgrade includes enhancing MotoVisuals, which allows technicians to share and prepare animations. This helps them explain services to customers in person, by text or email.
Also in Q2, we signed up a record number of new TechNet customers as we crossed 11,500 TechNets in total. Our independent Carquest, Worldpac and Carquest Canada businesses also recovered nicely as the quarter progressed. Throughout the quarter, we responded quickly to the needs of our professional customers and put new tools in place for our sales team to be successful regardless of current challenges. This includes contact pre-delivery, instructor-led virtual training for shop owners and expansion of selling capabilities, enabling our sales team to better meet the needs of our professional customers. We believe the work we've done to be there for our professional customers at a time of great need has set us apart.
Our DIY omnichannel performance was meaningfully stronger than our DIFM business throughout the second quarter. This was driven by both external and internal factors. An overarching macroeconomic factor is whether consumers are repairing or maintaining their vehicles, they are much more focused on saving money during challenging times. This generally means fewer new vehicle sales, an aging fleet and more DIY jobs. In addition, the stimulus checks from the CARES Act as well as expanded unemployment benefits in Q2 provided incremental discretionary income which we believe contributed to our DIY sales performance.
Since our DIY momentum has continued into Q3, we believe there are other external factors driving DIY beyond stimulus. First, many consumers were continuing to spend more time at home and had more time to work on their vehicles. Secondly, we believe that due to COVID-19, people were less apt to use public transportation. This includes ridesharing, buses, trains and subways. It also includes air travel, which was down significantly in the quarter. Airline leisure travel was at times replaced by road trip in a personal vehicle. In total, mass transportation indices were well below year-ago all quarter.
Meanwhile, personal vehicle miles driven declined throughout Q2 according to Apple and Google Mobility. Finally, according to our research, many of the large box retailers, including online retailers, prioritized staples along with food and beverages in Q2. This resulted in long tail items such as auto parts to be de-prioritized which temporarily opened the door. We believe external factors represented the majority of the surge we experienced in DIY.
While we cannot speculate on the longer-term impact of these macroeconomic or COVID related variables, we do believe from past experience that DIY typically performs better during recessionary environment as consumers try to save money and keep their vehicles longer.
Additionally, as our economy continues to reopen, we believe there is still an understandable concern surrounding public transportation and mass gathering. We remain committed to providing a safe shopping experience through our suite of advanced same-day options. As more and more consumers are relying on personal vehicles, they are choosing contact-free options like Advance Same Day Curbside or Advance Same Day Delivery. While we clearly have strong momentum in DIY, it's important to reiterate that there're still many unknowns surrounding COVID-19.
In addition to external factors, our internal initiatives for DIY gained traction in Q2. First, we successfully launched DieHard on July 2 nationwide. Although it's not a meaningful growth driver in the quarter, the first week of selling DieHard was a momentous celebration and a galvanizing event for our team. The launch involved coordination across every aspect of our business.
Normally, the Advance executive team were doing store tours during a launch like this. While we would have preferred to do in-person store tours, this was simply not possible during this time. Therefore, we adopted and conducted a combination of in-person and virtual tours across the country. The good news is we got to a lot of stores very quickly. And every general manager we spoke to was incredibly excited about the potential of DieHard. While it's too early to quantify the impact of DieHard, we believe this iconic brand will be a long-term differentiator for us.
Secondly, we made a decision in the early stages of the pandemic to prioritize Advance same day messaging in our advertising over previously planned brand awareness campaigns. The Advance same day advertising was both timely and relevant. Going forward, we'll continue to build the awareness for the Advance brand, partnering with Team Penske, NASCAR and with the Indy 500 this upcoming weekend.
Third, our Speed Perks loyalty program sustained continued momentum as the number of active members grew to more than 13.5 million, an increase of nearly 30% year-over-year. We're also seeing growth on customers graduating to higher tiers within the program, along with improved retention rates.
Finally, our DIY execution continues to improve. In addition to the national launch of Advance same day delivery, we strengthen the front end user experience of our online platform, which led to improved traffic and higher conversion rates. Our in-store execution also improved with strong ticket count growth along with notable gains in units per transaction and sales per ticket. As a result of both external and internal factors, we delivered double-digit growth in DIY omnichannel throughout Q2.
To close out the top line, and as we said in our press release, we've continued to see strong sales through the first five weeks of Q3. As we turned to profitability, we made progress on each of the four pillars of margin expansion in the quarter.
In terms of sales and profit per store, we had very strong sales per store in the quarter. On a rate basis, our SG&A per store was down materially. Certainly we benefited from top line growth. However, our productivity tools are also helping. Utilizing our new scheduling and task management tool, our field team has done an excellent job managing hours despite a challenging and evolving environment. With that said, we took several actions in the quarter, reflective of the unique operating environment such as a reduction of certain labor and costs related to the softer professional business. As our business continues to normalize, including the mix, we expect to add certain expenses back.
In terms of supply chain, improved execution and standardization in our distribution centers enabled us to leverage supply chain in the quarter. As we called out in our Q1 earnings release, we did need to delay or pause some important initiatives due to COVID-19. As an update, and given the strength of our business, several of these key initiatives are now back up and running. Cross-banner replenishment, which will integrate the supply chains within Advance and Carquest, is on track to deliver the original savings we've planned in Q3 2021. This is slightly delayed from our original timeline, primarily due to factors related to COVID-19.
Our single warehouse management system or WMS initiative was officially paused during the quarter. We've restarted this work and revised the timelines for WMS, which includes prioritizing our largest DCs. We expect to complete our WMS implementation in these large DCs by the end of 2021. We believe this will enable us to realize the vast majority of the planned savings in 2022.
In terms of category management, we continue to work with suppliers on material cost optimization and own brand expansion. We also began the implementation of a new pricing platform and expect over time this new tool will enhance our price management capabilities. Our next step is to begin the implementation of market based or local pricing strategies, which is something we cannot do efficiently today.
Finally, in addition to leveraging store labor in the quarter, we continued to execute our SG&A productivity agenda. This includes the integration of back office accounting as we consolidate four ERP systems to one. We also saw significant savings in travel expenses after pausing travel across the Company. While we believe there will likely be some savings associated with reduced travel longer-term, it will not be at the level we saw in Q2.
Our focus on health and safety also continues to drive cost savings in SG&A. In Q2, we once again reduced our recordable incident rate, which has resulted in a 27% reduction for the first half of 2020. Our collision frequency rate has also improved with a year-to-date reduction of 13%.
Before I turn it over to Jeff, and based on current events happening across the US, I want to reinforce our commitment to inclusion and diversity. We are witnessing immense civil unrest across the country in recent months. These events are reinforcing the importance of our cultural beliefs at Advance. Our cultural beliefs are part of how we think and how we act at Advance regardless of level or title. Our Champion Inclusion cultural belief is highlighted by the statement, I embrace diversity of people, thoughts, skills and styles to deliver results. It's never been more apparent to my leadership team that we need to step up on our commitment to champion inclusion even more. This includes standing up against intolerance and racism, conducting business with integrity and interacting with all people in a respectful manner. We recently launched an initiative we call Advancing Black Pathways. This is focused on creating real change in three primary areas: culture, careers and communities. We look forward to seeing further progress in this important element of our culture as the initiative develops.
In summary, Q2 was a strong quarter, and we could not be prouder of how our field team members took care of our customers during a difficult time. In spite of the challenges we faced from COVID-19, our Advance leadership team also stepped up as evidenced by a significant increases in our communication and employee engagement scores in our most recent pulse survey.
While we're pleased with our second quarter results, uncertainty remains in terms of how the pandemic will impact consumer behavior and our business. Regardless, we remain focused on executing our strategy, while updating the value and prioritization of our long-term projects in this new environment. Most importantly, we will continue to prioritize the health and safety of our customers and team members for the balance of the year, while leveraging our industry-leading portfolio which now proudly includes DieHard.
With that, I'll turn it over to Jeff for details on our financial performance.
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Thank you, Tom, and good morning, everyone.
We're certainly in an unprecedented time right now, and I truly hope that you and your families have stayed well during the past several months. Before diving into our Q2 results, I want to thank our team members for all we have accomplished over the last several months. It's a result of their dedication that we're extremely pleased with what we delivered in the second quarter.
In Q2, our adjusted gross profit was approximately $1.1 billion, which was an increase of nearly 9% compared to Q2 of the prior year. Adjusted gross profit margin improved 57 basis points year-over-year to 43.9%, driven by favorable channel mix and supply chain efficiencies. These were partially offset by inventory related costs due to a significant decrease in inventory, driven by an increase in customer demand.
Our adjusted SG&A was approximately $818 million in Q2, nearly flat compared to Q2 2019. Adjusted SG&A as a percent of net sales improved 217 basis points compared to the prior year, primarily driven by cost controls we implemented in response to the pandemic in late Q1. These include reductions in labor cost as we leveraged store labor while reducing medical claims. Further, we saw savings from lower delivery expenses to pro customers in the front half of the quarter before professional sales began to recover. Additionally, we saw favorability in travel and a reduction in insurance expenses. These cost savings were partially offset by an investment in marketing expenses associated with the launch of our Advance Same Day campaign and the DieHard brand in the quarter. Import contracts related to IT solutions we have implemented since Q2 2019 were also a slight headwind in Q2.
In addition, we incurred $15 million in COVID-19 expenses in the quarter, which partially offset the cost savings we delivered in the quarter. Our COVID-19 expenses were a combination of two things. First, we are incurring ongoing costs as we provide cleaning supplies, gloves, masks and hand sanitizer to our stores, DCs and corporate locations. In addition, we incurred some one-time expenses such as installing Plexiglass barriers in our stores. Secondly, we continued to invest in team member compensation and benefits in the quarter.
Adjusted operating income in Q2 was $279 million, which improved 42% compared to the prior year quarter. Our adjusted OI margin rate improved 274 basis points to 11.2% in the quarter. Adjusted diluted EPS was $2.92, an increase of 46%. Free cash flow in the quarter was $380 million, a 60% increase compared to $237 million in Q2 2019. Year-to-date, free cash flow was $308 million compared to $381 million during the same period in 2019.
As a reminder of our capital allocation priorities, we remain committed to maintain our investment grade rating, invest in the business, return excess cash to shareholders. Consistent with these priorities, we've taken several actions. First, we repaid the $500 million previously borrowed under our revolving credit facility. In addition, yesterday we provided notice to the trustee of our intention to redeem the $300 million 4.5% notes due in 2022. These actions will help us return leverage ratio to pre-COVID levels.
Secondly, as Tom mentioned we've restarted several projects that we expect to enable margin expansion that had been paused or delayed due to COVID-19. As a result, we now expect our full year 2020 capital spending will be a minimum of $250 million. In Q2, our capital expenditures were $57 million, which was an increase of $7 million compared to prior year. Third, with respect to our priority to return excess cash to shareholders, we're pleased to maintain a $0.25 dividend per share for Q3. In addition, we've lifted the temporary suspension of our share repurchase program and we'll remain opportunistic in our balanced approach to returning excess cash to shareholders.
In summary, we delivered strong operating results and strengthened our balance sheet this quarter. We remain diligent in managing our liquidity and executing our plan to win in the marketplace while expanding margins.
With that, let's open the call to address your questions. Operator?
Questions and Answers:
Operator
[Operator Instructions] And your first question comes from the line of Michael Lasser with UBS. Please go ahead.
Michael Lasser -- UBS Investment Bank -- Analyst
Good morning. Thank you, all, for taking my question. As you look at it, how is your market share in both DIY and DIFM as you try and adjust for business mix and geographic exposure? And then part of that, Tom, do you think that the customers in the DIFM segment you are levered to might be losing share within those markets?
Tom Greco -- President and Chief Executive Officer
Hey, good morning, Michael. First of all, we absolutely gained share in the quarter. We can see from the syndicated data that inside of DIY, we gained share. And on Pro, we just look at what's been reported and we compare it to what we delivered. And we feel very confident that we gained share in DIFM also. So you have to keep in mind that this is a pretty fragmented industry. In a $150 billion segment, the big four players have $40 billion to $45 billion in sales, so roughly a third of the business. So is it conceivable in the middle of a global pandemic that large-scale players that have about a third of the business can take share from the smaller-scale players that are two-thirds. I think we just showed that that's the case.
Obviously, we've got capabilities that smaller players just don't have: a great online portal; omnichannel capability; we can turn on a dime and do curbside delivery or contact-free delivery; our supply chains are robust. So, we're confident that we gained share in the quarter. And I think it's, as you've been seeing, I think the larger players are going to be doing well in a quarter like this.
Michael Lasser -- UBS Investment Bank -- Analyst
Thank you. My second question is, you've outlined some delays in the initiatives that were going to drive the margin inflection in 2021. But there's also some factors that are probably trending better than what you anticipated. So as you net those out, are you -- do you believe that the magnitude and the timing of the margin expansion that you previously outlined for 2021 will be consistent with what you had previously expected? Or should we, as we look out forward, start to recalibrate lower our expectations for next year? Thank you very much.
Tom Greco -- President and Chief Executive Officer
Well, obviously there is a tremendous amount of uncertainty right now, whether it's the shape of the recovery, the impact of COVID, we've got an election coming up. So we're still working through our update, if you will, of our strategic plan, which will be a three year plan when we -- when we discuss it later on in the year and into 2021. You're right. There's been impact to each one of the margin expansion initiatives that we have. At this point, we're not in a position to comment specifically on where we're going to be in 2021. It's obviously very early at this stage, but we feel very good about the progress that's being made, whether it's in sales and profit per store where we had a very strong quarter.
The team did a really, really good job managing payroll in the quarter. We're looking a little bit differently at our fleet, if you will, as we go forward, given the changes in the real estate environment and construction costs; supply chain, we referenced in the prepared remarks. We still feel very good about our ability to expand margins through supply chain. We're rolling up our own brand portfolio, which will drive margins. And in SG&A, we had a very strong quarter. Those initiatives are moving very well and in fact ahead of our expectations. So there is puts and takes in there, but I think it's a little early to speculate on 2021.
Michael Lasser -- UBS Investment Bank -- Analyst
Thank you.
Operator
And your next question comes from the line of Seth Sigman with Credit Suisse. Please go ahead.
Kieran McGrath -- Credit Suisse -- Analyst
Good morning. This is Kieran McGrath on for Seth Sigman. Congrats on the great quarter. Two questions from me. Firstly, you discussed DIY strength continuing quarter to date. Does that tell you that stimulus was a smaller piece of the elevated DIY demand in the first half? And related, do you now think that that elevated demand is more durable than your initial expectations?
Tom Greco -- President and Chief Executive Officer
I'm sorry, Kieran, can you repeat the first question? I'm not sure I understood everything.
Kieran McGrath -- Credit Suisse -- Analyst
Okay. Just regarding the strong quarter to date DIY trends, stimulus has now expired. So does that inform you that the stimulus was a smaller piece of that elevated demand in the first half? And then related, is that demand now more durable, in your opinion, than your initial expectations?
Tom Greco -- President and Chief Executive Officer
Well, I think the -- I guess the -- there's a lot of factors in there. I do think that we obviously benefited from stimulus and the unemployment benefits, but we know that in the back half, we're going to get less benefit from that. That said, the strength has continued as we indicated. When you've got a challenged economy and when you have COVID, there is a number of things that work in our favor. We know we're going to have less new vehicle sales. That means an aging fleet that means more repairs. It means more DIY work.
We know that people are going to avoid mass transportation. We hear a lot about the car as a safe place for people right now. So they're choosing to use a personal vehicle. There are some people that are buying cars because of that that have not used and did not have a vehicle before and they're buying a used vehicle to get around when they had been doing nothing but ridesharing. So that's going to help us. And the fact that people have time on their hands to do projects and are spending less on travel, entertainment and those types of things also benefit us. So I think there are some macroeconomic factors related to the environment and COVID that benefit us.
And then we do have a lot of confidence in our internal drivers. I mean, DieHard is launching. Our field team is very, very excited about it. Our marketing plans are kicking in. We're into our second year of Speed Perks. So we believe, regardless of the environment, we'll have strength in DIY in the back half.
Kieran McGrath -- Credit Suisse -- Analyst
Great. Thank you. And then secondly, regarding your category performance. Was that relatively broad based or was it led by maintenance and appearance? And then, what are you seeing in failure categories on the back of the miles driven trends that you discussed? Thank you.
Tom Greco -- President and Chief Executive Officer
Yeah, sure. Good question. I mean, there is some impact on the categories that really rely on -- rely on miles driven. If you talk about things like brakes, to a lesser extent undercar chassis. As the economy started to open back up, I mean, in the early part of the quarter, we were -- we were soft in those categories, particularly on the professional side. But we gained momentum throughout the quarter and now we're in the mid-single digit land growth rate in those categories. So, the categories that are very reliant on miles driven, we've seen an improvement in the last couple of months.
On failure, this intermittent driving that's going on obviously benefits certain categories for us, be that batteries or fuel pumps. There is others where we're seeing very, very strong growth. AC bounced back nicely in recent weeks. It was obviously quite warm in our geography. So that came on very strong. And as you heard from others, appearance, wash and wax, very, very strong performance, and that's also sustained. So you've got the normal dynamics around miles driven and its relationship to the category I don't think is as relevant. It doesn't correlate as highly as we're seeing strength in certain categories that really aren't depending on miles driven.
Kieran McGrath -- Credit Suisse -- Analyst
Thank you.
Operator
And your next question comes from the line of Elizabeth Suzuki with Bank of America. Please go ahead.
Elizabeth Lane Suzuki -- Bank of America Merrill Lynch -- Analyst
Great. Thank you. Just following up on a previous question. I guess looking at the cost reductions that were made in the quarter, I mean, it sounds like a lot of it was labor expense that will likely come back as the sales environment is more favorable, but at the same time you have longer-term cost savings initiatives that were delayed. So as we think about just the remainder of the year, should we expect labor costs to come back, but then longer-term you get the benefits of the larger initiatives over the next two, three years?
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Yeah, sure, Liz. This is Jeff. So we had obviously a number of cost initiatives that we put in place at the end of the first quarter. They did start to manifest themselves obviously in the second quarter. And you hit on the main things. It was -- the payroll was a big driver. Professional delivery -- as that segment was slower in recovering, we were able to see benefit there. And we saw benefits associated with cost we can control like travel, and then we saw benefits in areas like medical because a lot of our team members were deferring elective procedures and even checkups.
So as we look to the back half of the year, I think there is -- there's potential headwinds. There are some continued tailwinds, and then there are some that could go either way. So as professional recovers, we are going to have additional professional labor. We've got to deliver that part to the customer, and that just requires additional labor hours driving and costs associated with that. We are going to continue to invest in our marketing in the back half. We've launched that both for DieHard as well as our Same Day, and it's something we believe in, which should obviously drive revenue, but that's something we want to invest in. And then the capex, the projects that we're starting -- that we're restarting that were paused. There is obviously opex related to that. And we're going to continue to make those investments. And then obviously the COVID costs. And we're going to continue to prioritize people over profit.
Having said that, we think there are some tailwinds as well. We're going to continue to control things like travel. And in-store payroll is another area we believe that we can continue to leverage. And we've got our labor tools that's been put in place, and we're seeing a lot of benefit from that. So while we think there's going to be some additional labor associated on the professional side, we think we continue to control store payroll. And then there is a question mark with medical. Medical continued to be a tailwind but it can also be a headwind in back half if team members are going to be more comfortable going into the doctor's office to get checkups or start to do elective procedures. So those are sort of the costs that we're looking at in the back half. Obviously, we're still in the pandemic, there're still a lot of uncertainties, which is part of the reason why we don't have any guidance out there right now.
Elizabeth Lane Suzuki -- Bank of America Merrill Lynch -- Analyst
Okay. Great. Thank you.
Operator
And your next question comes from the line of Simeon Gutman with Morgan Stanley. Please go ahead.
Simeon Ari Gutman -- Morgan Stanley -- Analyst
Thanks. Good morning, everyone. I wanted to start with a question on some of the DCs that you've begun to standardize. Can you talk about the sales and margin performance around those DCs or the areas in which they serve? I think some of them may have been impacted just because of COVID and some of the Northeast but curious since it's a building block of the transformation, how it's progressing and are you seeing real change as a stepping stone to margin.
Tom Greco -- President and Chief Executive Officer
Hey, good morning, Simeon. Yeah, for sure, out of the gate, we were really happy with what we were getting from the implementation of the new warehouse management system. The fill rates improved, the DC that we did was much more organized, the people there were trained and very excited about what was done. It was a material difference I think between what was there before. Obviously, the impact of COVID has been significant in -- throughout all of our DCs and in our stores. It's made it difficult to hire people. It's a challenging environment right now if you have an infection in the DC. There's obviously things that we have to go through. We have to quarantine people. So I think it's a difficult time to really benchmark the success of the warehouse management system at this point.
As we're starting to ramp back up and get people hired in our buildings -- we just went through this yesterday -- we are seeing progress and improvement on fill rates and how quickly to put things away and all of the things that go with running a DC successfully. So the short answer is, we're highly optimistic that the warehouse management system implementation will enable a much more structured labor management system for our buildings and standardize our buildings and allow us to drive productivity. During the last several months, it was difficult to realize some of those benefits.
Simeon Ari Gutman -- Morgan Stanley -- Analyst
Okay. Thanks for that. And then my follow-up is related to a couple of initiatives in the do-it-yourself side. I think marketing was on the cusp of changing and being enhanced. And then the DieHard battery -- and apologize if some of this was asked already, but curious where you are on these two initiatives and how you manage in this environment.
Tom Greco -- President and Chief Executive Officer
Sure. I mean, the marketing we repurposed from essentially a branded campaign to really lift up Advance, the name Advance. We've talked a lot about the low relative awareness of the Advance brand, and we remain committed to that. That said, as COVID hit and speed and urgency of getting parts became paramount, we repurposed that advertising to the -- to the Raleigh CRY [Phonetic] campaign that we've been running, which is Advance Same Day, and that has worked extremely well. It really drives home the speed and convenience and trusted advice that we can provide to our customers. It allows us to lift up Advance Same Day Curbside, so if somebody wants to come into our store and just wait in their car, we can walk the battery out, install it, and they don't even have to get out of their car. Advance Same Day Delivery, I think we're the only people in the industry doing that at this point. It has been very successful for us. And it's driven our pick up in store business as well. So we're happy with where that campaign went. That said, we're -- we remain committed to driving awareness of the Advance brand.
In terms of DieHard, we couldn't be more excited about DieHard. I mean, we had -- we mentioned in our prepared remarks that we went out and did virtual market tours. We were in a lot of stores very quickly. We saw our execution against it. Our team members are so excited about this brand. They've lived with it their whole lives. In some cases, a team member remembers when they're five years old and they went out and they bought their first battery, it was a DieHard battery. So we've got a tremendous amount of energy and enthusiasm around it. The marketing plans are coming together for the fall. But we dialed the execution on this, and we created our field team. We wanted to launch at that July 4 weekend, and we stopped the landing on that. The execution looks fantastic coast to coast on DieHard. So more to come there, Simeon, but off to a great start, and now we've got to really got the pull going so we can drive people into our stores.
Simeon Ari Gutman -- Morgan Stanley -- Analyst
Okay. Thanks for that, Tom.
Operator
And your next question comes from the line of Scot Ciccarelli with RBC Capital Markets. Please go ahead.
Robert Scot Ciccarelli -- RBC Capital Markets -- Analyst
Good morning, guys. So based on the flat comp that you had in the first four weeks of the quarter, it looks like comp side [Indecipherable] 10% to 11% or so in the last eight weeks of the quarter. So, Tom, when you talk about strong sales continuing so far in 3Q, does that mean we're still running at a double-digit rate?
Tom Greco -- President and Chief Executive Officer
Yeah. We're not going to give specific numbers, Scot, for it, but I mean, we obviously --we did end up running double digits those last couple of periods and we've continued to see strength into the third quarter, which we feel good about. So, the category remains strong for some of the reasons I mentioned earlier. So we feel good about it.
Robert Scot Ciccarelli -- RBC Capital Markets -- Analyst
Got it. Okay. And then when you talked about the 2,000 basis point gap across some of the geographies, I'm assuming that was kind of full quarter commentary. But should we assume there's been a fairly meaningful narrowing in that performance in kind of July and August so far just as consumer mobility has continued to improve? Are you still seeing that the gap that wide?
Tom Greco -- President and Chief Executive Officer
Yeah. Good question. We are seeing it narrow. And we commented on the Northeast, the mid-Atlantic, specifically where we've seen the most significant impact of COVID, and particularly on the Pro side, by the way. DIY, we're doing better there. But even there, you've got that differential that we're talking about. But it has narrowed as time has gone on, and we are optimistic it'll continue to narrow. It's just the people up in the Northeast and mid-Atlantic have been just less mobile and our overall performance up there has lagged. I mean, the center of the country was very, very strong throughout the entire quarter, both on Pro and DIY. Mid-Atlantic and the Northeast, challenged. West Coast, we did well on DIY. Pro was more challenged on the West Coast for us. So that's kind of the geographic performance, but we are seeing it narrowing, which is good for us.
Robert Scot Ciccarelli -- RBC Capital Markets -- Analyst
Got it. Very helpful. Thanks, guys.
Operator
And your next question comes from the line of Michael Montani with Evercore. Please go ahead.
Michael David Montani -- Evercore ISI -- Analyst
Hey, good morning. Thanks for taking the question. Just wanted to focus on two things. One was top line and then a margin follow-up. So just specifically as it relates to the top line, I was just hoping for some extra clarification and color around the Pro side. Was that positive during the quarter? And then anything you can share, Tom, in terms of traffic count versus ticket size for DIY and DIFM? And then I just had the margin follow-up after that.
Tom Greco -- President and Chief Executive Officer
Yeah. First of all, on Pro, we were down slightly in the quarter overall I think on ticket and traffic. Very, very strong ticket performance on DIY. Dollars per ticket up very strong. In terms of Pro, we were -- we measure accounts, right, Michael in Pro like how many accounts are we servicing. In April and into early May, that number dropped significantly. It was down 30%. For a couple of weeks, there was -- the garages were closed and some of these markets were shelter in place and were shut down. As the quarter progressed, the number of accounts we were servicing came back, and right up through the end of the quarter, we started to approach year-ago levels. We're still slightly negative, but approaching year-ago levels. But our dollars per account surged. So you're seeing some consolidation there a little bit, but overall our Pro business has recovered week in, week out since this thing started, and we're optimistic about that.
Michael David Montani -- Evercore ISI -- Analyst
Okay. Great. And then just on the margin front, kind of a two-parter. But one is, on SG&A dollars, Jeff had some significant puts and takes there. But if you think about the back half, can you kind of continue SG&A dollars to be more or less flattish with last year even if the volumes remain strong? What should we think about there? And then secondly on the gross margin front, just wanted to see what kind of inflation you are experiencing and if you feel you can get it through because, as I recall, there's significant tailwinds from cycling of Speed Perks 2.0 launch as well as supply chain leverage into 3Q that should be good for gross margin.
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Yeah, sure. Let me start with the SG&A. As I said on a previous question, we certainly have some tailwinds and we have some tailwinds. And if you kind of tick back through those, the headwinds are controllable. We have marketing, but if we need to scale it back, we can scale it back. The only -- the only one you really can't is COVID. I mean, we're going to -- we're going to spend what it takes to protect our people and protect our customers. Pro labor doesn't continue to trend the way it has been. We're not going to have drivers in the store if there's no parts to deliver. And then on the tailwind side, obviously travel and payroll in the store, I feel really confident we can continue to leverage that, not to mention the awareness that we're going to get from the marketing and the impact that we're going to get from DieHard that we really didn't see much in the second quarter. And then, medical, again, could go either way.
In terms of gross margin, inflation was relatively low in the quarter. I think we were right around 2%, maybe slightly under. And you're right, in the back half, there's two things we're going to be lapping on a -- you touched on one of them, in terms of Speed Perks, and then also the full impact of the tariff. So, on a year-over-year basis, we should be able to see some benefit there, assuming we don't get anything in the back half associated with elections or anything else. So, yes, certainly some opportunity.
Michael David Montani -- Evercore ISI -- Analyst
Thank you and good luck.
Operator
And your next question comes from the line of Daniel Imbro with Stephens, Inc. Please go ahead.
Daniel Robert Imbro -- Stephens Inc. -- Analyst
Hey. Good morning, guys.
Tom Greco -- President and Chief Executive Officer
Good morning.
Daniel Robert Imbro -- Stephens Inc. -- Analyst
Tom, can you update us on the status of the independent Carquest locations? Obviously, they're levered toward the DIFM market, which has underperformed. I know you added a few, but just any material change in the health of the independent landscape you're seeing, especially maybe August year-to-date, as we've seen the PPP funding kind of run out in late July. Any change you're seeing out there that [Indecipherable]?
Tom Greco -- President and Chief Executive Officer
Well, first of all, it is changing. There's no question about that. But, we grew in the quarter with our independents. We're really excited about that. I'd like to commend them. I mean, they did a phenomenal job amid tremendous challenges. I think, the team really banded together, the independents themselves, our field team, our pro team that supported them. We acted really fast. And a lot of our independent partners were able to just take all of the things we were doing inside of Advance to keep their team members safe, leverage the PPP loans. They were able to roll out curbside delivery in conjunction with our AAP stores, which allowed them to provide essential parts and services to their communities.
So, I think, more and more, we're able to move faster to enable our independents to do the things that they need to do to win in the marketplace. And that's why the Carquest program is growing. So, we feel very good about the progress that's been made there. And they had a strong quarter actually. So, we feel good about it, Daniel.
Daniel Robert Imbro -- Stephens Inc. -- Analyst
That's great. Helpful. And then, Jeff, maybe one on gross margin as a follow-up. We're hearing from transportation companies, especially in truckload and LTL, that rates are beginning to move a lot higher due to limited capacity. Can you remind us how much of your freight is exposed to third-party freight rates or contract rates? And then, how you are expecting that to maybe impact gross margin in the back half, maybe as a follow-up to the last question on gross margin?
Tom Greco -- President and Chief Executive Officer
Yeah. And we haven't broken out our third-party transportation, but we certainly do have exposure. A portion of it is third-party, a portion of it we do have internal. So, we do have exposure to it. But we haven't seen a significant amount of inflation here in the second quarter. Doesn't mean we won't get it in the back half. But what we've seen here in Q2 has been basically immaterial.
Daniel Robert Imbro -- Stephens Inc. -- Analyst
Yeah. Thanks.
Operator
And your next question comes from the line of Zach Fadem with Wells Fargo.
Zachary Fadem -- Wells Fargo Securities -- Analyst
Hey. Good morning. On the Do-it-for-Me, you mentioned performance was down slightly in the quarter. Curious if this was consistent across all the varying professional customer or commercial customer types, Jeff, and whether you saw any disparities across kind of mom and pop garages or regional chains.
Tom Greco -- President and Chief Executive Officer
Well, the way we measure that, Zach, is obviously we have our large strategic customers, we have our TechNet customers, we have the all other. What I can tell you is all of them have been bouncing back. As we mentioned in our most recent four-week period, which kind of is mid-June to mid-July, we were up very nicely in our professional business overall. And that really was across the board. Our strategic accounts are coming back. Our TechNet probably led the way, it did lead the way in the quarter. We added additional TechNets and our base TechNet customers performed very well in the quarter. And even the all other segment in the last four weeks, we grew. So, it was really a function of that first big change when COVID impacted the country in April when there was just people -- people closed down, and it was pretty uniform across our channels within Professional.
And then, as the country began to open back up, we saw it improve. And [Indecipherable] experienced similar things to us. We looked at the geographic performance and I talked to the CEOs of these companies. We do the benchmarking. Everybody struggled in the mid-Atlantic and the Northeast. Everybody had a huge growth rate in the center of the country. So, that's really what was going on. And I do think over time, as we said before, the large strategic accounts are going to continue to grow at an accelerated growth rate and where they have the scale, they're going to leverage that scale.
Zachary Fadem -- Wells Fargo Securities -- Analyst
Got it. That's helpful. And then, on the gross margin line, again, how much of this 60 basis-point expansion would you attribute to DIY mix? And how would you quantify that relative to the impact of other factors like LIFO and the supply chain leverage?
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Yeah. So, basically, in rank order, there were two major drivers to the gross margin expansion, the first actually being supply chain. We leveraged both in rate and dollars on a year-over-year basis. And then the second item would be your -- the mix that you're referring to. And then that was offset by what we call inventory related, which was largely -- you think of it in terms of volume because we took the inventory down, so substantially, those capitalized supply chain costs worked their way through the P&L. The LIFO impact for the quarter was a little over $3 million. And so year-over-year, we actually saw that as a tailwind, but it was a $3 million hit in the second quarter.
Zachary Fadem -- Wells Fargo Securities -- Analyst
Got it. That's helpful. Appreciate the time, guys.
Tom Greco -- President and Chief Executive Officer
Thanks, Zach.
Operator
And your next question comes from the line of Bret Jordan with Jefferies. Please go ahead.
Bret David Jordan -- Jefferies -- Analyst
Hey, good morning, guys.
Tom Greco -- President and Chief Executive Officer
Good morning.
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Good morning.
Bret David Jordan -- Jefferies -- Analyst
As you look at Duro-Last, at the -- sorry, DieHard with six weeks, I guess sort of history, how has the performance of the battery category been with that new brand? I mean, as you compare it to what you were doing with AutoCraft in the prior year in July, do you see anything that you can sort of measure the success with? And I guess, as you think about the DieHard brand for product expansion, are you going to keep that in battery or is that rolling out to broader categories?
Tom Greco -- President and Chief Executive Officer
Well, first of all, you've heard from others that batteries performed very well in the second quarter period for some of the reasons that we mentioned earlier, and that was fortuitous for us because obviously we're in the middle of a transition, and we wanted to sell through all of those AutoCraft batteries, but -- and that was a massive undertaking, Bret, for us. So, I mean, it enabled a very smooth transition. As I mentioned, every store in the country was full with DieHard in early July. We can see the share numbers. We like the share numbers a lot in batteries. And we're optimistic that DieHard is going to sustain that momentum. So, I think it's early to comment on the performance of it. But, there's no question that we are very bullish on our ability to drive market share gains in batteries in the back half of the year.
And in terms of what we're going to do with the brand, more to come there. I mean, we want to be very thoughtful and deliberate about DieHard. So, you think about the big things that we're focused on there. We have to win in batteries. That's kind of job number one. We want to make sure that we're doing the job there, and not kind of moving on to something else before we've established ourselves within batteries. But beyond that, there's a lot of extension opportunities that we're discussing, but you're not going to see a lot there over the next couple of months. I mean, right now we're focused on dialing the execution of the battery launch, marketing it flawlessly, making sure DIY consumers know that the only place they can get it is at Advance Auto Parts. And our Pro customers, we've got programs that we're launching there as well. And our team members -- we want to make sure that our team members are really, really clear on the benefits and the features associated with DieHard. So, that's kind of -- the current focus is on really dialing the battery launch in the back half of the year.
Bret David Jordan -- Jefferies -- Analyst
Okay. And then a quick question. You mentioned that you gained market share in the quarter. I guess, do you have a feeling for where the share gains may have come from? I mean, you did comment some other online and non-traditional auto retailers de-emphasize the category, or was it from smaller independents who were just sort of stressed with pre-care PPP funding?
Tom Greco -- President and Chief Executive Officer
Yeah. I think, it's a combination of both from what we can see, Bret. There's limited information that you can see the true online performance that when we look at share of buyers or some of the growth rates that you can get surrounding the online players, we can see those gains. And when we see our performance versus the market, we have to assume that some of those gains came from some smaller players also, which is not as clear to us, right. You can't see specifics there. You see us versus just the market. But I think it's a combination of both of those two.
Bret David Jordan -- Jefferies -- Analyst
Great. Thank you.
Operator
And your next question comes from the line of Seth Basham with Wedbush Securities. Please go ahead.
Seth Mckain Basham -- Wedbush Securities -- Analyst
Thanks a lot and good morning. My first question is just around the effect of -- the pressure on miles driven and whether or not you're seeing declines in failure and maintenance categories directly tied to miles driven, particularly in the regions where it has remained the weakest such as the mid-Atlantic and Northeast. Could you provide a little bit more color there?
Tom Greco -- President and Chief Executive Officer
Yeah. Honestly, Seth, on the -- it's impacted more the brakes, undercar chassis categories. And again, I mentioned earlier that that was early in the quarter. So we saw -- as miles driven dropped to minus 40 and minus 50, right, which was kind of the April numbers. And in particular, in the geographies you mentioned, we definitely saw a slowdown in brakes and to a lesser extent undercar chassis. But that gained momentum as the quarter went along. And by the time we got to the end of the quarter and into the third quarter -- and this was largely a professional comment by the way. We were able to see that number come up and we're now growing mid single digits in those categories.
In the failure related, particularly batteries, when you got intermittent driving, you're basically increasing the likelihood of failure. So, that has actually helped us and sales are up very strong in those categories. And we mentioned appearance and accessories, which people just have time on their hands, they're washing their own cars, they're detailing their own cars, they're not buying a new car, they're buying a used car that they want to work on and do some things. So, they're doing the things that people who have time on their hands are doing right now. So DIY -- it's a great time for DIY because people have time on their hands and they're going to do things at that time rather than just sit around the house and get outside and do the things that people love to do. So, miles driven is normally a very high correlation of performance in the category, but we're not seeing that same relationship that we've historically seen.
Seth Mckain Basham -- Wedbush Securities -- Analyst
That's really helpful. And then secondly on cross-banner distribution. I know you've delayed some of the expected changes and benefits. But for DCs, where you have implemented it so far, can you provide a little bit of an update as to types of improved margin or improved performance that you're seeing?
Tom Greco -- President and Chief Executive Officer
Yeah. We're right on the number in terms of the productivity we expect in the buildings that we've made the changes, Seth. So we feel very good about that. We're continuing to roll it out. We delayed it. I mean, it was a difficult quarter. You're running through all the challenges that we were facing. Our e-commerce business surged significantly in the quarter. We had COVID incidents in our distribution centers, which caused us to have to slow it down, which we didn't want to do, but we had to. So, we're not going to realize the full benefits until the third quarter of 2021 as we indicated in our prepared remarks, which moves it back about a quarter. But, in the buildings and the stores where we've made the change, you're just taking stem miles spread out. So, it's just great stem miles savings. As fuel costs fluctuate, that's going to fluctuate. But, overall we're -- it's on track with the planned productivity we expect.
Seth Mckain Basham -- Wedbush Securities -- Analyst
Thanks a lot and good luck.
Operator
And your next question comes from the line of Kate McShane with Goldman Sachs. Please go ahead.
Chandni Luthra -- Goldman Sachs -- Analyst
Hi. Thank you for taking my question. This is Chandni Luthra on behalf of Kate McShane. Tom, in terms of sort of thinking about COVID-related cost and you guys mentioned that you incurred $15 million of COVID costs in 2Q and part of it was one-time expenses like Plexiglass, etc. How should we think about this expense going forward?
Tom Greco -- President and Chief Executive Officer
Yeah. It's a tough one, obviously, to predict. We're going to continue to pay whatever we need to keep our people safe. We had $16 million in the first quarter, we had $15 million in the second quarter. So, one could say that is a run rate. We did have some one-time costs. Well, we had that in the first quarter as well. So the question really becomes, is there a third quarter one-time cost or is there a fourth quarter one-time cost. It remains to be seen. Like we said in some of our comments, we put in the Plexiglass, we continue with sanitation, masks, temperature taking, and then we did some support directly to our team members in the form of -- some one-time compensation. So, that's sort of the dynamics of the first half of the year, a little bit difficult to predict what's going to happen in the second half of the year. But, we're certainly going to make sure we keep our people safe.
Chandni Luthra -- Goldman Sachs -- Analyst
That is very helpful. Thank you. And if I could get a quick follow-up. In terms of your inventory down slightly in the quarter, how should we think about the back half outlook for inventory? And are there any issues in sort of sourcing in supply chain globally at this point or everything's pretty seamless right now?
Tom Greco -- President and Chief Executive Officer
Yeah. In terms of sourcing, we've been very successful in working with our supplier partners across the globe in terms of getting the SKUs that we need. We're -- we have some in-stocks that are a little bit lower in some of our lower -- slower velocity SKUs, but we intend to get that back on track in the second half of the year. So, we're not anticipating any significant investments or any significant decreases in the back half as we sit here today. Again, if we get another surge, it could drive down our inventory. But right now, we're well-stocked, we're well-prepared and we're going to keep working through that through the back of the year, as we make sure we can get the customers the parts they need.
Chandni Luthra -- Goldman Sachs -- Analyst
Glad. Thank you.
Operator
And your next question comes from the line of David Bellinger with Wolfe Research. Please go ahead.
David Bellinger -- Wolfe Research -- Analyst
Hey. Good morning and thanks for taking the questions. May be just somewhat of a follow-up on the last question. Given the volatility in sales trends and the strong pick-up off the lows in late April, have you sort of come across any supply constraints, especially within the Worldpac business? Is that something we could see from the deploying more toward the later stages of the year?
Tom Greco -- President and Chief Executive Officer
We haven't, David, I mean, it's -- we've obviously are managing this daily. We get an update that's comprehensive every Monday and every Friday, kind of lets us know where we are. It has been challenging because there has been a significant surge in demand and you've got suppliers and manufacturers out there that are scrambling to source. But we're well positioned. Our Worldpac team does a terrific job sourcing the parts that they get that are somewhat unique, a very long tail of OE parts and private label parts that they have, branded parts that they have. So, we haven't had anything specific that we would say we're in any way disadvantaged. I think we're actually very well-positioned versus the rest of market.
David Bellinger -- Wolfe Research -- Analyst
Got it. Thank you. And if I just follow up on -- in terms of online. So, online growth has been significant with DIY channel. So, what do you think from a competitive standpoint now that this category seems to be gaining more traction online? Have you seen any other players get more aggressive in the states and how are you addressing it?
Tom Greco -- President and Chief Executive Officer
I mean, the big key here, David, is to make sure -- I mean, obviously, we've had some new customers come to Advance in the last several months, and we've talked a lot about that over the last few months. How do we make sure that somebody walks into our store for the first time or goes to our online portal for the first time that we keep that customer? And obviously, Speed Perks is the vehicle to do that. We're very happy with the loyalty program that we have. We were very focused on that in the past 12 months. We indicated that the number of people year-on-year was up 30%.
We also know that we're graduating people that were in Speed Perks to the higher tiers. We had a 24% increase in graduation rates in the quarter. So, somebody who was a club member is now a VIP or an elite. So, that tells us that that person is increasing their share of wallet with Advance, which is very, very important in this time frame. You can't -- you don't want us to be a won and done, you want us to make it sticky. And we know that our average dollars per member is up significantly. So, that tells us we're driving share of wallets. So that's kind of how we look at it to make sure that these online purchases that they're making with us are translated into a great customer experience, whether that's online, on our app, by the way, which we launched in the quarter, or in our store. And I feel that we're making good progress there. There's a tremendous amount of runway there. We've now got that first party data, we've got an email, we're able to personalize our offers.
So obviously, other online players are going to do what they do. But our ability to know the category and provide the subject matter expertise and content knowledge that we have, along with the trusted advice and the speed and convenience of our stores, we feel we're well positioned to compete in that world.
David Bellinger -- Wolfe Research -- Analyst
Very good. Thank you very much. Appreciate it.
Operator
And there are no further questions at this time. I will turn the call back over to Tom for closing remarks.
Tom Greco -- President and Chief Executive Officer
Well, thanks again for joining us today. And as you heard, we delivered strong results in Q2 and we're very optimistic about the second half of 2020. During this unprecedented time we're all enduring, I'm incredibly proud of how our team has come together to serve our customers with care and speed while protecting the health and safety of all of our team members. I'm confident that the actions we're taking will allow us continue building on this positive momentum for Advance and enable meaningful top line growth, margin expansion and significant cash flow generation. We look forward to talking to you again in November. Thanks again for your continued support and please stay safe.
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, Chief Financial Officer
Michael Lasser -- UBS Investment Bank -- Analyst
Kieran McGrath -- Credit Suisse -- Analyst
Elizabeth Lane Suzuki -- Bank of America Merrill Lynch -- Analyst
Simeon Ari Gutman -- Morgan Stanley -- Analyst
Robert Scot Ciccarelli -- RBC Capital Markets -- Analyst
Michael David Montani -- Evercore ISI -- Analyst
Daniel Robert Imbro -- Stephens Inc. -- Analyst
Zachary Fadem -- Wells Fargo Securities -- Analyst
Bret David Jordan -- Jefferies -- Analyst
Seth Mckain Basham -- Wedbush Securities -- Analyst
Chandni Luthra -- Goldman Sachs -- Analyst
David Bellinger -- Wolfe Research -- Analyst
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Advance Auto Parts Inc (NYSE: AAP) Q2 2020 Earnings Call Aug 18, 2020, 8:00 a.m. Our sincere thanks and appreciation goes out to every single AAP team member and Carquest Independent partner who delivered the strong performance we are about to review. As a result of our health and safety focus, we're very pleased that AAP has been well below the national average infection rate for COVID-19.
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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, Chief Financial Officer Michael Lasser -- UBS Investment Bank -- Analyst Kieran McGrath -- Credit Suisse -- Analyst Elizabeth Lane Suzuki -- Bank of America Merrill Lynch -- Analyst Simeon Ari Gutman -- Morgan Stanley -- Analyst Robert Scot Ciccarelli -- RBC Capital Markets -- Analyst Michael David Montani -- Evercore ISI -- Analyst Daniel Robert Imbro -- Stephens Inc. -- Analyst Zachary Fadem -- Wells Fargo Securities -- Analyst Bret David Jordan -- Jefferies -- Analyst Seth Mckain Basham -- Wedbush Securities -- Analyst Chandni Luthra -- Goldman Sachs -- Analyst David Bellinger -- Wolfe Research -- Analyst More AAP analysis All earnings call transcripts 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. Advance Auto Parts Inc (NYSE: AAP) Q2 2020 Earnings Call Aug 18, 2020, 8:00 a.m. Our sincere thanks and appreciation goes out to every single AAP team member and Carquest Independent partner who delivered the strong performance we are about to review.
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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, Chief Financial Officer Michael Lasser -- UBS Investment Bank -- Analyst Kieran McGrath -- Credit Suisse -- Analyst Elizabeth Lane Suzuki -- Bank of America Merrill Lynch -- Analyst Simeon Ari Gutman -- Morgan Stanley -- Analyst Robert Scot Ciccarelli -- RBC Capital Markets -- Analyst Michael David Montani -- Evercore ISI -- Analyst Daniel Robert Imbro -- Stephens Inc. -- Analyst Zachary Fadem -- Wells Fargo Securities -- Analyst Bret David Jordan -- Jefferies -- Analyst Seth Mckain Basham -- Wedbush Securities -- Analyst Chandni Luthra -- Goldman Sachs -- Analyst David Bellinger -- Wolfe Research -- Analyst More AAP analysis All earnings call transcripts 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. Advance Auto Parts Inc (NYSE: AAP) Q2 2020 Earnings Call Aug 18, 2020, 8:00 a.m. Our sincere thanks and appreciation goes out to every single AAP team member and Carquest Independent partner who delivered the strong performance we are about to review.
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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, Chief Financial Officer Michael Lasser -- UBS Investment Bank -- Analyst Kieran McGrath -- Credit Suisse -- Analyst Elizabeth Lane Suzuki -- Bank of America Merrill Lynch -- Analyst Simeon Ari Gutman -- Morgan Stanley -- Analyst Robert Scot Ciccarelli -- RBC Capital Markets -- Analyst Michael David Montani -- Evercore ISI -- Analyst Daniel Robert Imbro -- Stephens Inc. -- Analyst Zachary Fadem -- Wells Fargo Securities -- Analyst Bret David Jordan -- Jefferies -- Analyst Seth Mckain Basham -- Wedbush Securities -- Analyst Chandni Luthra -- Goldman Sachs -- Analyst David Bellinger -- Wolfe Research -- Analyst More AAP analysis All earnings call transcripts 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. Advance Auto Parts Inc (NYSE: AAP) Q2 2020 Earnings Call Aug 18, 2020, 8:00 a.m. Our sincere thanks and appreciation goes out to every single AAP team member and Carquest Independent partner who delivered the strong performance we are about to review.
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BUZZ-U.S. STOCKS ON THE MOVE-MICT, Seanergy Maritime, iMedia Brands
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-mict-seanergy-maritime-imedia-brands-2020-08-18
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The S&P 500 reclaimed record highs last seen before the onset of the coronavirus crisis in February on Tuesday, before retreating on doubts about the outlook for a U.S. economy that is still struggling to recover. .N
At 10:39 ET, the Dow Jones Industrial Average .DJI was down 0.60% at 27,678.05. The S&P 500 .SPX was down 0.30% at 3,371.88 and the Nasdaq Composite .IXIC was down 0.14% at 11,113.76. The top three S&P 500 .PG.INX percentage gainers: ** Microchip Technology Inc , up 3.3% ** Oracle Corp , up 3% ** Autodesk Inc , up 2.4% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 14.9% ** PVH Corp , down 5.6% ** Simon Property Group Inc , down 4% The top three NYSE .PG.N percentage gainers: ** Natural Gas Services Group, Inc , up 19.9% ** 1847 Goedeker Inc , up 18.8% ** Manning and Napier Inc , up 15.2% The top three NYSE .PL.N percentage losers: ** LSB Industries, Inc , down 18.8% ** Kohl's Corp , down 14.9% ** Nabors Industries Ltd , down 12% The top three Nasdaq .PG.O percentage gainers: ** MICT Inc , up 95% ** Forward Industries, Inc , up 53.3% ** iMedia Brands Inc , up 33.9% The top three Nasdaq .PL.O percentage losers: ** Poseida Therapeutics, Inc , down 29.2% ** Urban One Inc , down 25.7% ** LMP Automotive Holdings Inc , down 15.7% ** Kohl's Corp KSS.N: down 14.9%
BUZZ-Down after Q2 report, other retailers draw tepid response ** Amazon.com Inc AMZN.O: up 2.1%
BUZZ-To create new jobs and expand tech hubs, shares rise ** MICT Inc MICT.O: up 95.0%
BUZZ-Surges to over 7-year high on first order for video telematics product ** Antero Resources Corp AR.N: down 8.1%
BUZZ-Drops on planned $250 mln convertible debt deal ** Phoenix New Media Ltd FENG.N: down 7.8%
BUZZ-Down after posting lower qtrly advertising revenue ** Spotify Technology SPOT.N: down 1.6%
BUZZ-Off tune after Apple launches more music radio services ** JinkoSolar Holding Co Ltd JKS.N: up 1.2%
BUZZ-Climbs on solar module deal with Shanghai Electric ** Cinemark Holdings Inc CNK.N: down 8.4%
BUZZ-Slides on planned capital raise ahead of reopenings ** Seanergy Maritime Holdings Corp SHIP.O: down 54.4% BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 3.0% BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Tesla Inc TSLA.O: up 2.4% BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 2.3% BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 4.4% BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 1.7% BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 5.7% BUZZ-Surges on patent win for Crohn's disease treatment ** McKesson Corp MCK.N: down 0.1% ** Amerisourcebergen Corp ABC.N: down 0.7% ** Cardinal Health Inc CAH.N: down 0.5% ** Johnson & Johnson JNJ.N: down 0.2% BUZZ-Drug distributors fall on combined $26.4 bln opioid settlement ** iMedia Brands Inc IMBI.O: up 33.9% BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 5.5% BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 5.7% BUZZ-Rises after Q2 rev doubles The 11 major S&P 500 sectors:
Communication Services
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Information Technology
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Materials
.SPLRCM
down 0.33%
Real Estate
.SPLRCR
down 0.68%
Utilities
.SPLRCU
down 0.15%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
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 top three S&P 500 .PG.INX percentage gainers: ** Microchip Technology Inc , up 3.3% ** Oracle Corp , up 3% ** Autodesk Inc , up 2.4% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 14.9% ** PVH Corp , down 5.6% ** Simon Property Group Inc , down 4% The top three NYSE .PG.N percentage gainers: ** Natural Gas Services Group, Inc , up 19.9% ** 1847 Goedeker Inc , up 18.8% ** Manning and Napier Inc , up 15.2% The top three NYSE .PL.N percentage losers: ** LSB Industries, Inc , down 18.8% ** Kohl's Corp , down 14.9% ** Nabors Industries Ltd , down 12% The top three Nasdaq .PG.O percentage gainers: ** MICT Inc , up 95% ** Forward Industries, Inc , up 53.3% ** iMedia Brands Inc , up 33.9% The top three Nasdaq .PL.O percentage losers: ** Poseida Therapeutics, Inc , down 29.2% ** Urban One Inc , down 25.7% ** LMP Automotive Holdings Inc , down 15.7% ** Kohl's Corp KSS.N: down 14.9% BUZZ-Down after Q2 report, other retailers draw tepid response ** Amazon.com Inc AMZN.O: up 2.1% BUZZ-To create new jobs and expand tech hubs, shares rise ** MICT Inc MICT.O: up 95.0% BUZZ-Surges to over 7-year high on first order for video telematics product ** Antero Resources Corp AR.N: down 8.1% BUZZ-Drops on planned $250 mln convertible debt deal ** Phoenix New Media Ltd FENG.N: down 7.8% BUZZ-Down after posting lower qtrly advertising revenue ** Spotify Technology SPOT.N: down 1.6% BUZZ-Off tune after Apple launches more music radio services ** JinkoSolar Holding Co Ltd JKS.N: up 1.2% BUZZ-Climbs on solar module deal with Shanghai Electric ** Cinemark Holdings Inc CNK.N: down 8.4% BUZZ-Slides on planned capital raise ahead of reopenings ** Seanergy Maritime Holdings Corp SHIP.O: down 54.4% BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 3.0% BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Tesla Inc TSLA.O: up 2.4% BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 2.3% BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 4.4% BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 1.7% BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 5.7% BUZZ-Surges on patent win for Crohn's disease treatment ** McKesson Corp MCK.N: down 0.1% ** Amerisourcebergen Corp ABC.N: down 0.7% ** Cardinal Health Inc CAH.N: down 0.5% ** Johnson & Johnson JNJ.N: down 0.2% BUZZ-Drug distributors fall on combined $26.4 bln opioid settlement ** iMedia Brands Inc IMBI.O: up 33.9% BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 5.5% BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 5.7% BUZZ-Rises after Q2 rev doubles The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 reclaimed record highs last seen before the onset of the coronavirus crisis in February on Tuesday, before retreating on doubts about the outlook for a U.S. economy that is still struggling to recover. down 0.15% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) 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 top three S&P 500 .PG.INX percentage gainers: ** Microchip Technology Inc , up 3.3% ** Oracle Corp , up 3% ** Autodesk Inc , up 2.4% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 14.9% ** PVH Corp , down 5.6% ** Simon Property Group Inc , down 4% The top three NYSE .PG.N percentage gainers: ** Natural Gas Services Group, Inc , up 19.9% ** 1847 Goedeker Inc , up 18.8% ** Manning and Napier Inc , up 15.2% The top three NYSE .PL.N percentage losers: ** LSB Industries, Inc , down 18.8% ** Kohl's Corp , down 14.9% ** Nabors Industries Ltd , down 12% The top three Nasdaq .PG.O percentage gainers: ** MICT Inc , up 95% ** Forward Industries, Inc , up 53.3% ** iMedia Brands Inc , up 33.9% The top three Nasdaq .PL.O percentage losers: ** Poseida Therapeutics, Inc , down 29.2% ** Urban One Inc , down 25.7% ** LMP Automotive Holdings Inc , down 15.7% ** Kohl's Corp KSS.N: down 14.9% BUZZ-Down after Q2 report, other retailers draw tepid response ** Amazon.com Inc AMZN.O: up 2.1% BUZZ-To create new jobs and expand tech hubs, shares rise ** MICT Inc MICT.O: up 95.0% BUZZ-Surges to over 7-year high on first order for video telematics product ** Antero Resources Corp AR.N: down 8.1% BUZZ-Drops on planned $250 mln convertible debt deal ** Phoenix New Media Ltd FENG.N: down 7.8% BUZZ-Down after posting lower qtrly advertising revenue ** Spotify Technology SPOT.N: down 1.6% BUZZ-Off tune after Apple launches more music radio services ** JinkoSolar Holding Co Ltd JKS.N: up 1.2% BUZZ-Climbs on solar module deal with Shanghai Electric ** Cinemark Holdings Inc CNK.N: down 8.4% BUZZ-Slides on planned capital raise ahead of reopenings ** Seanergy Maritime Holdings Corp SHIP.O: down 54.4% BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 3.0% BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Tesla Inc TSLA.O: up 2.4% BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 2.3% BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 4.4% BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 1.7% BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 5.7% BUZZ-Surges on patent win for Crohn's disease treatment ** McKesson Corp MCK.N: down 0.1% ** Amerisourcebergen Corp ABC.N: down 0.7% ** Cardinal Health Inc CAH.N: down 0.5% ** Johnson & Johnson JNJ.N: down 0.2% BUZZ-Drug distributors fall on combined $26.4 bln opioid settlement ** iMedia Brands Inc IMBI.O: up 33.9% BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 5.5% BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 5.7% BUZZ-Rises after Q2 rev doubles The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 reclaimed record highs last seen before the onset of the coronavirus crisis in February on Tuesday, before retreating on doubts about the outlook for a U.S. economy that is still struggling to recover. down 0.15% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) 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 top three S&P 500 .PG.INX percentage gainers: ** Microchip Technology Inc , up 3.3% ** Oracle Corp , up 3% ** Autodesk Inc , up 2.4% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 14.9% ** PVH Corp , down 5.6% ** Simon Property Group Inc , down 4% The top three NYSE .PG.N percentage gainers: ** Natural Gas Services Group, Inc , up 19.9% ** 1847 Goedeker Inc , up 18.8% ** Manning and Napier Inc , up 15.2% The top three NYSE .PL.N percentage losers: ** LSB Industries, Inc , down 18.8% ** Kohl's Corp , down 14.9% ** Nabors Industries Ltd , down 12% The top three Nasdaq .PG.O percentage gainers: ** MICT Inc , up 95% ** Forward Industries, Inc , up 53.3% ** iMedia Brands Inc , up 33.9% The top three Nasdaq .PL.O percentage losers: ** Poseida Therapeutics, Inc , down 29.2% ** Urban One Inc , down 25.7% ** LMP Automotive Holdings Inc , down 15.7% ** Kohl's Corp KSS.N: down 14.9% BUZZ-Down after Q2 report, other retailers draw tepid response ** Amazon.com Inc AMZN.O: up 2.1% BUZZ-To create new jobs and expand tech hubs, shares rise ** MICT Inc MICT.O: up 95.0% BUZZ-Surges to over 7-year high on first order for video telematics product ** Antero Resources Corp AR.N: down 8.1% BUZZ-Drops on planned $250 mln convertible debt deal ** Phoenix New Media Ltd FENG.N: down 7.8% BUZZ-Down after posting lower qtrly advertising revenue ** Spotify Technology SPOT.N: down 1.6% BUZZ-Off tune after Apple launches more music radio services ** JinkoSolar Holding Co Ltd JKS.N: up 1.2% BUZZ-Climbs on solar module deal with Shanghai Electric ** Cinemark Holdings Inc CNK.N: down 8.4% BUZZ-Slides on planned capital raise ahead of reopenings ** Seanergy Maritime Holdings Corp SHIP.O: down 54.4% BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 3.0% BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Tesla Inc TSLA.O: up 2.4% BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 2.3% BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 4.4% BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 1.7% BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 5.7% BUZZ-Surges on patent win for Crohn's disease treatment ** McKesson Corp MCK.N: down 0.1% ** Amerisourcebergen Corp ABC.N: down 0.7% ** Cardinal Health Inc CAH.N: down 0.5% ** Johnson & Johnson JNJ.N: down 0.2% BUZZ-Drug distributors fall on combined $26.4 bln opioid settlement ** iMedia Brands Inc IMBI.O: up 33.9% BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 5.5% BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 5.7% BUZZ-Rises after Q2 rev doubles The 11 major S&P 500 sectors: Communication Services up 0.02% Consumer Discretionary up 0.33% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** Microchip Technology Inc , up 3.3% ** Oracle Corp , up 3% ** Autodesk Inc , up 2.4% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 14.9% ** PVH Corp , down 5.6% ** Simon Property Group Inc , down 4% The top three NYSE .PG.N percentage gainers: ** Natural Gas Services Group, Inc , up 19.9% ** 1847 Goedeker Inc , up 18.8% ** Manning and Napier Inc , up 15.2% The top three NYSE .PL.N percentage losers: ** LSB Industries, Inc , down 18.8% ** Kohl's Corp , down 14.9% ** Nabors Industries Ltd , down 12% The top three Nasdaq .PG.O percentage gainers: ** MICT Inc , up 95% ** Forward Industries, Inc , up 53.3% ** iMedia Brands Inc , up 33.9% The top three Nasdaq .PL.O percentage losers: ** Poseida Therapeutics, Inc , down 29.2% ** Urban One Inc , down 25.7% ** LMP Automotive Holdings Inc , down 15.7% ** Kohl's Corp KSS.N: down 14.9% BUZZ-Down after Q2 report, other retailers draw tepid response ** Amazon.com Inc AMZN.O: up 2.1% BUZZ-To create new jobs and expand tech hubs, shares rise ** MICT Inc MICT.O: up 95.0% BUZZ-Surges to over 7-year high on first order for video telematics product ** Antero Resources Corp AR.N: down 8.1% BUZZ-Drops on planned $250 mln convertible debt deal ** Phoenix New Media Ltd FENG.N: down 7.8% BUZZ-Down after posting lower qtrly advertising revenue ** Spotify Technology SPOT.N: down 1.6% BUZZ-Off tune after Apple launches more music radio services ** JinkoSolar Holding Co Ltd JKS.N: up 1.2% BUZZ-Climbs on solar module deal with Shanghai Electric ** Cinemark Holdings Inc CNK.N: down 8.4% BUZZ-Slides on planned capital raise ahead of reopenings ** Seanergy Maritime Holdings Corp SHIP.O: down 54.4% BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 3.0% BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Tesla Inc TSLA.O: up 2.4% BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 2.3% BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 4.4% BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 1.7% BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 5.7% BUZZ-Surges on patent win for Crohn's disease treatment ** McKesson Corp MCK.N: down 0.1% ** Amerisourcebergen Corp ABC.N: down 0.7% ** Cardinal Health Inc CAH.N: down 0.5% ** Johnson & Johnson JNJ.N: down 0.2% BUZZ-Drug distributors fall on combined $26.4 bln opioid settlement ** iMedia Brands Inc IMBI.O: up 33.9% BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 5.5% BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 5.7% BUZZ-Rises after Q2 rev doubles The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 reclaimed record highs last seen before the onset of the coronavirus crisis in February on Tuesday, before retreating on doubts about the outlook for a U.S. economy that is still struggling to recover. .N At 10:39 ET, the Dow Jones Industrial Average .DJI was down 0.60% at 27,678.05.
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11109.0
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2020-08-18 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Seanergy Maritime, Tesla, iMedia Brands
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AAP
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-seanergy-maritime-tesla-imedia-brands-2020-08-18
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nan
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nan
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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's main indexes were set to extend gains on Tuesday as strong results from major retailers underscored the strength of the U.S. consumer during the coronavirus pandemic. .N
At 8:58 ET, Dow e-minis 1YMc1 were up 0.15% at 27,818. S&P 500 e-minis ESc1 were up 0.15% at 3,384.75, while Nasdaq 100 e-minis NQc1 were up 0.44% at 11,336.75. The top three NYSE percentage gainers premarket .PRPG.NQ: ** Cohen & Steers MLP Income and Energy Oppty Fund , up 19.0% ** Guggenheim Taxable Municipal Managed Duration Trust , up 13.6% ** China Unicom , up 11.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Nabors Industries Ltd , down 11.4% ** CBL & Associates Properties, Inc , down 9.8% ** LSB Industries, Inc , down 8.9% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MICT Inc , up 95.4% ** Trident Acquisitions Equity Warrants , up 62.5% ** Novus Capital Equity Warrants , up 49.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 51.7% ** Poseida Therapeutics, Inc. , down 16.9% ** Camden National Corp , down 14% ** Seanergy Maritime Holdings Corp SHIP.O: down 51.7% premarket BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 2.2% premarket BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Home Depot Inc HD.N: up 0.6% premarket BUZZ-Gains on same-store sales beat ** Tesla Inc TSLA.O: up 3.8% premarket BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 8.9% premarket BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 3.3% premarket BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 4.2% premarket BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 16.0% premarket BUZZ-Surges on patent win for Crohn's disease treatment ** Newmont Corp NEM.N: up 1.8% premarket BUZZ-Up on exploration agreement with Kirkland Lake ** Vanda Pharmaceuticals Inc VNDA.O: up 13.2% premarket BUZZ-Up on positive interim data from potential COVID-19 drug trial ** iMedia Brands Inc IMBI.O: up 27.0% premarket BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 2.6% premarket BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 7.3% premarket BUZZ-Rises after Q2 rev doubles
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
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 top three NYSE percentage gainers premarket .PRPG.NQ: ** Cohen & Steers MLP Income and Energy Oppty Fund , up 19.0% ** Guggenheim Taxable Municipal Managed Duration Trust , up 13.6% ** China Unicom , up 11.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Nabors Industries Ltd , down 11.4% ** CBL & Associates Properties, Inc , down 9.8% ** LSB Industries, Inc , down 8.9% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MICT Inc , up 95.4% ** Trident Acquisitions Equity Warrants , up 62.5% ** Novus Capital Equity Warrants , up 49.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 51.7% ** Poseida Therapeutics, Inc. , down 16.9% ** Camden National Corp , down 14% ** Seanergy Maritime Holdings Corp SHIP.O: down 51.7% premarket BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 2.2% premarket BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Home Depot Inc HD.N: up 0.6% premarket BUZZ-Gains on same-store sales beat ** Tesla Inc TSLA.O: up 3.8% premarket BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 8.9% premarket BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 3.3% premarket BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 4.2% premarket BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 16.0% premarket BUZZ-Surges on patent win for Crohn's disease treatment ** Newmont Corp NEM.N: up 1.8% premarket BUZZ-Up on exploration agreement with Kirkland Lake ** Vanda Pharmaceuticals Inc VNDA.O: up 13.2% premarket BUZZ-Up on positive interim data from potential COVID-19 drug trial ** iMedia Brands Inc IMBI.O: up 27.0% premarket BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 2.6% premarket BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 7.3% premarket BUZZ-Rises after Q2 rev doubles (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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's main indexes were set to extend gains on Tuesday as strong results from major retailers underscored the strength of the U.S. consumer during the coronavirus pandemic. .N At 8:58 ET, Dow e-minis 1YMc1 were up 0.15% at 27,818.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Cohen & Steers MLP Income and Energy Oppty Fund , up 19.0% ** Guggenheim Taxable Municipal Managed Duration Trust , up 13.6% ** China Unicom , up 11.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Nabors Industries Ltd , down 11.4% ** CBL & Associates Properties, Inc , down 9.8% ** LSB Industries, Inc , down 8.9% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MICT Inc , up 95.4% ** Trident Acquisitions Equity Warrants , up 62.5% ** Novus Capital Equity Warrants , up 49.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 51.7% ** Poseida Therapeutics, Inc. , down 16.9% ** Camden National Corp , down 14% ** Seanergy Maritime Holdings Corp SHIP.O: down 51.7% premarket BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 2.2% premarket BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Home Depot Inc HD.N: up 0.6% premarket BUZZ-Gains on same-store sales beat ** Tesla Inc TSLA.O: up 3.8% premarket BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 8.9% premarket BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 3.3% premarket BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 4.2% premarket BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 16.0% premarket BUZZ-Surges on patent win for Crohn's disease treatment ** Newmont Corp NEM.N: up 1.8% premarket BUZZ-Up on exploration agreement with Kirkland Lake ** Vanda Pharmaceuticals Inc VNDA.O: up 13.2% premarket BUZZ-Up on positive interim data from potential COVID-19 drug trial ** iMedia Brands Inc IMBI.O: up 27.0% premarket BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 2.6% premarket BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 7.3% premarket BUZZ-Rises after Q2 rev doubles (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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's main indexes were set to extend gains on Tuesday as strong results from major retailers underscored the strength of the U.S. consumer during the coronavirus pandemic. S&P 500 e-minis ESc1 were up 0.15% at 3,384.75, while Nasdaq 100 e-minis NQc1 were up 0.44% at 11,336.75.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Cohen & Steers MLP Income and Energy Oppty Fund , up 19.0% ** Guggenheim Taxable Municipal Managed Duration Trust , up 13.6% ** China Unicom , up 11.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Nabors Industries Ltd , down 11.4% ** CBL & Associates Properties, Inc , down 9.8% ** LSB Industries, Inc , down 8.9% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MICT Inc , up 95.4% ** Trident Acquisitions Equity Warrants , up 62.5% ** Novus Capital Equity Warrants , up 49.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 51.7% ** Poseida Therapeutics, Inc. , down 16.9% ** Camden National Corp , down 14% ** Seanergy Maritime Holdings Corp SHIP.O: down 51.7% premarket BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 2.2% premarket BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Home Depot Inc HD.N: up 0.6% premarket BUZZ-Gains on same-store sales beat ** Tesla Inc TSLA.O: up 3.8% premarket BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 8.9% premarket BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 3.3% premarket BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 4.2% premarket BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 16.0% premarket BUZZ-Surges on patent win for Crohn's disease treatment ** Newmont Corp NEM.N: up 1.8% premarket BUZZ-Up on exploration agreement with Kirkland Lake ** Vanda Pharmaceuticals Inc VNDA.O: up 13.2% premarket BUZZ-Up on positive interim data from potential COVID-19 drug trial ** iMedia Brands Inc IMBI.O: up 27.0% premarket BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 2.6% premarket BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 7.3% premarket BUZZ-Rises after Q2 rev doubles (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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's main indexes were set to extend gains on Tuesday as strong results from major retailers underscored the strength of the U.S. consumer during the coronavirus pandemic. S&P 500 e-minis ESc1 were up 0.15% at 3,384.75, while Nasdaq 100 e-minis NQc1 were up 0.44% at 11,336.75.
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The top three NYSE percentage gainers premarket .PRPG.NQ: ** Cohen & Steers MLP Income and Energy Oppty Fund , up 19.0% ** Guggenheim Taxable Municipal Managed Duration Trust , up 13.6% ** China Unicom , up 11.7% The top three NYSE percentage losers premarket .PRPL.NQ: ** Nabors Industries Ltd , down 11.4% ** CBL & Associates Properties, Inc , down 9.8% ** LSB Industries, Inc , down 8.9% The top three Nasdaq percentage gainers premarket .PRPG.O: ** MICT Inc , up 95.4% ** Trident Acquisitions Equity Warrants , up 62.5% ** Novus Capital Equity Warrants , up 49.5% The top three Nasdaq percentage losers premarket .PRPL.O: ** Seanergy Maritime Holdings Corp , down 51.7% ** Poseida Therapeutics, Inc. , down 16.9% ** Camden National Corp , down 14% ** Seanergy Maritime Holdings Corp SHIP.O: down 51.7% premarket BUZZ-Sinks after discounted stock-and-warrant offering ** Oracle Corp ORCL.N: up 2.2% premarket BUZZ-Up on report of talks to buy TikTok's U.S. operations ** Home Depot Inc HD.N: up 0.6% premarket BUZZ-Gains on same-store sales beat ** Tesla Inc TSLA.O: up 3.8% premarket BUZZ-Set to gain for fifth consecutive day ** Pixelworks Inc PXLW.O: up 8.9% premarket BUZZ-Jumps as CEO increases stake ** Keurig Dr Pepper Inc KDP.N: down 3.3% premarket BUZZ-Down on 45 mln share secondary offering ** Advance Auto Parts Inc AAP.N: up 4.2% premarket BUZZ-Set to open at over nine-month high after profit beat ** Tiziana Life Sciences Plc TLSA.O: up 16.0% premarket BUZZ-Surges on patent win for Crohn's disease treatment ** Newmont Corp NEM.N: up 1.8% premarket BUZZ-Up on exploration agreement with Kirkland Lake ** Vanda Pharmaceuticals Inc VNDA.O: up 13.2% premarket BUZZ-Up on positive interim data from potential COVID-19 drug trial ** iMedia Brands Inc IMBI.O: up 27.0% premarket BUZZ-On track to open near 21-month high after impressive results [USnL4N2FK2O9N] ** ZoomInfo Technologies Inc ZI.O: down 2.6% premarket BUZZ-Falls as sponsors look to sell 12 mln shares ** Sea Ltd SE.N: up 7.3% premarket BUZZ-Rises after Q2 rev doubles (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 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's main indexes were set to extend gains on Tuesday as strong results from major retailers underscored the strength of the U.S. consumer during the coronavirus pandemic. .N At 8:58 ET, Dow e-minis 1YMc1 were up 0.15% at 27,818.
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11110.0
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2020-08-18 00:00:00 UTC
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Consumer Sector Update for 08/18/2020: AAP, KSS, WMT, XLP, XLY
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-08-18-2020%3A-aap-kss-wmt-xlp-xly-2020-08-18
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nan
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nan
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Consumer firms were climbing in Tuesday's premarket trading. Shares of the consumer staples S&P 500 (XLP) ETF were up 0.19% and the consumer discretionary (XLY) was 0.7% higher.
Advance Auto Parts (AAP) was gaining more than 5% in value as it reported fiscal Q2 adjusted EPS of $2.92, up from $2 in the same period last year. The average estimate of analysts polled by Capital IQ had called for $1.97 per adjusted share.
Kohl's (KSS) was down more than 8% as it swung to a Q2 adjusted loss of $0.25 per share from adjusted income of $1.55 a year ago. Analysts polled by Capital IQ projected a loss of $0.88 per share.
Walmart (WMT) was marginally lower after reporting fiscal Q2 adjusted earnings of $1.56 per share, a year-over-year increase from $1.27 per adjusted share. Analysts polled by Capital IQ were looking for adjusted EPS of $1.25.
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) was gaining more than 5% in value as it reported fiscal Q2 adjusted EPS of $2.92, up from $2 in the same period last year. The average estimate of analysts polled by Capital IQ had called for $1.97 per adjusted share. Analysts polled by Capital IQ projected a loss of $0.88 per share.
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Advance Auto Parts (AAP) was gaining more than 5% in value as it reported fiscal Q2 adjusted EPS of $2.92, up from $2 in the same period last year. Analysts polled by Capital IQ projected a loss of $0.88 per share. Analysts polled by Capital IQ were looking for adjusted EPS of $1.25.
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Advance Auto Parts (AAP) was gaining more than 5% in value as it reported fiscal Q2 adjusted EPS of $2.92, up from $2 in the same period last year. The average estimate of analysts polled by Capital IQ had called for $1.97 per adjusted share. Kohl's (KSS) was down more than 8% as it swung to a Q2 adjusted loss of $0.25 per share from adjusted income of $1.55 a year ago.
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Advance Auto Parts (AAP) was gaining more than 5% in value as it reported fiscal Q2 adjusted EPS of $2.92, up from $2 in the same period last year. Analysts polled by Capital IQ projected a loss of $0.88 per share. Analysts polled by Capital IQ were looking for adjusted EPS of $1.25.
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11111.0
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2020-08-18 00:00:00 UTC
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Advance Auto Parts Q2 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-q2-20-earnings-conference-call-at-8%3A00-am-et-2020-08-18
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nan
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nan
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(RTTNews) - Advance Auto Parts (AAP) will host a conference call at 8:00 AM ET on August 18, 2020, to discuss Q2 20 earnings results.
To access the live webcast, log on to http://www.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 (AAP) will host a conference call at 8:00 AM ET on August 18, 2020, to discuss Q2 20 earnings results. To access the live webcast, log on to http://www.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 (AAP) will host a conference call at 8:00 AM ET on August 18, 2020, to discuss Q2 20 earnings results. To access the live webcast, log on to http://www.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 (AAP) will host a conference call at 8:00 AM ET on August 18, 2020, to discuss Q2 20 earnings results. To access the live webcast, log on to http://www.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 (AAP) will host a conference call at 8:00 AM ET on August 18, 2020, to discuss Q2 20 earnings results. To access the live webcast, log on to http://www.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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11112.0
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2020-08-14 00:00:00 UTC
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Notable Friday Option Activity: AAP, JAZZ, TDOC
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AAP
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https://www.nasdaq.com/articles/notable-friday-option-activity%3A-aap-jazz-tdoc-2020-08-14
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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 4,483 contracts has been traded thus far today, a contract volume which is representative of approximately 448,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 60.2% of AAP's average daily trading volume over the past month, of 744,320 shares. Especially high volume was seen for the $160 strike call option expiring August 21, 2020, with 473 contracts trading so far today, representing approximately 47,300 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange:
Jazz Pharmaceuticals plc (Symbol: JAZZ) options are showing a volume of 3,890 contracts thus far today. That number of contracts represents approximately 389,000 underlying shares, working out to a sizeable 59.9% of JAZZ's average daily trading volume over the past month, of 649,865 shares. Particularly high volume was seen for the $100 strike put option expiring December 18, 2020, with 1,114 contracts trading so far today, representing approximately 111,400 underlying shares of JAZZ. Below is a chart showing JAZZ's trailing twelve month trading history, with the $100 strike highlighted in orange:
And Teladoc Health Inc (Symbol: TDOC) saw options trading volume of 26,527 contracts, representing approximately 2.7 million underlying shares or approximately 56.1% of TDOC's average daily trading volume over the past month, of 4.7 million shares. Particularly high volume was seen for the $200 strike call option expiring August 21, 2020, with 2,930 contracts trading so far today, representing approximately 293,000 underlying shares of TDOC. Below is a chart showing TDOC's trailing twelve month trading history, with the $200 strike highlighted in orange:
For the various different available expirations for AAP options, JAZZ options, or TDOC 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 August 21, 2020, with 473 contracts trading so far today, representing approximately 47,300 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 4,483 contracts has been traded thus far today, a contract volume which is representative of approximately 448,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 60.2% of AAP's average daily trading volume over the past month, of 744,320 shares.
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Especially high volume was seen for the $160 strike call option expiring August 21, 2020, with 473 contracts trading so far today, representing approximately 47,300 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange: Jazz Pharmaceuticals plc (Symbol: JAZZ) options are showing a volume of 3,890 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 4,483 contracts has been traded thus far today, a contract volume which is representative of approximately 448,300 underlying shares (given that every 1 contract represents 100 underlying 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 4,483 contracts has been traded thus far today, a contract volume which is representative of approximately 448,300 underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $160 strike call option expiring August 21, 2020, with 473 contracts trading so far today, representing approximately 47,300 underlying shares of AAP. That number works out to 60.2% of AAP's average daily trading volume over the past month, of 744,320 shares.
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Especially high volume was seen for the $160 strike call option expiring August 21, 2020, with 473 contracts trading so far today, representing approximately 47,300 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 4,483 contracts has been traded thus far today, a contract volume which is representative of approximately 448,300 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 60.2% of AAP's average daily trading volume over the past month, of 744,320 shares.
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11113.0
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2020-07-30 00:00:00 UTC
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Notable Thursday Option Activity: APA, LH, AAP
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AAP
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-apa-lh-aap-2020-07-30
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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 Apache Corp (Symbol: APA), where a total volume of 59,136 contracts has been traded thus far today, a contract volume which is representative of approximately 5.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 58.6% of APA's average daily trading volume over the past month, of 10.1 million shares. Particularly high volume was seen for the $15 strike put option expiring September 18, 2020, with 7,079 contracts trading so far today, representing approximately 707,900 underlying shares of APA. Below is a chart showing APA's trailing twelve month trading history, with the $15 strike highlighted in orange:
Laboratory Corporation of America Holdings (Symbol: LH) saw options trading volume of 4,213 contracts, representing approximately 421,300 underlying shares or approximately 50% of LH's average daily trading volume over the past month, of 843,045 shares. Particularly high volume was seen for the $180 strike call option expiring August 21, 2020, with 1,375 contracts trading so far today, representing approximately 137,500 underlying shares of LH. Below is a chart showing LH's trailing twelve month trading history, with the $180 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,719 contracts thus far today. That number of contracts represents approximately 371,900 underlying shares, working out to a sizeable 47.3% of AAP's average daily trading volume over the past month, of 786,235 shares. Particularly high volume was seen for the $150 strike call option expiring September 18, 2020, with 2,049 contracts trading so far today, representing approximately 204,900 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $150 strike highlighted in orange:
For the various different available expirations for APA options, LH 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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Particularly high volume was seen for the $150 strike call option expiring September 18, 2020, with 2,049 contracts trading so far today, representing approximately 204,900 underlying shares of AAP. Below is a chart showing LH's trailing twelve month trading history, with the $180 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,719 contracts thus far today. That number of contracts represents approximately 371,900 underlying shares, working out to a sizeable 47.3% of AAP's average daily trading volume over the past month, of 786,235 shares.
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Particularly high volume was seen for the $150 strike call option expiring September 18, 2020, with 2,049 contracts trading so far today, representing approximately 204,900 underlying shares of AAP. Below is a chart showing LH's trailing twelve month trading history, with the $180 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,719 contracts thus far today. That number of contracts represents approximately 371,900 underlying shares, working out to a sizeable 47.3% of AAP's average daily trading volume over the past month, of 786,235 shares.
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Particularly high volume was seen for the $150 strike call option expiring September 18, 2020, with 2,049 contracts trading so far today, representing approximately 204,900 underlying shares of AAP. Below is a chart showing LH's trailing twelve month trading history, with the $180 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,719 contracts thus far today. That number of contracts represents approximately 371,900 underlying shares, working out to a sizeable 47.3% of AAP's average daily trading volume over the past month, of 786,235 shares.
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Below is a chart showing AAP's trailing twelve month trading history, with the $150 strike highlighted in orange: For the various different available expirations for APA options, LH options, or AAP options, visit StockOptionsChannel.com. Below is a chart showing LH's trailing twelve month trading history, with the $180 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 3,719 contracts thus far today. That number of contracts represents approximately 371,900 underlying shares, working out to a sizeable 47.3% of AAP's average daily trading volume over the past month, of 786,235 shares.
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11114.0
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2020-07-23 00:00:00 UTC
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Advance Auto Parts Reaches Analyst Target Price
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-reaches-analyst-target-price-2020-07-23
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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 $148.92, changing hands for $149.40/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 $118.00. And then on the other side of the spectrum one analyst has a target as high as $170.00. The standard deviation is $16.625.
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 $148.92/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $148.92 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 2 2 2
Hold ratings: 6 7 8 8
Sell ratings: 0 0 0 0
Strong sell ratings: 1 1 0 0
Average rating: 2.09 2.15 2.03 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.
The Top 25 Broker Analyst Picks 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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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $148.92, changing hands for $149.40/share. And so with AAP crossing above that average target price of $148.92/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $148.92 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 $148.92, changing hands for $149.40/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 $148.92/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $148.92 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 $148.92/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $148.92 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 $148.92, changing hands for $149.40/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 $148.92, changing hands for $149.40/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 $148.92/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $148.92 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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11115.0
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2020-07-16 00:00:00 UTC
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AAP March 2021 Options Begin Trading
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AAP
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https://www.nasdaq.com/articles/aap-march-2021-options-begin-trading-2020-07-16
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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 March 2021 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 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 March 2021 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 $17.30. 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 $122.70 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $145.76/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 62%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 12.36% return on the cash commitment, or 18.33% 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 $150.00 strike price has a current bid of $17.80. If an investor was to purchase shares of AAP stock at the current price level of $145.76/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $150.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 15.12% if the stock gets called away at the March 2021 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 $150.00 strike highlighted in red:
Considering the fact that the $150.00 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 45%. 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 12.21% boost of extra return to the investor, or 18.12% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 52%, while the implied volatility in the call contract example is 49%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $145.76) to be 49%. 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 $150.00 strike highlighted in red: Considering the fact that the $150.00 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 March 2021 expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $150.00 strike highlighted in red: Considering the fact that the $150.00 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 March 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new March 2021 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 $150.00 strike highlighted in red: Considering the fact that the $150.00 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 March 2021 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new March 2021 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 2021 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 $150.00 strike highlighted in red: Considering the fact that the $150.00 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 March 2021 expiration.
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11116.0
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2020-07-08 00:00:00 UTC
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Notable Wednesday Option Activity: AAP, BIIB, COST
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AAP
|
https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-aap-biib-cost-2020-07-08
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nan
|
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 21,579 contracts have traded so far, representing approximately 2.2 million underlying shares. That amounts to about 231.7% of AAP's average daily trading volume over the past month of 931,395 shares. Especially high volume was seen for the $140 strike call option expiring January 15, 2021, with 13,131 contracts trading so far today, representing approximately 1.3 million underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $140 strike highlighted in orange:
Biogen Inc (Symbol: BIIB) options are showing a volume of 34,567 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 158.1% of BIIB's average daily trading volume over the past month, of 2.2 million shares. Especially high volume was seen for the $260 strike put option expiring August 21, 2020, with 4,288 contracts trading so far today, representing approximately 428,800 underlying shares of BIIB. Below is a chart showing BIIB's trailing twelve month trading history, with the $260 strike highlighted in orange:
And Costco Wholesale Corp (Symbol: COST) saw options trading volume of 22,711 contracts, representing approximately 2.3 million underlying shares or approximately 85.5% of COST's average daily trading volume over the past month, of 2.7 million shares. Especially high volume was seen for the $320 strike call option expiring July 10, 2020, with 1,261 contracts trading so far today, representing approximately 126,100 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $320 strike highlighted in orange:
For the various different available expirations for AAP options, BIIB options, or COST 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 $140 strike call option expiring January 15, 2021, with 13,131 contracts trading so far today, representing approximately 1.3 million 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 21,579 contracts have traded so far, representing approximately 2.2 million underlying shares. That amounts to about 231.7% of AAP's average daily trading volume over the past month of 931,395 shares.
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Especially high volume was seen for the $140 strike call option expiring January 15, 2021, with 13,131 contracts trading so far today, representing approximately 1.3 million underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $140 strike highlighted in orange: Biogen Inc (Symbol: BIIB) options are showing a volume of 34,567 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 21,579 contracts have traded so far, representing approximately 2.2 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 21,579 contracts have traded so far, representing approximately 2.2 million underlying shares. Especially high volume was seen for the $140 strike call option expiring January 15, 2021, with 13,131 contracts trading so far today, representing approximately 1.3 million underlying shares of AAP. That amounts to about 231.7% of AAP's average daily trading volume over the past month of 931,395 shares.
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Especially high volume was seen for the $140 strike call option expiring January 15, 2021, with 13,131 contracts trading so far today, representing approximately 1.3 million 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 21,579 contracts have traded so far, representing approximately 2.2 million underlying shares. That amounts to about 231.7% of AAP's average daily trading volume over the past month of 931,395 shares.
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11117.0
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2020-07-06 00:00:00 UTC
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AAP Makes Notable Cross Below Critical Moving Average
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AAP
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https://www.nasdaq.com/articles/aap-makes-notable-cross-below-critical-moving-average-2020-07-06
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nan
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nan
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $140.06, changing hands as low as $138.25 per share. Advance Auto Parts Inc shares are currently trading off about 2.1% on the day. The chart below shows the one year performance of AAP shares, versus its 200 day moving average:
Looking at the chart above, AAP's low point in its 52 week range is $71.3286 per share, with $171.43 as the 52 week high point — that compares with a last trade of $138.87. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $140.06, changing hands as low as $138.25 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 $71.3286 per share, with $171.43 as the 52 week high point — that compares with a last trade of $138.87. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $140.06, changing hands as low as $138.25 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 $71.3286 per share, with $171.43 as the 52 week high point — that compares with a last trade of $138.87. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $140.06, changing hands as low as $138.25 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 $71.3286 per share, with $171.43 as the 52 week high point — that compares with a last trade of $138.87. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $140.06, changing hands as low as $138.25 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 $71.3286 per share, with $171.43 as the 52 week high point — that compares with a last trade of $138.87. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed below their 200 day moving average » 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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11118.0
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2020-06-18 00:00:00 UTC
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S&P 500 Movers: HRB, AAP
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AAP
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https://www.nasdaq.com/articles/sp-500-movers%3A-hrb-aap-2020-06-18
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nan
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nan
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In early trading on Thursday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 4.2%. Year to date, Advance Auto Parts has lost about 7.2% of its value.
And the worst performing S&P 500 component thus far on the day is H & R Block, trading down 9.5%. H & R Block, Inc. is lower by about 30.5% looking at the year to date performance.
Two other components making moves today are Norwegian Cruise Line Holdings, trading down 8.4%, and Activision Blizzard, trading up 3.5% on the day.
VIDEO: S&P 500 Movers: HRB, AAP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: S&P 500 Movers: HRB, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 4.2%. Year to date, Advance Auto Parts has lost about 7.2% of its value.
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VIDEO: S&P 500 Movers: HRB, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 4.2%. Year to date, Advance Auto Parts has lost about 7.2% of its value.
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VIDEO: S&P 500 Movers: HRB, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 4.2%. Two other components making moves today are Norwegian Cruise Line Holdings, trading down 8.4%, and Activision Blizzard, trading up 3.5% on the day.
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VIDEO: S&P 500 Movers: HRB, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Advance Auto Parts has lost about 7.2% of its value. And the worst performing S&P 500 component thus far on the day is H & R Block, trading down 9.5%.
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11119.0
|
2020-06-18 00:00:00 UTC
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Advance Auto Parts Reaches Analyst Target Price
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-reaches-analyst-target-price-2020-06-18
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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 $146.54, changing hands for $148.64/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 $118.00. And then on the other side of the spectrum one analyst has a target as high as $170.00. The standard deviation is $14.852.
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 $146.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $146.54 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: 7 7 6 7
Buy ratings: 2 2 2 2
Hold ratings: 7 8 9 9
Sell ratings: 0 0 0 0
Strong sell ratings: 1 0 0 0
Average rating: 2.15 2.03 2.15 2.08
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.
The Top 25 Broker Analyst Picks 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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In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $146.54, changing hands for $148.64/share. And so with AAP crossing above that average target price of $146.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $146.54 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.
|
In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $146.54, changing hands for $148.64/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 $146.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $146.54 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?
|
And so with AAP crossing above that average target price of $146.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $146.54 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 $146.54, changing hands for $148.64/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.
|
In recent trading, shares of Advance Auto Parts Inc (Symbol: AAP) have crossed above the average analyst 12-month target price of $146.54, changing hands for $148.64/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 $146.54/share, investors in AAP have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $146.54 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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11120.0
|
2020-06-17 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-Ideanomics, Document Security Systems, Fuelcell Energy
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AAP
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-ideanomics-document-security-systems-fuelcell-energy-2020-06
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nan
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nan
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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
U.S. stock indexes S&P 500 and the Dow edged higher in choppy trading on Wednesday as hopes of a swift recovery from a coronavirus-driven downturn were dented by fears of a record rise in coronavirus cases in six U.S. states. .N
At 13:00 ET, the Dow Jones Industrial Average .DJI was up 0.14% at 26,326.36. The S&P 500 .SPX was up 0.38% at 3,136.51 and the Nasdaq Composite .IXIC was up 0.89% at 9,983.469. The top three S&P 500 .PG.INX percentage gainers: ** Keysight Technologies Inc , up 4% ** Advance Auto Parts Inc , up 3.8% ** Aon Plc , up 3.8% The top three S&P 500 .PL.INX percentage losers: ** H & R Block Inc , down 7% ** Royal Caribbean Cruises Ltd , down 6.7% ** Norwegian Cruise Line , down 6.3% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions , up 114.9% ** Cohen & Compny Inc , up 88.7% ** American Shared Hospital Services , up 31.8% The top three NYSE .PL.N percentage losers: ** NTN Buzztime Inc NTN.N, down 26% ** Document Securty Systems Inc DSS.N, down 19.4% ** Corecivic Inc , down 18.1% The top three Nasdaq .PG.O percentage gainers: ** Carver Bancorp , up 382.7% ** Gordon Pointe Acquisition , up 73.6% ** Integrated Media Technology Ltd , up 60% The top three Nasdaq .PL.O percentage losers: ** Proficient Alpha Acquisition Corp , down 61.2% ** Chembio Diagnostics , down 60.5% ** Urban One , down 42.6% ** InnerWorkings INWK.O: up 11.2%
BUZZ-Soars as expenses fall, EBITDA rises ** Norwegian Cruise Line NCLH.N: down 6.3%
BUZZ-Drops after extending voyage suspensions ** Mastercard Inc MA.N: up 0.3 ** Visa Inc V.N: up 1.0%
BUZZ-Citi Research raises PT on Mastercard, Visa as payments recovery starts ** Energous WATT.O: up 38.0%
BUZZ-Rises on partnership to make wireless charging batteries ** KKR & Co KKR.N: up 1.8%
BUZZ-Piper Sandler starts with 'overweight' on co's upbeat strategy ** AVEO Oncology AVEO.O: down 15.1%
BUZZ-Drops on $44.6 mln stock offering ** Aclaris Therapeutics ACRS.O: up 23.6%
BUZZ-Jumps on FDA approval for COVID-19 treatment study ** The Alkaline Water Co WTER.O: up 18.3%
BUZZ-Jumps on strong Q4 revenue, upbeat Q1 forecast ** XpressSpa XSPA.O: down 11.3%
BUZZ-slides on stock and warrants offerings half of public float ** Beyond Meat Inc BYND.O: up 7.7%
BUZZ-Rises on launch of plant-based burger value pack ** Hexo Corp HEXO.N: down 12.0%
BUZZ-Pot producer Hexo plans C$34.5 mln equity raise, shares fall ** BioSig Technologies BSGM.O: up 7.7%
BUZZ-Rises as enrollment for COVID-19 drug trial starts ** Armata Pharmaceuticals ARMP.A: up 13.3%
BUZZ-Gains on U.S. defense department funding for drug development ** Tempur Sealy TPX.N: up 6.2%
BUZZ-Bounces as reopening powers demand recovery ** PDS Biotechnology PDSB.O: up 5.1%
BUZZ-Rises after partnership to develop COVID-19 vaccine ** United States Steel Corp X.N: down 8.0%
BUZZ-Falls on Q2 loss forecast ** Amazon.com Inc AMZN.O: up 1.5%
BUZZ-Rises as Needham starts coverage with 'buy' ** CoreCivic Inc CXW.N: down 18.8%
BUZZ-Prison REIT CoreCivic tumbles as co suspends dividend, evaluates corporate structure ** Cloudflare Inc NET.N: up 12.3%
BUZZ-Up after Needham sees boost from rapid shift to cloud ** Koppers Holdings KOP.N: up 6.8%
BUZZ-Jumps on upbeat second-quarter forecasts ** Nvidia Corp NVDA.O: up 1.6%
BUZZ-Up as Jefferies raises PT on strong data center, gaming trends ** Chegg Inc CHGG.N: up 6.3%
BUZZ-Rises on proposed $500 mln securities buyback ** Eldorado Resorts ERI.O: up 6.9%
BUZZ-Rises again after co raises equity ** Yum China Holdings YUMC.N: up 7.9%
BUZZ-Jumps on report of potential Hong Kong listing ** Constellation Pharma CNST.O: down 8.6%
BUZZ-falls on stock offering ** Ideanomics Inc IDEX.O: up 47.9%
BUZZ-Hits eight-month high as its unit bags $5 million deal ** Fuelcell Energy FCEL.O: down 5.9%
BUZZ-Drops on stock offering plan ** Document Security Systems DSS.A: down 19.5%
BUZZ-Slides after discounted stock offering ** Southwest Airlines LUV.N: down 1.8%
BUZZ-Falls on revenue warning as COVID-19 hurts Q2 demand
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.62%
Consumer Discretionary
.SPLRCD
up 0.72%
Consumer Staples
.SPLRCS
up 0.44%
Energy
.SPNY
down 1.86%
Financial
.SPSY
down 0.41%
Health
.SPXHC
up 0.55%
Industrial
.SPLRCI
up 0.13%
Information Technology
.SPLRCT
up 0.85%
Materials
.SPLRCM
flat
Real Estate
.SPLRCR
down 0.45%
Utilities
.SPLRCU
down 0.16%
(Compiled by Shivani Kumaresan in Bengaluru)
((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780))
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 U.S. stock indexes S&P 500 and the Dow edged higher in choppy trading on Wednesday as hopes of a swift recovery from a coronavirus-driven downturn were dented by fears of a record rise in coronavirus cases in six U.S. states. The top three S&P 500 .PG.INX percentage gainers: ** Keysight Technologies Inc , up 4% ** Advance Auto Parts Inc , up 3.8% ** Aon Plc , up 3.8% The top three S&P 500 .PL.INX percentage losers: ** H & R Block Inc , down 7% ** Royal Caribbean Cruises Ltd , down 6.7% ** Norwegian Cruise Line , down 6.3% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions , up 114.9% ** Cohen & Compny Inc , up 88.7% ** American Shared Hospital Services , up 31.8% The top three NYSE .PL.N percentage losers: ** NTN Buzztime Inc NTN.N, down 26% ** Document Securty Systems Inc DSS.N, down 19.4% ** Corecivic Inc , down 18.1% The top three Nasdaq .PG.O percentage gainers: ** Carver Bancorp , up 382.7% ** Gordon Pointe Acquisition , up 73.6% ** Integrated Media Technology Ltd , up 60% The top three Nasdaq .PL.O percentage losers: ** Proficient Alpha Acquisition Corp , down 61.2% ** Chembio Diagnostics , down 60.5% ** Urban One , down 42.6% ** InnerWorkings INWK.O: up 11.2% BUZZ-Soars as expenses fall, EBITDA rises ** Norwegian Cruise Line NCLH.N: down 6.3% BUZZ-Drops after extending voyage suspensions ** Mastercard Inc MA.N: up 0.3 ** Visa Inc V.N: up 1.0% BUZZ-Citi Research raises PT on Mastercard, Visa as payments recovery starts ** Energous WATT.O: up 38.0% BUZZ-Rises on partnership to make wireless charging batteries ** KKR & Co KKR.N: up 1.8% BUZZ-Piper Sandler starts with 'overweight' on co's upbeat strategy ** AVEO Oncology AVEO.O: down 15.1% BUZZ-Drops on $44.6 mln stock offering ** Aclaris Therapeutics ACRS.O: up 23.6% BUZZ-Jumps on FDA approval for COVID-19 treatment study ** The Alkaline Water Co WTER.O: up 18.3% BUZZ-Jumps on strong Q4 revenue, upbeat Q1 forecast ** XpressSpa XSPA.O: down 11.3% BUZZ-slides on stock and warrants offerings half of public float ** Beyond Meat Inc BYND.O: up 7.7% BUZZ-Rises on launch of plant-based burger value pack ** Hexo Corp HEXO.N: down 12.0% BUZZ-Pot producer Hexo plans C$34.5 mln equity raise, shares fall ** BioSig Technologies BSGM.O: up 7.7% BUZZ-Rises as enrollment for COVID-19 drug trial starts ** Armata Pharmaceuticals ARMP.A: up 13.3% BUZZ-Gains on U.S. defense department funding for drug development ** Tempur Sealy TPX.N: up 6.2% BUZZ-Bounces as reopening powers demand recovery ** PDS Biotechnology PDSB.O: up 5.1% BUZZ-Rises after partnership to develop COVID-19 vaccine ** United States Steel Corp X.N: down 8.0% BUZZ-Falls on Q2 loss forecast ** Amazon.com Inc AMZN.O: up 1.5% BUZZ-Rises as Needham starts coverage with 'buy' ** CoreCivic Inc CXW.N: down 18.8% BUZZ-Prison REIT CoreCivic tumbles as co suspends dividend, evaluates corporate structure ** Cloudflare Inc NET.N: up 12.3% BUZZ-Up after Needham sees boost from rapid shift to cloud ** Koppers Holdings KOP.N: up 6.8% BUZZ-Jumps on upbeat second-quarter forecasts ** Nvidia Corp NVDA.O: up 1.6% BUZZ-Up as Jefferies raises PT on strong data center, gaming trends ** Chegg Inc CHGG.N: up 6.3% BUZZ-Rises on proposed $500 mln securities buyback ** Eldorado Resorts ERI.O: up 6.9% BUZZ-Rises again after co raises equity ** Yum China Holdings YUMC.N: up 7.9% BUZZ-Jumps on report of potential Hong Kong listing ** Constellation Pharma CNST.O: down 8.6% BUZZ-falls on stock offering ** Ideanomics Inc IDEX.O: up 47.9% BUZZ-Hits eight-month high as its unit bags $5 million deal ** Fuelcell Energy FCEL.O: down 5.9% BUZZ-Drops on stock offering plan ** Document Security Systems DSS.A: down 19.5% BUZZ-Slides after discounted stock offering ** Southwest Airlines LUV.N: down 1.8% BUZZ-Falls on revenue warning as COVID-19 hurts Q2 demand The 11 major S&P 500 sectors: Communication Services down 0.16% (Compiled by Shivani Kumaresan in Bengaluru) ((Shivani.Kumaresan@thomsonreuters.com ; +1 646 223 8780)) 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 U.S. stock indexes S&P 500 and the Dow edged higher in choppy trading on Wednesday as hopes of a swift recovery from a coronavirus-driven downturn were dented by fears of a record rise in coronavirus cases in six U.S. states. .N At 13:00 ET, the Dow Jones Industrial Average .DJI was up 0.14% at 26,326.36. The top three S&P 500 .PG.INX percentage gainers: ** Keysight Technologies Inc , up 4% ** Advance Auto Parts Inc , up 3.8% ** Aon Plc , up 3.8% The top three S&P 500 .PL.INX percentage losers: ** H & R Block Inc , down 7% ** Royal Caribbean Cruises Ltd , down 6.7% ** Norwegian Cruise Line , down 6.3% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions , up 114.9% ** Cohen & Compny Inc , up 88.7% ** American Shared Hospital Services , up 31.8% The top three NYSE .PL.N percentage losers: ** NTN Buzztime Inc NTN.N, down 26% ** Document Securty Systems Inc DSS.N, down 19.4% ** Corecivic Inc , down 18.1% The top three Nasdaq .PG.O percentage gainers: ** Carver Bancorp , up 382.7% ** Gordon Pointe Acquisition , up 73.6% ** Integrated Media Technology Ltd , up 60% The top three Nasdaq .PL.O percentage losers: ** Proficient Alpha Acquisition Corp , down 61.2% ** Chembio Diagnostics , down 60.5% ** Urban One , down 42.6% ** InnerWorkings INWK.O: up 11.2% BUZZ-Soars as expenses fall, EBITDA rises ** Norwegian Cruise Line NCLH.N: down 6.3% BUZZ-Drops after extending voyage suspensions ** Mastercard Inc MA.N: up 0.3 ** Visa Inc V.N: up 1.0% BUZZ-Citi Research raises PT on Mastercard, Visa as payments recovery starts ** Energous WATT.O: up 38.0% BUZZ-Rises on partnership to make wireless charging batteries ** KKR & Co KKR.N: up 1.8% BUZZ-Piper Sandler starts with 'overweight' on co's upbeat strategy ** AVEO Oncology AVEO.O: down 15.1% BUZZ-Drops on $44.6 mln stock offering ** Aclaris Therapeutics ACRS.O: up 23.6% BUZZ-Jumps on FDA approval for COVID-19 treatment study ** The Alkaline Water Co WTER.O: up 18.3% BUZZ-Jumps on strong Q4 revenue, upbeat Q1 forecast ** XpressSpa XSPA.O: down 11.3% BUZZ-slides on stock and warrants offerings half of public float ** Beyond Meat Inc BYND.O: up 7.7% BUZZ-Rises on launch of plant-based burger value pack ** Hexo Corp HEXO.N: down 12.0% BUZZ-Pot producer Hexo plans C$34.5 mln equity raise, shares fall ** BioSig Technologies BSGM.O: up 7.7% BUZZ-Rises as enrollment for COVID-19 drug trial starts ** Armata Pharmaceuticals ARMP.A: up 13.3% BUZZ-Gains on U.S. defense department funding for drug development ** Tempur Sealy TPX.N: up 6.2% BUZZ-Bounces as reopening powers demand recovery ** PDS Biotechnology PDSB.O: up 5.1% BUZZ-Rises after partnership to develop COVID-19 vaccine ** United States Steel Corp X.N: down 8.0% BUZZ-Falls on Q2 loss forecast ** Amazon.com Inc AMZN.O: up 1.5% BUZZ-Rises as Needham starts coverage with 'buy' ** CoreCivic Inc CXW.N: down 18.8% BUZZ-Prison REIT CoreCivic tumbles as co suspends dividend, evaluates corporate structure ** Cloudflare Inc NET.N: up 12.3% BUZZ-Up after Needham sees boost from rapid shift to cloud ** Koppers Holdings KOP.N: up 6.8% BUZZ-Jumps on upbeat second-quarter forecasts ** Nvidia Corp NVDA.O: up 1.6% BUZZ-Up as Jefferies raises PT on strong data center, gaming trends ** Chegg Inc CHGG.N: up 6.3% BUZZ-Rises on proposed $500 mln securities buyback ** Eldorado Resorts ERI.O: up 6.9% BUZZ-Rises again after co raises equity ** Yum China Holdings YUMC.N: up 7.9% BUZZ-Jumps on report of potential Hong Kong listing ** Constellation Pharma CNST.O: down 8.6% BUZZ-falls on stock offering ** Ideanomics Inc IDEX.O: up 47.9% BUZZ-Hits eight-month high as its unit bags $5 million deal ** Fuelcell Energy FCEL.O: down 5.9% BUZZ-Drops on stock offering plan ** Document Security Systems DSS.A: down 19.5% BUZZ-Slides after discounted stock offering ** Southwest Airlines LUV.N: down 1.8% BUZZ-Falls on revenue warning as COVID-19 hurts Q2 demand The 11 major S&P 500 sectors: Communication Services
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The top three S&P 500 .PG.INX percentage gainers: ** Keysight Technologies Inc , up 4% ** Advance Auto Parts Inc , up 3.8% ** Aon Plc , up 3.8% The top three S&P 500 .PL.INX percentage losers: ** H & R Block Inc , down 7% ** Royal Caribbean Cruises Ltd , down 6.7% ** Norwegian Cruise Line , down 6.3% The top three NYSE .PG.N percentage gainers: ** Nuvrra Environmental Solutions , up 114.9% ** Cohen & Compny Inc , up 88.7% ** American Shared Hospital Services , up 31.8% The top three NYSE .PL.N percentage losers: ** NTN Buzztime Inc NTN.N, down 26% ** Document Securty Systems Inc DSS.N, down 19.4% ** Corecivic Inc , down 18.1% The top three Nasdaq .PG.O percentage gainers: ** Carver Bancorp , up 382.7% ** Gordon Pointe Acquisition , up 73.6% ** Integrated Media Technology Ltd , up 60% The top three Nasdaq .PL.O percentage losers: ** Proficient Alpha Acquisition Corp , down 61.2% ** Chembio Diagnostics , down 60.5% ** Urban One , down 42.6% ** InnerWorkings INWK.O: up 11.2% BUZZ-Soars as expenses fall, EBITDA rises ** Norwegian Cruise Line NCLH.N: down 6.3% BUZZ-Drops after extending voyage suspensions ** Mastercard Inc MA.N: up 0.3 ** Visa Inc V.N: up 1.0% BUZZ-Citi Research raises PT on Mastercard, Visa as payments recovery starts ** Energous WATT.O: up 38.0% BUZZ-Rises on partnership to make wireless charging batteries ** KKR & Co KKR.N: up 1.8% BUZZ-Piper Sandler starts with 'overweight' on co's upbeat strategy ** AVEO Oncology AVEO.O: down 15.1% BUZZ-Drops on $44.6 mln stock offering ** Aclaris Therapeutics ACRS.O: up 23.6% BUZZ-Jumps on FDA approval for COVID-19 treatment study ** The Alkaline Water Co WTER.O: up 18.3% BUZZ-Jumps on strong Q4 revenue, upbeat Q1 forecast ** XpressSpa XSPA.O: down 11.3% BUZZ-slides on stock and warrants offerings half of public float ** Beyond Meat Inc BYND.O: up 7.7% BUZZ-Rises on launch of plant-based burger value pack ** Hexo Corp HEXO.N: down 12.0% BUZZ-Pot producer Hexo plans C$34.5 mln equity raise, shares fall ** BioSig Technologies BSGM.O: up 7.7% BUZZ-Rises as enrollment for COVID-19 drug trial starts ** Armata Pharmaceuticals ARMP.A: up 13.3% BUZZ-Gains on U.S. defense department funding for drug development ** Tempur Sealy TPX.N: up 6.2% BUZZ-Bounces as reopening powers demand recovery ** PDS Biotechnology PDSB.O: up 5.1% BUZZ-Rises after partnership to develop COVID-19 vaccine ** United States Steel Corp X.N: down 8.0% BUZZ-Falls on Q2 loss forecast ** Amazon.com Inc AMZN.O: up 1.5% BUZZ-Rises as Needham starts coverage with 'buy' ** CoreCivic Inc CXW.N: down 18.8% BUZZ-Prison REIT CoreCivic tumbles as co suspends dividend, evaluates corporate structure ** Cloudflare Inc NET.N: up 12.3% BUZZ-Up after Needham sees boost from rapid shift to cloud ** Koppers Holdings KOP.N: up 6.8% BUZZ-Jumps on upbeat second-quarter forecasts ** Nvidia Corp NVDA.O: up 1.6% BUZZ-Up as Jefferies raises PT on strong data center, gaming trends ** Chegg Inc CHGG.N: up 6.3% BUZZ-Rises on proposed $500 mln securities buyback ** Eldorado Resorts ERI.O: up 6.9% BUZZ-Rises again after co raises equity ** Yum China Holdings YUMC.N: up 7.9% BUZZ-Jumps on report of potential Hong Kong listing ** Constellation Pharma CNST.O: down 8.6% BUZZ-falls on stock offering ** Ideanomics Inc IDEX.O: up 47.9% BUZZ-Hits eight-month high as its unit bags $5 million deal ** Fuelcell Energy FCEL.O: down 5.9% BUZZ-Drops on stock offering plan ** Document Security Systems DSS.A: down 19.5% BUZZ-Slides after discounted stock offering ** Southwest Airlines LUV.N: down 1.8% BUZZ-Falls on revenue warning as COVID-19 hurts Q2 demand The 11 major S&P 500 sectors: Communication Services up 0.62% Consumer Discretionary up 0.72% Consumer Staples
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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 U.S. stock indexes S&P 500 and the Dow edged higher in choppy trading on Wednesday as hopes of a swift recovery from a coronavirus-driven downturn were dented by fears of a record rise in coronavirus cases in six U.S. states. .N At 13:00 ET, the Dow Jones Industrial Average .DJI was up 0.14% at 26,326.36. The S&P 500 .SPX was up 0.38% at 3,136.51 and the Nasdaq Composite .IXIC was up 0.89% at 9,983.469.
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11121.0
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2020-06-17 00:00:00 UTC
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Wednesday 6/17 Insider Buying Report: PCVX, AAP
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AAP
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https://www.nasdaq.com/articles/wednesday-6-17-insider-buying-report%3A-pcvx-aap-2020-06-17
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nan
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nan
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As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. So let's look at two noteworthy recent insider buys.
On Tuesday, Vaxcyte's Director, Patrick J. Heron, made a $4M buy of PCVX, purchasing 250,000 shares at a cost of $16.00 a piece. So far Heron is in the green, up about 118.5% on their buy based on today's trading high of $34.96. Vaxcyte Inc is trading up about 1.7% on the day Wednesday. This buy marks the first one filed by Heron in the past twelve months.
And at Advance Auto Parts, there was insider buying on Monday, by CEO Thomas Greco who bought 7,285 shares at a cost of $136.13 each, for a total investment of $991,707. Advance Auto Parts is trading up about 0.7% on the day Wednesday. So far Greco is in the green, up about 6.8% on their purchase based on today's trading high of $145.45.
VIDEO: Wednesday 6/17 Insider Buying Report: PCVX, 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: Wednesday 6/17 Insider Buying Report: PCVX, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. On Tuesday, Vaxcyte's Director, Patrick J. Heron, made a $4M buy of PCVX, purchasing 250,000 shares at a cost of $16.00 a piece. This buy marks the first one filed by Heron in the past twelve months.
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VIDEO: Wednesday 6/17 Insider Buying Report: PCVX, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. So far Heron is in the green, up about 118.5% on their buy based on today's trading high of $34.96. So far Greco is in the green, up about 6.8% on their purchase based on today's trading high of $145.45.
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VIDEO: Wednesday 6/17 Insider Buying Report: PCVX, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. So far Heron is in the green, up about 118.5% on their buy based on today's trading high of $34.96. And at Advance Auto Parts, there was insider buying on Monday, by CEO Thomas Greco who bought 7,285 shares at a cost of $136.13 each, for a total investment of $991,707.
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VIDEO: Wednesday 6/17 Insider Buying Report: PCVX, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. On Tuesday, Vaxcyte's Director, Patrick J. Heron, made a $4M buy of PCVX, purchasing 250,000 shares at a cost of $16.00 a piece.
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11122.0
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2020-06-09 00:00:00 UTC
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Ex-Dividend Reminder: PulteGroup, Advance Auto Parts and Omnicom Group
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AAP
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-pultegroup-advance-auto-parts-and-omnicom-group-2020-06-09
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 6/11/20, PulteGroup Inc (Symbol: PHM), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. PulteGroup Inc will pay its quarterly dividend of $0.12 on 7/2/20, Advance Auto Parts Inc will pay its quarterly dividend of $0.25 on 7/3/20, and Omnicom Group, Inc. will pay its quarterly dividend of $0.65 on 7/10/20. As a percentage of PHM's recent stock price of $36.29, this dividend works out to approximately 0.33%, so look for shares of PulteGroup Inc to trade 0.33% lower — all else being equal — when PHM shares open for trading on 6/11/20. Similarly, investors should look for AAP to open 0.17% lower in price and for OMC to open 1.04% lower, all else being equal.
Below are dividend history charts for PHM, AAP, and OMC, showing historical dividends prior to the most recent ones declared.
PulteGroup Inc (Symbol: PHM):
Advance Auto Parts Inc (Symbol: AAP):
Omnicom Group, Inc. (Symbol: OMC):
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 1.32% for PulteGroup Inc, 0.69% for Advance Auto Parts Inc, and 4.17% for Omnicom Group, Inc..
In Tuesday trading, PulteGroup Inc shares are currently down about 1%, Advance Auto Parts Inc shares are down about 0.8%, and Omnicom Group, Inc. shares are down about 2.4% 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 6/11/20, PulteGroup Inc (Symbol: PHM), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAP to open 0.17% lower in price and for OMC to open 1.04% lower, all else being equal. Below are dividend history charts for PHM, AAP, and OMC, 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 6/11/20, PulteGroup Inc (Symbol: PHM), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. PulteGroup Inc (Symbol: PHM): Advance Auto Parts Inc (Symbol: AAP): Omnicom Group, Inc. (Symbol: OMC): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAP to open 0.17% lower in price and for OMC to open 1.04% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 6/11/20, PulteGroup Inc (Symbol: PHM), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. PulteGroup Inc (Symbol: PHM): Advance Auto Parts Inc (Symbol: AAP): Omnicom Group, Inc. (Symbol: OMC): In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for AAP to open 0.17% lower in price and for OMC to open 1.04% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 6/11/20, PulteGroup Inc (Symbol: PHM), Advance Auto Parts Inc (Symbol: AAP), and Omnicom Group, Inc. (Symbol: OMC) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for AAP to open 0.17% lower in price and for OMC to open 1.04% lower, all else being equal. Below are dividend history charts for PHM, AAP, and OMC, showing historical dividends prior to the most recent ones declared.
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11123.0
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2020-06-07 00:00:00 UTC
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Why Advance Auto Parts Stock Soared in May
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-stock-soared-in-may-2020-06-07
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nan
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nan
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What happened
Shares in auto parts retailers Advance Auto Parts (NYSE: AAP) rose 15.2% in May, according to data provided by S&P Global Market Intelligence. The move marks a reversal of fortune for the sector, with O'Reilly Automotive and AutoZone also posting 8% and 12.5% gains, respectively.
The sector's rise is a consequence of a gradual resumption of activity in the economy, and specifically the amount of vehicle miles driven. When cars are driven more (particular older ones) they are subject to wear and tear. In addition, more miles driven means more likelihood of accidents. Both are good news for auto parts retailers.
Image source: Getty Images.
The reversal of fortune can be seen in the numbers from the Advance Auto Parts first quarter earnings report. Whereas year-over-year comparable same store sales fell 9.3% in the first quarter, management told investors that in the first four weeks of the second quarter, "comparable store sales improved significantly each week".
So what
The sales data from Advance Auto Parts helps confirm the idea that the auto parts retailers could somehow find themselves in a sweet spot in the economy in the coming year. A return to economic growth will obviously increase vehicle miles driven. However, if the growth is moderate then consumers won't be so incentivized to go out and buy new cars -- instead, they will drive and repair older cars.
While the scenario outlined above wouldn't be great news for all automotive stocks, it would strengthen the investment case for Advance Auto Parts.
Now what
Wait and see. If the recovery continues apace, then it will continue to show up in the sector's comparable sales growth. Meanwhile, keep an eye out for car sales data. If it continues to be weak then it's arguably good news for Advance Auto Parts. The company and its sector may find itself in a curious kind of sweet spot in the economy.
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. 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 Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 2, 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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What happened Shares in auto parts retailers Advance Auto Parts (NYSE: AAP) rose 15.2% in May, according to data provided by S&P Global Market Intelligence. The sector's rise is a consequence of a gradual resumption of activity in the economy, and specifically the amount of vehicle miles driven. While the scenario outlined above wouldn't be great news for all automotive stocks, it would strengthen the investment case for Advance Auto Parts.
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What happened Shares in auto parts retailers Advance Auto Parts (NYSE: AAP) rose 15.2% in May, according to data provided by S&P Global Market Intelligence. Both are good news for auto parts retailers. So what The sales data from Advance Auto Parts helps confirm the idea that the auto parts retailers could somehow find themselves in a sweet spot in the economy in the coming year.
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What happened Shares in auto parts retailers Advance Auto Parts (NYSE: AAP) rose 15.2% in May, according to data provided by S&P Global Market Intelligence. So what The sales data from Advance Auto Parts helps confirm the idea that the auto parts retailers could somehow find themselves in a sweet spot in the economy in the coming year. 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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What happened Shares in auto parts retailers Advance Auto Parts (NYSE: AAP) rose 15.2% in May, according to data provided by S&P Global Market Intelligence. The reversal of fortune can be seen in the numbers from the Advance Auto Parts first quarter earnings report. So what The sales data from Advance Auto Parts helps confirm the idea that the auto parts retailers could somehow find themselves in a sweet spot in the economy in the coming year.
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11124.0
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2020-05-28 00:00:00 UTC
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How Car Rental Companies Are Being Disrupted
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AAP
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https://www.nasdaq.com/articles/how-car-rental-companies-are-being-disrupted-2020-05-28
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nan
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nan
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In this episode of MarketFoolery, Chris Hill and Motley Fool analyst Jason Moser go through the latest headlines from Wall Street. They've got a couple of car stocks to talk about and a Chapter 11 bankruptcy filing. They cover some surprising developments happening in the footwear space 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.
10 stocks we like better than Walmart
When investing geniuses David and Tom Gardner have an investing 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 Walmart 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 2/1/20
This video was recorded on May 26, 2020.
Chris Hill: It's Tuesday, May 26th. Welcome to MarketFoolery. I'm Chris Hill, joining me from a safe social distance, Mr. Jason Moser. Good to see you, my friend.
Jason Moser: Good to see you.
Hill: We've got footwear news; we've got a lot of automotive news and we're going to start there with Hertz (NYSE: HTZ). Because, just like we saw with JCPenney in retail, what had been rumored for a while is now official, Hertz Global has filed for Chapter 11 bankruptcy protection.
The New York Stock Exchange is going to delist the stock. And this is, I don't want to set this up as, wow! This was an unbelievably stable company from a financial standpoint to begin with, but just when you look at the speed with which [laughs] this stock went from the low-$20s to its current price of $2-and-change. This is a swift end for Hertz Global.
Moser: Yeah, I mean, it is. I would say that this was, kind of, just the icing on the cake, really. I mean, this was a very challenged business before the COVID-19 pandemic hit, and that certainly accelerated its demise; I mean, it has obviously accelerated the demise of many businesses, but Hertz, it was in a challenged position before this. Sales were essentially flat. They were taking losses left and right, and they've also been plagued by management upheaval. I mean, they've named its fourth CEO in six years just this year.
And so, you know, the one thing I always think about when you see a revolving door like that with leadership, if you don't have a leader in place that's been there for a while, you don't really have the opportunity to try to see around corners and perhaps take the business in a new or additional direction. I mean, that really is one of the great virtues of tenured leadership there, is they have a good grasp of the business but also the market that they're pursuing and how the company can respond to competitive threats.
Like I said, before the pandemic hit, Hertz was still a business in trouble. This just hastened really, I think, what was inevitable. As we've seen the whole travel industry change with companies like Uber and Lyft. And just this need for rental cars is maybe not the same that it was before. So, it's a shame, you certainly never root for this kind of stuff, it's a brand, I think, we all grew up with. And you remember those commercials of O. J. Simpson running through the airport, leaps and bounds. I can still remember that just as if it were yesterday. But then clearly this is a business that was not able to think about the challenges that were approaching and they were not able to figure out a way to pivot or evolve and ultimately, you know, this bankruptcy was just inevitable.
Hill: Shares of Avis Budget (NASDAQ: CAR) up 15% on this news. I was a little surprised at that. I realized that, look, if one of your competitors, no matter how challenged they are -- Hertz was a competitor, if they go under, yeah, that's good for your business. I was still a little surprised to see that pop in Avis Budget's stock. Because I thought, look, that's [laughs] -- this is not a great environment for any of your businesses.
Moser: It's not. And I mean, this isn't really a great business even in the best of times. I mean, the cost of doing business for companies like these, it's expensive. I mean, you're talking about gross margins in the 15% range even in good times. So, you can see that gross margin, we're talking about earnings which trickles all the way down to the bottom-line. It's always just going to be a tough margin business. The cost of doing business is really high. There's no real loyalty.
I kind of liken these car rental companies to airlines, there's no real loyalty. People just want something cheap that works. And it, kind of, takes me back. Now, this is a family friendly show, Chris, so I'm not going to completely go off the deep end here, but you remember back in the day that Planes, Trains and Automobiles, the movie with Steve Martin and John Candy. You remember what transpired when Steve Martin was trying to get that rental car, right? You can give me a Datsun, a Toyota, a Mustang just for "blanking" wheels and a seat, right? That's kind of what we're seeing with these car rental companies. There's not really any loyalty there. I liken them to airlines in that regard.
And, you know, before I moved up here to start working at The Fool 10 years ago, I was working with Travelers Insurance and I was in the auto claims department there for a year. And I was astounded by, No. 1, the amount of car accidents that happen on a daily basis, but then No. 2, the business that these insurance companies give these rental companies is just amazing. I mean, if your car gets hit, you need another way to get around, I mean, it was kind of automatic business from that point. So, it, kind of, showed you the opportunities there, at least, with these car rental companies to take advantage of partnering up with big insurers like that.
But all-in-all that's just one avenue of revenue. And it's not really growth, right? I mean, you're not rooting for an environment where we have more automobile accidents. And it probably could be argued that in time, as technology gets better, we should be able to bring that number down.
But you know, this is a business where -- the thing that really stood out to me on their income statement, it was not revenue growth, it was not how well they managed their earnings, it was the net interest expense. And expenses are bad. And we're talking about from 6.5% in 2015 to 8% of total revenue today. And that's a lot. And they were free cash flow positive.
The last time they were free cash flow positive it was 2016, it's not even close after that. They've got a debt-to-equity close to 14. So, I mean, when you combine all of this together, it's just a really, really difficult business to run. I would certainly not make the leap that, because Hertz is going to be going through this, that Avis is going to be some massive beneficiary. Because remember too this is Chapter 11. Hertz is still going to be able to try to figure out a way to do business going forward. And granted, it may not be one that you want to invest in, but it's still going to be a force out there in that market, which you know, I think continues to make this just a difficult space for investors. It's great if you need a rental car, but as an investor, there are better places to look in my opinion.
Hill: The last thing before we move on, Hertz owns more than half a million vehicles. Isn't it reasonable to assume that part of this process is them going to be selling some of those off, reducing their fleet just a little bit?
And where I'm going with this is, I filled up my car 15 days ago. And I took a very short drive yesterday and I looked and I've got three quarters of a tank left. So, if that keeps up, one tank of gas is going to get me through two months. And this will lead into our next topic in a second here, but I don't know, it really seems like for consumers, who are either looking for a new car, looking for a lightly used car -- I mean, I think the last car I purchased, the one that I just filled up, I'm pretty sure it was a rental vehicle beforehand. And it is in good shape; I don't know. It just seems like if you're looking to get a used vehicle, you're going to have even more options as a result of this.
Moser: I would imagine so. I mean, I would certainly think to right-size their capital structure, they're going to be releasing some of those leases and some of those vehicles, and that certainly does flood the market with more used vehicles. And as we always say, economics at the end of the day rule. And so, when you flood the market with supply like that, oftentimes you're going to see a lot of competition just on the pricing side. And that's great for folks looking for lightly used cars. I mean, the nice thing, usually, at least with rental companies, they do maintain those fleets pretty well, just because those cars have to always work. You're renting on the premise that my car is going to work. So, they typically take care of the vehicles and service them well.
It's really interesting to think about, going forward, how we use our cars, because I'm with you. My wife and I, both, have our own cars. And I have not been taking my kids to school over the past few months. I've obviously not been driving to the headquarters for the last few months. I'm taking two weeks to go through a tank of gasoline. Now, I don't think it'll always stay that way, but I think we're seeing a lot of signs. Certainly, out West we're seeing more companies embracing the work-from-home or work from other places. So, it's reasonable to assume that maybe people will be driving less, and if that's the case, then that probably means that people aren't out there demanding to buy cars as much. And then that will have profound impacts on this market. The ripple effects are plain to see.
Hill: Let's move on to AutoZone (NYSE: AZO), because third quarter profits and revenue came in higher than expected for AutoZone. Their same-store sales weren't positive, but they were still solidly better than Wall Street was expecting.
Moser: To be an essential business, [laughs] Chris. This is an essential business. They didn't have to close up shop for one day. And to remember here, I mean, just as a reminder, this is the quarter that ended May 9th. So, make no mistake, this is a quarter that really did report in the midst of this pain. These numbers do come from a lot of the toughest times here.
Sales were relatively flat; same-store sales, as you mentioned, down only a smidge, I mean, that's got to feel like a major win for this company, particularly when you look at the carnage writ large in our national economy. I always have looked at AutoZone and O'Reilly as they're the two big players in the space. AutoZone and O'Reilly and Advance, kind of, brings up the rear there.
But it does feel like you could call AutoZone the Lowe's to O'Reilly's Home Depot, except maybe the disparity between O'Reilly and AutoZone is a little bit closer. They're two very similar businesses, they perform very similarly on the margin side. And they provide, ultimately, an essential service, you know, your car has to work. And they have the consumer and the commercial side of the business, the omnichannel side of the business where there is ordering online or order online pickup at store still represents a very small percentage of their business, it's less than 5%. So, they do count on people coming into those stores.
And they didn't really have to close many stores for any extended period of time, they didn't have to whittle down their hours terribly substantially. They did note the chronology as the quarter went along, the first four weeks, things were going well, they were up mid-single-digit same-store sales. The next four weeks, that was the greatest or the first impact, at least, and probably the greatest. And they said, that's when their same-store sales really took a hit. But they did note, over the last four weeks of the quarter, they saw these stimulus checks actually had an impact on their market, consumers are willing to get back out and shop at a socially safe distance. And again, they're providing things that ultimately, we as consumers with cars need, and consequently, you've got a business that is still performing pretty well in a very difficult time.
Hill: Yeah. And again, to go back to, sort of, the larger automotive environment. It really seems like we're going to be in this situation where people are -- let me put it this way, I wouldn't want to be in the business of selling brand new cars. I think [laughs] that's going to be a particularly tough business over the next couple of years. When you consider the tens of millions of people who are recently unemployed more and more people are going to be looking to get the most out of the existing car that they have. If they're looking to buy a new vehicle, there's probably going to be even more consideration for used cars, whether that's from Hertz Global or [laughs] somewhere else.
And I think that businesses like AutoZone and O'Reilly and Advance are probably set up for a better next 24 months then they might have been otherwise.
Moser: I think that's a safe assumption; I would agree with that. For auto dealerships to sell new cars -- I don't think that low rates are going to necessarily stoke enough demand. You know, that's one of the levers they can pull. They can say, "Hey, when you get this car, you can finance it over six years for 0%." Well, that's a no-brainer, because you're not paying any interest. And you can pay it off whenever you want, so.
But not everybody is in that boat, not everybody can do that. And so, then you couple that with a market where there is likely a flood of used vehicles out there, and you're still going to be able to get them at very low rates. Folks who are in the market for a car are probably going to look at that used market first. And folks who have cars, like myself, yeah, I'm definitely in that boat, I'm going to get as much life out of my car as I possibly can. I mean, I really want to drive it until it just doesn't drive anymore. And if you take care of a car these days, much like technology, these cars, they could last a long time if you take care of them.
Hill: Let's wrap up with Crocs (NASDAQ: CROX), because shares of Crocs are up nearly 10% this morning. Sales in March rose 14% compared to a year ago. And according to a report in The Wall Street Journal, Crocs is the only footwear brand among the top 30 brands that saw an increase in sales. That is astonishing to me that only one saw an increase in sales, and that the one that saw the increase was Crocs.
Moser: Well, and then, I think, I read further that the only other one that even performed remotely close was Ugg. Which, I mean, you know Uggs? That seems, I don't know --
Hill: -- I don't think you and I are the target market for Uggs.
Moser: Maybe not, maybe not. But, I mean, Tom Brady certainly seems to like his Uggs, Chris. I don't know. Maybe he's trying to get that out there a little bit more mainstream. Yeah, listen, hey, Crocs, I said out on Twitter yesterday that I'm working on putting together a basket of stay-at-home stocks, a presentation and a basket of stay-at-home stocks for FoolFest this year in a couple of weeks, which is going to be a virtual event, of course, and it'll be something where we get to deliver a lot of different ideas and presentations.
Maybe Crocs, who knew? it's the ultimate stay-at-home stock, right? Like, you are at home, you're working at home, who cares what shoes you -- most people aren't even wearing shoes. You know what I'm wearing right now, Chris? Now that we have the video component, look, I'm wearing my Under Armour flops. Nobody cares about wearing nice shoes anymore. So, yeah, I guess it kind of makes sense from that perspective.
And, you know, the interesting thing, if you look back to this, you know, this company, has always had potential and really seem to live up to it. But if you look back at theirearnings callin April, it was really kind of fascinating to see e-commerce sales growth of 15.8% on top of 16.5% growth the previous year. That was their 12th consecutive quarter of double-digit e-commerce growth.
And so, my point is, ultimately, this is a business really set up to perform well when it comes to e-commerce. You kind of know your size, you know, if you have Crocs, you're not expecting too much out of them, right? It's not like you're looking for, you're not Cinderella, right? You're not looking for the perfect fit, it's just you're looking for something kind of like four wheels and a seat, Chris. You're just looking for something to shuffle around the house in. And Crocs does a really good job of that.
And then they do an even better job of partnering up with all of these different sorts of content partners or, sort of, niche fan bases, whether it's Kiss or Kentucky Fried Chicken or Harry Potter, charms to attach to your shoes, they've really added this identity that you don't affiliate, I think, with any other footwear product. And so, while I myself don't own any Crocs, I'm not terribly surprised to see them performing well in this environment.
I guess the big question is, will they be able to sustain it when we get back out? You know, are we going to be, it is the new normal where we're always working from home or do we eventually have to go back to the office? And then furthermore, if we do go back to the office, do they really care what you wear at the office? We're very lucky at Fool HQ, we wear Crocs at Fool HQ and get away with it. Not every place you can do that, but I don't know, maybe we see that changing here.
Hill: Well, and I think, to broaden it. Yeah, this is going to be a lean couple of years for anyone in clothing, footwear, any sort of aspirational high-end brands, I think it's just going to be a rough road. Like, you know, we were talking about this the other day. You really don't want to be in the business of selling men's suits [laughs] or at least dress pants because to the extent that you need to look good on a Zoom call, maybe you've got a jacket and tie, maybe.
It's probably a time to look at businesses that are focused on the waist up. And this is something we talked about recently with Target, with Target's latest quarter where you look at the investments they've made in apparel, they didn't really pay off in the most recent quarter, but that is an opportunity for a business like Target.
Moser: It is. You know, speaking of opportunities, I feel like this is really the opportunity for me to go ahead and trademark the wardrobe mullet, right? We had talked about that, I think, a number of years back that wardrobe mullet, where it's all-business up-top and all-party down-below, because, you know, on Zoom, nobody cares what you look like from the waist down because they're not seeing it. I mean, I think there is something to that and I think we're even seeing companies marketing to that. There are even items of clothing that are being sold that are geared toward, [laughs] you know, making you look better for that video conferencing workday.
And so, yeah, it does strike me as some companies are going to be able to really, they're going to be able to really embrace this time and make absolutely the best of it, Crocs seems to be doing just that, and it's a relatively simple concept, simple product, it doesn't sound like it's too terribly difficult to make. And obviously very, very lightweight shipping, so, I mean, their fulfillment costs are going to be fairly minimal it seems and the numbers reflect, I think, what is a pretty robust e-commerce business. So, I suspect we'll see them continue to do well.
Hill: Jason Moser, thanks for being here.
Moser: Thank you.
Hill: As always, people on the program may have interests 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, thanks for listening, we'll see you tomorrow.
Chris Hill owns shares of Under Armour (A Shares) and Under Armour (C Shares). Jason Moser owns shares of Twitter, Under Armour (A Shares), and Under Armour (C Shares). The Motley Fool owns shares of and recommends Home Depot, Twitter, Under Armour (A Shares), Under Armour (C Shares), and Zoom Video Communications. The Motley Fool recommends Lowe's and Uber Technologies and recommends the following options: long January 2021 $120 calls on Home Depot, short January 2021 $210 calls on Home Depot, and short August 2020 $130 calls on Zoom Video Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Now, this is a family friendly show, Chris, so I'm not going to completely go off the deep end here, but you remember back in the day that Planes, Trains and Automobiles, the movie with Steve Martin and John Candy. You really don't want to be in the business of selling men's suits [laughs] or at least dress pants because to the extent that you need to look good on a Zoom call, maybe you've got a jacket and tie, maybe. We had talked about that, I think, a number of years back that wardrobe mullet, where it's all-business up-top and all-party down-below, because, you know, on Zoom, nobody cares what you look like from the waist down because they're not seeing it.
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Yeah, listen, hey, Crocs, I said out on Twitter yesterday that I'm working on putting together a basket of stay-at-home stocks, a presentation and a basket of stay-at-home stocks for FoolFest this year in a couple of weeks, which is going to be a virtual event, of course, and it'll be something where we get to deliver a lot of different ideas and presentations. The Motley Fool owns shares of and recommends Home Depot, Twitter, Under Armour (A Shares), Under Armour (C Shares), and Zoom Video Communications. The Motley Fool recommends Lowe's and Uber Technologies and recommends the following options: long January 2021 $120 calls on Home Depot, short January 2021 $210 calls on Home Depot, and short August 2020 $130 calls on Zoom Video Communications.
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And this will lead into our next topic in a second here, but I don't know, it really seems like for consumers, who are either looking for a new car, looking for a lightly used car -- I mean, I think the last car I purchased, the one that I just filled up, I'm pretty sure it was a rental vehicle beforehand. It really seems like we're going to be in this situation where people are -- let me put it this way, I wouldn't want to be in the business of selling brand new cars. Hill: As always, people on the program may have interests 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 I mean, this isn't really a great business even in the best of times. That's kind of what we're seeing with these car rental companies. That seems, I don't know -- Hill: -- I don't think you and I are the target market for Uggs.
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11125.0
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2020-05-21 00:00:00 UTC
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Americans splurge at Walmart, Target as stimulus checks kick in
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AAP
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https://www.nasdaq.com/articles/americans-splurge-at-walmart-target-as-stimulus-checks-kick-in-2020-05-21
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By Aishwarya Venugopal
May 21 (Reuters) - The Trump Administration's coronavirus relief payment provided a fillip to sales of major retailers in April as millions of Americans used the money to buy everything from video games to sewing machines even as the country struggles with record job losses.
Walmart WMT.N and Target Corp TGT.N noted in theirearnings callthis week that quarterly comparable sales, which rose about 10%, got a major boost from increased demand for non-essentials at the end of last month.
"Call it relief spending, as it was heavily influenced by stimulus dollars," Walmart Chief Executive Doug McMillon said on Tuesday, citing a jump in sales of clothing, televisions, video games, sporting goods and toys.
The U.S. government doled out relief checks of $1,200 in late April to help tens of millions of households cover essentials and cope with the financial distress brought on by the coronavirus pandemic as job losses reached 20 million.
However, as lockdown restrictions were eased, Americans moved away from stockpiling staples and instead splurged on discretionary big-ticket items, helping boost margins for retailers.
The shift also helped specialty retailers such as Best Buy BBY.N and Advance Auto Parts Inc AAP.N.
"We did see an increase on the week of the stimulus, but the week after the stimulus was better ... And then two weeks after was better than one week after. So we are seeing that sequential improvement," Advance Auto Chief Executive Tom Greco said.
Target CEO Brian Cornell said the company saw an increase in online and store traffic, both tied to the extra cash, but cautioned that the bump could be short-lived.
Edward Jones analyst Brain Yarbrough concurred, saying, "I wouldn't expect the trends you've seen in late April and potentially in the beginning of May to continue. That wouldn't be realistic."
(Reporting by Aishwarya Venugopal and Nivedita Balu in Bengaluru; Editing by Sweta Singh and Saumyadeb Chakrabarty)
((Aishwarya.Venugopal@thomsonreuters.com; within U.S. +1-646-223-8780; outside U.S. +91 80 6749 2830;))
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 shift also helped specialty retailers such as Best Buy BBY.N and Advance Auto Parts Inc AAP.N. By Aishwarya Venugopal May 21 (Reuters) - The Trump Administration's coronavirus relief payment provided a fillip to sales of major retailers in April as millions of Americans used the money to buy everything from video games to sewing machines even as the country struggles with record job losses. Walmart WMT.N and Target Corp TGT.N noted in theirearnings callthis week that quarterly comparable sales, which rose about 10%, got a major boost from increased demand for non-essentials at the end of last month.
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The shift also helped specialty retailers such as Best Buy BBY.N and Advance Auto Parts Inc AAP.N. By Aishwarya Venugopal May 21 (Reuters) - The Trump Administration's coronavirus relief payment provided a fillip to sales of major retailers in April as millions of Americans used the money to buy everything from video games to sewing machines even as the country struggles with record job losses. "Call it relief spending, as it was heavily influenced by stimulus dollars," Walmart Chief Executive Doug McMillon said on Tuesday, citing a jump in sales of clothing, televisions, video games, sporting goods and toys.
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The shift also helped specialty retailers such as Best Buy BBY.N and Advance Auto Parts Inc AAP.N. By Aishwarya Venugopal May 21 (Reuters) - The Trump Administration's coronavirus relief payment provided a fillip to sales of major retailers in April as millions of Americans used the money to buy everything from video games to sewing machines even as the country struggles with record job losses. "Call it relief spending, as it was heavily influenced by stimulus dollars," Walmart Chief Executive Doug McMillon said on Tuesday, citing a jump in sales of clothing, televisions, video games, sporting goods and toys.
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The shift also helped specialty retailers such as Best Buy BBY.N and Advance Auto Parts Inc AAP.N. By Aishwarya Venugopal May 21 (Reuters) - The Trump Administration's coronavirus relief payment provided a fillip to sales of major retailers in April as millions of Americans used the money to buy everything from video games to sewing machines even as the country struggles with record job losses. So we are seeing that sequential improvement," Advance Auto Chief Executive Tom Greco said.
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11126.0
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2020-05-19 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Q1 2020 Earnings Call Transcript
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-q1-2020-earnings-call-transcript-2020-05-19
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Image source: The Motley Fool.
Advance Auto Parts Inc (NYSE: AAP)
Q1 2020 Earnings Call
May 19, 2020, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Advanced Auto Parts First Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]
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, Ms. Eisleben.
Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Good morning and thank you for joining us to discuss our first quarter 2020 results. 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 will turn our attention to answering your questions.
Before we begin, please be advised that our remarks today may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including but not limited to statements about our strategic initiatives, operational plans, and objectives and future business and financial performance as well as statements regarding underlying assumptions related thereto. 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 materially from the forward-looking statements can be found under the caption Forward-Looking Statements and Risk Factors in our most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission and under similar captions in subsequent filings made with the commission in our quarterly earnings press release.
Now, let me turn the call over to Tom Greco.
Tom Greco -- President and Chief Executive Officer
Thanks, Elizabeth. And good morning to everyone joining. I'd like to begin by taking a moment to acknowledge the COVID-19 pandemic and how it affected each of us. No one asked for this crisis and the stories of the loss are incredibly sad. Most important, I sincerely hope you and your families are safe and doing well. Well, there is no playbook on navigating a crisis of this magnitude. Our team members are doing extremely well to adjust to this environment. Over the last few weeks, we urgently adapted to help safeguard our team members and their families, our customers and our communities. I'd like to thank all of our front-line team members and Independent Carquest Partners, who are making tremendous sacrifices to keep our customers on the road. I also want to thank the many AAP team members who've turned on the dime to operationalize new ways of working and serving our customers during this time.
Throughout COVID-19, we've been focused on three overarching priorities. First, prioritize the health and safety of our team members and customers. Second, preserve cash and protect the P&L during the crisis. And third, prepare to be stronger following the crisis. Allow me to provide a summary of how we have approached these priorities.
First, well, not a new concept, nothing is more important than the health and safety of our team members and customers and we've gone to great lengths to help protect us. In our stores, this includes the implementation of social distancing and enhanced sanitation practices along with the installation of plexiglass barriers to name just a few. In our DCs, we've made critical changes to how our team members operates. This also includes execution of social distancing, increase cleaning and sanitation and implementing health check screening. Each initiatives in both stores and DCs were supported with a robust training curriculum to help ensure safety procedures were enacted. We also sourced much needed supplies for our team members, including more than a million face coverings. All of this reinforces that when we say nothing is more important than the health and safety of our people and customers, we're supporting this statement with concrete actions.
Secondly, we are laser focused on protecting the P&L, and preserving cash during this crisis. In a few minutes, I'll outline how the additional cost reduction actions we've taken to reflect the short-term softness in sales, augment pre-existing plans to expand margins. We've worked hard to reduce costs, strengthen our balance sheet and improve cash flow in recent years. As a result, we believe we're in a great starting position to manage our way through this. Jeff will talk about the important steps we've taken to further solidify our cash position and liquidity to not only weather this storm, but to create an environment that positively recover. Importantly, we remain committed to the strategic return of cash to shareholders, evidenced by the meaningful dividend increase earlier this year and recent dividend declaration by our Board this week.
Finally, our recovery path for us, which includes experts both inside and outside the Company is working to help ensure that we're in an even stronger position to compete following the crisis. We've reprioritized initiatives, updated goals, improved collaborations and increased beta decision making in spite of the environment. We're now more agile and responsive and deploying timely, relevant and innovative solution to help meet the rapidly evolving needs of our team members and customers. Now that many states have begun to gradually lift restrictions, we're helping Pro-customers to ramp-up and assisting DIY customers to get back to work in daily lives. Our task force is looking at the very best way for us to serve our professional customers, based on developing guidelines, while being mindful of the ongoing needs for safety and social distancing. For our store teams, we're adapting and updating our standard operating procedures for customer interactions, on-site delivery and parking lot services. Historically, we know that industry has been counter-cyclical and we're beginning to see signs of this. We're working hard to be ready to serve our customers better than ever regardless of the environment.
Shifting to our performance in Q1. Our topline sales were significantly impacted by COVID-19 in the quarter. While an extremely warm winter led to a softer start to the quarter, we saw sales improvements in early March. However, as COVID-19, stay at home workers were implemented broadly, we experienced significant reductions in both professional car counts and DIY retail traffic, beginning in mid-March and impacting the remaining six weeks of the quarter. This led to fewer miles driven and as a result, our topline meaningfully declined, as we detailed in our early April pre-release. Overall, in Q1, our net sales decreased 8.6% to $2.7 billion with comparable store sales down 9.3%. As COVID-19 began to impact us, we quickly took steps to reduce operating expenses. However, the impact of these actions was not enough to offset the rapid decline in topline sales late in the quarter. Our Q1 adjusted operating income declined by 57% to $104 million. Sales during the week ending April 4th were down 28%. On a positive note, this represented the low point of the pandemic impact for AAP to-date and our sales have been improving sequentially each week. Through the first four weeks of Q2, our comparable store sales are approximately in-line with the prior year. And our DIY omnichannel business is growing double-digits, significantly outperforming professional.
While there are a number of factors here, from an industry perspective, the DIY business tends to perform well during economic downturn, as unemployment increases, new car sales declined, the car park ages and more customers do their own maintenance and repairs. We also believe the combination of seamless benefits and the strong execution of our DIY marketing and sales plans have been two additional drivers helping our recent sales performance.
In terms of geographies, our Q1 performance was heavily impacted in COVID-19 hotspots. The Northeast, Mid-Atlantic and Great Lakes regions were all down double-digits and particularly challenged in major urban markets. Puerto Rico, which is operating just six hours per week and Canada also experienced large double-digit decline. Our strongest performance within the Southeast Carolina and Appalachia region, which were much less impacted by COVID-19. The difference between low performing and high performing regions in Q1 was more than a 1,000 basis points, representing the largest differential we've seen in recent memory and this differential was well over 2,000 basis points during the key impact of COVID-19.
In terms of our professional performance, consistent with previous quarters, we delivered growth through mid-March, however, as the quarter progressed, this segment felt extreme pressure from stay at home workers. As a reminder, our Worldpac and Autopart International businesses are 100% professional and tends to be in more urban areas. This contributed to drastic reductions in customer car counts, while we believe customers were more likely to adhere to stay at home orders. We took rapid steps to meet the needs of our customers and support them at this time of great needs. For example, our Carquest and Worldpac Technical Institute developed virtual, instructor-led training courses for repair shop owners and their employees. We introduced mode of visual, a best-in-class online platform mechanics in use to virtually explain complicated jobs to customers. Throughout the pandemic, our professional team has stayed extremely close to our pro-customers and we expect this level of support and adaptations will strengthen our relationship as stay-home orders are lifted and business recovers.
In Q1, our DIY omnichannel business performed better than Cars with significant growth in our e-commerce business. Our team accelerated existing DIY omnichannel initiatives and several new ones to better serve our customers, both online and in-store. Consistent with our plan announced in February, we launched our new mobile app that is getting great reviews and feedback from customers. As an example of the teams agility, in March, we launched a suite of services, rebranded Advance Same Day. This includes in-store pickup, herbicide and advanced same-day delivery, also offering contact-free fulfillment options. These initiatives were rapidly accelerated and include a fully integrated marketing plan, to let customers know we are here for them. Assuming like Q2 and beyond, we remain focused on four primary areas to build on current momentum within our DIY omnichannel business. These are first, launched DieHard; second, build awareness; third drive loyalty and fourth, execute with excellence.
Let's start with DieHard. Throughout the crisis, we prioritized initiatives that we believe will offer the potential for the best returns. One of those initiatives is the launch of the iconic DieHard brand, which is on-track for this summer. We believe DieHard is a differentiator for Advance and we already have customers asking for it. As customers literally restart their engine in the coming months, many will find they need a new battery. As the most trusted brand in the category, we believe DieHard will drive incremental growth across all channels.
Second, we are committed to building awareness for Advance. Our advertising highlights the way we help motor its Advance with care and with speed and it features our very own team members. We're pleased with the feedback from our customers and the response to it.
Third, in terms of loyalty, we relaunched our Speed Perks program last year and continued to see improvement in Speed Perks transactions. Through our new app, Speed Perks members can quickly view their points and available rewards and get exclusive deals and check out faster. We're also excited that despite our lower sales volume, we saw double-digit increases in Speed Perks sign-up year-over-year. At the end of Q1, we had more than 13 million active members, an increase of over 20% year-over-year.
Finally, our fourth area of focus in DIY is beginning to deliver measurable growth, as our execution continues to improve. This includes increases in both UPT and sales per ticket and reductions in average fulfillment time in Q1. In terms of ticket count, we saw extreme pressure on resale of ticket counts in the quarter due to COVID-19, however our eCommerce business was strong and we saw a double-digit sales improvement year-over-year in Q1. As we indicated, we've also seen a sharp uptick in DIY ticket count, both online and in-stores recently.
Now as we move on margin expansion for the overall business, COVID-19 has required us to reprioritize our plan. While there are still many unknowns surrounding the pandemic, I want to give you a brief update on our key pillars of margin expansion. First, as we look to improve sales and profit per store, we continue to evaluate our footprint. During Q1, we closed our consolidated 28 stores, all of which were planned prior to the onset of COVID-19 and we opened five net new independent location. Additionally, we remain in full execution mode of consolidating our Worldpac and Autopart International banners and expect to complete this consolidation by year-end as previously communicated. Once complete, we believe we'll be able to offer a broader product assortment to our professional customers, while reducing costs. We expect to realize additional savings this year in store labor and professional fees, as a result of the actions we took over the past few weeks. We expect that over-time, we'll continue to improve our sales and profitability per store.
Our second margin expansion priority is supply chain. We continue to execute cross-banner replenishment, which was temporarily slow in Q1, but not stopped. We remain on-track to complete this initiative by mid-2021. In terms of our warehouse management system consolidations, we completed our first implementations in one of our largest DCs with a new WMS system earlier this year. This facility is already showing improvements in fill rates, on-hand accuracy and other important service metrics. Due to travel restrictions and prioritization of critical projects related to our COVID response, we temporarily delayed converting other DCs for now. Our team is focused on how we can further improve this process when the time comes to ramp conversions back-up and complete this component of our transformation agenda.
Our next pillar of margin expansion is category management. We increased our efforts even further throughout this pandemic to collaborate with our suppliers to help ensure consistent supply and optimize cost and insurance. In addition to material cost optimization, we continue to increase own brand expansion including Carquest branded park and the upcoming launch of DieHard. I'm also excited to share that our new pricing optimization tool is on-track to launch mid year. Once completed, we expect this to give us much greater flexibility and agility, resulting in more effective and efficient management of pricing.
SG&A productivity is our final pillar of margin expansion. During the quarter, we reacted quickly to sales decline with cost reduction. While these actions were insufficient to fully offset the sales declines in Q1, they will help us going forward and we believe we will see more significant benefits from them in Q2. In the first quarter, expense reductions included the continuation of our back-office consolidations, which were planned prior to the outbreak as well as the suspension of all travel and deferral of certain marketing expenses to later in the year. Related to the lower remaining capex, we reduced contractors and professional fees in Q1. Further, our safety focus continues and is delivering meaningful savings in our insurance and claims expense. I'm proud to share that we once again reduced our recordable incidents and collision frequency rates during the quarter by 30% [Phonetic] and 14% respectively. Our team has done tremendous work to help to keep our team members safe, as part of our COVID-19 response. Despite the additional cost we've incurred related to these efforts. I know, they are helping to protect our team members and customers and believe we will all come out of this stronger.
As I said when we began today's call, there is no playbook on how to response to a global pandemic. But in many ways, we've written a very good blueprint, as we benchmark versus other companies. This includes everything from new safety measures in our stores and distribution centers to additional benefits for our team members, the new industry leading solutions for our customers. I'm incredibly proud of all of our team members because of their hard work, we believe we will emerge stronger, more innovative and more agile than ever.
With that, I'll turn it over to Jeff for details on our financial performance.
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Thank you, Tom, and good morning everyone. Before I begin, I want to echo Tom's comments and extend my personal well-wishes to everyone joining us this morning. I hope you and your families are safe and well. I also want to thank our approximately 67,000 team members and all our Independent partners for their relentless dedication and resilience throughout the past couple of months. As expected, we experienced headwinds associated with the COVID-19 pandemic and our first quarter results were below our expectations.
In the first quarter, our adjusted gross profit was approximately $1.2 billion, which was a decrease of nearly 11% compared to Q1 of the prior year, primarily driven by decreased sales. Adjusted gross profit margin of 43.5% declined 113 basis points from the prior year quarter due to supply chain deleverage, product mix and tariff related cost increases. These were partially offset from pricing and lower LIFO headwinds. Our adjusted SG&A was approximately $1.1 billion in Q1 and was relatively flat compared to Q1 2019. As a percentage of net sales, our adjusted SG&A expenses increased by 326 basis points to 39.6%. While we took several actions to reduce costs in response to the COVID-19 pandemic, the majority of the savings will be reflected in the balance of the year. Given our commitment to provide a high-level of service for our customers, we did not deliver the amount of SG&A productivity that we have seen in prior quarters.
In addition, as Tom said earlier, when the impact of the coronavirus became apparent, we took measures to help protect our team members and customers including increased cleaning and sanitization of our stores and distribution centers, personal protective equipment for our front-line team members and changes to our sick time policy. These actions resulted in approximately $16 million in operational costs. Adjusted operating income in Q1 was $104 million, which declined 57% compared to the prior year quarter. Our adjusted OI margin rate decreased 439 basis points to 3.9% in the quarter. Adjusted diluted EPS for Q1 was $0.91, a decrease of 63%.
Moving to free cash flow. In the first quarter of this year, this was an outflow of $72 million as compared to the inflow of $143 million in the same quarter last year. This was directly related to decreased sales and increased working capital. In addition, higher capital expenses were incurred prior to the pandemic in Q1. As we began the year, we planned higher capital expenditures and we're executing on our projects, as expected. Therefore, our capex increased 35% in Q1 to $83 million. We will continue to prioritize projects that we believe will offer the greatest return on investments. In addition, we've taken several other actions to improve free cash flow, including converting a greater percentage of our suppliers on the supply chain, financing.
Given the current economic situation and uncertainty around the full impact of COVID-19, we do not believe it would be prudent to provide financial guidance at this time. That said, we remain committed to our long-term financial priorities to invest in the business, maintain an investment grade rating and return excess cash back to shareholders. As previously mentioned, we're continuing to invest in our business and intend to prioritize the projects that yield the greatest return.
Additionally, as Tom mentioned, we took steps in the first quarter to safeguard our balance sheet. This include borrowing $500 million against a previously unused $1 billion revolver and issuing a new $500 million 10-year note at 3.9%. This strategic offering provides us with additional liquidity at a lower rate than our two outstanding notes due in 2022 and 2023 respectively. I'm extremely proud of the speed and agility our team demonstrated through this process to bolster our cash position and provide flexibility.
At the end of the quarter, we had approximately $1.3 billion in cash on hand, including the impact of our financing actions in the quarter. In Q1, we repurchased approximately $29 million in our common stock. As announced previously, we suspended our share repurchase program, given the current environment.
Finally, as Tom mentioned, given the focus we have placed on our financial priorities and the work we've done to strengthen our balance sheet in recent years, we were able to significantly increase our dividend earlier this year. As you saw in our earnings press release, our Board has approved a Q2 dividend of $0.25 per share. As we continue to manage the business through the COVID-19 pandemic, we remain committed to improving total shareholder return over-time through a balanced approach of investing in our business and returning cash to our shareholders while continuing to strengthen our liquidity position.
I want to reiterate what Tom said earlier. This is an unprecedented situation and the uncertainty will no doubt continue for some time. The good news is that our team is really stepping up to the challenge. Across the company, our people are as committed as ever, going above and beyond, as they respond to this crisis. I truly believe we have the best people in the industry and that we will come out of this stronger than before.
With that, let's open-up the call to address your questions. Operator?
Questions and Answers:
Operator
Thank you. [Operator Instructions] Our first question this morning comes from Simeon Gutman from Morgan Stanley. Please go ahead.
Simeon Gutman -- Morgan Stanley -- Analyst
Thanks, good morning everyone and thanks for the color. My question is, the industry looks like miles driven down 20 to 30 across the country, your comps are flat quarter-to-date and some states haven't reopened yet? How do you assess -- how do you look at the sustainability of demand. I know, there's a lot of factors at play and you mentioned some of them. But how do you assess that in the current period? Thanks.
Tom Greco -- President and Chief Executive Officer
Yeah, sure. Good morning, Simeon. Good question. I mean, we're obviously experiencing a pretty unprecedented time. So I can tell you what we're seeing so far. Obviously, it's very difficult to predict what's going to happen in the future. But so far I think, there is some industry related factors that are helping DIY. As you know, the industry in terms of DIY particularly have benefited in economic downturns, any kind of unemployment pressure means more people are going to be doing work on their own vehicles, so I think that helps. The stay-at-home and social distancing mandates are a factor. We benchmark China, we talk about some of the trends that are going on in China. We do hear about an aversion to mass transportation, people more likely to using their personal vehicle. So that's going to be a factor.
We've also seen because of social distancing and shelter-in-place an increase in demand for items that degrade when they're not used such as batteries. So a couple of important industry factors there people at home, more time on their hands, doing do-it-yourself projects. So those are some things for the industry at large.
In terms of Advance, we did a tremendous amount of work to ensure that our stores were safe and kept our team members and customers healthy during this crisis. We've been on a multi-year safety journey as you know and the enhanced practice that we put in place we think benefited us. We had the highest NPS scores we've had in a while during the middle of the pandemic. So that obviously we did a good job of preparing our stores. I think also the omnichannel capabilities that we've been able to bring to life of help in terms of Advance Same Day, the app that we spoke about and then finally, we just launched our marketing campaign, which early returns are good.
So when you look forward, are they going to continue the DIY trends, it's obviously difficult to say, but the things to consider for sure the miles driven is the big unknown, right. I mean you could make the case for reduced miles driven, you could make the case for more miles driven. We do know it's likely that the fleet is going to age, because new vehicle sales are going to be down this year. I do think the mass transportation point is going to continue and there is a whole question around vacations. This weekend, we expect to see a record number of cars on the road, people are not flying. So they're going to be driving to where they're going. So there are some very positive things going on from an industry standpoint, a bit of a silver lining, I suppose for the DIY business through all this unbelievably difficult time.
And then we're very optimistic about our marketing plans. You get the full impact of our 2020 advertising. We're launching DieHard, but I have to temper that with the unknowns that you've referenced, which is are there going to be fewer commuting miles driven, is there additional COVID impact balance of the year, the degree to which unemployment effects people. Those are all on the client side. So that's kind of the lay of the land from our standpoint.
Simeon Gutman -- Morgan Stanley -- Analyst
That's helpful. My just one follow-up is a little bit technical. Can you share supply chain cost within gross margin. What percentage are they of cost of goods?
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Yeah. We didn't break out the individual components of supply chain over gross margin in particular, but we can't give you some color around just sort of the gross margin rate, which I think, is probably the question you're driving at the -- specifically, we have cost increases, which, as we've said previously, we're going to continue to see the headwinds from the full impact of the tariffs. That's going to subside in the back half of 2020. But Q1 -- and likely in the Q2, we'll continue to see that. In our cold weather-related categories, we are down significantly year-over-year and that impacted our product mix. And then supply chain did de-leverage and that's directly associated with the $250 million revenue decline. On a dollar basis, the supply chain cost were actually improved on a year-over-year basis as we continue to take out costs.
Simeon Gutman -- Morgan Stanley -- Analyst
Okay. Thanks, Jeff. Thanks, Tom. Take care.
Tom Greco -- President and Chief Executive Officer
Thank you.
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Thank you.
Operator
Our next question comes from Michael Lasser from UBS. Please go ahead.
Michael Lasser -- UBS -- Analyst
Good morning. Thanks a lot for taking my questions. Do you think within your markets that you've been able to maintain your share of the DIFM business, particularly as you've consolidated some of your stores and closed your stores. And have your time to fill rates trended over the last eight weeks during the COVID crisis?
Tom Greco -- President and Chief Executive Officer
Good morning, Michael. It's obviously difficult to always measure of the share inside the professional. As you know, we don't get anything on that. We do get DIY share, which we actually feel really good about. But on the Pro-side, I do know that we had record membership increases on Technet
In the quarter. Bob has stayed extremely close to the largest customers on the professional side as of I. I've been calling the CEOs of key large customers and trying to stay connected in this difficult time. And what we're launching now with this -- on the Pro-side, which is really a fully integrated solutions package for our customers, motor logic, motor visuals, the CCI platform, we actually feel very good about it. I mean it's going to be an interesting couple of months to your point on the professional side. Obviously, the large strategic accounts, the big Technet shops for us, we think are going to do well, it's going to be probably a little more challenging for some of the smaller players.
So in terms of share, it's difficult to say. I do know that geography-by-geography, we're measuring the sales per account, number of accounts and all of those things you'd expect. The Pro-business is improving every week and last week was the best we've seen. So once shelter-in-place comes-off, I think we will see a recovery on the professional side of the business to the degree of which is still unknown, but we do expect it to improve from here.
Michael Lasser -- UBS -- Analyst
And Tom my follow-up is, do you think it's realistic for the Auto aftermarket to plan for positive growth in the second half of the year?
Tom Greco -- President and Chief Executive Officer
Yeah. Again it's similar to Simeon's question. It's tough to say. I mean there's a lot of things that are at play, probably more than ever. As I kind of rattled through the factors that we've looked at Michael, I think, on the DIY side, obviously, we are probably more optimistic, just based on the way that the pandemic has played-out and the consumer behavior changes that are out there. I mean, I think you're seeing customers are really up for grabs, across broader retail and whether it's lucky or timely, I mean our advertising hit at right at the right time for us. I think we've got a lot of good initiatives on the DIY side. And I think the industry should perform well there. I think on Pro, it really becomes a function of miles driven and what happens from here with shelter-in-place orders in some of these key geographies.
Michael Lasser -- UBS -- Analyst
Thank you.
Operator
Our next question comes from Matt McClintock from Raymond James. Please go ahead.
Matt McClintock -- Raymond James -- Analyst
Hi, yes, good morning everyone. I hope you're all well and your families too.
Tom Greco -- President and Chief Executive Officer
Yeah. Good morning, Matt.
Matt McClintock -- Raymond James -- Analyst
So, Tom, I guess two questions. The first one is just when you think about the longer-term transformation that was under way prior to COVID. Maybe it will just be helpful, if you could kind of give us an idea of what initiatives you've actually accelerated during this time-frame and what initiatives have actually been pushed off due to uncertainty or just prioritization needs? Thanks.
Tom Greco -- President and Chief Executive Officer
Yeah, sure. I mean this has been an interesting case study I think for every company Matt, to be borne, I mean, when this thing hit, we immediately huddled in a virtual room and went through our list of priorities and obviously we established the three things that we talked about and outlook was to certainly prioritize the health and safety of our people and our customers; number one. Number two, preserve cash and protect the P&L during the crisis. And then we wanted to have a few people that we are thinking about, OK, what's going to happen post the crisis and how do we come out of this stronger than ever once the crisis is over. So those were the platforms that we established. And then we took every big initiative that we had, we put it through the lens and we determined whether we were going to accelerate it, continue it, differ it or stop it altogether. And everything that we had was put through that lens and we put our decision around it.
So the examples of the accelerate, clearly the Advance Same Day was an accelerate. We saw that the consumer was going to need parts urgently. We were not going to have necessarily people leaving their home, there were shelter-in-place orders happening. So we stood up Advance Same Day, which had been in test in a market in the fourth quarter. And what was a protracted timeline to roll it out became a better week and now we're pretty much where -- I think we're up to about 70% of national with that capability. So that's an example of an accelerate.
And the differ would be something like the warehouse management system implementation on supply chain. And this is a great project for us, we love the project. Unfortunately to stand up a distribution center into lap of all the tech platforms in that distribution center and get the building operational, you need a team of experts that has to go into that building and help them organize things and set the building up and set up the new warehouse management system. So we had to defer that. Now Reuben and his team are thinking through, how do we do that in a virtual environment because we're definitely not going to stop doing that, we're going to do that, but it's delayed by a couple of months. So that's really the process that we went through and the narrowing of the priorities, the simplification of what we were trying to accomplish enable us to move very quickly on things like Advance Same Day or supply chain financing or the bond offering, which obviously helped us, get secured on our balance sheet liquidity. Those are the things that we accelerated and then the things that get deferred, we're evaluating start-up timing from here.
Matt McClintock -- Raymond James -- Analyst
Thanks. That's hugely helpful. And then a quick one, just -- you kind of implied this. But I wanted to make it more explicit on consumer behavior changes regarding e-commerce, historically, this is maybe one of the lesser penetrated retail sub-industries from e-commerce perspective or is that now changed completely is on the back-end of this, are we likely going to see much more accelerated acceptance by the broader consumer of those terminals. Thank you.
Tom Greco -- President and Chief Executive Officer
Sure. Yeah. I mean I think we've been studying this at length, not just inside of auto parts, but more broadly across all of retail. I mean a lot of experts out there would say that we just kind of move three years at once in terms of omnichannel. The people who perhaps that never ordered online groceries in their lives have now done so and become comfortable with it. So again somewhat fortuitous we launched our app right in the middle of it. We've been working very hard at our functionality on our global site inside of our desktop side. Obviously the fulfillment options that we had ready-to-go helped us. So yes, I think that consumers are going to be more pre-disposed to order online and the investments that we've been making over the last several years candidly in our technology platform, in our catalog functionality, in our online experience I think are going to help us going forward. So I do think that is kind of an acceleration of a trend that we saw coming. We had a pace of change that was outlined in our five-year plan and I think that just got accelerated.
Matt McClintock -- Raymond James -- Analyst
Hugely helpful. Thanks a lot. Best of luck.
Tom Greco -- President and Chief Executive Officer
Thank you.
Operator
Our next question comes from Kate McShane from Goldman Sachs. Please go ahead.
Chandni Luthra -- Goldman Sachs -- Analyst
Hi, this is Chandni Luthra on behalf of Kate McShane. Thank you for taking our questions. I guess what we wanted to understand was in terms of when you talk about traffic and ticket and especially in more recent weeks and comps have sort of improved significantly. What are people buying really, you talked about batteries. But what else is sort of being looked at from people's basket standpoint.
Tom Greco -- President and Chief Executive Officer
Yeah. I think in the first quarter as we have highlighted our tickets were down significantly, dollar per ticket was up. I think, as we move through the pandemic and start to see the changes in consumer behavior, you are seeing some of those failure related categories come to light because people's cars are sitting in their garage and they're not being used and suddenly they go out and they try to start it and they find they need a new battery. So for sure, we're seeing that. I think down the road, you can see other break fix categories that will come to light as people start to drive them. To some degree, we've seen some increase in project related work, whether that's something as simple as washing your car. I mean, you hear people haven't washed their car in 30 years that have decided to go out and wash their vehicle with their son and teach him how to wash a car. Those are things that I think you are seeing a little bit more broadly across the consumer landscape where you've got people sitting in their homes and you can only watch them at Netflix and you decide what to do and you go outside and maybe you fix something in your yard or maybe you work on your car. So those are some of the things that we're seeing.
Chandni Luthra -- Goldman Sachs -- Analyst
Okay. That's helpful color. Thank you. And if you could please throw some light on the health of independents. What are you seeing there in terms of your 1,500 independent businesses? What are you seeing on those lines? Thank you so much.
Tom Greco -- President and Chief Executive Officer
Sure. We feel great about our independents program. We've made tremendous enhancements in our technology platforms, in our availability. We've really worked hard on our catalog to improve it for our independent, it is so important for us. The merchant team under Mike Broderick's leadership has really helped the inventory situation for our independents. There is a robust marketing plan this year for them that we haven't had in the past. So honestly, I think the interest in our Carquest Independent program is at an all-time high and the person leading it is a great executive junior, where he has got tremendous experience inside the company. I think we've provided an extraordinary level of support and we've helped them with safety during this crisis which has helped us. So we feel very good about it. These are generational businesses. People who know the Auto Parts business called and we value them greatly.
Chandni Luthra -- Goldman Sachs -- Analyst
Okay. Thank you so much.
Operator
Our next question comes from Bret Jordan from Jefferies. Please go ahead.
Bret Jordan -- Jefferies LLC -- Analyst
Hey, good morning guys.
Tom Greco -- President and Chief Executive Officer
Good morning, Bret.
Bret Jordan -- Jefferies LLC -- Analyst
You mentioned in the prepared remarks that you continue to evaluate the footprint. Could you talk about sort of how you see that evolving store closures. And is there anything in particular, I guess are the stores you're closing ex-Carquest stores that might be physically smaller, any regional markets you're sort of favoring versus others?
Tom Greco -- President and Chief Executive Officer
Yeah. I mean, we're definitely going to put this through the COVID lens to your point, Bret. We had a plan of a certain number of closures. I think we closed 20 odd stores in the first quarter. But as we've said previously, that was sort of winding-down. As we go forward, we're definitely looking at opportunities to refresh our fleet and strengthen the brand itself and the appearance of our stores and the customer experience inside of the store. And once again, given the changes with COVID and what's happening and significant implications for real estate prices and construction costs and all of those things down the road, we've got to put that through that lens, because the world has changed a little bit in that regard. So more to come on that. We're not in a position to comment on that yet, but there's a lot of new information I suppose that has come to light in the last two months that is different than our original thoughts going into it.
Bret Jordan -- Jefferies LLC -- Analyst
Okay. And then I guess, follow-up, when you think about recent trends and whether it was stimulus check driven or whether the unemployment bonus checks are helping, do you see anything that would say that improvement demand is sort of a sugar high on government subsidies or is this real demand that you see continuing into the summer months?
Tom Greco -- President and Chief Executive Officer
Yeah. Again it is difficult to say. Obviously the stimulus helped all of retail, but we can see proportionately auto parts versus more broad retail, at least DIY that is right. So I think some of the factors I mentioned earlier whether it's version to mass transportation or higher unemployment rates, causing people to need to work on their own car, do some lease on the projects on their own car. Until this thing is resolved with a vaccine, I think there's probably some temporary benefits for the industry.
Bret Jordan -- Jefferies LLC -- Analyst
Great. Thank you.
Operator
Our next question comes from Liz Suzuki from Bank of America. Please go ahead.
Liz Suzuki -- Bank of America Merrill Lynch -- Analyst
Hi, thank you. There have been a noticable acceleration in the percentage of your sales that are taking place online either buy online. pickup in-store or ship to home since COVID and any numbers you can put around that, if that's been the case?
Tom Greco -- President and Chief Executive Officer
Yeah. We've definitely seen an acceleration in DIY broadly, Liz. I think that proportionately more in e-commerce, but much of the e-commerce in fact has been buy online pickup in-store, which is the majority of our sales. And I think we're very pleased with the improvement that we've seen there. So it's definitely not just a complete shift to shift-to home, which might surprise you, but we have seen a significant uptick. I think the fact that we have the parking lot services and will install a battery for free and then will install a wiper blade for free helps us in that regard. And when we started our advertising, the week of April the 20th, we wanted to make it very clear to customers that that was a service that we had. And I think if you watch the advertising, you'll see that we make it very clear that we have that free parking lot services, which I think helps us with buy online, pickup in-store given the speed, convenience with which a customer can get their problem solved and obviously the advice they get from our employees.
Liz Suzuki -- Bank of America Merrill Lynch -- Analyst
Great, thank you. And is there any update on the partnership with Walmart that you can share?
Tom Greco -- President and Chief Executive Officer
We continue to work with them on the things that we've spoken about in the past. They're a great partner. You saw their performance this morning. It's a great organization. We continue to add parts to their website. We said before that we're only going to do that when the experience is really, really strong and differentiated versus other alternatives that people have online, but nothing particularly new to report there, but we're continuing to work very closely with them and grow this business. This is a long-term partnership that we believe over-time can really give customers a differentiated experience versus the alternatives that somebody have.
Liz Suzuki -- Bank of America Merrill Lynch -- Analyst
Great. Thank you.
Tom Greco -- President and Chief Executive Officer
Thank you.
Operator
Our next question comes from Scot Ciccarelli from RBC Capital Markets. Please go ahead.
Scot Ciccarelli -- RBC Capital Markets -- Analyst
Good morning, guys. Hope everyone's well there. Given your comments previously regarding the significant sequential improvement every week of the quarter so far and how that comps are about flat. I guess we can assume that comps has turned positive, probably in the last week or two. So I guess the question is, can you help us better understand the slope of the curve. In other words, were you down 2% to 3%, now you're up 2% to 3% or was it a much greater magnitude than that?
Tom Greco -- President and Chief Executive Officer
Yeah. Well, good morning, Scot. I hope you're safe and healthy also. I think that we did report week ending March 28, week ending April 4, but enterprise, which of course includes all of our business professionals DIY, Canada everything was down 28% for those two weeks in a row. And that proved to be the absolute peak impact if you will of the pandemic. It was of the low point for us in terms of decline. And then from there improved each week literally sequentially including last week.
So I think to the earlier question I think Bret may have asked, we did see an increase on the week of the stimulus, but the week after the stimulus was better than the week of the stimulus. And then two weeks after was better than one week after. So we are seeing that sequential improvement. And I think it's more to do with the gradual relaxing of shelter-in-place orders. I mean, obviously I have gone to stores, I mean at least here in Raleigh. And I see more cars on the road down here. I know it is very different across the country, I'm happy to talk about that geographically. But generally speaking, as more people start to get back on the road and get their lives back to some semblance of normalcy. I think, you are seeing us benefit from that.
Scot Ciccarelli -- RBC Capital Markets -- Analyst
I appreciate that. Tom, I guess the question is like you had gone from down 28% and you comment that you've had that sequential improvement so far this quarter, if comps are overall flat. I mean, the last quarter or two, just had to be positive and I guess, I'm just trying to figure out how positive that might be?
Tom Greco -- President and Chief Executive Officer
The last couple, yeah, the last couple of weeks, mathematically have to be positive. You're right.
Scot Ciccarelli -- RBC Capital Markets -- Analyst
Okay, got it. All right, thanks guys.
Operator
Our next question comes from Seth Sigman from Credit Suisse. Please go ahead
Kieran McGrath -- Credit Suisse AG -- Analyst
Thanks, guys, this is Kieran McGrath on for Seth. Two questions from us. Firstly, lot of initiatives ongoing including DieHard launch, your loyalty program, dynamic assortments and obviously the Walmart partnership as well. I'm curious the timeline for these have changed versus your initial plan and what is your ability to keep them on track amid all these moving pieces you're seeing?
Tom Greco -- President and Chief Executive Officer
Well, I mean to the earlier question, we did put every single initiative through the COVID lens and we made a determination, accelerate key differ stop kind of categorizing them. So to some of the things that you raised, DieHard we're moving rapidly, OK. Our team members cannot stop talking about DieHard, they are so fired up about this iconic brand that we are going to launch here. We believe it will drive people, everything that we see, says that will drive people who Advance Auto Parts. So there was no slowing down whatsoever with DieHard and we do plan to launch that brand with a fully integrated marketing plan this summer. The equity that it has is reliable, it's powerful, it's high quality, it does a lot of really good things for Advance.
So the majority of the bigger value-driving initiatives we have are either accelerated or were in-line with the timeline. The things that we deferred are more longer-term things. We spoke about the warehouse management system implementation, which we know is going to take time. Now that said, we talked about in the prepared remarks, the cross banner replenishment initiative, which is simply taking stem miles out of our supply chain and rerouting stores or pointing stores, at our distribution center that's closer. That's slowed a little bit, but we still feel we're on track to deliver that by the middle of 2021. So it does vary by project that we put it through this prioritization process to determine what got accelerated, what got deferred and what was continued.
Kieran McGrath -- Credit Suisse AG -- Analyst
Thank you. And then secondly, it's a bit more tactical on the expense side. So you discussed there is more opportunity to reduce cost in Q2, firstly on that. Is that going to ramp during the quarter and how should we think about these cost reductions going to hedge. And then on the $16 million PP&E cost. Again, I assume that was not going into Q2 and how should we think about these costs going to the back half? Thank you.
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Yeah, sure. As we think about the Q2 margins or even the balance of the year, it's obviously too early to provide any guidance, just given the amount of uncertainty we have in the current environment. But I can give you some color what we see quarter-to-date based on the sales trends that we've talked about in our prepared remarks and Tom has commented I think in earlier questions, we've seen a sequential improvement every week and the overall comp sales were in-line with the first four weeks of our last year's quarter.
So we do expect that the actions that we took in the first quarter to provide cost benefits through the balance of the year. In the second quarter, in particular there is going to be some offsetting headwinds to these cost savings to the actions that we had in Q1 that are going to give us the savings in Q2. We are going to continue to prioritize the health and safety of our team members and customers. So we do anticipate those COVID cost to continue. This includes cleaning our stores, our distribution centers, providing the personal protective equipment to our front-line team members. And as I said, we expect that to continue throughout the year. The question that becomes, of course, how much will it be -- a lot of it will vary state by state in terms of what the restrictions are, will continue to be sort of what is the new normal of retail, sort of the way to think about it.
And then in addition, we deferred some certain marketing expenses in the first quarter and we expect to invest in our advertising campaign as well as DieHard in Q2. We expect the marketing in DieHard to -- if they're going to drive topline benefits in the back half of 2020 and beyond, but these factors will offset some of those benefits in the second quarter.
Kieran McGrath -- Credit Suisse AG -- Analyst
Great. Thank you very much.
Operator
Our next question comes from Michael Montani from Evercore ISI. Please go ahead.
Michael Montani -- Evercore ISI -- Analyst
Hey guys, thanks for taking the question. I just wanted to ask two things, first was just on the topline front, just curious to know at this stage you know how many of your stores or maybe what percentage of your markets are still operating with kind of shelter-in-place restrictions.
And then secondly, related to that was on the DIFM side, you mentioned that overall comps that turn positive, does that mean that the commercial side is now positive as well?
Tom Greco -- President and Chief Executive Officer
Sure, Michael. Well, first of all on shelter-in-place as you know, it does vary by state and the phases are varied and then different companies have different policies surrounding whether you can return to work. So I think we can safely say that there is at least the professional or lack of a better term, the white-collar workforce across the country is still largely working remotely. There are some geographies that are much more impacted by COVID though as we called out in our prepared remarks. The Northeast, the Mid Atlantic, the Great Lakes, where it's so much more real for those of you up there. Our hearts go out to you, because it's just -- you can just feel it, when you're speaking to people that are up there. They know people that have been infected. They may know some one who has passed away. It's just very, very different there than it is in Mississippi and Alabama and other parts of the country that are less impacted. So from our standpoint, those are big geographies for us. So we're looking forward to a relaxing of those measures, obviously you saw Governor Como on CNN on the weekend talk about it and what's happening in New York. So when those things come back, we're really excited that our teams up there will start to see some of the benefits we're seeing in other parts of the country. So that's kind of where it is on shelter-in-place.
What was your second question again?
Michael Montani -- Evercore ISI -- Analyst
Second part was just to see if the commercial side had turned positive as well, just thinking DIY might be up double digits, but didn't know if commercial was up.
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Yeah. We're still down on Pro.
Michael Montani -- Evercore ISI -- Analyst
Okay. And then the last thing I had was on the expense side. SG&A dollars have been down for three quarters in a row, it sounds like even though COVID expense was going to persist that the second quarter SG&A dollars could be down more than the first quarter year-over-year. I guess, is that kind of a fair way to think about it. And from a gross margin front, can those start to actually stabilize and turn positive in 2Q or is it really more of a back half just given the tariffs?
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Yeah, sure. So on the SG&A, we do think we can continue to take cost out. As I said, there are going to be some investments, in particular marketing and DieHard and then to your point, the COVID related expenses will continue to be a headwind throughout the year. Obviously, the question becomes how much that one is a little bit more challenging to predict. But again, we took significant actions very late in the first quarter. Unfortunately, we did not see a lot of benefit. We absolutely expect to get that in the back half of the year. Specific to GM rate or improvement there, like we said, in dollars we improved year-over-year in our supply chain. We had less dollars, it was just the $250 million revenue decline we were deleveraging. And then some of it is mix, as we've said the cold weather-related categories were down in the quarter, which had a pretty significant impact on product mix, if we start to see those trends changing, we could get some leverage in gross margin as well.
Michael Montani -- Evercore ISI -- Analyst
Thank you very much.
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
And the last thing I'll add, we will allow the tariff increases in the back half.
Michael Montani -- Evercore ISI -- Analyst
Okay. Thank you.
Operator
Our next question comes from David Bellinger from Wolfe Research. Please go ahead.
David Bellinger -- Wolfe Research -- Analyst
Hey, good morning. Thanks for taking my questions and hope everyone is staying safe. So given the volatility of sales trends and maybe some disruptions throughout the supply chain, has there been any difficulties around parts availability and how are you managing delivery frequencies now? Have you been able to flex that quickly, given the changes in demand?
Tom Greco -- President and Chief Executive Officer
Yeah. I have been amazed at how well our team has collaborated together, David. During this pandemic the supply chain team, the inventory team and the the field, they've reacted just so quickly. It's really galvanize that Group in many ways. And as you know, we've had a lot of new people come into Advance over the last couple of years. In some ways, this is really brought them together as a team. So pardon me -- the overall in stocks on our primary SKUs have been terrific. And to your point, as we flex hours of operation down and adjusted replenishment frequency down, we moved quickly to do that. And as it's gone back up, we obviously use the data to make decisions on how to change that going back the other way and extended hours of operation and then increase replenishment frequency.
Our end-market-deliveries continue to help us. The availability of parts that we have across all of our banners including Worldpac, Autopart International Carquest Advance, we're leveraging better than ever. So I think we look closely, I just met with the team yesterday on our assortment work and how we're doing on stock rates and those things given dynamic assortment and we feel pretty good. So I think again, speed and agility is kind of important right now to react to these ever-changing circumstances and I think overall we've managed it well.
David Bellinger -- Wolfe Research -- Analyst
Yeah, that's very helpful. And maybe just following up on some earlier questions. Can you elaborate on the trends you're seeing in the online channel, anything surprising in the makeup of sales that has shifted online. And could you talk about how big maybe as a percentage of sales, the digital business has become in recent weeks?
Tom Greco -- President and Chief Executive Officer
Yeah. We were not going to break that out David, but I think from a trend standpoint, we definitely have seen -- we mentioned batteries surging, we're seeing that inside of online. I think, to some extent. Given the prioritization that pure online retailers have to put on the food and beverages and staples and things like that. If you go order something, that -- let's call it part of the proverbial long tail, those timelines for fulfillment are pushed out, which I think helps us as a pure play auto parts retailer very focused with our expertise and what we're lifting up. So it is been pretty much across the board that I think the general trends that we mentioned earlier, be that batteries or wash and wax, some of those things that are project-related we're seeing similar list. But I don't think I've seen anything disproportionate to online, which I think is your question. I think all boats have risen here and we're seeing it in our retail operations, we're seeing in our same-day pickup in store, same day curbside, same-day delivery.
David Bellinger -- Wolfe Research -- Analyst
Got it. Thank you very much.
Operator
Our next question comes from Brian Nagel from Oppenheimer. Please go ahead.
Brian Nagel -- Oppenheimer -- Analyst
Hi. Good morning. Thank you for taking my question. So the first question I want to ask is, as we look at the recent sales trajectory, particularly the pickup in sales lately in the DIY side. Given the data of your loyalty program, are you see indications of any benefits for channel shift, when looking at there is clearly Advance in your specific category has been designated as essential? But if there have there been -- were there other venues that maybe have no have not been and those customers are transferring your purchasing into your stores?
Tom Greco -- President and Chief Executive Officer
Yeah, it's a great question, Brian. It's obviously difficult to say. But I do think that retailers who have prioritized safety broadly. And again we've been on a multi-year safety journey. We've got a world-class expert that we hired two years ago to help us with health and safety across the enterprise. And when this happened, he stood up a pandemic team across the enterprise that is on a call daily with our entire field organization, seven days a week, managing all of the things that are going on, making sure the Plexiglass Shields are going up, making sure the masks are getting to our people, making sure the independents have sold hand sanitizers and all of those things that are necessary in this world. And I think that we communicated that broadly across our website, weekly with written communication, in some cases, video communication. So I think anybody that's doing that is going to benefit from it in the short term. I think separately to that maybe underneath your question, the fact that we have a 7,000 square foot format with two to three experts working in the store, might be more appealing than another box at this stage of the game for Auto Parts. But that's purely speculation, we've done some analysis on that. I can tell you, I've seen anything that says that's actually true, but that's somewhat speculative, but I think that's kind of where you're headed.
Brian Nagel -- Oppenheimer -- Analyst
It's very helpful Tom. The follow-up question I have, I mean clearly, as we think about either Q2 or into the back half of 2020, there's a lot of moving piece here, given the COVID-19 crisis. But you've mentioned in your prepared comments we discussed before, the impact would prove to be a decidedly warm winter on sales. So as you look through the balance of the year, do you expect that we will continue to see the impacts of the warmer winter or is that really isolated to the negative effects isolate to the beginning of the year?
Tom Greco -- President and Chief Executive Officer
Well, for sure impacts, the heavy, heavy impact in January, February I mean cold weather categories are much obviously more relevant in those months that there is winter itself. There are some residual things, if there's not a lot of snow, we don't get plows on the road, they don't tear the roads up, there is no not as many potholes. And then that affects on your car in some of those categories. At the moment, we do see some softness in some of those categories, but that's not a long-term thing. I mean we would have experienced most of it by now. And as you get into June and July that will subside and next year, we'll see what happens.
Brian Nagel -- Oppenheimer -- Analyst
Very much appreciate it. Thank you.
Tom Greco -- President and Chief Executive Officer
Thank you.
Operator
This concludes the Q&A portion of our call. Now I would like to turn it back to Tom Greco for closing remarks.
Tom Greco -- President and Chief Executive Officer
Well, thanks to everyone that joined us today. And as you've heard, we've tackled the challenges of the quarter head-on. We believe we're in a very good position to move to the next phase of this pandemic and eventual recovery. No matter how challenging the last few months have been, we are steadfast in our vision of advancing the world in motion. And our vision is highlighted in our second annual corporate sustainability and social report that we published this morning. We're very proud of it. It's all about driving financial performance as we develop our people, reduce our environmental impact and get back to our communities.
And then finally, as we head into some Memorial Day weekend, I want to take a minute to recognize and express our sincere gratitude for all our nation's heroes, especially those who paid the ultimate sacrifice defending our country. We are proud to be an employer of choice for so many military veterans and we look forward to increasing representation of veterans for years to come. We're also committed to our long-standing relationship with building homes for heroes. In 2020, we are celebrating 10 years of support to this worthy organization, whose mission is to gift mortgage free homes to veterans injured while serving our country. We look forward to sharing more with you on our recovery efforts and the status of our business in August. Thank you.
Operator
[Operator Closing Remarks]
Duration: 71 minutes
Call participants:
Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Tom Greco -- President and Chief Executive Officer
Jeff Shepherd -- Executive Vice President, Chief Financial Officer
Simeon Gutman -- Morgan Stanley -- Analyst
Michael Lasser -- UBS -- Analyst
Matt McClintock -- Raymond James -- Analyst
Chandni Luthra -- Goldman Sachs -- Analyst
Bret Jordan -- Jefferies LLC -- Analyst
Liz Suzuki -- Bank of America Merrill Lynch -- Analyst
Scot Ciccarelli -- RBC Capital Markets -- Analyst
Kieran McGrath -- Credit Suisse AG -- Analyst
Michael Montani -- Evercore ISI -- Analyst
David Bellinger -- Wolfe Research -- Analyst
Brian Nagel -- Oppenheimer -- Analyst
More AAP analysis
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Advance Auto Parts Inc (NYSE: AAP) Q1 2020 Earnings Call May 19, 2020, 8:00 a.m. I also want to thank the many AAP team members who've turned on the dime to operationalize new ways of working and serving our customers during this time. On a positive note, this represented the low point of the pandemic impact for AAP to-date and our sales have been improving sequentially each week.
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Operator [Operator Closing Remarks] Duration: 71 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President, Chief Financial Officer Simeon Gutman -- Morgan Stanley -- Analyst Michael Lasser -- UBS -- Analyst Matt McClintock -- Raymond James -- Analyst Chandni Luthra -- Goldman Sachs -- Analyst Bret Jordan -- Jefferies LLC -- Analyst Liz Suzuki -- Bank of America Merrill Lynch -- Analyst Scot Ciccarelli -- RBC Capital Markets -- Analyst Kieran McGrath -- Credit Suisse AG -- Analyst Michael Montani -- Evercore ISI -- Analyst David Bellinger -- Wolfe Research -- Analyst Brian Nagel -- Oppenheimer -- Analyst More AAP analysis All earnings call transcripts {%sfr%} 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. Advance Auto Parts Inc (NYSE: AAP) Q1 2020 Earnings Call May 19, 2020, 8:00 a.m. I also want to thank the many AAP team members who've turned on the dime to operationalize new ways of working and serving our customers during this time.
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Operator [Operator Closing Remarks] Duration: 71 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President, Chief Financial Officer Simeon Gutman -- Morgan Stanley -- Analyst Michael Lasser -- UBS -- Analyst Matt McClintock -- Raymond James -- Analyst Chandni Luthra -- Goldman Sachs -- Analyst Bret Jordan -- Jefferies LLC -- Analyst Liz Suzuki -- Bank of America Merrill Lynch -- Analyst Scot Ciccarelli -- RBC Capital Markets -- Analyst Kieran McGrath -- Credit Suisse AG -- Analyst Michael Montani -- Evercore ISI -- Analyst David Bellinger -- Wolfe Research -- Analyst Brian Nagel -- Oppenheimer -- Analyst More AAP analysis All earnings call transcripts {%sfr%} 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. Advance Auto Parts Inc (NYSE: AAP) Q1 2020 Earnings Call May 19, 2020, 8:00 a.m. I also want to thank the many AAP team members who've turned on the dime to operationalize new ways of working and serving our customers during this time.
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Operator [Operator Closing Remarks] Duration: 71 minutes Call participants: Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations Tom Greco -- President and Chief Executive Officer Jeff Shepherd -- Executive Vice President, Chief Financial Officer Simeon Gutman -- Morgan Stanley -- Analyst Michael Lasser -- UBS -- Analyst Matt McClintock -- Raymond James -- Analyst Chandni Luthra -- Goldman Sachs -- Analyst Bret Jordan -- Jefferies LLC -- Analyst Liz Suzuki -- Bank of America Merrill Lynch -- Analyst Scot Ciccarelli -- RBC Capital Markets -- Analyst Kieran McGrath -- Credit Suisse AG -- Analyst Michael Montani -- Evercore ISI -- Analyst David Bellinger -- Wolfe Research -- Analyst Brian Nagel -- Oppenheimer -- Analyst More AAP analysis All earnings call transcripts {%sfr%} 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. Advance Auto Parts Inc (NYSE: AAP) Q1 2020 Earnings Call May 19, 2020, 8:00 a.m. I also want to thank the many AAP team members who've turned on the dime to operationalize new ways of working and serving our customers during this time.
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BUZZ-U.S. STOCKS ON THE MOVE-Xenetic Biosciences, Dycom, Dynavax Technologies
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AAP
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-xenetic-biosciences-dycom-dynavax-technologies-2020-05-19
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Eikon search string for individual stock moves: STXBZ
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The S&P 500 was largely unchanged on Tuesday, after a strong rally in the prior session, as investors sifted through a mixed batch of results from major retailers including Walmart and Home Depot. .N
At 13:06 ET, the Dow Jones Industrial Average .DJI was down 0.35% at 24,511.51. The S&P 500 .SPX was down 0.03% at 2,953.12 and the Nasdaq Composite .IXIC was up 0.58% at 9,288.802. The top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 6.1% ** HP Inc , up 5% ** Lennar Corp , up 4.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 7.9% ** TechnipFMC Plc , down 6.7% ** Noble Energy Inc , down 6.5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 21.2% ** Puxin Ltd , up 18.9% ** John Hancock Mltfactor Energy ETF , up 15.5% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** Aurora Cannabis Inc , down 14.6% ** Crescent Point Energy Corp CPG.N, down 11.3% The top three Nasdaq .PG.O percentage gainers: ** Nano Dimension Inc , up 401.4% ** Shiftpixy Inc , up 84.8% ** Iterum Therapeutics Plc , up 29% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 23.1% ** Sorrento Therapeutics Inc , down 21.8% ** Bellerophon Therapeutics Inc , down 18.8% ** Fastly Inc FSLY.N: up 4.3%
BUZZ-Stay-at-home winner Fastly surges ahead of share offering ** Atlas Corp ATCO.N: up 4.2%
BUZZ-Rises as BMO says stock undervalued, upgrades to "outperform" ** L3Harris Technologies Inc LHX.N: up 0.7% ** Lockheed Martin Corp LMT.N: up 0.5% ** Northrop Grumman Corp NOC.N: up 0.4%
BUZZ-Seaport sees good entry point for some undervalued U.S. defense stocks ** Carvana Co CVNA.N: down 8.8%
BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 7.1%
BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 16.3%
BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 3.7%
BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 21.5%
BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 15.9%
BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 13.1%
BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Eagle Materials Inc EXP.N: up 4.8%
BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 1.7% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 26.6% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 2.4% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 6.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 23% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 6.4% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 4.0% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 16.8% BUZZ-Rises on acquisition of data and analytics firm ** Baidu Inc BIDU.O: up 5.1% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 6.1% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 5.6% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 2% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 3.6% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.1% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 4.8% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.6% ** JPMorgan Chase & Co JPM.N: down 0.3% ** Citigroup Inc C.N: down 1.3% ** Wells Fargo & Co WFC.N: down 2.5% ** Bank of America Corp BAC.N: down 1.2% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 3.6% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** Moderna Inc MRNA.O: down 6.4% ** Turning Point Therapeutics Inc TPTX.O: down 8.4% ** Gossamer Bio Inc GOSS.O: down 17.0% ** Krystal Biotech Inc KRYS.O: down 3.6% ** Clovis Oncology Inc CLVS.O: down 12.0% ** Bellerophon Therapeutics Inc BLPH.O: down 18.8% BUZZ-Biotech blitz: Moderna, Bluebird lead $3 bln capital raise wave ** KemPharm Inc KMPH.O: up 11.2% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.8% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
up 0.26%
Consumer Discretionary
.SPLRCD
up 0.96%
Consumer Staples
.SPLRCS
down 0.85%
Energy
.SPNY
down 2.03%
Financial
.SPSY
down 0.98%
Health
.SPXHC
down 0.91%
Industrial
.SPLRCI
up 0.39%
Information Technology
.SPLRCT
up 0.88%
Materials
.SPLRCM
down 0.03%
Real Estate
.SPLRCR
down 0.92%
Utilities
.SPLRCU
down 0.96%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
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 top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 6.1% ** HP Inc , up 5% ** Lennar Corp , up 4.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 7.9% ** TechnipFMC Plc , down 6.7% ** Noble Energy Inc , down 6.5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 21.2% ** Puxin Ltd , up 18.9% ** John Hancock Mltfactor Energy ETF , up 15.5% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** Aurora Cannabis Inc , down 14.6% ** Crescent Point Energy Corp CPG.N, down 11.3% The top three Nasdaq .PG.O percentage gainers: ** Nano Dimension Inc , up 401.4% ** Shiftpixy Inc , up 84.8% ** Iterum Therapeutics Plc , up 29% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 23.1% ** Sorrento Therapeutics Inc , down 21.8% ** Bellerophon Therapeutics Inc , down 18.8% ** Fastly Inc FSLY.N: up 4.3% BUZZ-Stay-at-home winner Fastly surges ahead of share offering ** Atlas Corp ATCO.N: up 4.2% BUZZ-Rises as BMO says stock undervalued, upgrades to "outperform" ** L3Harris Technologies Inc LHX.N: up 0.7% ** Lockheed Martin Corp LMT.N: up 0.5% ** Northrop Grumman Corp NOC.N: up 0.4% BUZZ-Seaport sees good entry point for some undervalued U.S. defense stocks ** Carvana Co CVNA.N: down 8.8% BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 7.1% BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 16.3% BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 3.7% BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 21.5% BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 15.9% BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 13.1% BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Eagle Materials Inc EXP.N: up 4.8% BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 1.7% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 26.6% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 2.4% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 6.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 23% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 6.4% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 4.0% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 16.8% BUZZ-Rises on acquisition of data and analytics firm ** Baidu Inc BIDU.O: up 5.1% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 6.1% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 5.6% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 2% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 3.6% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.1% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 4.8% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.6% ** JPMorgan Chase & Co JPM.N: down 0.3% ** Citigroup Inc C.N: down 1.3% ** Wells Fargo & Co WFC.N: down 2.5% ** Bank of America Corp BAC.N: down 1.2% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 3.6% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** Moderna Inc MRNA.O: down 6.4% ** Turning Point Therapeutics Inc TPTX.O: down 8.4% ** Gossamer Bio Inc GOSS.O: down 17.0% ** Krystal Biotech Inc KRYS.O: down 3.6% ** Clovis Oncology Inc CLVS.O: down 12.0% ** Bellerophon Therapeutics Inc BLPH.O: down 18.8% BUZZ-Biotech blitz: Moderna, Bluebird lead $3 bln capital raise wave ** KemPharm Inc KMPH.O: up 11.2% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.8% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 was largely unchanged on Tuesday, after a strong rally in the prior session, as investors sifted through a mixed batch of results from major retailers including Walmart and Home Depot. down 0.96% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) 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 top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 6.1% ** HP Inc , up 5% ** Lennar Corp , up 4.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 7.9% ** TechnipFMC Plc , down 6.7% ** Noble Energy Inc , down 6.5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 21.2% ** Puxin Ltd , up 18.9% ** John Hancock Mltfactor Energy ETF , up 15.5% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** Aurora Cannabis Inc , down 14.6% ** Crescent Point Energy Corp CPG.N, down 11.3% The top three Nasdaq .PG.O percentage gainers: ** Nano Dimension Inc , up 401.4% ** Shiftpixy Inc , up 84.8% ** Iterum Therapeutics Plc , up 29% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 23.1% ** Sorrento Therapeutics Inc , down 21.8% ** Bellerophon Therapeutics Inc , down 18.8% ** Fastly Inc FSLY.N: up 4.3% BUZZ-Stay-at-home winner Fastly surges ahead of share offering ** Atlas Corp ATCO.N: up 4.2% BUZZ-Rises as BMO says stock undervalued, upgrades to "outperform" ** L3Harris Technologies Inc LHX.N: up 0.7% ** Lockheed Martin Corp LMT.N: up 0.5% ** Northrop Grumman Corp NOC.N: up 0.4% BUZZ-Seaport sees good entry point for some undervalued U.S. defense stocks ** Carvana Co CVNA.N: down 8.8% BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 7.1% BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 16.3% BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 3.7% BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 21.5% BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 15.9% BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 13.1% BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Eagle Materials Inc EXP.N: up 4.8% BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 1.7% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 26.6% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 2.4% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 6.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 23% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 6.4% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 4.0% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 16.8% BUZZ-Rises on acquisition of data and analytics firm ** Baidu Inc BIDU.O: up 5.1% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 6.1% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 5.6% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 2% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 3.6% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.1% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 4.8% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.6% ** JPMorgan Chase & Co JPM.N: down 0.3% ** Citigroup Inc C.N: down 1.3% ** Wells Fargo & Co WFC.N: down 2.5% ** Bank of America Corp BAC.N: down 1.2% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 3.6% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** Moderna Inc MRNA.O: down 6.4% ** Turning Point Therapeutics Inc TPTX.O: down 8.4% ** Gossamer Bio Inc GOSS.O: down 17.0% ** Krystal Biotech Inc KRYS.O: down 3.6% ** Clovis Oncology Inc CLVS.O: down 12.0% ** Bellerophon Therapeutics Inc BLPH.O: down 18.8% BUZZ-Biotech blitz: Moderna, Bluebird lead $3 bln capital raise wave ** KemPharm Inc KMPH.O: up 11.2% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.8% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 was largely unchanged on Tuesday, after a strong rally in the prior session, as investors sifted through a mixed batch of results from major retailers including Walmart and Home Depot. down 0.96% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) 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 top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 6.1% ** HP Inc , up 5% ** Lennar Corp , up 4.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 7.9% ** TechnipFMC Plc , down 6.7% ** Noble Energy Inc , down 6.5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 21.2% ** Puxin Ltd , up 18.9% ** John Hancock Mltfactor Energy ETF , up 15.5% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** Aurora Cannabis Inc , down 14.6% ** Crescent Point Energy Corp CPG.N, down 11.3% The top three Nasdaq .PG.O percentage gainers: ** Nano Dimension Inc , up 401.4% ** Shiftpixy Inc , up 84.8% ** Iterum Therapeutics Plc , up 29% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 23.1% ** Sorrento Therapeutics Inc , down 21.8% ** Bellerophon Therapeutics Inc , down 18.8% ** Fastly Inc FSLY.N: up 4.3% BUZZ-Stay-at-home winner Fastly surges ahead of share offering ** Atlas Corp ATCO.N: up 4.2% BUZZ-Rises as BMO says stock undervalued, upgrades to "outperform" ** L3Harris Technologies Inc LHX.N: up 0.7% ** Lockheed Martin Corp LMT.N: up 0.5% ** Northrop Grumman Corp NOC.N: up 0.4% BUZZ-Seaport sees good entry point for some undervalued U.S. defense stocks ** Carvana Co CVNA.N: down 8.8% BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 7.1% BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 16.3% BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 3.7% BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 21.5% BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 15.9% BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 13.1% BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Eagle Materials Inc EXP.N: up 4.8% BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 1.7% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 26.6% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 2.4% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 6.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 23% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 6.4% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 4.0% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 16.8% BUZZ-Rises on acquisition of data and analytics firm ** Baidu Inc BIDU.O: up 5.1% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 6.1% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 5.6% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 2% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 3.6% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.1% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 4.8% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.6% ** JPMorgan Chase & Co JPM.N: down 0.3% ** Citigroup Inc C.N: down 1.3% ** Wells Fargo & Co WFC.N: down 2.5% ** Bank of America Corp BAC.N: down 1.2% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 3.6% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** Moderna Inc MRNA.O: down 6.4% ** Turning Point Therapeutics Inc TPTX.O: down 8.4% ** Gossamer Bio Inc GOSS.O: down 17.0% ** Krystal Biotech Inc KRYS.O: down 3.6% ** Clovis Oncology Inc CLVS.O: down 12.0% ** Bellerophon Therapeutics Inc BLPH.O: down 18.8% BUZZ-Biotech blitz: Moderna, Bluebird lead $3 bln capital raise wave ** KemPharm Inc KMPH.O: up 11.2% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.8% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat The 11 major S&P 500 sectors: Communication Services up 0.26% Consumer Discretionary up 0.96% Consumer Staples
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The top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 6.1% ** HP Inc , up 5% ** Lennar Corp , up 4.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 7.9% ** TechnipFMC Plc , down 6.7% ** Noble Energy Inc , down 6.5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 21.2% ** Puxin Ltd , up 18.9% ** John Hancock Mltfactor Energy ETF , up 15.5% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** Aurora Cannabis Inc , down 14.6% ** Crescent Point Energy Corp CPG.N, down 11.3% The top three Nasdaq .PG.O percentage gainers: ** Nano Dimension Inc , up 401.4% ** Shiftpixy Inc , up 84.8% ** Iterum Therapeutics Plc , up 29% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 23.1% ** Sorrento Therapeutics Inc , down 21.8% ** Bellerophon Therapeutics Inc , down 18.8% ** Fastly Inc FSLY.N: up 4.3% BUZZ-Stay-at-home winner Fastly surges ahead of share offering ** Atlas Corp ATCO.N: up 4.2% BUZZ-Rises as BMO says stock undervalued, upgrades to "outperform" ** L3Harris Technologies Inc LHX.N: up 0.7% ** Lockheed Martin Corp LMT.N: up 0.5% ** Northrop Grumman Corp NOC.N: up 0.4% BUZZ-Seaport sees good entry point for some undervalued U.S. defense stocks ** Carvana Co CVNA.N: down 8.8% BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 7.1% BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 16.3% BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 3.7% BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 21.5% BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 15.9% BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 13.1% BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Eagle Materials Inc EXP.N: up 4.8% BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 1.7% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 26.6% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 2.4% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 6.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 23% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 6.4% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 4.0% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 16.8% BUZZ-Rises on acquisition of data and analytics firm ** Baidu Inc BIDU.O: up 5.1% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 6.1% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 5.6% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 2% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 3.6% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.1% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 4.8% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.6% ** JPMorgan Chase & Co JPM.N: down 0.3% ** Citigroup Inc C.N: down 1.3% ** Wells Fargo & Co WFC.N: down 2.5% ** Bank of America Corp BAC.N: down 1.2% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 3.6% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** Moderna Inc MRNA.O: down 6.4% ** Turning Point Therapeutics Inc TPTX.O: down 8.4% ** Gossamer Bio Inc GOSS.O: down 17.0% ** Krystal Biotech Inc KRYS.O: down 3.6% ** Clovis Oncology Inc CLVS.O: down 12.0% ** Bellerophon Therapeutics Inc BLPH.O: down 18.8% BUZZ-Biotech blitz: Moderna, Bluebird lead $3 bln capital raise wave ** KemPharm Inc KMPH.O: up 11.2% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.8% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 was largely unchanged on Tuesday, after a strong rally in the prior session, as investors sifted through a mixed batch of results from major retailers including Walmart and Home Depot. .N At 13:06 ET, the Dow Jones Industrial Average .DJI was down 0.35% at 24,511.51.
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11128.0
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2020-05-19 00:00:00 UTC
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S&P 500 edges higher after mixed retail earnings
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AAP
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https://www.nasdaq.com/articles/sp-500-edges-higher-after-mixed-retail-earnings-2020-05-19
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, May 19 (Reuters) - The S&P 500 edged up on Tuesday, taking a breather a day after its best one-day performance in six weeks, as investors attempted to glean information from a mixed bag of results from major retailers such as Walmart and Home Depot.
Home improvement chain Home Depot HD.N fell 1.59% after it missed quarterly profit estimates due to higher costs, while department store operator Kohl's Corp KSS.N tumbled 4.94% after reporting a bigger-than-expected loss.
Walmart Inc WMT.N, on the other hand, exceeded expectations for quarterly revenue and earnings as online sales soared as consumers stockpiled essentials in response to coronavirus lockdowns. Still, its shares were last down 1.19% after rising as much as 3.4% earlier.
"Everyone wants to take every retailer's report of being indicative of something, but at the same time staying open and doing stuff is good, it costs to do that," said Willie Delwiche, investment strategist at Baird in Milwaukee.
Advance Auto Parts AAP.N climbed 5.21% after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index 1.33%.
Trillions of dollars in fiscal and monetary stimulus have helped the S&P 500 rebound nearly 35% from its March 23 intraday low. While the benchmark index is now less than 13% below its Feb. 19 closing record, gains have largely slowed in May on uncertainty over truly halting the spread of the coronavirus and allowing business to resume and rising U.S.-China tensions.
The benchmark index surged more than 3% on Monday, boosted by promising early-stage data for a potential COVID-19 vaccine and Federal Reserve Chair Jerome Powell's pledge over the weekend to support the economy as needed until the crisis has passed.
"You would expect consolidation, some give-back after the scale of the move we had yesterday and there is not much of that, so at the margin that is pretty bullish," said Delwiche.
Powell, in testimony to the Senate Banking Committee on Tuesday, said the central bank was continuing to consider ways to accommodate additional borrowers, and that Congress should consider anything to keep people out of insolvency.
The Dow Jones Industrial Average .DJI fell 30.68 points, or 0.12%, to 24,566.69, the S&P 500 .SPX gained 7.76 points, or 0.26%, to 2,961.67, and the Nasdaq Composite .IXIC added 74.72 points, or 0.81%, to 9,309.55.
Consumer discretionary .SPLRCD and tech .SPLRCT were the best-performing sectors, while financials .SPSY and energy .SPNY lagged.
The NYSE Arca airline index .XAL advanced 1.33% as two top U.S. airlines said ticket cancellations were slowing and demand was showing signs of improvement since the pandemic brought global travel to a virtual standstill.
Advancing issues outnumbered declining ones on the NYSE by a 1.44-to-1 ratio; on Nasdaq, a 1.25-to-1 ratio favored advancers.
The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite recorded 55 new highs and six new lows.
(Reporting by Chuck Mikolajczak; Editing by Leslie Adler)
(((( charles.mikolajczak@tr.com ; @ChuckMik; +1 646 223 5234; Reuters Messaging: charles.mikolajczak.thomsonreuters.com@reuters.net )) (c) Copyright Thomson Reuters 2020. Click For Restrictions - https://agency.reuters.com/en/copyright.html ))
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.N climbed 5.21% after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index 1.33%. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 edged up on Tuesday, taking a breather a day after its best one-day performance in six weeks, as investors attempted to glean information from a mixed bag of results from major retailers such as Walmart and Home Depot. "Everyone wants to take every retailer's report of being indicative of something, but at the same time staying open and doing stuff is good, it costs to do that," said Willie Delwiche, investment strategist at Baird in Milwaukee.
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Advance Auto Parts AAP.N climbed 5.21% after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index 1.33%. Home improvement chain Home Depot HD.N fell 1.59% after it missed quarterly profit estimates due to higher costs, while department store operator Kohl's Corp KSS.N tumbled 4.94% after reporting a bigger-than-expected loss. The NYSE Arca airline index .XAL advanced 1.33% as two top U.S. airlines said ticket cancellations were slowing and demand was showing signs of improvement since the pandemic brought global travel to a virtual standstill.
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Advance Auto Parts AAP.N climbed 5.21% after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index 1.33%. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 edged up on Tuesday, taking a breather a day after its best one-day performance in six weeks, as investors attempted to glean information from a mixed bag of results from major retailers such as Walmart and Home Depot. Home improvement chain Home Depot HD.N fell 1.59% after it missed quarterly profit estimates due to higher costs, while department store operator Kohl's Corp KSS.N tumbled 4.94% after reporting a bigger-than-expected loss.
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Advance Auto Parts AAP.N climbed 5.21% after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index 1.33%. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 edged up on Tuesday, taking a breather a day after its best one-day performance in six weeks, as investors attempted to glean information from a mixed bag of results from major retailers such as Walmart and Home Depot. Home improvement chain Home Depot HD.N fell 1.59% after it missed quarterly profit estimates due to higher costs, while department store operator Kohl's Corp KSS.N tumbled 4.94% after reporting a bigger-than-expected loss.
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11129.0
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2020-05-19 00:00:00 UTC
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Advance Auto Parts' (AAP) Jump on a Bad Earnings Miss Makes Perfect Sense
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-aap-jump-on-a-bad-earnings-miss-makes-perfect-sense-2020-05-19
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nan
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nan
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A
t first glance, the reaction of Advance Auto Parts' (AAP) stock to this morning’s earnings release is completely nonsensical. In Q1, the company missed already bad and lowered estimates for both sales and profits, with Earnings per Share (EPS) coming in at an adjusted $0.91 versus, for example, FactSet’s estimate of $1.35. That also represents a massive drop from EPS of $1.98 in the same quarter last year. However you look at it, that’s an ugly miss, yet AAP initially jumped more than ten percent from yesterday’s close. The reason was, as it so often is for a seemingly inexplicable move on an earnings release, forward guidance.
Management reported “significant” improvement in the first few weeks of Q2, and, while they, like so many others, pulled their 2020 guidance due to uncertainty around the coronavirus, there were plenty of positive noises about the future. Still, as I write, the stock is giving back some of those gains, as you can see below.
Normally, in similar circumstances, I would say that the pullback was the correct move. It isn’t unheard of for CEOs to put a glossy shine on bad results by including vague speculation about the future, and the pulled official guidance would indicate that the optimism here is more of a guess than a prediction.
In this case though, from a long-term perspective, the optimism is logical, and AAP, along with other auto parts stocks such as O’Reilly (ORLY) Genuine Parts Company (GPC), the parent company of Napa Auto Parts, and AutoZone (AZO), look like good investments at current levels.
The game that every trader and investor is playing right now is one that attempts to predict what fundamental changes will be wrought on consumers and businesses by the coronavirus pandemic. How will the experience change the economy, and who will benefit?
There are a lot of assumptions being made that some things will have lasting effects. Stocks such as Zoom Video (ZM), for example, have soared on the expectation that having been forced to have employees work from home, many companies will see office space as a needless expense in the future. In retail, it is assumed that the shift to online that Walmart's (WMT) earnings demonstrated this morning will continue, and companies such as that, that are placed to take advantage of that shift, have also benefitted.
We should not forget that for many Americans, the biggest change wrought by the pandemic is that they have lost their jobs. We hope, and the market seems to assume, that that will be a temporary thing, but even if it is, it will leave a scar on the psyche of many consumers. When the jobs come back, spending will too to some extent, but the experience will make many people all too aware of the potential fragility of their job. That could make them wary of committing to long-term regular payments.
For most people, that is what buying a new car entails, which is presumably at least in part why stocks in the big auto manufacturers such as Ford (F) and GM (GM) have failed to bounce along with the rest of the market. So, if new car demand is expected to be depressed for some time but people still need transportation, it is only logical to work on the basis that there will be more repairs done to older vehicles… and repairs mean parts.
While some areas of retail will be hit hard by the changes in behavior that come as a result of the pandemic, there is a good case to be made that the auto parts business could actually be a beneficiary. With that in mind, this morning’s jump in AAP on terrible earnings but upbeat predictions actually makes perfect sense.
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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t first glance, the reaction of Advance Auto Parts' (AAP) stock to this morning’s earnings release is completely nonsensical. However you look at it, that’s an ugly miss, yet AAP initially jumped more than ten percent from yesterday’s close. In this case though, from a long-term perspective, the optimism is logical, and AAP, along with other auto parts stocks such as O’Reilly (ORLY) Genuine Parts Company (GPC), the parent company of Napa Auto Parts, and AutoZone (AZO), look like good investments at current levels.
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t first glance, the reaction of Advance Auto Parts' (AAP) stock to this morning’s earnings release is completely nonsensical. In this case though, from a long-term perspective, the optimism is logical, and AAP, along with other auto parts stocks such as O’Reilly (ORLY) Genuine Parts Company (GPC), the parent company of Napa Auto Parts, and AutoZone (AZO), look like good investments at current levels. However you look at it, that’s an ugly miss, yet AAP initially jumped more than ten percent from yesterday’s close.
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t first glance, the reaction of Advance Auto Parts' (AAP) stock to this morning’s earnings release is completely nonsensical. In this case though, from a long-term perspective, the optimism is logical, and AAP, along with other auto parts stocks such as O’Reilly (ORLY) Genuine Parts Company (GPC), the parent company of Napa Auto Parts, and AutoZone (AZO), look like good investments at current levels. However you look at it, that’s an ugly miss, yet AAP initially jumped more than ten percent from yesterday’s close.
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In this case though, from a long-term perspective, the optimism is logical, and AAP, along with other auto parts stocks such as O’Reilly (ORLY) Genuine Parts Company (GPC), the parent company of Napa Auto Parts, and AutoZone (AZO), look like good investments at current levels. t first glance, the reaction of Advance Auto Parts' (AAP) stock to this morning’s earnings release is completely nonsensical. However you look at it, that’s an ugly miss, yet AAP initially jumped more than ten percent from yesterday’s close.
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11130.0
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2020-05-19 00:00:00 UTC
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BUZZ-U.S. STOCKS ON THE MOVE-KemPharm, Flotek, Arbutus Biopharama
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AAP
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https://www.nasdaq.com/articles/buzz-u.s.-stocks-on-the-move-kempharm-flotek-arbutus-biopharama-2020-05-19
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nan
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nan
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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
The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. .N
At 11:01 ET, the Dow Jones Industrial Average .DJI was down 0.35% at 24,512.1. The S&P 500 .SPX was down 0.25% at 2,946.65 and the Nasdaq Composite .IXIC was up 0.62% at 9,292.181. The top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 4.7% ** Cadence Design Systems Inc , up 4.2 % ** Take-Two Interactive Software Inc , up 3.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 9.5% ** Nordstrom Inc , down 5.3% ** TechnipFMC Plc , down 5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 23.5% ** Direxion Daily Consumer Discretionary Bull 3X , up 15.5% ** Direxion Daily Small Cap Bull 2x Shares , up 14.4% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** FTS Internationl Inc , down 10.4% ** Carvana Co , down 9.5% The top three Nasdaq .PG.O percentage gainers: ** Shiftpixy Inc , up 80.9% ** Mercurity Fintech Holdings Inc , up 44.3% ** Dynavax Technologies Corp , up 27% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 24.2% ** Bellerophon Therapeutics Inc , down 17% ** Sorrento Therapeutics Inc , down 16.6% ** Carvana Co CVNA.N: down 9.6%
BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 3.6%
BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 13.4%
BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 2.7%
BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 23.6%
BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 16.4%
BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 9.1%
BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Oxford Immunotec Global Plc OXFD.O: up 3.5%
BUZZ-Up on releasing test kit to study immune response to COVID-19 ** Eagle Materials Inc EXP.N: up 5.5%
BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 2.9% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 27.0% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 1.8% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 1.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 26.7% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 4.6% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 2.8% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 23.3% BUZZ-Rises on acquisition of data and analytics firm ** Tesla Inc TSLA.O: down 0.7% BUZZ-JMP Securities does not expect pre-COVID-19 output soon from Fremont, cuts PT ** Baidu Inc BIDU.O: up 5.5% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 4.8% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 6.8% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 3.4% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 2.2% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.9% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 1.4% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.7% ** JPMorgan Chase & Co JPM.N: down 0.2% ** Citigroup Inc C.N: down 1.3% premarket ** Wells Fargo & Co WFC.N: down 3.0% ** Bank of America Corp BAC.N: down 1.0% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 2.9% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** KemPharm Inc KMPH.O: up 19.9% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.9% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat
The 11 major S&P 500 sectors:
Communication Services
.SPLRCL
flat
Consumer Discretionary
.SPLRCD
up 0.59%
Consumer Staples
.SPLRCS
down 0.46%
Energy
.SPNY
down 1.70%
Financial
.SPSY
down 0.94%
Health
.SPXHC
down 0.51%
Industrial
.SPLRCI
up 0.13%
Information Technology
.SPLRCT
up 0.98%
Materials
.SPLRCM
down 0.08%
Real Estate
.SPLRCR
down 1.05%
Utilities
.SPLRCU
down 0.66%
(Compiled by Amal S in Bengaluru)
((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;))
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 top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 4.7% ** Cadence Design Systems Inc , up 4.2 % ** Take-Two Interactive Software Inc , up 3.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 9.5% ** Nordstrom Inc , down 5.3% ** TechnipFMC Plc , down 5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 23.5% ** Direxion Daily Consumer Discretionary Bull 3X , up 15.5% ** Direxion Daily Small Cap Bull 2x Shares , up 14.4% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** FTS Internationl Inc , down 10.4% ** Carvana Co , down 9.5% The top three Nasdaq .PG.O percentage gainers: ** Shiftpixy Inc , up 80.9% ** Mercurity Fintech Holdings Inc , up 44.3% ** Dynavax Technologies Corp , up 27% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 24.2% ** Bellerophon Therapeutics Inc , down 17% ** Sorrento Therapeutics Inc , down 16.6% ** Carvana Co CVNA.N: down 9.6% BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 3.6% BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 13.4% BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 2.7% BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 23.6% BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 16.4% BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 9.1% BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Oxford Immunotec Global Plc OXFD.O: up 3.5% BUZZ-Up on releasing test kit to study immune response to COVID-19 ** Eagle Materials Inc EXP.N: up 5.5% BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 2.9% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 27.0% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 1.8% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 1.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 26.7% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 4.6% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 2.8% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 23.3% BUZZ-Rises on acquisition of data and analytics firm ** Tesla Inc TSLA.O: down 0.7% BUZZ-JMP Securities does not expect pre-COVID-19 output soon from Fremont, cuts PT ** Baidu Inc BIDU.O: up 5.5% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 4.8% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 6.8% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 3.4% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 2.2% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.9% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 1.4% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.7% ** JPMorgan Chase & Co JPM.N: down 0.2% ** Citigroup Inc C.N: down 1.3% premarket ** Wells Fargo & Co WFC.N: down 3.0% ** Bank of America Corp BAC.N: down 1.0% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 2.9% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** KemPharm Inc KMPH.O: up 19.9% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.9% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. down 0.66% (Compiled by Amal S in Bengaluru) ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780; outside U.S. +91 80 6749 3677;)) 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 top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 4.7% ** Cadence Design Systems Inc , up 4.2 % ** Take-Two Interactive Software Inc , up 3.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 9.5% ** Nordstrom Inc , down 5.3% ** TechnipFMC Plc , down 5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 23.5% ** Direxion Daily Consumer Discretionary Bull 3X , up 15.5% ** Direxion Daily Small Cap Bull 2x Shares , up 14.4% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** FTS Internationl Inc , down 10.4% ** Carvana Co , down 9.5% The top three Nasdaq .PG.O percentage gainers: ** Shiftpixy Inc , up 80.9% ** Mercurity Fintech Holdings Inc , up 44.3% ** Dynavax Technologies Corp , up 27% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 24.2% ** Bellerophon Therapeutics Inc , down 17% ** Sorrento Therapeutics Inc , down 16.6% ** Carvana Co CVNA.N: down 9.6% BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 3.6% BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 13.4% BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 2.7% BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 23.6% BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 16.4% BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 9.1% BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Oxford Immunotec Global Plc OXFD.O: up 3.5% BUZZ-Up on releasing test kit to study immune response to COVID-19 ** Eagle Materials Inc EXP.N: up 5.5% BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 2.9% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 27.0% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 1.8% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 1.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 26.7% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 4.6% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 2.8% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 23.3% BUZZ-Rises on acquisition of data and analytics firm ** Tesla Inc TSLA.O: down 0.7% BUZZ-JMP Securities does not expect pre-COVID-19 output soon from Fremont, cuts PT ** Baidu Inc BIDU.O: up 5.5% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 4.8% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 6.8% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 3.4% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 2.2% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.9% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 1.4% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.7% ** JPMorgan Chase & Co JPM.N: down 0.2% ** Citigroup Inc C.N: down 1.3% premarket ** Wells Fargo & Co WFC.N: down 3.0% ** Bank of America Corp BAC.N: down 1.0% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 2.9% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** KemPharm Inc KMPH.O: up 19.9% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.9% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. flat Consumer Discretionary
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The top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 4.7% ** Cadence Design Systems Inc , up 4.2 % ** Take-Two Interactive Software Inc , up 3.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 9.5% ** Nordstrom Inc , down 5.3% ** TechnipFMC Plc , down 5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 23.5% ** Direxion Daily Consumer Discretionary Bull 3X , up 15.5% ** Direxion Daily Small Cap Bull 2x Shares , up 14.4% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** FTS Internationl Inc , down 10.4% ** Carvana Co , down 9.5% The top three Nasdaq .PG.O percentage gainers: ** Shiftpixy Inc , up 80.9% ** Mercurity Fintech Holdings Inc , up 44.3% ** Dynavax Technologies Corp , up 27% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 24.2% ** Bellerophon Therapeutics Inc , down 17% ** Sorrento Therapeutics Inc , down 16.6% ** Carvana Co CVNA.N: down 9.6% BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 3.6% BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 13.4% BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 2.7% BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 23.6% BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 16.4% BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 9.1% BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Oxford Immunotec Global Plc OXFD.O: up 3.5% BUZZ-Up on releasing test kit to study immune response to COVID-19 ** Eagle Materials Inc EXP.N: up 5.5% BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 2.9% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 27.0% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 1.8% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 1.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 26.7% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 4.6% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 2.8% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 23.3% BUZZ-Rises on acquisition of data and analytics firm ** Tesla Inc TSLA.O: down 0.7% BUZZ-JMP Securities does not expect pre-COVID-19 output soon from Fremont, cuts PT ** Baidu Inc BIDU.O: up 5.5% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 4.8% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 6.8% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 3.4% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 2.2% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.9% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 1.4% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.7% ** JPMorgan Chase & Co JPM.N: down 0.2% ** Citigroup Inc C.N: down 1.3% premarket ** Wells Fargo & Co WFC.N: down 3.0% ** Bank of America Corp BAC.N: down 1.0% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 2.9% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** KemPharm Inc KMPH.O: up 19.9% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.9% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat The 11 major S&P 500 sectors: Communication Services down 1.70% Financial down 0.08% Real Estate
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The top three S&P 500 .PG.INX percentage gainers: ** Advance Auto Parts Inc , up 4.7% ** Cadence Design Systems Inc , up 4.2 % ** Take-Two Interactive Software Inc , up 3.9% The top three S&P 500 .PL.INX percentage losers: ** Kohl's Corp , down 9.5% ** Nordstrom Inc , down 5.3% ** TechnipFMC Plc , down 5% The top three NYSE .PG.N percentage gainers: ** Dycom Industries Inc , up 23.5% ** Direxion Daily Consumer Discretionary Bull 3X , up 15.5% ** Direxion Daily Small Cap Bull 2x Shares , up 14.4% The top three NYSE .PL.N percentage losers: ** Timber Pharmaceuticals Inc , down 31.4% ** FTS Internationl Inc , down 10.4% ** Carvana Co , down 9.5% The top three Nasdaq .PG.O percentage gainers: ** Shiftpixy Inc , up 80.9% ** Mercurity Fintech Holdings Inc , up 44.3% ** Dynavax Technologies Corp , up 27% The top three Nasdaq .PL.O percentage losers: ** Gamida Cell Ltd , down 24.2% ** Bellerophon Therapeutics Inc , down 17% ** Sorrento Therapeutics Inc , down 16.6% ** Carvana Co CVNA.N: down 9.6% BUZZ-Skids on stock offering ** Hepion Pharmaceuticals Inc HEPA.O: up 3.6% BUZZ-Jumps on plans for mid-stage trial of NASH fibrosis treatment ** Xenetic Biosciences Inc XBIO.O: up 13.4% BUZZ-Rises on blood cancer research deal ** Energous Corp WATT.O: up 2.7% BUZZ-Rises on deal for wirelessly charged electronic paper display tags ** Dycom Industries Inc DY.N: up 23.6% BUZZ-Soars after surprise profit ** Adamis Pharmaceuticals Inc ADMP.O: down 16.4% BUZZ-Drops after Q1 revenue miss ** Tricida Inc TCDA.O: down 9.1% BUZZ-Falls as kidney disease specialist launches convertible debt deal ** Oxford Immunotec Global Plc OXFD.O: up 3.5% BUZZ-Up on releasing test kit to study immune response to COVID-19 ** Eagle Materials Inc EXP.N: up 5.5% BUZZ-Soars to one-month high on Q4 results beat ** PBF Energy Inc PBF.N: down 2.9% BUZZ-Barclays cuts to 'underweight' on constrained FCF outlook, leverage ** Dynavax Technologies Inc DVAX.O: up 27.0% BUZZ-Up after co says partners may begin COVID-19 vaccine trial in July ** Home Depot Inc HD.N: down 1.8% BUZZ-Profit misses estimates; scraps FY outlook ** Tilray Inc TLRY.O: up 1.8% BUZZ-Road to profitability a long haul for pot producer - brokerage ** Arbutus Biopharama Corp ABUS.O: up 26.7% BUZZ-Jumps on positive data from hepatitis B treatment study ** Moderna Inc MRNA.O: down 4.6% BUZZ-Slips after pricing upsized stock offering to fund COVID-19 vaccine ** Aptiv Plc APTV.N: up 2.8% BUZZ- "Longer pain but sharper recovery" - UBS ** Flotek Industries Inc FTK.N: up 23.3% BUZZ-Rises on acquisition of data and analytics firm ** Tesla Inc TSLA.O: down 0.7% BUZZ-JMP Securities does not expect pre-COVID-19 output soon from Fremont, cuts PT ** Baidu Inc BIDU.O: up 5.5% BUZZ-Jefferies sees continued revenue growth in H2, raises PT ** Advance Auto Parts Inc AAP.N: up 4.8% BUZZ-Surges as Q2 same store sales look promising ** Tonix Pharmaceuticals Holding Corp TNXP.O: up 6.8% BUZZ-Up after appointing new exec to advance COVID-19 vaccine program ** Oric Pharmaceuticals Inc ORIC.O: up 3.4% BUZZ-Guggenheim sees potential in trial cancer drug, starts with 'buy' ** Southwest Airlines Co LUV.N: up 2.2% BUZZ-Rises on improving demand for air travel ** Walmart Inc WMT.N: up 0.9% BUZZ-Set to open at 4-week high as stockpiling drives Q1 beat ** Targa Resources TRGP.N: down 1.4% BUZZ-Down as Mizuho lowers 2020 estimates, cuts PT ** Goldman Sachs Group Inc GS.N: down 0.7% ** JPMorgan Chase & Co JPM.N: down 0.2% ** Citigroup Inc C.N: down 1.3% premarket ** Wells Fargo & Co WFC.N: down 3.0% ** Bank of America Corp BAC.N: down 1.0% ** Morgan Stanley MS.N: down 0.2% BUZZ-U.S. banks slide as yields drop amid risk-off mood ** Danaos Corp DAC.N: up 2.9% BUZZ-Rises on upbeat Q1, says no impact from COVID-19 yet ** KemPharm Inc KMPH.O: up 19.9% BUZZ-Rises as FDA agrees to review ADHD drug ** Take-Two Interactive Software Inc TTWO.O: up 3.9% BUZZ-Gains as Benchmark raises PT, sees Q4 results beat The 11 major S&P 500 sectors: Communication Services 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 The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. .N At 11:01 ET, the Dow Jones Industrial Average .DJI was down 0.35% at 24,512.1.
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11131.0
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2020-05-19 00:00:00 UTC
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Tuesday's ETF with Unusual Volume: SUSL
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AAP
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https://www.nasdaq.com/articles/tuesdays-etf-with-unusual-volume%3A-susl-2020-05-19
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nan
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nan
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The iShares ESG MSCI USA Leaders ETF is seeing unusually high volume in afternoon trading Tuesday, with over 1.1 million shares traded versus three month average volume of about 81,000. Shares of SUSL were off about 0.2% on the day.
Components of that ETF with the highest volume on Tuesday were Norwegian Cruise Line, trading up about 0.8% with over 33.5 million shares changing hands so far this session, and Delta Air Lines, up about 1.9% on volume of over 33.3 million shares. Advance Auto Parts Inc Advance Auto Parts is the component faring the best Tuesday, up by about 7% on the day, while Kohls is lagging other components of the iShares ESG MSCI USA Leaders ETF, trading lower by about 7.1%.
VIDEO: Tuesday's ETF with Unusual Volume: SUSL
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 iShares ESG MSCI USA Leaders ETF is seeing unusually high volume in afternoon trading Tuesday, with over 1.1 million shares traded versus three month average volume of about 81,000. Components of that ETF with the highest volume on Tuesday were Norwegian Cruise Line, trading up about 0.8% with over 33.5 million shares changing hands so far this session, and Delta Air Lines, up about 1.9% on volume of over 33.3 million shares. Advance Auto Parts Inc Advance Auto Parts is the component faring the best Tuesday, up by about 7% on the day, while Kohls is lagging other components of the iShares ESG MSCI USA Leaders ETF, trading lower by about 7.1%.
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The iShares ESG MSCI USA Leaders ETF is seeing unusually high volume in afternoon trading Tuesday, with over 1.1 million shares traded versus three month average volume of about 81,000. Advance Auto Parts Inc Advance Auto Parts is the component faring the best Tuesday, up by about 7% on the day, while Kohls is lagging other components of the iShares ESG MSCI USA Leaders ETF, trading lower by about 7.1%. VIDEO: Tuesday's ETF with Unusual Volume: SUSL 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 iShares ESG MSCI USA Leaders ETF is seeing unusually high volume in afternoon trading Tuesday, with over 1.1 million shares traded versus three month average volume of about 81,000. Components of that ETF with the highest volume on Tuesday were Norwegian Cruise Line, trading up about 0.8% with over 33.5 million shares changing hands so far this session, and Delta Air Lines, up about 1.9% on volume of over 33.3 million shares. Advance Auto Parts Inc Advance Auto Parts is the component faring the best Tuesday, up by about 7% on the day, while Kohls is lagging other components of the iShares ESG MSCI USA Leaders ETF, trading lower by about 7.1%.
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The iShares ESG MSCI USA Leaders ETF is seeing unusually high volume in afternoon trading Tuesday, with over 1.1 million shares traded versus three month average volume of about 81,000. Shares of SUSL were off about 0.2% on the day. VIDEO: Tuesday's ETF with Unusual Volume: SUSL 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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11132.0
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2020-05-19 00:00:00 UTC
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S&P stumbles as Moderna sinks on report questioning trial results
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AAP
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https://www.nasdaq.com/articles/sp-stumbles-as-moderna-sinks-on-report-questioning-trial-results-2020-05-19
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading.
Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday. Moderna shares plunged about 10% after the report.
"The market is keen on health-care news much more than it is on economic data," said Art Hogan, chief market strategist at National Securities in New York. "We are largely baking in the second quarter being down significantly – GDP growth rates, earnings, economic data – but what we don’t know, what will drive markets will be incrementally good news on the healthcare front."
Stocks had initially edged higher as investors attempted to glean information from a mixed bag of results from major retailers.
Home improvement chain Home Depot HD.N fell after it missed quarterly profit estimates due to higher costs, while department store operator Kohl's Corp KSS.N tumbled after reporting a bigger-than-expected loss.
Walmart Inc WMT.N, on the other hand, exceeded expectations for quarterly revenue and earnings as online sales soared as consumers stockpiled essentials in response to coronavirus lockdowns. Still, its shares finished down after rising as much as 3.4% earlier.
"Everyone wants to take every retailer's report of being indicative of something, but at the same time staying open and doing stuff is good, it costs to do that," said Willie Delwiche, investment strategist at Baird in Milwaukee.
Advance Auto Parts AAP.N climbed after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index.
Trillions of dollars in fiscal and monetary stimulus have helped the S&P 500 rebound nearly 35% from its March 23 intraday low. While the benchmark index is now less than 13% below its Feb. 19 closing record, gains have largely slowed in May on uncertainty over truly halting the spread of the coronavirus and allowing business to resume and rising U.S.-China tensions.
The benchmark index surged more than 3% on Monday, boosted by Moderna's promising early-stage data for a COVID-19 vaccine and Federal Reserve Chair Jerome Powell's pledge over the weekend to support the economy as needed until the crisis has passed.
Powell, in testimony to the Senate Banking Committee on Tuesday, said the central bank was continuing to consider ways to accommodate additional borrowers, and that Congress should consider anything to keep people out of insolvency.
Unofficially, the Dow Jones Industrial Average .DJI fell 1.56% to end at 24,213.76 points, while the S&P 500 .SPX lost 1.03%, to 2,923.48. The Nasdaq Composite .IXIC dropped 0.52%, to 9,186.97. 2,923.48.
The Nasdaq Composite .IXIC dropped 0.52%, to 9,186.97.
(Reporting by Chuck Mikolajczak; Editing by Leslie Adler)
((charles.mikolajczak@tr.com ; @ChuckMik; +1 646 223 5234; Reuters Messaging: charles.mikolajczak.thomsonreuters.com@reuters.net )) (c) Copyright Thomson Reuters 2020. Click For Restrictions - https://agency.reuters.com/en/copyright.html))
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.N climbed after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading. Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday.
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Advance Auto Parts AAP.N climbed after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading. Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday.
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Advance Auto Parts AAP.N climbed after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading. Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday.
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Advance Auto Parts AAP.N climbed after the company said same-store sales improved significantly at the start of the second quarter, helping to lift the S&P retailing index. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading. Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday.
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11133.0
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2020-05-19 00:00:00 UTC
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S&P stumbles as Moderna sinks on report questioning trial results
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AAP
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https://www.nasdaq.com/articles/sp-stumbles-as-moderna-sinks-on-report-questioning-trial-results-2020-05-19-0
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nan
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nan
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By Chuck Mikolajczak
NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading.
Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday. Moderna Inc MRNA.O shares plunged after the report, and closed down 10.41%.
"The market is keen on health-care news much more than it is on economic data," said Art Hogan, chief market strategist at National Securities in New York. "We are largely baking in the second quarter being down significantly – GDP growth rates, earnings, economic data – but what we don’t know, what will drive markets will be incrementally good news on the healthcare front."
Stocks had initially edged higher as investors attempted to glean information from a mixed bag of results from major retailers.
Home improvement chain Home Depot HD.N fell 2.96% after it missed quarterly profit estimates due to higher costs, while department store operator Kohl's Corp KSS.N tumbled 7.65% after reporting a bigger-than-expected loss.
Walmart Inc WMT.N, on the other hand, exceeded expectations for quarterly revenue and earnings as online sales soared as consumers stockpiled essentials in response to coronavirus lockdowns. Still, its shares finished 2.12% down after rising as much as 3.4% earlier.
"Everyone wants to take every retailer's report of being indicative of something, but at the same time staying open and doing stuff is good, it costs to do that," said Willie Delwiche, investment strategist at Baird in Milwaukee.
Advance Auto Parts AAP.N climbed 3.59% after the company said same-store sales improved significantly at the start of the second quarter.
Trillions of dollars in fiscal and monetary stimulus have helped the S&P 500 rebound nearly 35% from its March 23 intraday low. While the benchmark index is now less than 13% below its Feb. 19 closing record, gains have largely slowed in May on uncertainty over truly halting the spread of the coronavirus and allowing business to resume and rising U.S.-China tensions.
The benchmark index surged more than 3% on Monday, boosted by Moderna's promising early-stage data for a COVID-19 vaccine and Federal Reserve Chair Jerome Powell's pledge over the weekend to support the economy as needed until the crisis has passed.
Powell, in testimony to the Senate Banking Committee on Tuesday, said the central bank was continuing to consider ways to accommodate additional borrowers, and Congress should consider anything to keep people out of insolvency.
The Dow Jones Industrial Average .DJI fell 390.51 points, or 1.59%, to 24,206.86, the S&P 500 .SPX lost 30.97 points, or 1.05%, to 2,922.94 and the Nasdaq Composite .IXIC dropped 49.72 points, or 0.54%, to 9,185.10.
Declining issues outnumbered advancing ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favored decliners.
The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite recorded 60 new highs and seven new lows.
Volume on U.S. exchanges was 10.66 billion shares, compared to the 11.34 billion average for the full session over the last 20 trading days.
( (Reporting by Chuck Mikolajczak; Editing by Leslie Adler))
(( charles.mikolajczak@tr.com ; @ChuckMik; +1 646 223 5234; Reuters Messaging: charles.mikolajczak.thomsonreuters.com@reuters.net ))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Advance Auto Parts AAP.N climbed 3.59% after the company said same-store sales improved significantly at the start of the second quarter. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading. Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday.
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Advance Auto Parts AAP.N climbed 3.59% after the company said same-store sales improved significantly at the start of the second quarter. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading. Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday.
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Advance Auto Parts AAP.N climbed 3.59% after the company said same-store sales improved significantly at the start of the second quarter. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading. Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday.
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Advance Auto Parts AAP.N climbed 3.59% after the company said same-store sales improved significantly at the start of the second quarter. By Chuck Mikolajczak NEW YORK, May 19 (Reuters) - The S&P 500 closed lower on Tuesday, as investors focused on a report questioning Moderna's recent coronavirus vaccine early-stage trial results, wiping out modest gains on the benchmark index in the last hour of trading. Major averages fell to session lows in the wake of a report from STAT News that questioned the validity of the results of Moderna's vaccine trial, which the company had announced Monday.
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11134.0
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2020-05-19 00:00:00 UTC
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Consumer Sector Update for 05/19/2020: AAP, WMT, KSS, XLP, XLY
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-05-19-2020%3A-aap-wmt-kss-xlp-xly-2020-05-19
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nan
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nan
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Consumer stocks were little changed in premarket trading Tuesday. Consumer discretionary firms (XLY) were down by 1% on light volume, while shares of staples companies in the S&P 500 (XLP) were flat.
Advance Auto Parts (AAP) was up more than 7% even after it reported fiscal Q1 adjusted EPS of $0.91, down from $2.46 a year earlier. Analysts polled by Capital IQ had projected $1.59.
Walmart (WMT) was gaining over 3% in value after it reported adjusted diluted EPS of $1.18 for Q1 of fiscal 2021, compared with $1.13 during the year-ago quarter. Analysts polled by Capital IQ expected adjusted diluted EPS of $1.09.
Kohl's (KSS) shares advanced 2% despite posting an adjusted loss of $3.20 per share for Q1, reversing adjusted earnings of $0.61 per share a year ago, and missing the average loss forecast of $1.76 per share from analysts polled by Capital IQ.
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) was up more than 7% even after it reported fiscal Q1 adjusted EPS of $0.91, down from $2.46 a year earlier. Consumer discretionary firms (XLY) were down by 1% on light volume, while shares of staples companies in the S&P 500 (XLP) were flat. Walmart (WMT) was gaining over 3% in value after it reported adjusted diluted EPS of $1.18 for Q1 of fiscal 2021, compared with $1.13 during the year-ago quarter.
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Advance Auto Parts (AAP) was up more than 7% even after it reported fiscal Q1 adjusted EPS of $0.91, down from $2.46 a year earlier. Analysts polled by Capital IQ expected adjusted diluted EPS of $1.09. Kohl's (KSS) shares advanced 2% despite posting an adjusted loss of $3.20 per share for Q1, reversing adjusted earnings of $0.61 per share a year ago, and missing the average loss forecast of $1.76 per share from analysts polled by Capital IQ.
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Advance Auto Parts (AAP) was up more than 7% even after it reported fiscal Q1 adjusted EPS of $0.91, down from $2.46 a year earlier. Analysts polled by Capital IQ expected adjusted diluted EPS of $1.09. Kohl's (KSS) shares advanced 2% despite posting an adjusted loss of $3.20 per share for Q1, reversing adjusted earnings of $0.61 per share a year ago, and missing the average loss forecast of $1.76 per share from analysts polled by Capital IQ.
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Advance Auto Parts (AAP) was up more than 7% even after it reported fiscal Q1 adjusted EPS of $0.91, down from $2.46 a year earlier. Consumer stocks were little changed in premarket trading Tuesday. Analysts polled by Capital IQ expected adjusted diluted EPS of $1.09.
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11135.0
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2020-05-19 00:00:00 UTC
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Advance Auto Parts Not Providing Guidance Now Amid COVID-19 - Quick Facts
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-not-providing-guidance-now-amid-covid-19-quick-facts-2020-05-19
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nan
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nan
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(RTTNews) - While reporting financial results for the first quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) said it is not providing guidance at this time given uncertainties related to the full impact of the COVID-19 pandemic. The company had withdrawn its full year 2020 guidance on April 9, 2020.
The company said its first quarter results were significantly impacted by COVID-19 as stay at home orders in all of its markets from mid-March to the end of the first quarter ending April 18 resulted in significantly reduced car counts in its professional business and less retail traffic in DIY.
However, through the first four weeks of the second quarter, comparable store sales improved significantly each week. Quarter to date comparable store sales are approximately in line with the prior year.
The company said it expects that DIFM sales will continue to improve as stay at home orders are lifted.
The company withdrew guidance on April 9, 2020 and given uncertainties related to the full impact of the COVID-19 pandemic, the company is not providing guidance at this time.
Last week, the Company's Board of Directors declared a regular quarterly cash dividend of $0.25 per share, payable on July 03, 2020 to all common stockholders of record as of June 13, 2020.
During the quarter, the company also suspended its activity under share repurchase program.
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 Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) said it is not providing guidance at this time given uncertainties related to the full impact of the COVID-19 pandemic. The company said its first quarter results were significantly impacted by COVID-19 as stay at home orders in all of its markets from mid-March to the end of the first quarter ending April 18 resulted in significantly reduced car counts in its professional business and less retail traffic in DIY. The company said it expects that DIFM sales will continue to improve as stay at home orders are lifted.
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(RTTNews) - While reporting financial results for the first quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) said it is not providing guidance at this time given uncertainties related to the full impact of the COVID-19 pandemic. However, through the first four weeks of the second quarter, comparable store sales improved significantly each week. The company withdrew guidance on April 9, 2020 and given uncertainties related to the full impact of the COVID-19 pandemic, the company is not providing guidance at this time.
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(RTTNews) - While reporting financial results for the first quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) said it is not providing guidance at this time given uncertainties related to the full impact of the COVID-19 pandemic. The company said its first quarter results were significantly impacted by COVID-19 as stay at home orders in all of its markets from mid-March to the end of the first quarter ending April 18 resulted in significantly reduced car counts in its professional business and less retail traffic in DIY. The company withdrew guidance on April 9, 2020 and given uncertainties related to the full impact of the COVID-19 pandemic, the company is not providing guidance at this time.
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(RTTNews) - While reporting financial results for the first quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) said it is not providing guidance at this time given uncertainties related to the full impact of the COVID-19 pandemic. The company had withdrawn its full year 2020 guidance on April 9, 2020. However, through the first four weeks of the second quarter, comparable store sales improved significantly each week.
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11136.0
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2020-05-19 00:00:00 UTC
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S&P 500 Movers: KSS, AAP
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AAP
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https://www.nasdaq.com/articles/sp-500-movers%3A-kss-aap-2020-05-19
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nan
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nan
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In early trading on Tuesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 7.3%. Year to date, Advance Auto Parts has lost about 12.1% of its value.
And the worst performing S&P 500 component thus far on the day is Kohl's, trading down 5.8%. Kohl's is lower by about 65.2% looking at the year to date performance.
Two other components making moves today are The Gap, trading down 5.7%, and NVIDIA, trading up 3.2% on the day.
VIDEO: S&P 500 Movers: KSS, AAP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: S&P 500 Movers: KSS, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 7.3%. Year to date, Advance Auto Parts has lost about 12.1% of its value.
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VIDEO: S&P 500 Movers: KSS, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 7.3%. Year to date, Advance Auto Parts has lost about 12.1% of its value.
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VIDEO: S&P 500 Movers: KSS, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 7.3%. And the worst performing S&P 500 component thus far on the day is Kohl's, trading down 5.8%.
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VIDEO: S&P 500 Movers: KSS, AAP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of Advance Auto Parts topped the list of the day's best performing components of the S&P 500 index, trading up 7.3%. And the worst performing S&P 500 component thus far on the day is Kohl's, trading down 5.8%.
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11137.0
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2020-05-19 00:00:00 UTC
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Advance Auto Parts Q1 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-q1-20-earnings-conference-call-at-8%3A00-am-et-2020-05-19
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nan
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nan
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(RTTNews) - Advance Auto Parts, Inc. (AAP) will host a conference call at 8:00 AM ET on May 19, 2020, to discuss Q1 20 earnings results.
To access the live webcast, log on to http://www.AdvanceAutoParts.com
To listen to the call, dial (833) 921-1650 with identification number 2134447.
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 May 19, 2020, to discuss Q1 20 earnings results. To access the live webcast, log on to http://www.AdvanceAutoParts.com To listen to the call, dial (833) 921-1650 with identification number 2134447. 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 May 19, 2020, to discuss Q1 20 earnings results. To access the live webcast, log on to http://www.AdvanceAutoParts.com To listen to the call, dial (833) 921-1650 with identification number 2134447. 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 May 19, 2020, to discuss Q1 20 earnings results. To access the live webcast, log on to http://www.AdvanceAutoParts.com To listen to the call, dial (833) 921-1650 with identification number 2134447. 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 May 19, 2020, to discuss Q1 20 earnings results. To access the live webcast, log on to http://www.AdvanceAutoParts.com To listen to the call, dial (833) 921-1650 with identification number 2134447. 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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11138.0
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2020-05-19 00:00:00 UTC
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Advance Auto Parts Q1 adjusted earnings Miss Estimates
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-q1-adjusted-earnings-miss-estimates-2020-05-19
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nan
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nan
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(RTTNews) - Advance Auto Parts (AAP) reported earnings for first quarter that declined from last year.
The company's profit came in at $43.59 million, or $0.63 per share. This compares with $142.50 million, or $1.98 per share, in last year's first quarter.
Excluding items, Advance Auto Parts reported adjusted earnings of $63.02 million or $0.91 per share for the period.
Analysts had expected the company to earn $1.75 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter fell 8.5% to $2.70 billion from $2.95 billion last year.
Advance Auto Parts earnings at a glance:
-Earnings (Q1): $63.02 Mln. vs. $177.33 Mln. last year. -EPS (Q1): $0.91 vs. $2.46 last year. -Analysts Estimate: $1.75 -Revenue (Q1): $2.70 Bln vs. $2.95 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) reported earnings for first quarter that declined from last year. Excluding items, Advance Auto Parts reported adjusted earnings of $63.02 million or $0.91 per share for the period. Analysts had expected the company to earn $1.75 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - Advance Auto Parts (AAP) reported earnings for first quarter that declined from last year. Excluding items, Advance Auto Parts reported adjusted earnings of $63.02 million or $0.91 per share for the period. -Analysts Estimate: $1.75 -Revenue (Q1): $2.70 Bln vs. $2.95 Bln last year.
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(RTTNews) - Advance Auto Parts (AAP) reported earnings for first quarter that declined from last year. This compares with $142.50 million, or $1.98 per share, in last year's first quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $63.02 million or $0.91 per share for the period.
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(RTTNews) - Advance Auto Parts (AAP) reported earnings for first quarter that declined from last year. This compares with $142.50 million, or $1.98 per share, in last year's first quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $63.02 million or $0.91 per share for the period.
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11139.0
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2020-05-19 00:00:00 UTC
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Tuesday Sector Leaders: Services, Technology & Communications
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AAP
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https://www.nasdaq.com/articles/tuesday-sector-leaders%3A-services-technology-communications-2020-05-19
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nan
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nan
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The best performing sector as of midday Tuesday is the Services sector, up 1.1%. Within the sector, Lennar Corp (Symbol: LEN) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 5.8% and 5.3%, respectively. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 0.7% on the day, and down 7.00% year-to-date. Lennar Corp, meanwhile, is up 7.82% year-to-date, and Advance Auto Parts Inc, is down 13.66% year-to-date. AAP makes up approximately 0.4% of the underlying holdings of IYC.
The next best performing sector is the Technology & Communications sector, higher by 1.1%. Among large Technology & Communications stocks, HP Inc (Symbol: HPQ) and Take-Two Interactive Software, Inc. (Symbol: TTWO) are the most notable, showing a gain of 6.5% and 4.6%, respectively. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 1.1% in midday trading, and up 6.00% on a year-to-date basis. HP Inc, meanwhile, is down 15.57% year-to-date, and Take-Two Interactive Software, Inc. is up 15.81% year-to-date. HPQ makes up approximately 0.4% 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 Tuesday. As you can see, four sectors are up on the day, while five sectors are down.
SECTOR % CHANGE
Services +1.1%
Technology & Communications +1.1%
Industrial +0.6%
Materials +0.3%
Healthcare -0.2%
Consumer Products -0.5%
Financial -0.6%
Utilities -0.7%
Energy -1.3%
25 Dividend Giants Widely Held By ETFs »
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 the sector, Lennar Corp (Symbol: LEN) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 5.8% and 5.3%, respectively. AAP makes up approximately 0.4% of the underlying holdings of IYC. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 1.1% in midday trading, and up 6.00% on a year-to-date basis.
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Within the sector, Lennar Corp (Symbol: LEN) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 5.8% and 5.3%, respectively. AAP makes up approximately 0.4% 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 down 7.00% year-to-date.
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Within the sector, Lennar Corp (Symbol: LEN) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 5.8% and 5.3%, respectively. AAP makes up approximately 0.4% 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 down 7.00% year-to-date.
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Within the sector, Lennar Corp (Symbol: LEN) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 5.8% and 5.3%, respectively. AAP makes up approximately 0.4% 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 down 7.00% year-to-date.
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11140.0
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2020-05-19 00:00:00 UTC
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Wall St set to open flat; Walmart jumps on results
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AAP
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https://www.nasdaq.com/articles/wall-st-set-to-open-flat-walmart-jumps-on-results-2020-05-19
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nan
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nan
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By Medha Singh and Ambar Warrick
May 19 (Reuters) - U.S. stock index futures were trading flat on Tuesday, handing back some gains from the S&P 500's best day in six weeks in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart.
Home improvement chain Home Depot HD.N fell 1.3% in premarket trade, the most among the 30 Dow constituents, as it missed quarterly profit estimates due to higher costs. Smaller rival Lowe's Cos Inc LOW.N, which will report results on Wednesday, fell 0.9%.
Walmart Inc WMT.N surged 4.2% after reporting a 10% jump in first-quarter U.S. comparable sales as online sales soared 74% due to stockpiling of essentials during the coronavirus-related lockdown.
Kohl's Corp KSS.N rose 1% after the department store operator's online sales gained more than 60% in April.
"We had a tremendous rally yesterday and it's very common for those things to overshoot a bit and then for some profit taking to occur the very next day," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
The S&P 500 jumped more than 3% on Monday, boosted by promising early stage data for a potential COVID-19 vaccine and Federal Reserve Chair Jerome Powell's pledge to support the economy as needed until the current crisis has passed.
Trillions of dollars in stimulus has already helped the benchmark index rebound more than 34% from its March lows. Although it is now just about 13% below its record high, the pace of the rally has slowed in May owing to uncertainty over the outbreak and rising U.S.-China tensions.
"The S&P 500 is testing a key battleground zone that halted the recovery since March and much will be decided by whether the bulls are rejected again or whether they overcome it," said Marios Hadjikyriacos, investment analyst at online broker XM.
At 9:01 a.m. ET, S&P 500 e-minis EScv1 were down 5.75 points, or 0.2%, Dow e-minis 1YMcv1 were down 14 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were up 8 points, or 0.09%.
Advance Auto Parts AAP.N jumped 6.1% after the company said same-store sales improved significantly at the start of second quarter.
Southwest Airlines Co LUV.N rose 4.5% as the carrier recorded positive bookings on a net basis so far this month as passenger reservations outpaced trip cancellations.
(Reporting by Medha Singh and Ambar Warrick in Bengaluru; Additional reporting by Pawel Goraj in Gdansk; editing by Patrick Graham and Arun Koyyur)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
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.N jumped 6.1% after the company said same-store sales improved significantly at the start of second quarter. By Medha Singh and Ambar Warrick May 19 (Reuters) - U.S. stock index futures were trading flat on Tuesday, handing back some gains from the S&P 500's best day in six weeks in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. "We had a tremendous rally yesterday and it's very common for those things to overshoot a bit and then for some profit taking to occur the very next day," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
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Advance Auto Parts AAP.N jumped 6.1% after the company said same-store sales improved significantly at the start of second quarter. Home improvement chain Home Depot HD.N fell 1.3% in premarket trade, the most among the 30 Dow constituents, as it missed quarterly profit estimates due to higher costs. ET, S&P 500 e-minis EScv1 were down 5.75 points, or 0.2%, Dow e-minis 1YMcv1 were down 14 points, or 0.06%, and Nasdaq 100 e-minis NQcv1 were up 8 points, or 0.09%.
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Advance Auto Parts AAP.N jumped 6.1% after the company said same-store sales improved significantly at the start of second quarter. By Medha Singh and Ambar Warrick May 19 (Reuters) - U.S. stock index futures were trading flat on Tuesday, handing back some gains from the S&P 500's best day in six weeks in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. Walmart Inc WMT.N surged 4.2% after reporting a 10% jump in first-quarter U.S. comparable sales as online sales soared 74% due to stockpiling of essentials during the coronavirus-related lockdown.
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Advance Auto Parts AAP.N jumped 6.1% after the company said same-store sales improved significantly at the start of second quarter. By Medha Singh and Ambar Warrick May 19 (Reuters) - U.S. stock index futures were trading flat on Tuesday, handing back some gains from the S&P 500's best day in six weeks in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. Home improvement chain Home Depot HD.N fell 1.3% in premarket trade, the most among the 30 Dow constituents, as it missed quarterly profit estimates due to higher costs.
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11141.0
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2020-05-19 00:00:00 UTC
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S&P 500, Dow edge lower after mixed retail earnings
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AAP
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https://www.nasdaq.com/articles/sp-500-dow-edge-lower-after-mixed-retail-earnings-2020-05-19
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nan
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nan
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By Medha Singh and Ambar Warrick
May 19 (Reuters) - The S&P 500 and Dow Jones indexes eased on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart.
Home improvement chain Home Depot HD.N fell 1.9% as it missed quarterly profit estimates due to higher costs, while department store operator Kohl's Corp KSS.N slumped 6.1% after reporting a bigger-than-expected loss.
Walmart Inc WMT.N, on the other hand, gained 1.7% after posting a jump in first-quarter U.S. comparable sales as online sales soared due to stockpiling of essentials during the coronavirus-related lockdown.
"Home Depot's earnings report shows we shouldn't assume businesses deemed essential with a strong online presence are entirely immune from the effects of the virus," said Mike Loewengart, managing director of investment strategy at E*TRADE Financial Corp.
Trillions of dollars in stimulus has helped the S&P 500 rebound more than 34% from its March lows. Although it is now just about 13% below its record high, the pace of the rally has slowed in May owing to uncertainty over the outbreak and rising U.S.-China tensions.
The benchmark index jumped more than 3% on Monday, boosted by promising early stage data for a potential COVID-19 vaccine and Federal Reserve Chair Jerome Powell's pledge to support the economy as needed until the current crisis has passed.
Attention now turns to testimony by Powell and U.S. Treasury Secretary Steven Mnuchin before the Senate Banking Committee about the government's handling of its massive economic response to the health crisis.
"By far the biggest focus for markets are variables attached to medical news, (followed by) actions from central banks and fiscal policymakers," said Tim Shaler, chief economist for iTrustCapital in Newport Beach, California.
At 9:57 a.m. ET, the Dow Jones Industrial Average .DJI was down 136.92 points, or 0.56%, at 24,460.45, the S&P 500 .SPX was down 5.92 points, or 0.20%, at 2,947.99, and the Nasdaq Composite .IXIC was up 33.17 points, or 0.36%, at 9,268.00.
Nine of the 11 major S&P sectors were trading lower, led by financial .SPSY and energy stocks .SPNY. Technology .SPLRCT and consumer discretionary .SPLRCD edged slightly higher.
Advance Auto Parts AAP.N jumped 7.3% after the company said same-store sales improved significantly at the start of second quarter.
Declining issues outnumbered more than 2-to-1 on the NYSE and nearly matched them on the Nasdaq.
The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 27 new highs and three new lows.
(Reporting by Medha Singh and Ambar Warrick in Bengaluru; Additional reporting by Pawel Goraj in Gdansk; Editing by Patrick Graham and Arun Koyyur)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
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.N jumped 7.3% after the company said same-store sales improved significantly at the start of second quarter. By Medha Singh and Ambar Warrick May 19 (Reuters) - The S&P 500 and Dow Jones indexes eased on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. "Home Depot's earnings report shows we shouldn't assume businesses deemed essential with a strong online presence are entirely immune from the effects of the virus," said Mike Loewengart, managing director of investment strategy at E*TRADE Financial Corp.
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Advance Auto Parts AAP.N jumped 7.3% after the company said same-store sales improved significantly at the start of second quarter. By Medha Singh and Ambar Warrick May 19 (Reuters) - The S&P 500 and Dow Jones indexes eased on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. Walmart Inc WMT.N, on the other hand, gained 1.7% after posting a jump in first-quarter U.S. comparable sales as online sales soared due to stockpiling of essentials during the coronavirus-related lockdown.
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Advance Auto Parts AAP.N jumped 7.3% after the company said same-store sales improved significantly at the start of second quarter. By Medha Singh and Ambar Warrick May 19 (Reuters) - The S&P 500 and Dow Jones indexes eased on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 27 new highs and three new lows.
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Advance Auto Parts AAP.N jumped 7.3% after the company said same-store sales improved significantly at the start of second quarter. By Medha Singh and Ambar Warrick May 19 (Reuters) - The S&P 500 and Dow Jones indexes eased on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart. "Home Depot's earnings report shows we shouldn't assume businesses deemed essential with a strong online presence are entirely immune from the effects of the virus," said Mike Loewengart, managing director of investment strategy at E*TRADE Financial Corp.
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11142.0
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2020-05-19 00:00:00 UTC
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S&P 500 steady after mixed retail earnings
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AAP
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https://www.nasdaq.com/articles/sp-500-steady-after-mixed-retail-earnings-2020-05-19
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nan
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nan
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For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window
Walmart surges on strong Q1 results
Advance Auto Parts rises on Q2 same-stores sales potential
Home Depot drops after Q1 results miss estimates
U.S. housing starts post record decline
Indexes mixed: Dow dips 0.26%, S&P flat, Nasdaq up 0.56%
Adds quote, details; updates prices
By Medha Singh and Ambar Warrick
May 19 (Reuters) - The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart.
Home improvement chain Home Depot HD.N fell 1.4% as it missed quarterly profit estimates due to higher costs, while department store operator Kohl's Corp KSS.N slumped 8.4% after reporting a bigger-than-expected loss.
Walmart Inc WMT.N, on the other hand, gained 0.7% after posting a jump in first-quarter U.S. comparable sales as online sales soared due to stockpiling of essentials during the coronavirus-related lockdown.
Trillions of dollars in stimulus has helped the S&P 500 rebound more than 34% from its March lows. Although it is now just about 13% below its record high, the pace of the rally has slowed in May owing to uncertainty over the outbreak and rising U.S.-China tensions.
"Volatility is going to be with us for some time. There's a leveling off process where people accept the new normal, or they just abandon hope," said George Young, portfolio manager of the Villere Balanced Fund in New Orleans, Louisiana.
The benchmark index jumped more than 3% on Monday, boosted by promising early stage data for a potential COVID-19 vaccine and Federal Reserve Chair Jerome Powell's pledge to support the economy as needed until the current crisis has passed.
Powell, in his testimony to the Senate Banking Committee on Tuesday, said the central bank was continuing to consider ways to accommodate additional borrowers, and that Congress should consider anything to keep people out of insolvency.
"By far the biggest focus for markets are variables attached to medical news, (followed by) actions from central banks and fiscal policymakers," said Tim Shaler, chief economist for iTrustCapital in Newport Beach, California.
At 11:06 a.m. ET, the Dow Jones Industrial Average .DJI was down 64.58 points, or 0.26%, at 24,532.79, the S&P 500 .SPX was up 0.71 points, or 0.02%, at 2,954.62. The Nasdaq Composite .IXIC was up 51.95 points, or 0.56%, at 9,286.77.
Gains in technology focused companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Intel Corp INTC.O helped the Nasdaq .IXIC stay in the positive territory.
Seven of the 11 major S&P sectors were trading lower, led by real estate .SPLRCR and energy stocks .SPNY. Technology .SPLRCT and consumer discretionary .SPLRCD posted the biggest percentage gains.
Advance Auto Parts AAP.N climbed 5.3% after the company said same-store sales improved significantly at the start of second quarter.
U.S. homebuilding dropped by the most on record in April and permits for future construction tumbled, underlining fears of sharp economic contraction in the second quarter.
Declining issues outnumbered advancers for a 1.09-to-1 ratio on the NYSE and for a 1.02-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new lows, while the Nasdaq recorded 44 new highs and four new lows.
(Reporting by Medha Singh and Ambar Warrick in Bengaluru; Editing by Patrick Graham and Arun Koyyur)
((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780, outside U.S. +91 80 6749 1130; Twitter: https://twitter.com/medhasinghs))
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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Gains in technology focused companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Intel Corp INTC.O helped the Nasdaq .IXIC stay in the positive territory. Advance Auto Parts AAP.N climbed 5.3% after the company said same-store sales improved significantly at the start of second quarter. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Walmart surges on strong Q1 results Advance Auto Parts rises on Q2 same-stores sales potential Home Depot drops after Q1 results miss estimates U.S. housing starts post record decline Indexes mixed: Dow dips 0.26%, S&P flat, Nasdaq up 0.56% Adds quote, details; updates prices By Medha Singh and Ambar Warrick May 19 (Reuters) - The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart.
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Advance Auto Parts AAP.N climbed 5.3% after the company said same-store sales improved significantly at the start of second quarter. Gains in technology focused companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Intel Corp INTC.O helped the Nasdaq .IXIC stay in the positive territory. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Walmart surges on strong Q1 results Advance Auto Parts rises on Q2 same-stores sales potential Home Depot drops after Q1 results miss estimates U.S. housing starts post record decline Indexes mixed: Dow dips 0.26%, S&P flat, Nasdaq up 0.56% Adds quote, details; updates prices By Medha Singh and Ambar Warrick May 19 (Reuters) - The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart.
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Gains in technology focused companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Intel Corp INTC.O helped the Nasdaq .IXIC stay in the positive territory. Advance Auto Parts AAP.N climbed 5.3% after the company said same-store sales improved significantly at the start of second quarter. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Walmart surges on strong Q1 results Advance Auto Parts rises on Q2 same-stores sales potential Home Depot drops after Q1 results miss estimates U.S. housing starts post record decline Indexes mixed: Dow dips 0.26%, S&P flat, Nasdaq up 0.56% Adds quote, details; updates prices By Medha Singh and Ambar Warrick May 19 (Reuters) - The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart.
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Gains in technology focused companies including Apple Inc AAPL.O, Amazon.com AMZN.O and Intel Corp INTC.O helped the Nasdaq .IXIC stay in the positive territory. Advance Auto Parts AAP.N climbed 5.3% after the company said same-store sales improved significantly at the start of second quarter. For a live blog on the U.S. stock market, click LIVE/ or type LIVE/ in a news window Walmart surges on strong Q1 results Advance Auto Parts rises on Q2 same-stores sales potential Home Depot drops after Q1 results miss estimates U.S. housing starts post record decline Indexes mixed: Dow dips 0.26%, S&P flat, Nasdaq up 0.56% Adds quote, details; updates prices By Medha Singh and Ambar Warrick May 19 (Reuters) - The S&P 500 was trading flat on Tuesday, handing back some gains from a strong rally in the previous session, as investors digested a mixed set of quarterly results from retailers including Home Depot and Walmart.
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11143.0
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2020-05-12 00:00:00 UTC
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Noteworthy Tuesday Option Activity: CLVS, SPG, AAP
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AAP
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-clvs-spg-aap-2020-05-12
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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 Clovis Oncology Inc (Symbol: CLVS), where a total of 29,764 contracts have traded so far, representing approximately 3.0 million underlying shares. That amounts to about 46.2% of CLVS's average daily trading volume over the past month of 6.4 million shares. Particularly high volume was seen for the $15 strike call option expiring June 19, 2020, with 2,274 contracts trading so far today, representing approximately 227,400 underlying shares of CLVS. Below is a chart showing CLVS's trailing twelve month trading history, with the $15 strike highlighted in orange:
Simon Property Group, Inc. (Symbol: SPG) options are showing a volume of 35,746 contracts thus far today. That number of contracts represents approximately 3.6 million underlying shares, working out to a sizeable 45.4% of SPG's average daily trading volume over the past month, of 7.9 million shares. Particularly high volume was seen for the $60 strike call option expiring May 15, 2020, with 4,484 contracts trading so far today, representing approximately 448,400 underlying shares of SPG. Below is a chart showing SPG's trailing twelve month trading history, with the $60 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,685 contracts, representing approximately 368,500 underlying shares or approximately 45.4% of AAP's average daily trading volume over the past month, of 810,790 shares. Particularly high volume was seen for the $90 strike call option expiring January 15, 2021, with 2,847 contracts trading so far today, representing approximately 284,700 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange:
For the various different available expirations for CLVS options, SPG 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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Particularly high volume was seen for the $90 strike call option expiring January 15, 2021, with 2,847 contracts trading so far today, representing approximately 284,700 underlying shares of AAP. Below is a chart showing SPG's trailing twelve month trading history, with the $60 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,685 contracts, representing approximately 368,500 underlying shares or approximately 45.4% of AAP's average daily trading volume over the past month, of 810,790 shares. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for CLVS options, SPG options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing SPG's trailing twelve month trading history, with the $60 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,685 contracts, representing approximately 368,500 underlying shares or approximately 45.4% of AAP's average daily trading volume over the past month, of 810,790 shares. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for CLVS options, SPG options, or AAP options, visit StockOptionsChannel.com. Particularly high volume was seen for the $90 strike call option expiring January 15, 2021, with 2,847 contracts trading so far today, representing approximately 284,700 underlying shares of AAP.
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Below is a chart showing SPG's trailing twelve month trading history, with the $60 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,685 contracts, representing approximately 368,500 underlying shares or approximately 45.4% of AAP's average daily trading volume over the past month, of 810,790 shares. Particularly high volume was seen for the $90 strike call option expiring January 15, 2021, with 2,847 contracts trading so far today, representing approximately 284,700 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for CLVS options, SPG options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing SPG's trailing twelve month trading history, with the $60 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 3,685 contracts, representing approximately 368,500 underlying shares or approximately 45.4% of AAP's average daily trading volume over the past month, of 810,790 shares. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for CLVS options, SPG options, or AAP options, visit StockOptionsChannel.com. Particularly high volume was seen for the $90 strike call option expiring January 15, 2021, with 2,847 contracts trading so far today, representing approximately 284,700 underlying shares of AAP.
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11144.0
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2020-05-01 00:00:00 UTC
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Analysts See 10% Upside For SPXN
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AAP
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https://www.nasdaq.com/articles/analysts-see-10-upside-for-spxn-2020-05-01
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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 ProShares ProShares S&P 500 Ex-Financials ETF (Symbol: SPXN), we found that the implied analyst target price for the ETF based upon its underlying holdings is $67.92 per unit.
With SPXN trading at a recent price near $61.68 per unit, that means that analysts see 10.12% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPXN's underlying holdings with notable upside to their analyst target prices are International Paper Co (Symbol: IP), FMC Corp. (Symbol: FMC), and Advance Auto Parts Inc (Symbol: AAP). Although IP has traded at a recent price of $34.25/share, the average analyst target is 16.37% higher at $39.86/share. Similarly, FMC has 14.47% upside from the recent share price of $91.90 if the average analyst target price of $105.20/share is reached, and analysts on average are expecting AAP to reach a target price of $138.08/share, which is 14.20% above the recent price of $120.91. Below is a twelve month price history chart comparing the stock performance of IP, FMC, and AAP:
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-Financials ETF SPXN $61.68 $67.92 10.12%
International Paper Co IP $34.25 $39.86 16.37%
FMC Corp. FMC $91.90 $105.20 14.47%
Advance Auto Parts Inc AAP $120.91 $138.08 14.20%
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-Financials ETF SPXN $61.68 $67.92 10.12% International Paper Co IP $34.25 $39.86 16.37% FMC Corp. FMC $91.90 $105.20 14.47% Advance Auto Parts Inc AAP $120.91 $138.08 14.20% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPXN's underlying holdings with notable upside to their analyst target prices are International Paper Co (Symbol: IP), FMC Corp. (Symbol: FMC), and Advance Auto Parts Inc (Symbol: AAP). Similarly, FMC has 14.47% upside from the recent share price of $91.90 if the average analyst target price of $105.20/share is reached, and analysts on average are expecting AAP to reach a target price of $138.08/share, which is 14.20% above the recent price of $120.91.
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Three of SPXN's underlying holdings with notable upside to their analyst target prices are International Paper Co (Symbol: IP), FMC Corp. (Symbol: FMC), and Advance Auto Parts Inc (Symbol: AAP). Similarly, FMC has 14.47% upside from the recent share price of $91.90 if the average analyst target price of $105.20/share is reached, and analysts on average are expecting AAP to reach a target price of $138.08/share, which is 14.20% above the recent price of $120.91. ProShares ProShares S&P 500 Ex-Financials ETF SPXN $61.68 $67.92 10.12% International Paper Co IP $34.25 $39.86 16.37% FMC Corp. FMC $91.90 $105.20 14.47% Advance Auto Parts Inc AAP $120.91 $138.08 14.20% 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, FMC has 14.47% upside from the recent share price of $91.90 if the average analyst target price of $105.20/share is reached, and analysts on average are expecting AAP to reach a target price of $138.08/share, which is 14.20% above the recent price of $120.91. Three of SPXN's underlying holdings with notable upside to their analyst target prices are International Paper Co (Symbol: IP), FMC Corp. (Symbol: FMC), and Advance Auto Parts Inc (Symbol: AAP). Below is a twelve month price history chart comparing the stock performance of IP, FMC, and AAP: Below is a summary table of the current analyst target prices discussed above:
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ProShares ProShares S&P 500 Ex-Financials ETF SPXN $61.68 $67.92 10.12% International Paper Co IP $34.25 $39.86 16.37% FMC Corp. FMC $91.90 $105.20 14.47% Advance Auto Parts Inc AAP $120.91 $138.08 14.20% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPXN's underlying holdings with notable upside to their analyst target prices are International Paper Co (Symbol: IP), FMC Corp. (Symbol: FMC), and Advance Auto Parts Inc (Symbol: AAP). Similarly, FMC has 14.47% upside from the recent share price of $91.90 if the average analyst target price of $105.20/share is reached, and analysts on average are expecting AAP to reach a target price of $138.08/share, which is 14.20% above the recent price of $120.91.
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11145.0
|
2020-04-21 00:00:00 UTC
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First Week of December 18th Options Trading For Advance Auto Parts (AAP)
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AAP
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https://www.nasdaq.com/articles/first-week-of-december-18th-options-trading-for-advance-auto-parts-aap-2020-04-21
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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 December 18th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 241 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 December 18th contracts and identified one put and one call contract of particular interest.
The put contract at the $110.00 strike price has a current bid of $17.80. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $110.00, but will also collect the premium, putting the cost basis of the shares at $92.20 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $115.36/share today.
Because the $110.00 strike represents an approximate 5% 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 63%. 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 16.18% return on the cash commitment, or 24.50% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Advance Auto Parts Inc, and highlighting in green where the $110.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $120.00 strike price has a current bid of $17.60. If an investor was to purchase shares of AAP stock at the current price level of $115.36/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $120.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 19.28% if the stock gets called away at the December 18th 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 $120.00 strike highlighted in red:
Considering the fact that the $120.00 strike represents an approximate 4% 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 47%. 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 15.26% boost of extra return to the investor, or 23.10% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 60%, while the implied volatility in the call contract example is 58%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $115.36) to be 46%. 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 4% 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 December 18th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 4% 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 December 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new December 18th 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 4% 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 December 18th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new December 18th 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 December 18th 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 $120.00 strike highlighted in red: Considering the fact that the $120.00 strike represents an approximate 4% 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 December 18th expiration.
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11146.0
|
2020-04-06 00:00:00 UTC
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Why These Automotive Retailer Stocks Soared by Double Digits Monday
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AAP
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https://www.nasdaq.com/articles/why-these-automotive-retailer-stocks-soared-by-double-digits-monday-2020-04-06
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nan
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nan
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What happened
Shares of AutoZone (NYSE: AZO), Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a collection of automotive parts and products retailers, all easily jumped more than 10% on Monday as COVID-19 cases increased around the world, but at a slower pace than in recent weeks.
So what
The idea that COVID-19 hot spots may be at a plateau, or close to it, was a welcome notion for many people watching much of the economy slow to a near standstill. Italy, France, and Spain all reported a deceleration in deaths from COVID-19. And New York State announced Monday its deaths were flat from the previous report, but also noted that even if this is the plateau, it's still a very high and stressful level for the healthcare system.
Expect the markets to remain volatile on both good and bad news surrounding COVID-19. The virus and its harm to the U.S. economy have clobbered many retail, transportation, and entertainment stocks, but the automotive aftermarket retailers have fared a bit better.
^SPX data by YCharts.
Generally, investors flock to auto retailers such as AutoZone, Advance, and O'Reilly when a recession is on the horizon. When consumers tighten their budgets, they opt to do more small maintenance and repairs themselves to save a few bucks. And during recessions, consumers often put off purchasing new vehicles, which increases the average age of vehicles on the road, creating more demand for repair parts.
But this is no traditional downturn, and as many consumers have taken social distancing to heart, and many Americans are working from home, miles driven have declined and the need for do-it-yourself repairs has also slowed, for the moment. LKQ, which sells parts to collision shops and mechanics, among other business segments, will also suffer with fewer discretionary miles driven and less collision-repair demand.
Image source: Getty Images.
With uncertainty on how quickly the economy will rebound once COVID-19 is under control, and how quickly consumers respond with purchasing, the important thing for companies is to bolster their cash positions and liquidity to survive the uncertainty.
One example is when Advance Auto announced in late March it would draw $500 million of its $1 billion credit facility to help fund ongoing operations and general purposes. It's also important for companies to improve their offerings to help offset lower foot traffic; AutoZone began offering free curbside pickup starting on March 24.
Now what
There's no question that COVID-19 will cause significant economic impact across the automotive industry, and the outbreak adds immense uncertainty in the near term. But for these auto retailers, as long as they can handle the near-term speed bump and improve their liquidity, the medium- and long-term business should be boosted with rising vehicle age and a bounce back in discretionary and work-related miles driven.
Take these large swings in stock price with a grain of salt as the broader markets will react to both good and bad news, often with no direct company news. These auto retailers should all be able to weather the storm, and investors would be wise to keep an eye on their long-term growth stories and balance sheets before making any buy or sell decisions.
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Daniel Miller has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends LKQ. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of AutoZone (NYSE: AZO), Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a collection of automotive parts and products retailers, all easily jumped more than 10% on Monday as COVID-19 cases increased around the world, but at a slower pace than in recent weeks. But this is no traditional downturn, and as many consumers have taken social distancing to heart, and many Americans are working from home, miles driven have declined and the need for do-it-yourself repairs has also slowed, for the moment. But for these auto retailers, as long as they can handle the near-term speed bump and improve their liquidity, the medium- and long-term business should be boosted with rising vehicle age and a bounce back in discretionary and work-related miles driven.
|
What happened Shares of AutoZone (NYSE: AZO), Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a collection of automotive parts and products retailers, all easily jumped more than 10% on Monday as COVID-19 cases increased around the world, but at a slower pace than in recent weeks. Generally, investors flock to auto retailers such as AutoZone, Advance, and O'Reilly when a recession is on the horizon. And during recessions, consumers often put off purchasing new vehicles, which increases the average age of vehicles on the road, creating more demand for repair parts.
|
What happened Shares of AutoZone (NYSE: AZO), Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a collection of automotive parts and products retailers, all easily jumped more than 10% on Monday as COVID-19 cases increased around the world, but at a slower pace than in recent weeks. But for these auto retailers, as long as they can handle the near-term speed bump and improve their liquidity, the medium- and long-term business should be boosted with rising vehicle age and a bounce back in discretionary and work-related miles driven. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Daniel Miller has no position in any of the stocks mentioned.
|
What happened Shares of AutoZone (NYSE: AZO), Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a collection of automotive parts and products retailers, all easily jumped more than 10% on Monday as COVID-19 cases increased around the world, but at a slower pace than in recent weeks. Generally, investors flock to auto retailers such as AutoZone, Advance, and O'Reilly when a recession is on the horizon. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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11147.0
|
2020-03-31 00:00:00 UTC
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Implied SCIU Analyst Target Price: $35
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AAP
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https://www.nasdaq.com/articles/implied-sciu-analyst-target-price%3A-%2435-2020-03-31
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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 Scientific Beta US ETF (Symbol: SCIU), we found that the implied analyst target price for the ETF based upon its underlying holdings is $34.82 per unit.
With SCIU trading at a recent price near $27.37 per unit, that means that analysts see 27.23% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SCIU's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), Ford Motor Co. (Symbol: F), and Boeing Co. (Symbol: BA). Although AAP has traded at a recent price of $96.50/share, the average analyst target is 56.65% higher at $151.17/share. Similarly, F has 53.08% upside from the recent share price of $5.03 if the average analyst target price of $7.70/share is reached, and analysts on average are expecting BA to reach a target price of $228.42/share, which is 50.00% above the recent price of $152.28. Below is a twelve month price history chart comparing the stock performance of AAP, F, and BA:
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
Scientific Beta US ETF SCIU $27.37 $34.82 27.23%
Advance Auto Parts Inc AAP $96.50 $151.17 56.65%
Ford Motor Co. F $5.03 $7.70 53.08%
Boeing Co. BA $152.28 $228.42 50.00%
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 $96.50/share, the average analyst target is 56.65% higher at $151.17/share. Scientific Beta US ETF SCIU $27.37 $34.82 27.23% Advance Auto Parts Inc AAP $96.50 $151.17 56.65% Ford Motor Co. F $5.03 $7.70 53.08% Boeing Co. BA $152.28 $228.42 50.00% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SCIU's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), Ford Motor Co. (Symbol: F), and Boeing Co. (Symbol: BA).
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Three of SCIU's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), Ford Motor Co. (Symbol: F), and Boeing Co. (Symbol: BA). Scientific Beta US ETF SCIU $27.37 $34.82 27.23% Advance Auto Parts Inc AAP $96.50 $151.17 56.65% Ford Motor Co. F $5.03 $7.70 53.08% Boeing Co. BA $152.28 $228.42 50.00% 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 $96.50/share, the average analyst target is 56.65% higher at $151.17/share.
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Three of SCIU's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), Ford Motor Co. (Symbol: F), and Boeing Co. (Symbol: BA). Although AAP has traded at a recent price of $96.50/share, the average analyst target is 56.65% higher at $151.17/share. Below is a twelve month price history chart comparing the stock performance of AAP, F, and BA: Below is a summary table of the current analyst target prices discussed above:
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Scientific Beta US ETF SCIU $27.37 $34.82 27.23% Advance Auto Parts Inc AAP $96.50 $151.17 56.65% Ford Motor Co. F $5.03 $7.70 53.08% Boeing Co. BA $152.28 $228.42 50.00% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SCIU's underlying holdings with notable upside to their analyst target prices are Advance Auto Parts Inc (Symbol: AAP), Ford Motor Co. (Symbol: F), and Boeing Co. (Symbol: BA). Although AAP has traded at a recent price of $96.50/share, the average analyst target is 56.65% higher at $151.17/share.
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11148.0
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2020-03-25 00:00:00 UTC
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Why Shares of These Auto Parts Retailers Rebounded Wednesday
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AAP
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https://www.nasdaq.com/articles/why-shares-of-these-auto-parts-retailers-rebounded-wednesday-2020-03-25
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nan
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nan
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What happened
Shares of Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a group of auto parts retailers, all spiked over 10% Wednesday as broader markets logged a second day of strong gains thanks to a huge $2 trillion stimulus deal. But are these retailers poised to continue rebounding?
So what
The deal calls for a range of aid, including $1,200 government checks to many Americans (read here to know if you'll receive a check) and hundreds of billions of dollars to battle the COVID-19 coronavirus pandemic and its negative effects. The stimulus agreement set the stage for the S&P 500 and Dow to log solid gains throughout most of Wednesday, adding to Tuesday's surge, before giving back some gains near the end of the trading session.
Rebounding stocks included a group of auto parts retailers. They are a part of the broader automotive industry that has been brutally sold off thanks to plants shutting down, less discretionary miles traveled, and a likely big decline in global vehicle sales as uncertainty makes consumers a little more cautious about big-ticket purchases. More specifically, fewer Americans on the road thanks to social distancing and/or quarantining means less demand for a supplier such as LKQ, which sells parts to collision shops and mechanics. AutoZone (NYSE: AZO) noted in its recent quarterly report that COVID-19 could negatively affect not only demand for its products, but also store hours and workforce availability. And it could magnify the risks with its global sourcing of merchandise, not a good recipe for investors or businesses.
Image source: Getty Images.
The good news, in addition to the broader stimulus deal, is that these companies could possibly boost their cash position similar to Advance Auto Parts, which announced it is borrowing $500 million under an existing $1 billion credit agreement. These stocks are rebounding temporarily thanks to the stimulus bill, but how will these companies rebound in the months ahead?
Now what
Savvy investors likely know that Advance Auto Parts, O'Reilly, and AutoZone all tend to perform well during downturns and/or recessions. That's because consumers looking to save a buck during hard times turn to do-it-yourself solutions, which increases foot traffic at aftermarket auto retailers. Downturns also mean that consumers put off big-ticket purchases and the average age of vehicles rises, which spurs demand for replacement parts.
But investors have to consider that these retailers might react differently this time. One reason the stocks could trade differently is because COVID-19 is forcing many consumers to purchase only necessities, which will cause discretionary retailers to suffer until the outbreak is under control. And if the economy snaps back, consumers may not need to save a buck with do-it-yourself options in the near term, although a strong economy would still be a positive for these auto parts retailers.
There's still plenty of uncertainty surrounding the outbreak and its economic damage, and it will get worse before it gets better. Savvy investors should spend this time digging into balance sheets to double-check if the stocks they own can weather the storm, and to scan the markets for strong companies poised to rebound once we move past the COVID-19 pandemic.
10 stocks we like better than O'Reilly Automotive
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 O'Reilly Automotive wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of March 18, 2020
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends LKQ. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a group of auto parts retailers, all spiked over 10% Wednesday as broader markets logged a second day of strong gains thanks to a huge $2 trillion stimulus deal. They are a part of the broader automotive industry that has been brutally sold off thanks to plants shutting down, less discretionary miles traveled, and a likely big decline in global vehicle sales as uncertainty makes consumers a little more cautious about big-ticket purchases. The good news, in addition to the broader stimulus deal, is that these companies could possibly boost their cash position similar to Advance Auto Parts, which announced it is borrowing $500 million under an existing $1 billion credit agreement.
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What happened Shares of Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a group of auto parts retailers, all spiked over 10% Wednesday as broader markets logged a second day of strong gains thanks to a huge $2 trillion stimulus deal. Rebounding stocks included a group of auto parts retailers. Now what Savvy investors likely know that Advance Auto Parts, O'Reilly, and AutoZone all tend to perform well during downturns and/or recessions.
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What happened Shares of Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a group of auto parts retailers, all spiked over 10% Wednesday as broader markets logged a second day of strong gains thanks to a huge $2 trillion stimulus deal. Rebounding stocks included a group of auto parts retailers. See the 10 stocks *Stock Advisor returns as of March 18, 2020 Daniel Miller has no position in any of the stocks mentioned.
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What happened Shares of Advance Auto Parts (NYSE: AAP), O'Reilly Automotive (NASDAQ: ORLY), and LKQ (NASDAQ: LKQ), a group of auto parts retailers, all spiked over 10% Wednesday as broader markets logged a second day of strong gains thanks to a huge $2 trillion stimulus deal. Rebounding stocks included a group of auto parts retailers. Now what Savvy investors likely know that Advance Auto Parts, O'Reilly, and AutoZone all tend to perform well during downturns and/or recessions.
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11149.0
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2020-03-21 00:00:00 UTC
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Validea Benjamin Graham Strategy Daily Upgrade Report - 3/21/2020
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AAP
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https://www.nasdaq.com/articles/validea-benjamin-graham-strategy-daily-upgrade-report-3-21-2020-2020-03-21
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nan
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nan
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The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
ALAMO GROUP, INC. (ALG) is a small-cap value stock in the Constr. & Agric. Machinery industry. The rating according to our strategy based on Benjamin Graham changed from 57% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Alamo Group Inc. is engaged in the design and manufacture of agricultural equipment and infrastructure maintenance equipment for governmental and industrial use. The Company operates in Industrial, Agricultural and European segments. The Company's products include tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, excavators, vacuum trucks, snow removal equipment, pothole patchers, zero turn radius mowers, agricultural implements and related aftermarket. As of March 9, 2019, the Company operated 26 plants in North America, Europe, Australia and Brazil. The Company sells its products through a network of independent dealers and distributors to Governmental end users, related independent contractors, as well as to the agricultural and commercial turf markets. It also offers replacement parts for each of its wholegoods lines. The Company's products are sold through various marketing organizations, and dealer and distributor networks.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
CUMMINS INC. (CMI) is a large-cap value stock in the Misc. Capital Goods industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. The Company's segments include Engine, Distribution, Components and Power Systems. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and agricultural markets. The Distribution segment consists of the product lines, which service and/or distribute a range of products and services, including parts, engines, power generation and service. The Components segment supplies products, including aftertreatment systems, turbochargers, filtration products and fuel systems for commercial diesel applications. The Power Systems segment consists of businesses, including Power generation, Industrial and Generator technologies.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
KAISER ALUMINUM CORP. (KALU) is a small-cap value stock in the Metal Mining industry. The rating according to our strategy based on Benjamin Graham changed from 57% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Kaiser Aluminum Corporation manufactures and sells semi-fabricated specialty aluminum mill products. The Company operates in the Fabricated Products segment. The Company's Fabricated Products segment focuses on producing rolled, extruded and drawn aluminum products used principally for aerospace and defense, automotive and general engineering products that include consumer durables, electronics, electrical and machinery and equipment applications. The Company offers its products for various end market applications, such as aerospace and high strength (Aero/HS products); automotive (Automotive Extrusions); general engineering (GE products), and other industrial (Other products). The Company's fabricated aluminum mill products include flat-rolled (plate and sheet), extruded (rod, bar, hollows and shapes), drawn (rod, bar, pipe and tube) and cast aluminum products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: FAIL
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Benjamin Graham changed from 57% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Advance Auto Parts, Inc. provides automotive aftermarket parts in North America, serving do-it-for-me (Professional) and do-it-yourself (DIY), customers. The Company's stores and branches offer a selection of brand name, original equipment manufacturer (OEM) and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. It serves through various channels ranging from traditional brick and mortar store locations to self-serving e-commerce sites. As of December 31, 2016, it operated 5,062 total stores and 127 branches primarily under the trade names Advance Auto Parts, Autopart International, Carquest and Worldpac. As of December 31, 2016, its Advance Auto Parts operations consisted of three geographic divisions, which included the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
SECTOR: PASS
SALES: PASS
CURRENT RATIO: FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Benjamin Graham has returned 187.94% vs. 131.86% for the S&P 500. For more details on this strategy, click here
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Retail (Specialty) industry. The Company's stores and branches offer a selection of brand name, original equipment manufacturer (OEM) and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Retail (Specialty) industry. Company Description: Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines and engine-related component products. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins brand name, as well as certain customer brand names, for the heavy and medium-duty truck, bus, recreational vehicle (RV), light-duty automotive and agricultural markets.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Retail (Specialty) industry. The Distribution segment consists of the product lines, which service and/or distribute a range of products and services, including parts, engines, power generation and service. The Company's Fabricated Products segment focuses on producing rolled, extruded and drawn aluminum products used principally for aerospace and defense, automotive and general engineering products that include consumer durables, electronics, electrical and machinery and equipment applications.
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For a full detailed analysis using NASDAQ's Guru Analysis tool, click here ADVANCE AUTO PARTS, INC. (AAP) is a mid-cap value stock in the Retail (Specialty) industry. The Company operates in Industrial, Agricultural and European segments. The Company operates in the Fabricated Products segment.
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11150.0
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2020-03-20 00:00:00 UTC
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Why Autozone, Advance Auto Parts, and Home Depot Stocks Dropped on Friday
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AAP
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https://www.nasdaq.com/articles/why-autozone-advance-auto-parts-and-home-depot-stocks-dropped-on-friday-2020-03-21
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nan
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nan
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What happened
Shares of car replacement-parts retailers AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) closed trading down 12% and 12.7%, respectively, on Friday. Replacement home-parts retailer Home Depot (NYSE: HD) fell as well -- down 5.6%.
What do auto parts have to do with home parts? There's actually a very clear answer: All three of these stocks got hit by downgrades to their target prices at investment bank Nomura Instinet.
Image source: Getty Images.
So what
But here's the really curious thing: Nomura actually cut its price targets for AutoZone (now $1,090 a share, down from $1,200), for Advance Auto Parts ($115, down from $150), and for Home Depot ($204, down from $251) yesterday. And I don't mean yesterday late in the day after close of trading, either. Turns out, Nomura made its reservations about all three companies public well before trading began on Thursday in each case, before 7 a.m. EDT, in fact.
Despite this, shares of AutoZone and Home Depot stocks both rose in Thursday trading, and even Advance Auto Parts only took a small hit, falling 2.5%.
Now what
I suppose there could be any number of explanations why that happened. But given how markets have been behaving lately -- with stocks rising en masse one day only to turn tail and retreat en masse on the next day -- my guess is that AutoZone and Home Depot stocks rose despite Nomura's bearish sentiments on Thursday because basically all stocks were rising. These two simply got swept along by the current of investor ebullience. (And Advance Auto couldn't fall too far in that kind of market, either).
It was only after the tide went out on Friday and sentiment turned against stocks, in general, that folks finally paid attention to Nomura's commentary and decided to sell their retailer shares. Now that people are paying attention, however, that warning bears repeating:
There's a recession coming. Retailers of discretionary consumer goods are going to get hit, and sales could fall "potentially [to] unprecedented levels."
If Nomura's right about the risk, the future for these stocks could look a lot more like Friday's results than Thursday's.
10 stocks we like better than Home Depot
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 Home Depot 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 March 18, 2020
Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Home Depot and recommends the following options: long January 2021 $120 calls on Home Depot and short January 2021 $210 calls on Home Depot. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of car replacement-parts retailers AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) closed trading down 12% and 12.7%, respectively, on Friday. So what But here's the really curious thing: Nomura actually cut its price targets for AutoZone (now $1,090 a share, down from $1,200), for Advance Auto Parts ($115, down from $150), and for Home Depot ($204, down from $251) yesterday. Despite this, shares of AutoZone and Home Depot stocks both rose in Thursday trading, and even Advance Auto Parts only took a small hit, falling 2.5%.
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What happened Shares of car replacement-parts retailers AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) closed trading down 12% and 12.7%, respectively, on Friday. Despite this, shares of AutoZone and Home Depot stocks both rose in Thursday trading, and even Advance Auto Parts only took a small hit, falling 2.5%. But given how markets have been behaving lately -- with stocks rising en masse one day only to turn tail and retreat en masse on the next day -- my guess is that AutoZone and Home Depot stocks rose despite Nomura's bearish sentiments on Thursday because basically all stocks were rising.
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What happened Shares of car replacement-parts retailers AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) closed trading down 12% and 12.7%, respectively, on Friday. Despite this, shares of AutoZone and Home Depot stocks both rose in Thursday trading, and even Advance Auto Parts only took a small hit, falling 2.5%. But given how markets have been behaving lately -- with stocks rising en masse one day only to turn tail and retreat en masse on the next day -- my guess is that AutoZone and Home Depot stocks rose despite Nomura's bearish sentiments on Thursday because basically all stocks were rising.
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What happened Shares of car replacement-parts retailers AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) closed trading down 12% and 12.7%, respectively, on Friday. Despite this, shares of AutoZone and Home Depot stocks both rose in Thursday trading, and even Advance Auto Parts only took a small hit, falling 2.5%. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Home Depot wasn't one of them!
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11151.0
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2020-03-19 00:00:00 UTC
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Noteworthy Thursday Option Activity: OLLI, UBER, AAP
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AAP
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https://www.nasdaq.com/articles/noteworthy-thursday-option-activity%3A-olli-uber-aap-2020-03-19
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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 Ollie's Bargain Outlet Holdings Inc (Symbol: OLLI), where a total volume of 23,969 contracts has been traded thus far today, a contract volume which is representative of approximately 2.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 121.2% of OLLI's average daily trading volume over the past month, of 2.0 million shares. Particularly high volume was seen for the $35 strike put option expiring April 17, 2020, with 11,557 contracts trading so far today, representing approximately 1.2 million underlying shares of OLLI. Below is a chart showing OLLI's trailing twelve month trading history, with the $35 strike highlighted in orange:
Uber Technologies Inc (Symbol: UBER) saw options trading volume of 461,172 contracts, representing approximately 46.1 million underlying shares or approximately 101.5% of UBER's average daily trading volume over the past month, of 45.5 million shares. Especially high volume was seen for the $40 strike call option expiring January 15, 2021, with 33,708 contracts trading so far today, representing approximately 3.4 million underlying shares of UBER. Below is a chart showing UBER's trailing twelve month trading history, with the $40 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 12,430 contracts, representing approximately 1.2 million underlying shares or approximately 92.7% of AAP's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $90 strike call option expiring January 15, 2021, with 5,504 contracts trading so far today, representing approximately 550,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange:
For the various different available expirations for OLLI options, UBER 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 $90 strike call option expiring January 15, 2021, with 5,504 contracts trading so far today, representing approximately 550,400 underlying shares of AAP. Below is a chart showing UBER's trailing twelve month trading history, with the $40 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 12,430 contracts, representing approximately 1.2 million underlying shares or approximately 92.7% of AAP's average daily trading volume over the past month, of 1.3 million shares. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for OLLI options, UBER options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing UBER's trailing twelve month trading history, with the $40 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 12,430 contracts, representing approximately 1.2 million underlying shares or approximately 92.7% of AAP's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $90 strike call option expiring January 15, 2021, with 5,504 contracts trading so far today, representing approximately 550,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for OLLI options, UBER options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing UBER's trailing twelve month trading history, with the $40 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 12,430 contracts, representing approximately 1.2 million underlying shares or approximately 92.7% of AAP's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $90 strike call option expiring January 15, 2021, with 5,504 contracts trading so far today, representing approximately 550,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for OLLI options, UBER options, or AAP options, visit StockOptionsChannel.com.
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Below is a chart showing UBER's trailing twelve month trading history, with the $40 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) saw options trading volume of 12,430 contracts, representing approximately 1.2 million underlying shares or approximately 92.7% of AAP's average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $90 strike call option expiring January 15, 2021, with 5,504 contracts trading so far today, representing approximately 550,400 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $90 strike highlighted in orange: For the various different available expirations for OLLI options, UBER options, or AAP options, visit StockOptionsChannel.com.
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11152.0
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2020-03-17 00:00:00 UTC
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Ex-Dividend Reminder: PVH, Dick's Sporting Goods and Advance Auto Parts
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AAP
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-pvh-dicks-sporting-goods-and-advance-auto-parts-2020-03-17
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 3/19/20, PVH Corp (Symbol: PVH), Dick's Sporting Goods, Inc (Symbol: DKS), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. PVH Corp will pay its quarterly dividend of $0.0375 on 3/31/20, Dick's Sporting Goods, Inc will pay its quarterly dividend of $0.3125 on 3/27/20, and Advance Auto Parts Inc will pay its quarterly dividend of $0.25 on 4/3/20. As a percentage of PVH's recent stock price of $40.52, this dividend works out to approximately 0.09%, so look for shares of PVH Corp to trade 0.09% lower — all else being equal — when PVH shares open for trading on 3/19/20. Similarly, investors should look for DKS to open 1.57% lower in price and for AAP to open 0.26% lower, all else being equal.
Below are dividend history charts for PVH, DKS, and AAP, showing historical dividends prior to the most recent ones declared.
PVH Corp (Symbol: PVH):
Dick's Sporting Goods, Inc (Symbol: DKS):
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 0.37% for PVH Corp, 6.30% for Dick's Sporting Goods, Inc, and 1.02% for Advance Auto Parts Inc.
In Tuesday trading, PVH Corp shares are currently down about 0.6%, Dick's Sporting Goods, Inc shares are down about 6.3%, and Advance Auto Parts Inc shares are up about 2.5% 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 3/19/20, PVH Corp (Symbol: PVH), Dick's Sporting Goods, Inc (Symbol: DKS), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DKS to open 1.57% lower in price and for AAP to open 0.26% lower, all else being equal. Below are dividend history charts for PVH, DKS, 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 3/19/20, PVH Corp (Symbol: PVH), Dick's Sporting Goods, Inc (Symbol: DKS), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. PVH Corp (Symbol: PVH): Dick's Sporting Goods, Inc (Symbol: DKS): 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 DKS to open 1.57% lower in price and for AAP to open 0.26% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/19/20, PVH Corp (Symbol: PVH), Dick's Sporting Goods, Inc (Symbol: DKS), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. PVH Corp (Symbol: PVH): Dick's Sporting Goods, Inc (Symbol: DKS): 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 DKS to open 1.57% lower in price and for AAP to open 0.26% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel, on 3/19/20, PVH Corp (Symbol: PVH), Dick's Sporting Goods, Inc (Symbol: DKS), and Advance Auto Parts Inc (Symbol: AAP) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for DKS to open 1.57% lower in price and for AAP to open 0.26% lower, all else being equal. Below are dividend history charts for PVH, DKS, and AAP, showing historical dividends prior to the most recent ones declared.
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11153.0
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2020-03-12 00:00:00 UTC
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Advance Auto Parts Enters Oversold Territory (AAP)
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-enters-oversold-territory-aap-2020-03-12
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $114.04 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 27.7. A bullish investor could look at AAP's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares:
Looking at the chart above, AAP's low point in its 52 week range is $113.92 per share, with $182.56 as the 52 week high point — that compares with a last trade of $115.03.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $114.04 per share. A bullish investor could look at AAP's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $113.92 per share, with $182.56 as the 52 week high point — that compares with a last trade of $115.03.
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A bullish investor could look at AAP's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $113.92 per share, with $182.56 as the 52 week high point — that compares with a last trade of $115.03. In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $114.04 per share.
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In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $114.04 per share. A bullish investor could look at AAP's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $113.92 per share, with $182.56 as the 52 week high point — that compares with a last trade of $115.03.
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In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 29.9, after changing hands as low as $114.04 per share. A bullish investor could look at AAP's 29.9 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $113.92 per share, with $182.56 as the 52 week high point — that compares with a last trade of $115.03.
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11154.0
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2020-02-27 00:00:00 UTC
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How The Parts Add Up: USLB Headed For $38
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AAP
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https://www.nasdaq.com/articles/how-the-parts-add-up%3A-uslb-headed-for-%2438-2020-02-27
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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 Russell 1000 Low Beta Equal Weight ETF (Symbol: USLB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $37.56 per unit.
With USLB trading at a recent price near $33.88 per unit, that means that analysts see 10.86% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of USLB's underlying holdings with notable upside to their analyst target prices are Grace & Co (Symbol: GRA), Advance Auto Parts Inc (Symbol: AAP), and Energizer Holdings Inc (Symbol: ENR). Although GRA has traded at a recent price of $56.73/share, the average analyst target is 44.54% higher at $82.00/share. Similarly, AAP has 25.38% upside from the recent share price of $134.54 if the average analyst target price of $168.69/share is reached, and analysts on average are expecting ENR to reach a target price of $56.89/share, which is 21.40% above the recent price of $46.86. Below is a twelve month price history chart comparing the stock performance of GRA, AAP, and ENR:
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 Russell 1000 Low Beta Equal Weight ETF USLB $33.88 $37.56 10.86%
Grace & Co GRA $56.73 $82.00 44.54%
Advance Auto Parts Inc AAP $134.54 $168.69 25.38%
Energizer Holdings Inc ENR $46.86 $56.89 21.40%
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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Invesco Russell 1000 Low Beta Equal Weight ETF USLB $33.88 $37.56 10.86% Grace & Co GRA $56.73 $82.00 44.54% Advance Auto Parts Inc AAP $134.54 $168.69 25.38% Energizer Holdings Inc ENR $46.86 $56.89 21.40% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of USLB's underlying holdings with notable upside to their analyst target prices are Grace & Co (Symbol: GRA), Advance Auto Parts Inc (Symbol: AAP), and Energizer Holdings Inc (Symbol: ENR). Similarly, AAP has 25.38% upside from the recent share price of $134.54 if the average analyst target price of $168.69/share is reached, and analysts on average are expecting ENR to reach a target price of $56.89/share, which is 21.40% above the recent price of $46.86.
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Three of USLB's underlying holdings with notable upside to their analyst target prices are Grace & Co (Symbol: GRA), Advance Auto Parts Inc (Symbol: AAP), and Energizer Holdings Inc (Symbol: ENR). Invesco Russell 1000 Low Beta Equal Weight ETF USLB $33.88 $37.56 10.86% Grace & Co GRA $56.73 $82.00 44.54% Advance Auto Parts Inc AAP $134.54 $168.69 25.38% Energizer Holdings Inc ENR $46.86 $56.89 21.40% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Similarly, AAP has 25.38% upside from the recent share price of $134.54 if the average analyst target price of $168.69/share is reached, and analysts on average are expecting ENR to reach a target price of $56.89/share, which is 21.40% above the recent price of $46.86.
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Similarly, AAP has 25.38% upside from the recent share price of $134.54 if the average analyst target price of $168.69/share is reached, and analysts on average are expecting ENR to reach a target price of $56.89/share, which is 21.40% above the recent price of $46.86. Three of USLB's underlying holdings with notable upside to their analyst target prices are Grace & Co (Symbol: GRA), Advance Auto Parts Inc (Symbol: AAP), and Energizer Holdings Inc (Symbol: ENR). Below is a twelve month price history chart comparing the stock performance of GRA, AAP, and ENR: Below is a summary table of the current analyst target prices discussed above:
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Invesco Russell 1000 Low Beta Equal Weight ETF USLB $33.88 $37.56 10.86% Grace & Co GRA $56.73 $82.00 44.54% Advance Auto Parts Inc AAP $134.54 $168.69 25.38% Energizer Holdings Inc ENR $46.86 $56.89 21.40% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of USLB's underlying holdings with notable upside to their analyst target prices are Grace & Co (Symbol: GRA), Advance Auto Parts Inc (Symbol: AAP), and Energizer Holdings Inc (Symbol: ENR). Similarly, AAP has 25.38% upside from the recent share price of $134.54 if the average analyst target price of $168.69/share is reached, and analysts on average are expecting ENR to reach a target price of $56.89/share, which is 21.40% above the recent price of $46.86.
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11155.0
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2020-02-25 00:00:00 UTC
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First Week of AAP April 17th Options Trading
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AAP
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https://www.nasdaq.com/articles/first-week-of-aap-april-17th-options-trading-2020-02-25
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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 April 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new April 17th contracts and identified one put and one call contract of particular interest.
The put contract at the $135.00 strike price has a current bid of $5.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $135.00, but will also collect the premium, putting the cost basis of the shares at $130.00 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $137.97/share today.
Because the $135.00 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 61%. 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 3.70% return on the cash commitment, or 26.02% 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 $135.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $140.00 strike price has a current bid of $5.40. If an investor was to purchase shares of AAP stock at the current price level of $137.97/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $140.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.39% if the stock gets called away at the April 17th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAP shares really soar, which is why looking at the trailing twelve month trading history for Advance Auto Parts Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAP's trailing twelve month trading history, with the $140.00 strike highlighted in red:
Considering the fact that the $140.00 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 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 3.91% boost of extra return to the investor, or 27.49% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 33%, while the implied volatility in the call contract example is 31%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $137.97) to be 27%. 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 $140.00 strike highlighted in red: Considering the fact that the $140.00 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 April 17th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 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 April 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new April 17th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAP's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 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 April 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new April 17th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new April 17th contracts and identified one put and one call contract of particular interest. Below is a chart showing AAP's trailing twelve month trading history, with the $140.00 strike highlighted in red: Considering the fact that the $140.00 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 April 17th expiration.
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11156.0
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2020-02-18 00:00:00 UTC
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Advance Auto Parts Sales Gains Slow to a Crawl
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-sales-gains-slow-to-a-crawl-2020-02-18
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nan
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nan
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Advance Auto Parts (NYSE: AAP) had a sluggish finish to its 2019 fiscal year. The leading auto parts retailer on Tuesday announces surprisingly weak fourth-quarter sales results while issuing a mixed outlook for 2020.
Image source: Getty Images.
What happened?
Sales gains at existing stores, or comps, slowed to a flat result in the quarter, compared to 1.2% in the prior quarter. The sluggish result surprised management, who cited a "challenging demand environment" in a press release to investors. Comps landed at 1.1% for the full year compared to over 2% in 2018.
On the other hand, Advance Auto Parts noted increase profit margins despite heavy spending in areas like the e-commerce business. Adjusted operating profit rose 6% for the full year, up to $677 million.
What's next?
CEO Tom Greco and his team issued a mixed outlook for 2020. Comps are predicted to range from flat to a 2% increase, which leaves open the possibility of a second straight year of decelerating sales growth. The consumer retailer's expense discipline and pricing power, meanwhile, should contribute to solid earnings gains as operating profit margin rises to between 8.4% and 8.7% compared to 8.2% in fiscal 2019.
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. 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 Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of December 1, 2019
Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (NYSE: AAP) had a sluggish finish to its 2019 fiscal year. The leading auto parts retailer on Tuesday announces surprisingly weak fourth-quarter sales results while issuing a mixed outlook for 2020. On the other hand, Advance Auto Parts noted increase profit margins despite heavy spending in areas like the e-commerce business.
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Advance Auto Parts (NYSE: AAP) had a sluggish finish to its 2019 fiscal year. The leading auto parts retailer on Tuesday announces surprisingly weak fourth-quarter sales results while issuing a mixed outlook for 2020. On the other hand, Advance Auto Parts noted increase profit margins despite heavy spending in areas like the e-commerce business.
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Advance Auto Parts (NYSE: AAP) had a sluggish finish to its 2019 fiscal year. 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. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them!
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Advance Auto Parts (NYSE: AAP) had a sluggish finish to its 2019 fiscal year. The leading auto parts retailer on Tuesday announces surprisingly weak fourth-quarter sales results while issuing a mixed outlook for 2020. Comps landed at 1.1% for the full year compared to over 2% in 2018.
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11157.0
|
2020-02-18 00:00:00 UTC
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Consumer Sector Update for 02/18/2020: KR,BRK.A,BRK.B,AAP,GSX,CAG
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-02-18-2020%3A-krbrk.abrk.baapgsxcag-2020-02-18
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nan
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nan
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Top Consumer Stocks
WMT +1.67%
MCD -0.39%
DIS -0.37%
CVS +0.67%
KO -0.51%
Consumer stocks turned mixed Tuesday afternoon, with the shares of consumer staples companies in the S&P 500 slipping 0.3% this afternoon while the shares of consumer discretionary firms in the S&P 500 were posting a 0.1% gain.
Among consumer stocks moving on news:
(+) Kroger (KR) was nearly 6% higher shortly ahead of Tuesday's closing bell after a regulatory filing late Friday showed Berkshire Hathaway (BRK.A,BRK.B) took a new equity stake in grocery store chain. According to the 13F-HR quarterly holdings filing, Berkshire acquired 18.9 million Kroger common shares during the three months ended Dec. 31, paying at $28.99 each.
In other sector news:
(+) GSX Techedu (GSX) rose 8.9% after the Chinese K-12 tutoring company reported sharply improved Q4 financial results also exceeding Wall Street estimates and forecast Q1 revenue above analyst projections. The company earned RMB0.70 per American depositary share during the three months ended Dec. 31, up from RMB0.06 per ADS last year, while revenue grew 413% year-over-year to RMB935 million. Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ.
(+) Advance Auto Parts (AAP) climbed 6.6% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit.
(-) Conagra Brands (CAG) slid 6% after the packaged foods company lowered its FY20 earnings and sales outlook below analyst estimates following weaker-than-expected sales during the recent holiday season and the first month of 2020. Excluding one-time items, it is projecting net income in a range of $2.00 to $2.07 per share, down from its prior forecast expecting $2.07 to $2.17 per share and lagging the Street view expecting $2.09 per share.
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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Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ. (+) Advance Auto Parts (AAP) climbed 6.6% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit. Among consumer stocks moving on news: (+) Kroger (KR) was nearly 6% higher shortly ahead of Tuesday's closing bell after a regulatory filing late Friday showed Berkshire Hathaway (BRK.A,BRK.B) took a new equity stake in grocery store chain.
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Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ. (+) Advance Auto Parts (AAP) climbed 6.6% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit. Consumer stocks turned mixed Tuesday afternoon, with the shares of consumer staples companies in the S&P 500 slipping 0.3% this afternoon while the shares of consumer discretionary firms in the S&P 500 were posting a 0.1% gain.
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(+) Advance Auto Parts (AAP) climbed 6.6% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit. Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ. Consumer stocks turned mixed Tuesday afternoon, with the shares of consumer staples companies in the S&P 500 slipping 0.3% this afternoon while the shares of consumer discretionary firms in the S&P 500 were posting a 0.1% gain.
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(+) Advance Auto Parts (AAP) climbed 6.6% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit. Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ. Top Consumer Stocks
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11158.0
|
2020-02-18 00:00:00 UTC
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Tuesday Sector Leaders: Utilities, Services
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AAP
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https://www.nasdaq.com/articles/tuesday-sector-leaders%3A-utilities-services-2020-02-18
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nan
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nan
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The best performing sector as of midday Tuesday is the Utilities sector, higher by 0.6%. Within that group, Evergy Inc (Symbol: EVRG) and Xcel Energy Inc (Symbol: XEL) are two large stocks leading the way, showing a gain of 1.9% and 1.6%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.8% on the day, and up 9.78% year-to-date. Evergy Inc, meanwhile, is up 13.24% year-to-date, and Xcel Energy Inc is up 12.40% year-to-date. Combined, EVRG and XEL make up approximately 5.5% of the underlying holdings of XLU.
The next best performing sector is the Services sector, up 0.2%. Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Kroger Co (Symbol: KR) are the most notable, showing a gain of 5.8% and 5.3%, respectively. One ETF closely tracking Services stocks is the iShares U.S. Consumer Services ETF (IYC), which is up 0.2% in midday trading, and up 4.03% on a year-to-date basis. Advance Auto Parts Inc, meanwhile, is down 11.73% year-to-date, and Kroger Co is up 3.05% year-to-date. Combined, AAP and KR make up approximately 1.0% of the underlying holdings of IYC.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, two sectors are up on the day, while seven sectors are down.
SECTOR % CHANGE
Utilities +0.6%
Services +0.2%
Technology & Communications -0.5%
Financial -0.7%
Industrial -0.7%
Consumer Products -0.9%
Materials -1.2%
Healthcare -1.3%
Energy -1.3%
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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Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Kroger Co (Symbol: KR) are the most notable, showing a gain of 5.8% and 5.3%, respectively. Combined, AAP and KR make up approximately 1.0% of the underlying holdings of IYC. Combined, EVRG and XEL make up approximately 5.5% of the underlying holdings of XLU.
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Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Kroger Co (Symbol: KR) are the most notable, showing a gain of 5.8% and 5.3%, respectively. Combined, AAP and KR make up approximately 1.0% of the underlying holdings of IYC. Within that group, Evergy Inc (Symbol: EVRG) and Xcel Energy Inc (Symbol: XEL) are two large stocks leading the way, showing a gain of 1.9% and 1.6%, respectively.
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Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Kroger Co (Symbol: KR) are the most notable, showing a gain of 5.8% and 5.3%, respectively. Combined, AAP and KR make up approximately 1.0% of the underlying holdings of IYC. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.8% on the day, and up 9.78% year-to-date.
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Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Kroger Co (Symbol: KR) are the most notable, showing a gain of 5.8% and 5.3%, respectively. Combined, AAP and KR make up approximately 1.0% of the underlying holdings of IYC. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.8% on the day, and up 9.78% year-to-date.
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11159.0
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2020-02-18 00:00:00 UTC
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Consumer Sector Update for 02/18/2020: AAP,GSX,CAG
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-02-18-2020%3A-aapgsxcag-2020-02-18
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Top Consumer Stocks
WMT +1.22%
MCD -0.31%
DIS -0.62%
CVS +0.06%
KO -0.51%
Consumer stocks were inching lower on Tuesday, with shares of consumer staples companies in the S&P 500 slipping 0.4% this afternoon while shares of consumer discretionary firms in the S&P 500 were dropping 0.2%.
Among consumer stocks moving on news:
(+) Advance Auto Parts (AAP) climbed 7% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit.
In other sector news:
(+) GSX Techedu (GSX) rose 9.3% after the Chinese K-12 tutoring company reported sharply improved Q4 financial results also exceeding Wall Street estimates and forecast Q1 revenue above analyst projections. The company earned RMB0.70 per American depositary share during the three months ended Dec. 31, up from RMB0.06 per ADS last year, while revenue grew 413% year-over-year to RMB935 million. Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ.
(-) Conagra Brands (CAG) slid 5% after the packaged foods company lowered its FY20 earnings and sales outlook below analyst estimates following weaker-than-expected sales during the recent holiday season and the first month of 2020. Excluding one-time items, it is projecting net income in a range of $2.00 to $2.07 per share, down from its prior forecast expecting $2.07 to $2.17 per share and lagging the Street view expecting $2.09 per share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among consumer stocks moving on news: (+) Advance Auto Parts (AAP) climbed 7% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit. Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ. In other sector news: (+) GSX Techedu (GSX) rose 9.3% after the Chinese K-12 tutoring company reported sharply improved Q4 financial results also exceeding Wall Street estimates and forecast Q1 revenue above analyst projections.
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Among consumer stocks moving on news: (+) Advance Auto Parts (AAP) climbed 7% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit. Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ. In other sector news: (+) GSX Techedu (GSX) rose 9.3% after the Chinese K-12 tutoring company reported sharply improved Q4 financial results also exceeding Wall Street estimates and forecast Q1 revenue above analyst projections.
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Among consumer stocks moving on news: (+) Advance Auto Parts (AAP) climbed 7% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit. Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ. Consumer stocks were inching lower on Tuesday, with shares of consumer staples companies in the S&P 500 slipping 0.4% this afternoon while shares of consumer discretionary firms in the S&P 500 were dropping 0.2%.
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Among consumer stocks moving on news: (+) Advance Auto Parts (AAP) climbed 7% after the retailer reported adjusted Q4 net income of $1.64 per share, up from $1.17 per share during the year-ago period and easily topping the Capital IQ consensus for $1.35 per share non-GAAP profit. Analysts, on average, had been looking for an RMB0.58 GAAP profit on RMB849.3 in revenue, according to Capital IQ. In other sector news: (+) GSX Techedu (GSX) rose 9.3% after the Chinese K-12 tutoring company reported sharply improved Q4 financial results also exceeding Wall Street estimates and forecast Q1 revenue above analyst projections.
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11160.0
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2020-02-18 00:00:00 UTC
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Advance Auto Parts Guides FY20 Net Sales In Line With Estimates - Quick Facts
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-guides-fy20-net-sales-in-line-with-estimates-quick-facts-2020-02-18
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nan
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nan
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(RTTNews) - While reporting financial results for the fourth quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) initiated comparable store sales and net sales guidance for the full year 2020.
For fiscal 2020, the company now projects net sales in a range of $9.88 billion to $10.10 billion, on comparable store sales increase of 0.0 to 2.0 percent.
On average, analysts polled by Thomson Reuters expect the company to report sales of $9.93 billion for the year.
Last week, the Company's Board of Directors declared a regular quarterly cash dividend of $0.25 per share, payable on April 3, 2020 to all stockholders of record as of March 20, 2020.
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 fourth quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) initiated comparable store sales and net sales guidance for the full year 2020. On average, analysts polled by Thomson Reuters expect the company to report sales of $9.93 billion for the year. Last week, the Company's Board of Directors declared a regular quarterly cash dividend of $0.25 per share, payable on April 3, 2020 to all stockholders of record as of March 20, 2020.
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(RTTNews) - While reporting financial results for the fourth quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) initiated comparable store sales and net sales guidance for the full year 2020. For fiscal 2020, the company now projects net sales in a range of $9.88 billion to $10.10 billion, on comparable store sales increase of 0.0 to 2.0 percent. On average, analysts polled by Thomson Reuters expect the company to report sales of $9.93 billion for the year.
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(RTTNews) - While reporting financial results for the fourth quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) initiated comparable store sales and net sales guidance for the full year 2020. For fiscal 2020, the company now projects net sales in a range of $9.88 billion to $10.10 billion, on comparable store sales increase of 0.0 to 2.0 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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(RTTNews) - While reporting financial results for the fourth quarter on Tuesday, automotive aftermarket parts provider Advance Auto Parts Inc. (AAP) initiated comparable store sales and net sales guidance for the full year 2020. For fiscal 2020, the company now projects net sales in a range of $9.88 billion to $10.10 billion, on comparable store sales increase of 0.0 to 2.0 percent. On average, analysts polled by Thomson Reuters expect the company to report sales of $9.93 billion for the year.
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11161.0
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2020-02-18 00:00:00 UTC
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Advance Auto Parts Inc (AAP) Q4 2019 Earnings Call Transcript
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-inc-aap-q4-2019-earnings-call-transcript-2020-02-18
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Image source: The Motley Fool.
Advance Auto Parts Inc (NYSE: AAP)
Q4 2019 Earnings Call
Feb 18, 2020, 8:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Advance Auto Parts Fourth Quarter and Full-Year 2019 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.
Elisabeth Eisleben -- Senior Vice President, Communications and Investor Relations
Good morning, and thank you for joining us to discuss our fourth quarter and full-year 2019 results. 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 will turn our attention to answering your questions.
Before we begin, please be advised that our comments today include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in such statements due to a number of risks and uncertainties, which are described in the risk factors section in the company's filings with the Securities and Exchange Commission, and we maintain no duty to update forward-looking statements made.
Additionally, our comments today include certain non-GAAP financial measures. We believe providing these measures helps investors gain a more complete understanding of our results and is consistent with how management views our financial results. Please refer to our quarterly press release and accompanying financial statements issued today for additional detail regarding the forward-looking statements and reconciliations of these non-GAAP financial measures to the most comparable GAAP measures referenced in today's call. The content of this call will be governed by the information contained in our earnings release and related financial statements.
Now let me turn the call over to Tom Greco.
Tom Greco -- President and Chief Executive Officer
Thanks, Elisabeth, and good morning. And thank all of you for joining us to discuss our Q4 and full-year 2019 results. I want to begin by recognizing and thanking every single AAP team member in our network of Carquest Independent for their dedication throughout the year. With an unrelenting focus on delivering against our strategic priorities, we made progress on many initiatives throughout 2019 and we plan to continue strengthening the company as we begin 2020.
In Q4, we delivered our seventh consecutive quarter of top line growth with an increase in net sales to $2.1 billion and comparable store sales up slightly, compared to the prior year. We also expanded our adjusted operating income margin rate by 106 basis points in the quarter. This focused effort to deliver margin expansion with lower-than-anticipated sales growth translated to adjusted diluted earnings per share of $1.64, an increase of 40.2% in Q4.
In the quarter, we also completed our acquisition of the iconic DieHard brand, which we're excited to add to our industry-leading assortment of national brands, OE parts and own brands.
For the full-year 2019, our net sales increased 1.3% to $9.7 billion with comparable store sales growth of 1.1%. We delivered adjusted operating margin expansion of 36 basis points year-over-year; adjusted diluted earnings-per-share growth of 14.9% and generated $597 million in free cash flow. Following our second consecutive year of sales growth, margin expansion and strong cash generation, as well as our confidence and ongoing improvements in 2020 and beyond. Our Board approved the first increase to our quarterly cash dividend since the 2014 acquisition. In fact, this was the first increase since AAP introduced it's quarterly dividend in 2006.
Before I turn the call over to Jeff for more details on our financial performance. I want to highlight the operational performance improvements we implemented in 2019, as well as several exciting new initiatives planned for this year, which we expect to enable ongoing top line growth and adjusted OI margin expansion in 2020 and beyond. In Q4, our professional business led our growth rate, highlighted by Worldpac, Canada and our Carquest Independent businesses. As we continue to bring all our professional assets under one roof, we remain focused on providing best-in-class parts availability; improving order to delivery speed and consistency; and strengthening our overall value proposition to our customers.
This includes ongoing enhancements to our one-stop shop professional online platform MyAdvance, as well as improvements to our best-in-class online B2B catalog, Advance Pro. MyAdvance improves the customer experience with fully integrated access to promotions, product information, our pro rewards program, but of reconciliation and key performance indicators. This enables us to leverage customer data to drive engagement, while improving visibility to enroll promotions and customer involvement.
Additionally, we expanded the categories included in the roll out of dynamic assortment with 50 categories now rolled out across nearly 4,000 stores representing over 50% of our back room sales. Dynamic assortment is continuing to improve stock and close rates in key categories. Once fully implemented, we expect dynamic assortment to drive top line improvements through a better understanding of customer demand and utilizing multiple data points to improve availability and help ensure that we have the right part in the right place at the right time.
In terms of our DIY omni-channel business, we had a challenging Q4, particularly in the North. That said, the heavy lifting, we did in the back half of 2019 has resulted in a much stronger DIY plan for 2020, which we believe will build momentum throughout the year. There are four primary areas of focus here: one, launch DieHard; two, build awareness; three, drive loyalty and four, execute with excellence.
But first we're very excited about launching the iconic DieHard brand throughout the Advance network in 2020. DieHard is the number one battery brand among all customers and presents us with several ways we believe we can differentiate our offering and drive increased customer traffic to our retail stores. Our goal of DieHard is to build on its strong reputation, creating a differentiated value proposition, while we're confident the addition of DieHard to our industry-leading assortment will drive incremental growth for DIY omni-channel. We also see the potential to leverage DieHard with our professional customers and Independent Carquest partners. In the future we also believe there is a significant opportunity for brand extension into other categories and geographic expansion of DieHard. Without question both the Advance team and our Carquest Independent are very excited about DieHard.
Second, we're focused on significantly improving awareness of Advance. Our unaided awareness improved in 2019, but still lags our primary competitors by a wide margin. Our 2020 plans are highlighted by a new marketing campaign, including a significant increase in media, which we sourced from pre-existing, lower performing marketing spend. We're confident this new advertising will differentiate the Advance brand over time.
Additionally, we're very excited to leverage our recently announced partnership with Penske Racing and our new driver Ryan Blaney. We'll also continue to drive awareness by improving our digital experience as we know that most transactions start online. Our DIY online business continued to grow traffic and transactions, resulting in double-digit e-commerce growth in both Q4 and the full-year. Our team is also making progress on the expansion of product offerings on walmart.com, including the addition of product reviews that facilitate a frictionless experience for our customers.
Third, we continue to make progress on our loyalty program Speed Perks, and we're excited about the launch of our new mobile app or DIYs in Q1. Our app will make Speed Perks and our mobile experience even more accessible to our loyal customers. When we relaunched Speed Perks 2.0 mid-year under 25% of our DIY transactions were Speed Perks transactions at that point. We finished the year at close to 36%, this enables us to leverage first-party data to personalize our offerings.
In Q4, we added close to 1 million new Speed Perks members, finishing Q4 at close to 12 million active members. In addition, we saw increasing graduation rates from one spending tier to the next. We'll continue to build loyalty behind Speed Perks by leveraging personalization and communicating directly with our customers.
Fourth, our field team continues to improve on key execution metrics, including units per transaction, weekend coverage and Net Promoter Score. In 2020, we plan to improve both the quality and execution of our automotive training for our team members, while improving the customer experience for buy online, pickup in store. The fact that our turnover in front line customer facing role decline in both 2018 and 2019, that's helped us improve execution overall.
In terms of category performance, our Q4 growth was led by brakes, batteries and filters. Due to a weak December, we underperformed on winter-related products, such as starters and alternators, as well as radiators. Geographically, our regional performance was highly vary with our Midwest, West and Central regions delivering mid single-digit growth in Q4, and the largest sales increases on both a one and two-year stack, compared to prior years. These geographies significantly outperformed our weakest geographies in the quarter with our Great Lakes, Northeast and Mid-Atlantic regions trailing the top performing regions by over 600 basis points on average.
To summarize our growth initiatives, we've elevated our focus on differentiating and improving the customer experience for both our Pro and DIY omni-channel business. We remain relentlessly focused on delighting the customer across all of our businesses. Our Pro business continues to build momentum across all banners and we continue to integrate key platform to simplify and improve the customer experience across Advance Pro and MyAdvance. In terms of DIY omni-channel, while it remains a work in progress, we have the strongest marketing calendar of activity on DIY omni-channel in years, with a plan to launch Diehard, build awareness, increase loyalty, and improve execution.
Moving onto our key pillars of margin expansion for 2020 and beyond. Our first priority is to improve sales and profit per store. This includes optimizing our existing footprint, expanding where we're under penetrated, and closing unproductive or underperforming assets where appropriate. Starting with our largest business on the professional side, our team continues to expand our professional footprint to drive share growth. In 2019, we opened 17 new Worldpac branches and continue to add new Carquest Independent locations. In addition to the growth of our existing locations and sourcing new opportunities, our team has also started the consolidation of our Worldpac and Autopart International banners to deliver improved productivity and product assortment across our professional business. This effort will continue throughout 2020.
In addition, behind consistent gradual improvements in execution across our Advance and Carquest stores, our average sales per store has increased from $1.5 million at the end of 2017 to roughly $1.6 million per store at the end of 2019. We're confident we'll continue this growth and are on track to achieve our goal of $1.8 million per store over time. Separately, we continue to address more structural opportunities within our retail stores, which includes a strengthened store refresh program and the ongoing optimization of our store footprint. We expect the actions we're taking to improve sales and profit per store will benefit both DIY and Pro.
Our second margin expansion priority is within our supply chain, and I'm pleased to say we're now in full execution mode on this critical area of our transformation. Our supply chain team has done a thorough review of our entire footprint and we're now executing plans that we believe will significantly enhance our enterprisewide supply chain. With 50 distribution centers today, we have a clear opportunity to further rationalize our footprint over the coming years. Importantly, we will work to optimize the network while improving our service to customers. It's imperative that our DCs have the right part in the right place at the right time, so we win more often.
One of our major supply chain productivity initiatives is cross banner replenishment, which we began to deploy in late 2019. Following the successful lead markets, we're now beginning to scale this capability throughout our DC and expect to be completed by mid-2021. Once fully implemented, we expect we will improve product availability, drive turns, and deliver significant cost productivity.
In addition, we are continuing to invest in the consolidation of several Warehouse Management Systems or WMS for short, the one system across our Advance and Carquest network, which as you can imagine is a significant undertaking. When we began our supply chain transformation, we were dealing with multiple WMS systems, along with extensive manual processes and high turnover in our DCs. Not only is our turnover down significantly in our DCs, our safety performance and engagement scores are now trending in a positive direction. Well, it took time to build the right team and stabilize operations before we introduced a new WMS system, I'm confident we now have the right team in place to help us further our transformation progress.
Importantly, our team recently completed the first conversion to our new WMS platform in one of our largest DC, and that DC is off to a terrific start. We expect this initiative coupled with the implementation of a new labor management system will allow us to run common across our DCs. So we can provide better product availability at more optimal inventory turns and costs. We're currently on track with our supply chain agenda, and I'm excited for what this will deliver in 2020 and beyond.
Our third pillar of margin expansion focus is on category management. Here we've implemented a standardized approach across key categories to facilitate material cost optimization, own brand expansion, and unit and profit growth through strategic pricing. This has been a highly collaborative effort with our supplier partners. In terms of material cost optimization, while unplanned tariffs reduce the benefit of our performance in 2019, we made good progress on MCL, both in Q4 and for the full-year.
For own brand expansion, we began to roll out additional Carquest branded products in the back half of 2019. We're working to ensure the highest of quality in our Carquest brand roll out as this brand resonates so strongly with our professional garages. In parallel, we have been exploring own brand opportunities for DIY with our suppliers, with DieHard being the best example of this to-date.
Finally, we expect to deploy our new pricing platform by mid-year. This will enable single price execution across all channels to provide consistent and more efficient management of our pricing. A big benefit of this new capability will be the ability to centrally price right down the store level if needed.
Finally, SG&A productivity rounds off the fourth pillar of our margin expansion. SG&A was a highlight of our 2019 performance as our team continues to make excellent progress in managing our costs. In the fourth quarter, we were able to leverage our labor-related costs, including store labor as a percent of sales, in spite of wage inflation and lower-than-expected sale. This was largely driven by the improvements from our new store level labor management system, which we rolled out in Q3.
Additionally, our diligent efforts to build a culture of safety is becoming ingrained in how our team members work, leading to a reduction in our liabilities and claims expenses across the organization, which benefited the quarter and the year. In fact, we lowered our total recordable injury rate by 8% in 2019 and our LTIR or Lost Time Injury Rate, which represents the worst safety incidents was reduced by an impressive 17%, compared to 2018.
Finally, we continue to make progress on rent in the quarter and in the year. For the full-year, we leveraged our occupancy in base rent by roughly 20 basis points. To wrap up, our SG&A performance we made good progress across multiple lines, enabling us to leverage SG&A to drive margin expansion, while at the same time we made significant investments in technology, e-commerce and supply chain in 2019.
In summary, 2019 was a year of continued progress for AAP, as we registered another year of top line growth and margin expansion, while making important long-term investments. In terms of our outlook for 2020, we previously discussed that this year would be similar to 2019 in terms of investment requirements. With that said, some additional items for you to keep in mind. First, as you probably know, we've just experienced the warmest January in history, which is expected to impact demand in the front half of the year. From an AAP standpoint, we also expect the elevated coupon investment we're making in our loyalty platform to continue in the front half of 2020.
On the positive side of the equation, industry dynamics remain very attractive. This includes continued increases in the car park, miles driven, as well as an increase in vehicles greater than seven years old. All of these are projected to have a favorable impact on demand throughout 2020. Further, we also expect our Pro and DIY initiatives to build top line momentum through the year.
Finally, I'm confident in our team's ability to continue our margin expansion trajectory and deliver further progress against our strategic objectives in 2020. All of these factors are contemplated in the full-year guidance we introduced in our press release this morning.
In summary, we remain very excited about the tremendous opportunity ahead to fully unlock the potential of AAP, and we're committed to driving consistent improvement across the enterprise over the next several years.
With that, I'll turn it over to Jeff for details on our financial performance.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Thank you, Tom, and good morning everyone. In the fourth quarter, our adjusted gross profit was approximately $929 million, which was essentially flat, compared to the prior year quarter. Adjusted gross profit margin of 44% declined 19 basis points from the prior year quarter, primarily driven by LIFO headwinds, as well as the expected headwinds from continued investment in our enhanced loyalty program Speed Perks 2.0. These headwinds were partially offset by pricing actions taken in the quarter.
Our adjusted SG&A was approximately $779 million in Q4 2019, compared to approximately $802 million in Q4 2018. As a percentage of net sales, our adjusted SG&A expenses improved by 125 basis points to 36.9%. I'm pleased with our team members' dedication to control costs throughout 2019, which enable us to leverage expenses every quarter. In Q4, we leveraged labor-related costs, and once again reduced our insurance and claims expense, the key training programs and focus on safety, drove improvements across the organization.
Adjusted operating income in Q4 was $150 million, which improved nearly 18%, compared to the prior year quarter. Our adjusted OI margin rate increased 106 basis points to 7.1% in the quarter. Adjusted diluted EPS for Q4 was $1.64, an increase of 40.2%. For the full-year, net sales were $9.7 billion, an increase of 1.3%, compared to 2018, and comp sales improved 1.1%.
Adjusted gross profit for the year increased 1.1% to $4.3 billion, and adjusted gross profit margin decreased 12 basis points to 44%. Adjusted SG&A for the year was flat, compared to 2018 at $3.5 billion. On a rate basis, our full-year adjusted SG&A was 35.8%, which was an improvement of 48 basis points, compared to the previous year.
Adjusted operating income for the year was $795 million, an increase of 6%, compared to the end of 2018. Our adjusted operating margin was 8.2% for 2019, which increased 36 basis points, compared to the full-year of 2018. Adjusted diluted EPS increased 14.9% to $8.19, compared to $7.13 at the end of 2018.
Moving to free cash flow. We delivered $597 million in 2019, which was lower than our expectations. Factors negatively impacting working capital includes higher-than-expected increases in both our receivables and inventory. We also realized an unfavorable payment term mix within vendor payables. This was driven by an increase in Worldpac inventory, associated with the opening of Worldpac branches, which carry shorter payment terms, as well as an unfavorable mix impact within Advance and Carquest vendor payables. These factors resulted in higher cash outflows at year-end than we previously modeled.
Consistent with increasing capital spend throughout 2019, our capex in Q4 was $101 million, bringing the full-year spend to $270 million, an increase of 39.4% year-over-year. As we have previously discussed, our investments are primarily focused on information technology and supply chain projects. And in 2019, more than 60% of our capital spend was concentrated on these two critical areas.
Our IT initiatives continue to address long-standing lack of investment in critical systems and back office integrations, which we expect to continue in 2020 and beyond. Nearly one-third of our IT spend in 2019 focus on customer-facing systems, and I'm pleased with the near completion of our NextGen store system upgrade across our footprint. In addition, throughout 2019, our team worked diligently on our finance ERP project, which integrates our back office finance systems. We went live with our first release in this new system at the start of our fiscal 2020, and I'm confident the continued roll out of this initiative will create significant efficiencies across our organization.
In addition, our supply chain team worked relentlessly throughout the year to stabilize existing operations. We invested in DC improvements in 2019, with additional plans for 2020, including network upgrades and continued roll out of our single warehouse management system across our legacy Advance and Carquest network to enable improved accuracy and efficiencies within the distribution centers.
In line with our financial priorities to maintain an investment grade rating, invest in the business and opportunistically return capital to shareholders. Under our current share repurchase program, we repurchased nearly $11 million of Advance stock during the fourth quarter, and a total of approximately $487 million for the year. Importantly, we remain confident in our ability to generate meaningful cash from the business.
As you saw yesterday, we are pleased to announce our Board has approved a meaningful improvement to our quarterly dividend, which was increased from $0.06 to $0.25. We're committed to a balanced approach in returning capital to our shareholders, while making important investments to drive our transformation. As we begin 2020, we remain focused on our strategic objectives and discipline in our execution to deliver against our financial priorities.
With that said, this morning, we introduced our 53-week full-year 2020 guidance for several key metrics; including net sales of $9.88 billion to $10.1 billion; comparable store sales growth of flat to 2%; adjusted operating income margin expansion of 20 basis points to 50 basis points; capital expenditures of $275 million to $325 million; focusing on continued IT and supply chain investments. The 2020 tax rate is expected to be 24% to 26%, and as we continue our disciplined approach to cash management, we expect to deliver a minimum free cash flow of $600 million.
As a reminder, 2020 includes the 53rd week. Our financial outlook provided today includes an estimated $125 million to $150 million in net sales, and approximately 10 basis points to 20 basis points of margin expansion from the 53rd week contribution.
In summary, I want to reiterate our gratitude that Tom began with today to all our team members and independent partners for their efforts throughout 2019, which enabled our continued progress toward our transformation objectives. We remain committed to further improvements in 2020 to remain disciplined in our approach to capitalize on the significant opportunity still ahead for AAP.
With that, let's open the call to address your questions, operator?
Questions and Answers:
Operator
[Operator Instructions] Matt McClintock with Raymond James. Your line is open.
Matt McClintock -- Raymond James -- Analyst
Yes. Good morning, everyone. Tom, I was wondering about the initial guidance for 2020. Just the comp expectation is 0% to 2%. Can you kind of give us an idea of how you factored in the warm weather from December into that expectation?
Tom Greco -- President and Chief Executive Officer
Sure. Good morning, Matt. So let me provide some color on that. First of all, we're very dedicated to the long-term strategic objectives we've laid out before and that includes some investments this year that we're making as we communicated in the past, both '19 and '20 being somewhat similar in that regard. And those investments are designed to enable top line growth and additional margin expansion down the road. So as we looked at the sales guide, we did a lot of work on the December-January time frame, and we factored in the impact of what -- at least at this point is an extremely mild winter, compared it to other years, you guys have written about some of this 2017, 2012, it was one of the warmest in history for North America this year December-January. And given our Northern footprint, we valued the impact that's going to have on top line sales really in the front half of the year.
Considering this, and the fact that it's very early in the year, we're being prudent on the sales guidance. That said, there's a lot, we're very excited about for 2020 in longer term on the sales front. As you've heard from others, the industry drivers of demand are very positive. The car park is continuing to grow. We're going to cross $280 million this year. Miles driven continues to increase, and the vehicles in the sweet spot. In addition to that, the vehicle is about seven years and greater is growing. So those are all positive impact and that will benefit the whole year.
Separately, obviously we've got a number of top line initiatives across Pro and DIY that will build throughout the year including -- pardon me, our launch of DieHard. So in terms of margin expansion and cash flow, our plans are very robust and we're continuing to execute against them. So that was kind of the thinking that went into sales. The building blocks of our plan are continuing to work nicely together. We've got a great team that's poised to deliver against the guidance. We've delivered sales growth and margin expansion two years in a row and we intend to do that again in 2020.
Matt McClintock -- Raymond James -- Analyst
And then just as a follow-up on DieHard specifically. Could you talk through how we should conceptualize the launch? How you plan about going about launching it? How we should think about the benefit from that launch? Thanks.
Tom Greco -- President and Chief Executive Officer
Sure. Well, as we've talked when we issued the original press release, there is a tremendous amount of strategic and financial rationale for us behind DieHard. It gives us the opportunity to really differentiate within, particularly inside of DIY. As you know, DIY traffic is our number one customer and business issue. And all the work that we've done says that DieHard can really help us with that. It enables us to differentiate with DIY customers brands, matter to DIY customers, and we'll be able to differentiate there. We also plan to build out a unique position on Pro with DieHard, so we're excited about that also.
But as you think about the launch, we're not communicating any specific timing or anything like that right now, but we're obviously working very diligently to build out the launch plan for DieHard, and needless to say, it will benefit us more in the back half of the year than the front half.
Matt McClintock -- Raymond James -- Analyst
I appreciate the color. Best of luck.
Tom Greco -- President and Chief Executive Officer
Thank you.
Operator
Seth Sigman with Credit Suisse. Your line is open.
Seth Sigman -- Credit Suisse -- Analyst
Hey guys, good morning. Thanks for taking the question. Just -- I'm going to ask a couple of upfront. Just the Q4 cadence, obviously, December was very challenging. I'd love to just see your observations what you guys were seeing prior to that, because it seems like seasonally it should have been in a better place. So just any color on how the quarter was performing prior to the December slowdown?
And then just second, as you think about the guidance, the margin guidance for 2020, up 10 basis points to 30 basis points excluding the extra week. Can you just break this -- break that down a little bit more between gross margin and SG&A? And just that SG&A piece related to the fourth quarter, the sustainability of some of the benefits that you saw this past quarter? Any color on that. That'd be helpful. Thank you.
Tom Greco -- President and Chief Executive Officer
Yes. And good morning, Seth. I'll take the first one I'll flip it the second question over to Jeff. In terms of December -- October, November, December, I mean, it wasn't that different at the national level. We did see a slowdown in December, but it was a market difference geographically, as we called out in our script. First of all, in the West, in the Midwest, in Central, there -- it was very cold in October, we had a very strong October, November in those geographies. We didn't get that benefit necessarily in the Northeast, Mid-Atlantic and Great Lakes and as we got into December when it was much warmer in those geographies that really pulled down our business in December overall. So I think the headline there is the difference. The distribution was quite wide geographically for us in the quarter. As we said, over 600 basis points between the top three and bottom three.
Jeff, do you want to cover off the other?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yes, sure. I'll start with the fourth quarter, Seth, and then work into the guidance for 2020. Fourth quarter, you saw SG&A improved a 125 basis points. Three broad categories, the labor and labor-related, we did leverage store labor in the fourth quarter. We saw some improvements in our marketing programs as Jason McDonnell comes in and looks at some of the underperforming spend, we pulled back on some of that. And then for the fourth quarter in a row, we've seen improvement in insurance and claims, and this is really some favorability around some of our actuarial assessments. So throughout the year what we've seen is improvements in both the volume of claims and the severity of claims. And those are two key contributors to an it -- actuarial valuation to estimate out into the future what do you think your costs are going to be. Those are going to come down albeit slow. So that sort of gets into 2020.
We think we're going to continue to see improvements in the areas of labor of supply -- sorry of safety. Safety what I just discussed; labor, we're going to continue to leverage My Day. We believe we can continue to see improvements there. We have integrations going on in the back office we've talked about the ERP, we're going to see second half savings there, and we're also integrating AI and Worldpac. So as we continue to get synergies around that, we'll see savings in SG&A.
Now stepping back to 2020, as we think about where we're going to see the expansion, we do think we're going to see savings, but we also have a significant amount of investment. Similar to what we guided last year, we're going to continue to have opex investment this year in marketing, in people, in supply chain, and in IT. We -- at this point, we think we're going to see more of the improvement in our margin -- in gross margin.
And that's largely driven by two factors: first is the supply chain, and we've been working on this for a couple of years now, and we said it was going to take more time. We're going to start to see those improvements in supply chain in 2020. And then the second is category management, which is a combination of MCO, Material Cost Optimization, private label, and pricing. And the combination of those items we really think we're going to see the benefit as we sit here today more in gross margin and less in SG&A as we take on some of those opex investments within SG&A.
Seth Sigman -- Credit Suisse -- Analyst
Okay. Great. Thank you for all the color. Appreciate it.
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Welcome.
Operator
Michael Lasser with UBS. Your line is open.
Atul Maheswari -- UBS -- Analyst
Good morning. This is Atul Maheswari on for Michael Lasser. Thanks a lot for taking our questions. First question is on the weather commentary. So why have you factored in the weather impacting only the front half of the year. Back in 2017 when we kind of had a similar mild winter, I believe it led to subdued sales for the industry throughout the year. So why would this be any different?
Tom Greco -- President and Chief Executive Officer
Yes. We didn't actually find that. We did the work category by category, geography by geography, we compared the differences, we did see it in the second quarter, but we did not see an impact in the back half of those years, at least for our sales.
Atul Maheswari -- UBS -- Analyst
Got it, and it's very helpful. And as my follow-up question. Can you talk about the current trends in the first quarter? Basically, where are you tracking compared to your flat to zero -- flat to 2% comp guidance for the full-year? Basically, I'm better trying to understand the degree of acceleration needed in the back half to achieve this guidance?
Tom Greco -- President and Chief Executive Officer
Yes, we're not going to comment on in-quarter performance, but obviously we did say that January was very warm. So our -- implied in our guide is acceleration in the back half of the year.
Atul Maheswari -- UBS -- Analyst
Thank you.
Operator
Simeon Gutman with Morgan Stanley. Your line is open.
Michael Kessler -- Morgan Stanley -- Analyst
Hey guys. This is Michael Kessler on for Simeon. Thanks for taking our questions. First, I just wanted to ask about the comp relative to the operating margin growth expectation for 2020. It seems like comp is a fair guide given the backdrop and still guiding to solid margin expansion. I just want to ask you, how confident are you that you can achieve that given potentially a lower comp with the weather headwinds? And how much of the margin expansion, especially on gross margin is really not even dependent on sales growth? Do you think you can get it regardless of the top line?
Tom Greco -- President and Chief Executive Officer
Sure. Well, first of all, we're excited about the fact that in the fourth quarter we delivered margin expansion amid a quarter where we -- our sales were lower than we expected. So we've always known we've got a tremendous opportunity to expand margins. We've been working on our agenda for a couple of years now. And the four big territories that we have for margin expansion, the majority of that upside is not sales dependent. So if you think about supply chain, we're going to essentially roll out cross banner replenishment, which is nothing more than repointing a store at a distribution center that's closer to the store than the previous one, so that's in full roll out right now.
We're standing up a warehouse management system platform that will enable us to standardize our labor management throughout the supply chain, that is not sales dependent. We're integrating Worldpac and AI, as Jeff just mentioned. Big opportunity there for us to not only save money, but also to improve our assortment offering and availability to our customers, but most of the supply chain agenda has nothing to do with any sales dependency. Separately, we're rolling out inside of category management, our own brand platform. Jeff has stood up a pricing function, we've got a new pricing platform that were software tool that we're standing up in the middle of 2020 that will enable us to price right down to store level and price regionally, which we can't do today. So again, not necessarily sales dependent.
And then SG&A, Jeff just covered, but really nothing inside of their sales dependent, whether that's the integration of our back office platforms, improves safety performance, indirect procurement, improving our performance on medical, all of those things are going to happen independent of sales. So I think the key point is, obviously, we want our sales to grow as rapidly as possible and we remain focused on building on our plans there, but our opportunity to expand margins is not as sales depend as it might be in other companies.
Michael Kessler -- Morgan Stanley -- Analyst
Great. Thanks. Appreciate that and the color. And just as a follow-up. So we've been hearing that some suppliers are advising, you know, some of the major DIY auto distributors that the parts supply out of China could be constrained by what we're seeing with coronavirus. I know you guys a little less exposed to DIY than some of your competitors, but could you comment on what you're seeing or hearing thus far and whether there is any contingency you're building in at your guidance for any disruptions?
Tom Greco -- President and Chief Executive Officer
Yes, well first of all, from a business standpoint, to be clear, our guide does not contemplate any impact from the coronavirus. As you said, it's pretty much a level playing field. All of the major players in our industry source from China. But even compared to other industries, Auto Parts is relatively low, I think we've communicated in the past, at least at Advance, we're in the teens roughly in terms of products sourced from China. We have several months of inventory depending on the product we've got. Obviously, our own infrastructure here in the US, we've also got a distribution center that has additional inventory in Shanghai. So we're going to continue to monitor closely. But at the moment, we don't see any impact in supply disruption from us -- for us in 2020. But it's obviously a very dynamic situation and we've got to continue to monitor it very closely.
Michael Kessler -- Morgan Stanley -- Analyst
Great. Thank you.
Operator
Seth Basham with Wedbush Securities. Your line is open.
Seth Basham -- Wedbush Securities -- Analyst
Good morning. My question is around your supply chain progress. Clearly, you're making a lot of progress integrating your supply chain. Could you give us some perspective on types of financial benefits and other things that you're realizing from the DCs that you converted thus far, that would be really helpful.
Tom Greco -- President and Chief Executive Officer
Sure, Seth. I mean, first of all, I'm really excited about what Reuben Slone and his team are doing inside of supply chain. Again, it's taken us longer than we might have liked, but we're not only improving the effectiveness -- the efficiency of the supply chain, the effectiveness is going up as well. And as you know, it's one of our biggest opportunities to not only expand margins, but improve availability.
So I think he has really three big chapters that they're focused on: the first, is driving execution where there has been a number of leadership upgrades and a focus on reducing turnover in those DCs, which we made a lot of progress on in 2019, I believe we'll continue to make progress on in 2020.
The second is, we call invest to make it better, I cover those a minute ago, but again that's really changing the physics, if you will of our supply chain DC optimization, cross banner replenishment, driving execution through the WMS system and I actually was at our first distribution center that we've stood up the new WMS system very exciting. I mean, as we indicated in our prepared remarks, we've had multiple warehouse management systems, a lot of manual processes and to go to a single warehouse management system across the entire Advance, Carquest network has huge upside for us. It will help us improve our availability and obviously standardize the actions are going on in those DCs. We've talked about Worldpac and AI separately, which is also part of this invest to make it better chapter.
And then third, we talked about innovation. And in there, we've got things like our DC automation projects that we're working on. So, the value of the supply chain productivity agenda is significant. I think we've indicated, it's right there at the top of our opportunities to expand margins, and I'm very confident in our ability to improve within supply chain and not only expand margins as I said, but to improve availability and drive top line growth as a result.
Seth Basham -- Wedbush Securities -- Analyst
That's really helpful. And just as a follow-up, as you think about the financial benefits from the supply chain initiatives. Do you expect them to ramp through the year 2020. And similarly, would that mean that gross margin improvement over the year should also ramp?
Tom Greco -- President and Chief Executive Officer
Yes, I mean, we're now at a point where we expect to leverage supply chain through the year. And I think it's pretty evenly distributed throughout the year in the case of supply chain. And in other areas, I mean, Jeff mentioned the coupon investment that we've made inside of Speed Perks that's mostly a front half investment on the gross margin side of the house. So that will improve in the back half, but the supply chain is relatively uniform through the year.
Seth Basham -- Wedbush Securities -- Analyst
Thank you very much.
Operator
Scot Ciccarelli with RBC. Your line is open.
Sullivan -- RBC Capital Markets -- Analyst
Hi, good morning. This is actually Sullivan [Phonetic] calls on for Scot. Thanks for taking our question. So just quick one on, just wanted to get to know if you can sort of quantify the gross margin comp impact during the quarter from the coupon redemption?
Tom Greco -- President and Chief Executive Officer
Yes, what we've said is that it was similar to what we experienced in the third quarter. We're not going to break it out specifically, but think about a comparable number on a rate basis. And so it had a comparable impact on our net sales, gross margin than we saw in the third quarter.
Sullivan -- RBC Capital Markets -- Analyst
Got it. And then -- that's helpful and then anything on just sort of on a go-forward basis, you just kind of mentioned, it's going to impact the first half year and it's going to be similar, kind of, decelerating? To what degree? That would be helpful.
Tom Greco -- President and Chief Executive Officer
Yes, what we said was that we did, obviously the coupons associated with the original Speed Perks platform are no longer available, so they're expired. So we're seeing less redemption than we did in the back half of the year, it's still greater than we saw at the beginning of 2019, but it's less as on a rate basis, but we think this is an important investment for us to be making it gives us, we were able to add new members. As we said, we added about 1 million members to Speed Perks. We also are seeing less -- if you think about traction, retention and graduation, so we're attracting new members in, about a million in the quarter. We're losing less people, so our net number is continuing to grow. And then, we're graduating people up the tiers, and that allows us to personalize and leverage first-party data. So, very excited about Speed Perks and its ability to improve our loyalty with our most loyal customers.
Sullivan -- RBC Capital Markets -- Analyst
Got it. Thanks, guys.
Operator
Daniel Imbro with Stephens, Incorporated. Your line is open.
Daniel Imbro -- Stephens Inc -- Analyst
Hey, good morning, guys. Thanks for taking our questions. Jeff, one for you. Starting on MCO, it was a big success, it sounds like, in the fourth quarter, helped kind of limit the gross margin degradation. I think about a year ago, you guys said you're about 80% through capturing the material cost optimization savings. How far along are we today in terms of capturing those savings? And should that tailwind diminish through 2020 or have you guys unlocked more opportunity there?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yes, sure. The material cost optimization is really an iterative process. So, we have been through all of our categories. So, we're in the process now of going back through certain categories that, maybe a year ago, we've already been through, but we're looking at all of the various aspects, whether it'd be costs, whether it'd be packaging, whether it'd be supply chain financing. We still think we have a significant opportunity there. And so, we're going to continue to do that on an ongoing basis. And we're also looking at it at an enterprise level. Because when we first started, kind of the first round, AAP/CQ was our focus. We're now going back as an enterprise focus to bring in AI and Worldpac. So, again, really going to iterate on that. We believe we're going to continue to see benefits to that in 2020 and beyond.
Daniel Imbro -- Stephens Inc -- Analyst
Helpful. And then, maybe just follow-up to an earlier question. Tom, I think you mentioned and talked to the cadence of gross margin expansion in 2020. But as we take a step back and think further, when should we see the full run rate savings from the multiple warehouse systems and the new systems there? Is that a first half of 2021 time frame or kind of when should that be full run rate in the cost?
Tom Greco -- President and Chief Executive Officer
Yes, I think inside of -- the different initiatives, right, have different timelines, Daniel. So, in terms of DC optimization, that's going to spread out over a couple of years, OK? That's two to three years. In terms of cross banner replenishment, we expect to complete that by the middle of 2021, OK? So, that's essentially 18 months out. We're in the process of pointing stores at a more freight logical location right now and we're just kind of going through that market by market and we'll realize the full benefit by that time frame.
In terms of the warehouse management system, that's going to take a little bit longer than that. We've, obviously, got to make sure that we've got everything ready. We're going through that market-by-market as well. We stood up one building. That's more like 2022, 2023 time frame. We haven't landed on the final date there. It depends on how quickly we're able to make the transition with these DCs and the training and everything that needs to go there. Worldpac/Auto Part International integration, early 2021. So, you've got a combination of things there. But as I said, we will leverage the supply chain this year. And next year, we expect to leverage supply chain and then get the full benefit. I think you'll see into 2022, you're going to see the full benefit of most of the big initiatives.
Daniel Imbro -- Stephens Inc -- Analyst
Got it. That's helpful. Thanks, guys.
Operator
Michael Montani with Evercore ISI. Your line is open.
Antonio Tabet -- Evercore ISI -- Analyst
Hi, this is actually Antonio filling in for Mike. I just want to shift gears a little bit to talk about multi-channel. So, also, can you give a breakdown -- before that, can you give a breakdown of how the DIY consumer is performing? Because I know, earlier, you mentioned commercial is strong, but also from the walmart.com partnership, are you seeing a meaningful impact to the DIY segment? Thanks.
Tom Greco -- President and Chief Executive Officer
Yes. First of all, in terms of DIY, in isolation -- I'm going to take DIY in total. We did improve in the back half of 2019 versus where we were in the front half. We do attribute at least part of that to the launch of Speed Perks. There's so much upside there yet for us that we're going to really tap into this year based on all the big initiatives that we've put in place that we're still very focused on the improvements there, but we did improve in the back half of the year.
Walmart is not a meaningful number yet, and we're continuing to work with the Walmart team, they've been a great partner on this. What we're very focused on is making sure the customer experience is best-in-class. And as we go through each initiative with them, we've got to ensure that the online experiences working for our DIYer and, obviously, the fulfillment experience is working well. So, we're adding those categories, those SKUs where we feel comfortable with that and they feel comfortable with that. And when we're ready to launch, we've got to make sure that the customer experience is right before we launch the different categories, I guess is the key point.
Antonio Tabet -- Evercore ISI -- Analyst
All right. And just a quick follow-up to that. Is it fair to say that some of that benefit you're seeing there will be realized in 2020? Or is this more of a long-term initiative that you'll see in 2021, for example?
Tom Greco -- President and Chief Executive Officer
We'll definitely see some benefit in 2020. But to your point, this is very much a multi-year long-term partnership with Walmart. And with all the initiatives that we have going on and they have going on, we're making sure the customer experience is best-in-class. That's kind of at the center of everything we do when we meet together with that team. We're very focused on making sure that the customer experience is where it needs to be.
Antonio Tabet -- Evercore ISI -- Analyst
Got it. Thanks, guys.
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.
Bret Jordan -- Jefferies -- Analyst
Could you talk about what you saw from inflation in the fourth quarter and what you're expecting inflation impact on 2020 to be?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yes, sure. In terms of pricing inflation, we saw right around, on a like-for-like SKU, about 2.8%. And we're modeling for 2020 about 2% from a pricing inflation standpoint.
Bret Jordan -- Jefferies -- Analyst
And that 2% will be skewed to the first half before you lap the tariffs or is that sort of evenly equated?
Jeff Shepherd -- Executive Vice President and Chief Financial Officer
Yes. Yes. So, that's including -- tariffs are sort of the same.
Bret Jordan -- Jefferies -- Analyst
Okay. And then, a question on DC optimization. As you start rolling out some of the cross banner. What do you see the right number of DCs being? If you've got 50 in three years, what's that count? And how many of the DCs you see in the future do you currently own or what, kind of, DC buildout might you require?
Tom Greco -- President and Chief Executive Officer
Yes. First of all, we're not going to provide a specific number there, Bret, obviously. We've announced these DC closures very thoughtfully. And we've got our own people in those buildings. We want to make sure that we do it the right way, etc. So, we're not going to break any of that out. But, obviously, there is a big opportunity for us to further rationalize inside of our network. And we do that by looking at the sales in the out years and geographically, how can we ensure that we don't have a service challenge. We did close Armonk in New York and repointed stores at relevant DCs, and that's gone very smoothly.
So, we've now -- I think we're up to four in total that we've closed to date. And we've got it down. So, it's just a matter of phasing that out over time. So, you'll hear more about that when we have something to say and we've had our chance to speak to our people first. In terms of own -- yes, I don't think -- Jeff -- yes, we'll have to get back to you on that, on owned versus lease. We'll get back to you on that. We've [Speech Overlap]
Bret Jordan -- Jefferies -- Analyst
The question was more what's in the portfolio. If you see a 30 DC network in three years, are there DCs that you're going to need to build out or do you have most of what you need to rationalize your distribution?
Tom Greco -- President and Chief Executive Officer
We do feel we have most of what we need. Keep in mind, we also have Worldpac out there in places like California. So, as Bob starts to integrate the assortment across all the banners, we look at all of the assets of the company. So, it's not just red and blue, if you will.
Bret Jordan -- Jefferies -- Analyst
Thank you.
Operator
There are no further questions at this time. I would now like to turn the call back over to the presenters for closing remarks.
Tom Greco -- President and Chief Executive Officer
Well, thanks to everyone for joining us this morning. 2019 was an important year in our journey. And as you heard this morning, we're making progress toward our long-term objectives, including consistent, gradual improvements to enable meaningful top line growth, margin expansion and strong cash generation. I'm confident in our team's ability to deliver further progress in 2020 and beyond. Thanks for joining.
Operator
[Operator Closing Remarks]
Duration: 59 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
Matt McClintock -- Raymond James -- Analyst
Seth Sigman -- Credit Suisse -- Analyst
Atul Maheswari -- UBS -- Analyst
Michael Kessler -- Morgan Stanley -- Analyst
Seth Basham -- Wedbush Securities -- Analyst
Sullivan -- RBC Capital Markets -- Analyst
Daniel Imbro -- Stephens Inc -- Analyst
Antonio Tabet -- Evercore ISI -- Analyst
Bret Jordan -- Jefferies -- Analyst
More AAP analysis
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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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Advance Auto Parts Inc (NYSE: AAP) Q4 2019 Earnings Call Feb 18, 2020, 8:00 a.m. Additionally, our comments today include certain non-GAAP financial measures. Please refer to our quarterly press release and accompanying financial statements issued today for additional detail regarding the forward-looking statements and reconciliations of these non-GAAP financial measures to the most comparable GAAP measures referenced in today's call.
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Operator [Operator Closing Remarks] Duration: 59 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 Matt McClintock -- Raymond James -- Analyst Seth Sigman -- Credit Suisse -- Analyst Atul Maheswari -- UBS -- Analyst Michael Kessler -- Morgan Stanley -- Analyst Seth Basham -- Wedbush Securities -- Analyst Sullivan -- RBC Capital Markets -- Analyst Daniel Imbro -- Stephens Inc -- Analyst Antonio Tabet -- Evercore ISI -- Analyst Bret Jordan -- Jefferies -- Analyst More AAP analysis All earnings call transcripts 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. Advance Auto Parts Inc (NYSE: AAP) Q4 2019 Earnings Call Feb 18, 2020, 8:00 a.m. Additionally, our comments today include certain non-GAAP financial measures.
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Operator [Operator Closing Remarks] Duration: 59 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 Matt McClintock -- Raymond James -- Analyst Seth Sigman -- Credit Suisse -- Analyst Atul Maheswari -- UBS -- Analyst Michael Kessler -- Morgan Stanley -- Analyst Seth Basham -- Wedbush Securities -- Analyst Sullivan -- RBC Capital Markets -- Analyst Daniel Imbro -- Stephens Inc -- Analyst Antonio Tabet -- Evercore ISI -- Analyst Bret Jordan -- Jefferies -- Analyst More AAP analysis All earnings call transcripts 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. Advance Auto Parts Inc (NYSE: AAP) Q4 2019 Earnings Call Feb 18, 2020, 8:00 a.m. Additionally, our comments today include certain non-GAAP financial measures.
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In summary, 2019 was a year of continued progress for AAP, as we registered another year of top line growth and margin expansion, while making important long-term investments. Operator [Operator Closing Remarks] Duration: 59 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 Matt McClintock -- Raymond James -- Analyst Seth Sigman -- Credit Suisse -- Analyst Atul Maheswari -- UBS -- Analyst Michael Kessler -- Morgan Stanley -- Analyst Seth Basham -- Wedbush Securities -- Analyst Sullivan -- RBC Capital Markets -- Analyst Daniel Imbro -- Stephens Inc -- Analyst Antonio Tabet -- Evercore ISI -- Analyst Bret Jordan -- Jefferies -- Analyst More AAP analysis All earnings call transcripts 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. Advance Auto Parts Inc (NYSE: AAP) Q4 2019 Earnings Call Feb 18, 2020, 8:00 a.m.
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2020-02-18 00:00:00 UTC
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Advance Auto Parts Q4 adjusted earnings Beat Estimates
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-q4-adjusted-earnings-beat-estimates-2020-02-18
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(RTTNews) - Advance Auto Parts (AAP) announced earnings for its fourth quarter that rose from the same period last year.
The company's bottom line came in at $95.91 million, or $1.38 per share. This compares with $53.44 million, or $0.74 per share, in last year's fourth quarter.
Excluding items, Advance Auto Parts reported adjusted earnings of $113.71 million or $1.64 per share for the period.
Analysts had expected the company to earn $1.35 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
Revenue held steady at $2.11 billion
Advance Auto Parts earnings at a glance:
-Earnings (Q4): $113.71 Mln. vs. $85.54 Mln. last year. -EPS (Q4): $1.64 vs. $1.17 last year. -Analysts Estimate: $1.35 -Revenue (Q4): $2.11 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 earnings for its fourth quarter that rose from the same period last year. Excluding items, Advance Auto Parts reported adjusted earnings of $113.71 million or $1.64 per share for the period. Revenue held steady at $2.11 billion Advance Auto Parts earnings at a glance: -Earnings (Q4): $113.71 Mln.
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(RTTNews) - Advance Auto Parts (AAP) announced earnings for its fourth quarter that rose from the same period last year. Excluding items, Advance Auto Parts reported adjusted earnings of $113.71 million or $1.64 per share for the period. -Analysts Estimate: $1.35 -Revenue (Q4): $2.11 Bln vs. $2.11 Bln last year.
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(RTTNews) - Advance Auto Parts (AAP) announced earnings for its fourth quarter that rose from the same period last year. This compares with $53.44 million, or $0.74 per share, in last year's fourth quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $113.71 million or $1.64 per share for the period.
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(RTTNews) - Advance Auto Parts (AAP) announced earnings for its fourth quarter that rose from the same period last year. This compares with $53.44 million, or $0.74 per share, in last year's fourth quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $113.71 million or $1.64 per share for the period.
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2020-02-18 00:00:00 UTC
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Advance Auto Parts Q4 19 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-q4-19-earnings-conference-call-at-8%3A00-am-et-2020-02-18
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(RTTNews) - Advance Auto Parts, Inc. (AAP) will host a conference call at 8:00 AM ET on February 18, 2020, to discuss Q4 19 earnings results.
To access the live webcast, log on to www.AdvanceAutoParts.com
To listen to the call, dial (866) 209-9668 with identification number 6092935.
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 February 18, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (866) 209-9668 with identification number 6092935. 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 February 18, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (866) 209-9668 with identification number 6092935. 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 February 18, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (866) 209-9668 with identification number 6092935. 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 February 18, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (866) 209-9668 with identification number 6092935. 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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11164.0
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2020-02-18 00:00:00 UTC
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Consumer Sector Update for 02/18/2020: GSX, AAP, CAG, WMT, MCD, DIS, CVS, KO
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-02-18-2020%3A-gsx-aap-cag-wmt-mcd-dis-cvs-ko-2020-02-18
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nan
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nan
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Top Consumer Stocks:
WMT: +0.94%
MCD: -0.27%
DIS: -0.24%
CVS: -0.27%
KO: -0.13%
Most consumer giants were declining pre-market Tuesday.
Early movers include:
(+) GSX Techedu (GSX), which was gaining more than 13% in value after it posted Q4 net income of RMB0.70 ($0.10) per American depositary share (ADS), up from a net income of RMB0.06 per ADS from a year earlier.
(+) Advance Auto Parts (AAP) was advancing by more than 7% as it reported Q4 adjusted EPS of $1.64, up from $1.17 a year ago and well above the consensus of $1.35 from a Capital IQ poll of analysts.
(-) Conagra Brands (CAG) was down more than 6% after saying it was cutting its profit and revenue guidance for fiscal 2020 on weaker holiday sales and retail performance in the first month of the new year. Adjusted earnings per share is now expected between $2.00 to $2.07, which is lower than the prior outlook of $2.07 to $2.17 and falling short of analysts expectations for EPS of $2.09.
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) was advancing by more than 7% as it reported Q4 adjusted EPS of $1.64, up from $1.17 a year ago and well above the consensus of $1.35 from a Capital IQ poll of analysts. Early movers include: (+) GSX Techedu (GSX), which was gaining more than 13% in value after it posted Q4 net income of RMB0.70 ($0.10) per American depositary share (ADS), up from a net income of RMB0.06 per ADS from a year earlier. (-) Conagra Brands (CAG) was down more than 6% after saying it was cutting its profit and revenue guidance for fiscal 2020 on weaker holiday sales and retail performance in the first month of the new year.
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(+) Advance Auto Parts (AAP) was advancing by more than 7% as it reported Q4 adjusted EPS of $1.64, up from $1.17 a year ago and well above the consensus of $1.35 from a Capital IQ poll of analysts. Early movers include: (+) GSX Techedu (GSX), which was gaining more than 13% in value after it posted Q4 net income of RMB0.70 ($0.10) per American depositary share (ADS), up from a net income of RMB0.06 per ADS from a year earlier. Adjusted earnings per share is now expected between $2.00 to $2.07, which is lower than the prior outlook of $2.07 to $2.17 and falling short of analysts expectations for EPS of $2.09.
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(+) Advance Auto Parts (AAP) was advancing by more than 7% as it reported Q4 adjusted EPS of $1.64, up from $1.17 a year ago and well above the consensus of $1.35 from a Capital IQ poll of analysts. Most consumer giants were declining pre-market Tuesday. Early movers include: (+) GSX Techedu (GSX), which was gaining more than 13% in value after it posted Q4 net income of RMB0.70 ($0.10) per American depositary share (ADS), up from a net income of RMB0.06 per ADS from a year earlier.
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(+) Advance Auto Parts (AAP) was advancing by more than 7% as it reported Q4 adjusted EPS of $1.64, up from $1.17 a year ago and well above the consensus of $1.35 from a Capital IQ poll of analysts. Top Consumer Stocks: Most consumer giants were declining pre-market Tuesday.
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11165.0
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2020-02-14 00:00:00 UTC
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Noteworthy Friday Option Activity: AAP, X, CFX
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AAP
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-aap-x-cfx-2020-02-14
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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 6,251 contracts has been traded thus far today, a contract volume which is representative of approximately 625,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 66.3% of AAP's average daily trading volume over the past month, of 942,375 shares. Especially high volume was seen for the $150 strike call option expiring February 21, 2020, with 935 contracts trading so far today, representing approximately 93,500 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $150 strike highlighted in orange:
United States Steel Corp. (Symbol: X) saw options trading volume of 90,171 contracts, representing approximately 9.0 million underlying shares or approximately 59.8% of X's average daily trading volume over the past month, of 15.1 million shares. Particularly high volume was seen for the $8 strike put option expiring January 15, 2021, with 15,668 contracts trading so far today, representing approximately 1.6 million underlying shares of X. Below is a chart showing X's trailing twelve month trading history, with the $8 strike highlighted in orange:
And Colfax Corp (Symbol: CFX) options are showing a volume of 5,710 contracts thus far today. That number of contracts represents approximately 571,000 underlying shares, working out to a sizeable 58.7% of CFX's average daily trading volume over the past month, of 973,070 shares. Particularly high volume was seen for the $35 strike put option expiring February 21, 2020, with 2,681 contracts trading so far today, representing approximately 268,100 underlying shares of CFX. Below is a chart showing CFX's trailing twelve month trading history, with the $35 strike highlighted in orange:
For the various different available expirations for AAP options, X options, or CFX 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 $150 strike call option expiring February 21, 2020, with 935 contracts trading so far today, representing approximately 93,500 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 6,251 contracts has been traded thus far today, a contract volume which is representative of approximately 625,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 66.3% of AAP's average daily trading volume over the past month, of 942,375 shares.
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Especially high volume was seen for the $150 strike call option expiring February 21, 2020, with 935 contracts trading so far today, representing approximately 93,500 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $150 strike highlighted in orange: United States Steel Corp. (Symbol: X) saw options trading volume of 90,171 contracts, representing approximately 9.0 million underlying shares or approximately 59.8% of X's average daily trading volume over the past month, of 15.1 million shares. 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 6,251 contracts has been traded thus far today, a contract volume which is representative of approximately 625,100 underlying shares (given that every 1 contract represents 100 underlying 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 6,251 contracts has been traded thus far today, a contract volume which is representative of approximately 625,100 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 $150 strike highlighted in orange: United States Steel Corp. (Symbol: X) saw options trading volume of 90,171 contracts, representing approximately 9.0 million underlying shares or approximately 59.8% of X's average daily trading volume over the past month, of 15.1 million shares. That number works out to 66.3% of AAP's average daily trading volume over the past month, of 942,375 shares.
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Especially high volume was seen for the $150 strike call option expiring February 21, 2020, with 935 contracts trading so far today, representing approximately 93,500 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $150 strike highlighted in orange: United States Steel Corp. (Symbol: X) saw options trading volume of 90,171 contracts, representing approximately 9.0 million underlying shares or approximately 59.8% of X's average daily trading volume over the past month, of 15.1 million shares. Below is a chart showing CFX's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for AAP options, X options, or CFX options, visit StockOptionsChannel.com.
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11166.0
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2020-02-05 00:00:00 UTC
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Why Auto Parts Stocks Fell Last Month
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AAP
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https://www.nasdaq.com/articles/why-auto-parts-stocks-fell-last-month-2020-02-05
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nan
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nan
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What happened
Shares of auto parts retailers, including Advance Auto Parts (NYSE: AAP), AutoZone (NYSE: AZO), and Genuine Parts Company (NYSE: GPC), the owner of NAPA auto parts stores, all fell by double digits in January. There was no major news out on these companies, but a combination of analyst downgrades and valuation concerns pushed the sector down as analysts worried about warm winter weather, slowing economic growth, and stretched valuations.
According to data from S&P Global Market Intelligence, Advance Auto Parts fell 17.7%, AutoZone lost 11.2%, and Genuine Parts gave up 11.9% during January. The chart below shows the trajectory of each stock during the month. As you can see, the three stocks largely traveled in tandem.
AAP data by YCharts
So what
AutoZone slipped 3.6% over a two-day span starting Jan. 6 after Wedbush downgraded the stock from Outperform to Neutral and analyst Seth Basham lowered his price target from $1,375 to $1,225. He seemed to think the stock was ready for a breather after gaining 40% in 2019, and saw risks from warmer winter weather and tariff-driven inflation.
Image source: Getty Images.
A week later, Advance Auto Parts, the worst performer of the bunch last month, also got dinged by a downgrade from JPMorgan on Jan. 13 as analyst Christopher Horvers cut his rating on the stock from Overweight to Neutral and lowered his price target from $168 to $163. He said that Advance's primary sales drivers seem to be "more incrementally negative" due to issues like warm winter weather, lower inflation and slower GDP growth, factors that weigh on the sector as a whole. Further, Horvers said that Advance's do-it-yourself business, as opposed to do-it-for-me, is already "on shaky ground," which could impede the company's margin growth. On the same day, Wedbush removed the stock from its Best Ideas list due to valuation. Advance lost 2.5% that day after a similar loss in the previous session. However, it regained some of those losses after Melvin Capital Management reported a 5.3% stake in the auto parts company on Jan. 14.
Finally, on Jan. 23, Advance Auto Parts shares dove again as the stock got another downgrade, this time from Overweight to Neutral by Atlantic Equities. Over the final week of January, the sector stocks slipped as the broader market pulled back over coronavirus concerns, though the auto parts retailers don't have any direct exposure to the outbreak.
Now what
The weak start to 2020 comes after some auto parts stocks have outperformed in recent years, including AutoZone and O'Reilly Automotive, both of which were among the top-performing retail stocks of the last decade. Looking ahead, many of the concerns expressed by the analysts are temporary. While this winter has been warmer on average and largely devoid of major storms that would drive more consumers to make auto repairs, that is not a fundamental issue with any auto parts stock. Meanwhile, concerns about economic growth and the coronavirus will continue to play out in the market, but investors can take comfort in knowing that auto-parts retailers are largely recession-proof, since most people need a working set of wheels to get to their jobs and take care of their daily business no matter the shape of the economy.
All three of these stocks will have a chance to turn things around later in February when they report quarterly earnings. Analysts have modest expectations, forecasting only low-single-digit growth on the top line.
10 stocks we like better than Genuine Parts Company
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Genuine Parts Company wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of December 1, 2019
Jeremy Bowman 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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AAP data by YCharts So what AutoZone slipped 3.6% over a two-day span starting Jan. 6 after Wedbush downgraded the stock from Outperform to Neutral and analyst Seth Basham lowered his price target from $1,375 to $1,225. What happened Shares of auto parts retailers, including Advance Auto Parts (NYSE: AAP), AutoZone (NYSE: AZO), and Genuine Parts Company (NYSE: GPC), the owner of NAPA auto parts stores, all fell by double digits in January. A week later, Advance Auto Parts, the worst performer of the bunch last month, also got dinged by a downgrade from JPMorgan on Jan. 13 as analyst Christopher Horvers cut his rating on the stock from Overweight to Neutral and lowered his price target from $168 to $163.
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What happened Shares of auto parts retailers, including Advance Auto Parts (NYSE: AAP), AutoZone (NYSE: AZO), and Genuine Parts Company (NYSE: GPC), the owner of NAPA auto parts stores, all fell by double digits in January. AAP data by YCharts So what AutoZone slipped 3.6% over a two-day span starting Jan. 6 after Wedbush downgraded the stock from Outperform to Neutral and analyst Seth Basham lowered his price target from $1,375 to $1,225. According to data from S&P Global Market Intelligence, Advance Auto Parts fell 17.7%, AutoZone lost 11.2%, and Genuine Parts gave up 11.9% during January.
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What happened Shares of auto parts retailers, including Advance Auto Parts (NYSE: AAP), AutoZone (NYSE: AZO), and Genuine Parts Company (NYSE: GPC), the owner of NAPA auto parts stores, all fell by double digits in January. AAP data by YCharts So what AutoZone slipped 3.6% over a two-day span starting Jan. 6 after Wedbush downgraded the stock from Outperform to Neutral and analyst Seth Basham lowered his price target from $1,375 to $1,225. Now what The weak start to 2020 comes after some auto parts stocks have outperformed in recent years, including AutoZone and O'Reilly Automotive, both of which were among the top-performing retail stocks of the last decade.
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What happened Shares of auto parts retailers, including Advance Auto Parts (NYSE: AAP), AutoZone (NYSE: AZO), and Genuine Parts Company (NYSE: GPC), the owner of NAPA auto parts stores, all fell by double digits in January. AAP data by YCharts So what AutoZone slipped 3.6% over a two-day span starting Jan. 6 after Wedbush downgraded the stock from Outperform to Neutral and analyst Seth Basham lowered his price target from $1,375 to $1,225. There was no major news out on these companies, but a combination of analyst downgrades and valuation concerns pushed the sector down as analysts worried about warm winter weather, slowing economic growth, and stretched valuations.
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11167.0
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2020-01-28 00:00:00 UTC
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Why AutoZone Stock May Downshift
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AAP
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https://www.nasdaq.com/articles/why-autozone-stock-may-downshift-2020-01-28
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nan
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nan
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AutoZone (NYSE: AZO) stock has steadily trended upward over the last two years. The company has benefited from Americans keeping their cars longer and buybacks have helped propel the stock to highs near $1,275 per share in early December.
However, even as the S&P 500 has risen to record highs, AutoZone stock has begun to drop. Moreover, both O'Reilly Automotive (NASDAQ: ORLY) and Advance Auto Parts (NYSE: AAP) trade at higher multiples. Although Genuine Parts Company (NYSE: GPC) trades at a similar valuation, its shareholders receive a dividend that yields 3% at current prices.
The rising stock price and lower valuation may attract investors. However, conditions within both the market and the company itself indicate that AutoZone stock could experience a dramatic reversal.
The growth of AutoZone stock
At first glance, one might wonder why AutoZone stock appears unattractive today. After all, it increased by 680% during the 2010s. Its archrival O'Reilly Automotive registered a return of 1,050% over the same period. Nonetheless, AutoZone became one of the best-performing retail stocks of the decade.
IMAGE SOURCE: GETTY IMAGES
Moreover, Americans tend to keep their cars longer than in the past. The average age of a running vehicle in the U.S. has reached a record of 11.8 years. That means Americans are choosing to repair older cars more often, likely using parts from a store like AutoZone, rather than buying new.
Furthermore, it operates in a recession-resistant business. People need a running vehicle in good times and in bad, and they will spend money to keep them running. A recession could also help AutoZone somewhat as fewer people can afford to replace their cars during harder times.
Why the growth may not continue
However, while a recession may not derail AutoZone stock, some auto industry trends could work against the auto parts retailer. For one, consumers have increasingly turned to electric vehicles. That causes problems for AutoZone and its peers. EVs have markedly fewer moving parts compared to gas-powered vehicles. That will mean that vehicles need less periodic maintenance. For AutoZone, that means lower demand for oil filters, fuel pumps, alternators, and the like.
Another trend working against AutoZone is demographics. Those between the ages of 18 and 34 spend more on auto repair and maintenance versus the average American. That bodes well for AutoZone... if this cohort chooses to own cars.
Unfortunately for the auto parts retailer, this generation more often chooses ridesharing or public transportation over car ownership. With fewer of them owning cars, many will not have a reason to set foot in an AutoZone store.
Further, in past years, auto parts sales enjoyed a degree of protection from e-commerce. When cars break down, owners want them running as soon as possible. This discourages long wait times for e-commerce deliveries, and often, price shopping.
However, Amazon (NASDAQ: AMZN) stoked fear when it quietly entered the industry a few years ago. With the online giant now offering one-day delivery with its Prime service, customers can now buy auto parts from Amazon without a long wait. This could cut AutoZone's profits as it adjusts its pricing and e-commerce strategy to compete.
AutoZone and its financials
Worse, lower profits could expose significant vulnerabilities in AutoZone stock. At first glance, its P/E ratio of just above 17.5 seems reasonable, particularly since analysts forecast average annual earnings increase of 10.95% per year over the next five years.
However, the balance sheet appears more troubling. The stockholders' equity, the value of the company after paying off debts and expenses, stands at around -$1.776 billion as of the last quarter. This has remained negative for years as management has prioritized stock buybacks over balance sheet stability over the last several years. During the previous reported quarter, the company repurchased $450 million worth of AutoZone stock and had $1.277 billion remaining under the latest share buyback authorization.
Should industry and demographic trends wipe out profits, it may have to reissue some of these repurchased shares simply to cover expenses. Such an occurrence could hurt AutoZone stock, which trades at just over $1,120 per share as of the time of this writing. This may explain why this stock trades at a discount to most of its peers. Despite a reasonable P/E ratio and steady profit increases, AutoZone stock is not as stable as it might appear.
Avoid AutoZone stock
Although AutoZone stock ran smoothly in the 2010s, the competitive landscape and the financial condition of the company indicate points of weakness. Admittedly, if Americans need fewer auto parts in the next few years, this will hurt both AutoZone and its peers.
Competition could also hurt AutoZone stock in another way. Due to aggressive stock buybacks, stockholders' equity has long remained negative. Should the company need to raise cash, its financial condition could lead to massive share issuance, significantly harming AutoZone stock.
AutoZone enjoyed tremendous success in the 2010s. However, with market conditions changing for the worse, investors need to take profits.
10 stocks we like better than AutoZone
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 AutoZone 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 December 1, 2019
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends 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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Moreover, both O'Reilly Automotive (NASDAQ: ORLY) and Advance Auto Parts (NYSE: AAP) trade at higher multiples. The company has benefited from Americans keeping their cars longer and buybacks have helped propel the stock to highs near $1,275 per share in early December. Although Genuine Parts Company (NYSE: GPC) trades at a similar valuation, its shareholders receive a dividend that yields 3% at current prices.
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Moreover, both O'Reilly Automotive (NASDAQ: ORLY) and Advance Auto Parts (NYSE: AAP) trade at higher multiples. Why the growth may not continue However, while a recession may not derail AutoZone stock, some auto industry trends could work against the auto parts retailer. During the previous reported quarter, the company repurchased $450 million worth of AutoZone stock and had $1.277 billion remaining under the latest share buyback authorization.
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Moreover, both O'Reilly Automotive (NASDAQ: ORLY) and Advance Auto Parts (NYSE: AAP) trade at higher multiples. The growth of AutoZone stock At first glance, one might wonder why AutoZone stock appears unattractive today. AutoZone and its financials Worse, lower profits could expose significant vulnerabilities in AutoZone stock.
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Moreover, both O'Reilly Automotive (NASDAQ: ORLY) and Advance Auto Parts (NYSE: AAP) trade at higher multiples. That means Americans are choosing to repair older cars more often, likely using parts from a store like AutoZone, rather than buying new. Why the growth may not continue However, while a recession may not derail AutoZone stock, some auto industry trends could work against the auto parts retailer.
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11168.0
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2020-01-23 00:00:00 UTC
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Notable Thursday Option Activity: DIS, VFC, AAP
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AAP
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-dis-vfc-aap-2020-01-23
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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 Walt Disney Co. (Symbol: DIS), where a total of 110,661 contracts have traded so far, representing approximately 11.1 million underlying shares. That amounts to about 146.1% of DIS's average daily trading volume over the past month of 7.6 million shares. Especially high volume was seen for the $144 strike call option expiring January 24, 2020, with 4,577 contracts trading so far today, representing approximately 457,700 underlying shares of DIS. Below is a chart showing DIS's trailing twelve month trading history, with the $144 strike highlighted in orange:
VF Corp. (Symbol: VFC) saw options trading volume of 20,784 contracts, representing approximately 2.1 million underlying shares or approximately 97.4% of VFC's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $92.50 strike call option expiring March 20, 2020, with 3,955 contracts trading so far today, representing approximately 395,500 underlying shares of VFC. Below is a chart showing VFC's trailing twelve month trading history, with the $92.50 strike highlighted in orange:
And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 7,879 contracts thus far today. That number of contracts represents approximately 787,900 underlying shares, working out to a sizeable 85.2% of AAP's average daily trading volume over the past month, of 925,150 shares. Especially high volume was seen for the $155 strike call option expiring June 19, 2020, with 4,781 contracts trading so far today, representing approximately 478,100 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $155 strike highlighted in orange:
For the various different available expirations for DIS options, VFC 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 $155 strike call option expiring June 19, 2020, with 4,781 contracts trading so far today, representing approximately 478,100 underlying shares of AAP. Below is a chart showing VFC's trailing twelve month trading history, with the $92.50 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 7,879 contracts thus far today. That number of contracts represents approximately 787,900 underlying shares, working out to a sizeable 85.2% of AAP's average daily trading volume over the past month, of 925,150 shares.
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Below is a chart showing VFC's trailing twelve month trading history, with the $92.50 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 7,879 contracts thus far today. Below is a chart showing AAP's trailing twelve month trading history, with the $155 strike highlighted in orange: For the various different available expirations for DIS options, VFC options, or AAP options, visit StockOptionsChannel.com. That number of contracts represents approximately 787,900 underlying shares, working out to a sizeable 85.2% of AAP's average daily trading volume over the past month, of 925,150 shares.
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Below is a chart showing VFC's trailing twelve month trading history, with the $92.50 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 7,879 contracts thus far today. That number of contracts represents approximately 787,900 underlying shares, working out to a sizeable 85.2% of AAP's average daily trading volume over the past month, of 925,150 shares. Especially high volume was seen for the $155 strike call option expiring June 19, 2020, with 4,781 contracts trading so far today, representing approximately 478,100 underlying shares of AAP.
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Below is a chart showing AAP's trailing twelve month trading history, with the $155 strike highlighted in orange: For the various different available expirations for DIS options, VFC options, or AAP options, visit StockOptionsChannel.com. Below is a chart showing VFC's trailing twelve month trading history, with the $92.50 strike highlighted in orange: And Advance Auto Parts Inc (Symbol: AAP) options are showing a volume of 7,879 contracts thus far today. That number of contracts represents approximately 787,900 underlying shares, working out to a sizeable 85.2% of AAP's average daily trading volume over the past month, of 925,150 shares.
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11169.0
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2020-01-13 00:00:00 UTC
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Advance Auto Parts is Now Oversold (AAP)
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-is-now-oversold-aap-2020-01-13
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nan
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nan
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 25.2, after changing hands as low as $142.76 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 68.4. A bullish investor could look at AAP's 25.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares:
Looking at the chart above, AAP's low point in its 52 week range is $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $145.20.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 25.2, after changing hands as low as $142.76 per share. A bullish investor could look at AAP's 25.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $145.20.
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A bullish investor could look at AAP's 25.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $145.20. In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 25.2, after changing hands as low as $142.76 per share.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 25.2, after changing hands as low as $142.76 per share. A bullish investor could look at AAP's 25.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $145.20.
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In trading on Monday, shares of Advance Auto Parts Inc (Symbol: AAP) entered into oversold territory, hitting an RSI reading of 25.2, after changing hands as low as $142.76 per share. A bullish investor could look at AAP's 25.2 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAP shares: Looking at the chart above, AAP's low point in its 52 week range is $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $145.20.
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11170.0
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2020-01-05 00:00:00 UTC
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Advance Auto Parts Acquires the Last Thing of Value Sears Owned
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AAP
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https://www.nasdaq.com/articles/advance-auto-parts-acquires-the-last-thing-of-value-sears-owned-2020-01-05
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nan
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nan
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There wasn't much of anything left of value at Sears even before its bankruptcy, but of the assets it did still possess that retained monetary worth, the DieHard battery brand was arguably the most important.
However, Sears -- or Transformco, as it's officially known now -- sold DieHard to Advance Auto Parts (NYSE: AAP) for $200 million at the end of December, a seemingly deep-discount price that should help the auto parts retailer boost sales and expand into new markets.
Image source: Getty Images.
Enduring value
It was only a few years ago the value of Sears' KCD trio -- Kenmore, Craftsman, and DieHard -- was collectively pegged at around $3 billion. The Craftsman tool line was sold off to Stanley Black & Decker for $900 million, and though Kenmore had at one time been a premiere appliance brand, its star had long since faded, eclipsed by more innovative devices from Whirlpool, LG, and Samsung.
Yet DieHard endured. Unlike Craftsman and Kenmore, which were closely associated with Sears and its many failings, DieHard continued to command consumer interest. One of the smartest moves Sears Chairman and CEO Eddie Lampert did with the brand was to link it to the broader automotive market by rebranding one of its Sears Automotive Centers as DieHard Automotive Center.
Unfortunately, the concept was otherwise allowed to lie fallow, missing out on a rare opportunity to capitalize on the brand's inherent goodwill. It was so strong, in fact, that DieHard tires were the third most popular brand with consumers even though there were no DieHard tires at the time (there are now).
An anchor to its growth
On paper, DieHard probably looks as aged and threadbare as Kenmore. The market analysts at TraqLine say that as of the end of September, DieHard's share of the automotive battery market had shrunk to around 2.4%, down from 5.5% some five years prior.
But that was also due to the exclusivity Lampert imposed on the brand, only allowing it to be sold at Sears stores. With customers abandoning the retailer in droves and sales plunging from one year to the next, DieHard's ability to maintain any market share was an achievement.
Lampert did relax his grip on DieHard a bit in 2017 when he signed a deal with Amazon.com allowing the batteries to be sold on its website. He also partnered with LED flashlight maker Dorcy to manufacture DieHard-branded flashlights and other kinds of batteries beyond the automotive market. Those were some of Lampert's best decisions, but by then, Sears was too much of a foregone conclusion for them to actually matter.
But Advance Auto Parts has a chance to make a real difference with the brand.
A chance to spur big sales
In October 2018, Advance signed an agreement with Walmart (NYSE: WMT) to begin selling parts in a branded store, first on the retailer's website and then in its physical stores. It only really began rolling out in the second quarter of 2019, but now business is picking up, and as management mentioned during its most recent earnings call, the company already expects it to boost results next year and then materially contribute over the long term.
Introducing the DieHard brand into Walmart could substantially accelerate sales, especially as the next phase of the partnership could have shoppers buying automotive parts on Walmart's website but picking them up at an Advance Auto Parts store.
Advance has been investing heavily in its own "buy online, pickup in-store" initiative, and the company said results are positively impacting overall sales as they're becoming an increasing percentage of the total. Parts and batteries already account for over two-thirds of the retailer's revenue, so just breaking DieHard's tether to the Sears store should help Advance boost battery sales further.
Even greater opportunities ahead
But it's more than just batteries that Advance Auto Parts is looking at -- the company believes DieHard can open up completely new marketing opportunities, and it mentioned breaking into non-automotive markets such as sporting goods, lawn and garden, work clothes, and other new categories.
Because DieHard does still have a positive reputation with consumers despite its declining market share, having it owned by a company with some vision on where the brand can go in the future means Advance Auto Parts likely got this battery brand for a song.
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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. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends 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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However, Sears -- or Transformco, as it's officially known now -- sold DieHard to Advance Auto Parts (NYSE: AAP) for $200 million at the end of December, a seemingly deep-discount price that should help the auto parts retailer boost sales and expand into new markets. The Craftsman tool line was sold off to Stanley Black & Decker for $900 million, and though Kenmore had at one time been a premiere appliance brand, its star had long since faded, eclipsed by more innovative devices from Whirlpool, LG, and Samsung. It only really began rolling out in the second quarter of 2019, but now business is picking up, and as management mentioned during its most recent earnings call, the company already expects it to boost results next year and then materially contribute over the long term.
|
However, Sears -- or Transformco, as it's officially known now -- sold DieHard to Advance Auto Parts (NYSE: AAP) for $200 million at the end of December, a seemingly deep-discount price that should help the auto parts retailer boost sales and expand into new markets. One of the smartest moves Sears Chairman and CEO Eddie Lampert did with the brand was to link it to the broader automotive market by rebranding one of its Sears Automotive Centers as DieHard Automotive Center. Parts and batteries already account for over two-thirds of the retailer's revenue, so just breaking DieHard's tether to the Sears store should help Advance boost battery sales further.
|
However, Sears -- or Transformco, as it's officially known now -- sold DieHard to Advance Auto Parts (NYSE: AAP) for $200 million at the end of December, a seemingly deep-discount price that should help the auto parts retailer boost sales and expand into new markets. Introducing the DieHard brand into Walmart could substantially accelerate sales, especially as the next phase of the partnership could have shoppers buying automotive parts on Walmart's website but picking them up at an Advance Auto Parts store. Because DieHard does still have a positive reputation with consumers despite its declining market share, having it owned by a company with some vision on where the brand can go in the future means Advance Auto Parts likely got this battery brand for a song.
|
However, Sears -- or Transformco, as it's officially known now -- sold DieHard to Advance Auto Parts (NYSE: AAP) for $200 million at the end of December, a seemingly deep-discount price that should help the auto parts retailer boost sales and expand into new markets. But that was also due to the exclusivity Lampert imposed on the brand, only allowing it to be sold at Sears stores. Because DieHard does still have a positive reputation with consumers despite its declining market share, having it owned by a company with some vision on where the brand can go in the future means Advance Auto Parts likely got this battery brand for a song.
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11171.0
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2019-12-17 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - AAP
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AAP
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-aap-2019-12-17
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nan
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nan
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $157.87, changing hands as high as $158.86 per share. Advance Auto Parts Inc shares are currently trading up about 2.9% 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 $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $157.91. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $157.87, changing hands as high as $158.86 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 $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $157.91. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $157.87, changing hands as high as $158.86 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 $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $157.91. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $157.87, changing hands as high as $158.86 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 $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $157.91. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $157.87, changing hands as high as $158.86 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 $130.09 per share, with $182.56 as the 52 week high point — that compares with a last trade of $157.91. The AAP DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » 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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11172.0
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2019-12-06 00:00:00 UTC
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3 Big Stock Charts for Friday: Advance Auto Parts, iQiyi, and Crown Castle International
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AAP
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https://www.nasdaq.com/articles/3-big-stock-charts-for-friday%3A-advance-auto-parts-iqiyi-and-crown-castle-international
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nan
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nan
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U.S. stocks seem to have returned to normal. A two-and-a-half session sell-off has been followed by a rally of equal length. While broad market indices remain modestly off their highs, it does seem like stability, at least, has returned heading into 2020.
Source: Shutterstock
In that context, the question at the moment is whether there’s enough time, and enough optimism, for one more leg higher before year-end. And that question is of particular importance when looking at Friday’s big stock charts.
All three stocks have missed out on at least part of this year’s rally. And all three big stock charts show at least the potential for a breakout in the near-term. It will take some outside help, however — with stronger broad market sentiment the simplest source at the moment.
Advance Auto Parts (AAP)
Source: Provided by Finviz
So far, 2019 has not been kind to Advance Auto Parts (NYSE:). AAP stock actually has declined a bit over 3% this year, making it one of just 81 stocks in the S&P 500 in the red for 2019. The first of Friday’s big stock charts suggests the news could get worse — but there’s hope for a reversal:
iQiyi (IQ)
Source: Provided by Finviz
The setup is there for Chinese streaming video play iQiyi (NASDAQ:). If IQ stock can rally, the second of our big stock charts shows a path toward a breakout:
All that said, a reversal is possible as well, given the multiple trendlines creating resistance. A reversal likely would move the stock back toward support around $17.
Crown Castle International (CCI)
Source: Provided by Finviz
Celullar tower real estate investment trust Crown Castle International (NYSE:) has struggled since reaching an all-time high in September. But CCI stock has righted itself over the last month, and the last of Friday’s big stock charts shows hope for a rebound:
Meanwhile, valuation is reasonable. The stock trades at 22.7x the midpoint of 2019 guidance for adjusted funds for operations per share. Looking to 2020, the multiple drops closer to 21x. A 3.56% dividend yield adds to the case, particularly in a and with the payout hiked 7% in October.
Source: Provided by Finviz
It may be the sector, and 5G stocks more broadly, that define the near-term direction of CCI stock. Perhaps surprisingly, 5G plays have struggled of late. Qualcomm (NASDAQ:) has reversed since earnings. Nokia (NYSE:) plunged after its Q3 report. And rival American Tower (NYSE:) has a similar chart (and perhaps stronger hopes for a breakout from a descending triangle), though a higher valuation and lower yield. If bullishness toward 5G returns, the chart sets CCI up to be a prime beneficiary.
As of this writing, Vince Martin has no positions in any securities mentioned.
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (AAP) Source: Provided by Finviz So far, 2019 has not been kind to Advance Auto Parts (NYSE:). AAP stock actually has declined a bit over 3% this year, making it one of just 81 stocks in the S&P 500 in the red for 2019. Source: Shutterstock In that context, the question at the moment is whether there’s enough time, and enough optimism, for one more leg higher before year-end.
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Advance Auto Parts (AAP) Source: Provided by Finviz So far, 2019 has not been kind to Advance Auto Parts (NYSE:). AAP stock actually has declined a bit over 3% this year, making it one of just 81 stocks in the S&P 500 in the red for 2019. Crown Castle International (CCI) Source: Provided by Finviz Celullar tower real estate investment trust Crown Castle International (NYSE:) has struggled since reaching an all-time high in September.
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Advance Auto Parts (AAP) Source: Provided by Finviz So far, 2019 has not been kind to Advance Auto Parts (NYSE:). AAP stock actually has declined a bit over 3% this year, making it one of just 81 stocks in the S&P 500 in the red for 2019. The first of Friday’s big stock charts suggests the news could get worse — but there’s hope for a reversal: iQiyi (IQ) Source: Provided by Finviz The setup is there for Chinese streaming video play iQiyi (NASDAQ:).
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Advance Auto Parts (AAP) Source: Provided by Finviz So far, 2019 has not been kind to Advance Auto Parts (NYSE:). AAP stock actually has declined a bit over 3% this year, making it one of just 81 stocks in the S&P 500 in the red for 2019. All three stocks have missed out on at least part of this year’s rally.
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11173.0
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2019-12-04 00:00:00 UTC
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Analysts Expect RCD Will Reach $117
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AAP
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https://www.nasdaq.com/articles/analysts-expect-rcd-will-reach-%24117-2019-12-04
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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— Equal Weight Consumer Discretionary ETF (Symbol: RCD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $117.40 per unit.
With RCD trading at a recent price near $106.12 per unit, that means that analysts see 10.63% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RCD's underlying holdings with notable upside to their analyst target prices are Tractor Supply Co. (Symbol: TSCO), Advance Auto Parts Inc (Symbol: AAP), and Lowe's Companies Inc (Symbol: LOW). Although TSCO has traded at a recent price of $94.64/share, the average analyst target is 17.43% higher at $111.14/share. Similarly, AAP has 16.04% upside from the recent share price of $152.61 if the average analyst target price of $177.08/share is reached, and analysts on average are expecting LOW to reach a target price of $132.19/share, which is 15.40% above the recent price of $114.55. Below is a twelve month price history chart comparing the stock performance of TSCO, AAP, and LOW:
Below is a summary table of the current analyst target prices discussed above:
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 TSCO, AAP, and LOW: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RCD's underlying holdings with notable upside to their analyst target prices are Tractor Supply Co. (Symbol: TSCO), Advance Auto Parts Inc (Symbol: AAP), and Lowe's Companies Inc (Symbol: LOW). Similarly, AAP has 16.04% upside from the recent share price of $152.61 if the average analyst target price of $177.08/share is reached, and analysts on average are expecting LOW to reach a target price of $132.19/share, which is 15.40% above the recent price of $114.55.
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Three of RCD's underlying holdings with notable upside to their analyst target prices are Tractor Supply Co. (Symbol: TSCO), Advance Auto Parts Inc (Symbol: AAP), and Lowe's Companies Inc (Symbol: LOW). Similarly, AAP has 16.04% upside from the recent share price of $152.61 if the average analyst target price of $177.08/share is reached, and analysts on average are expecting LOW to reach a target price of $132.19/share, which is 15.40% above the recent price of $114.55. Below is a twelve month price history chart comparing the stock performance of TSCO, AAP, and LOW: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAP has 16.04% upside from the recent share price of $152.61 if the average analyst target price of $177.08/share is reached, and analysts on average are expecting LOW to reach a target price of $132.19/share, which is 15.40% above the recent price of $114.55. Below is a twelve month price history chart comparing the stock performance of TSCO, AAP, and LOW: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RCD's underlying holdings with notable upside to their analyst target prices are Tractor Supply Co. (Symbol: TSCO), Advance Auto Parts Inc (Symbol: AAP), and Lowe's Companies Inc (Symbol: LOW).
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Below is a twelve month price history chart comparing the stock performance of TSCO, AAP, and LOW: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RCD's underlying holdings with notable upside to their analyst target prices are Tractor Supply Co. (Symbol: TSCO), Advance Auto Parts Inc (Symbol: AAP), and Lowe's Companies Inc (Symbol: LOW). Similarly, AAP has 16.04% upside from the recent share price of $152.61 if the average analyst target price of $177.08/share is reached, and analysts on average are expecting LOW to reach a target price of $132.19/share, which is 15.40% above the recent price of $114.55.
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11174.0
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2019-11-27 00:00:00 UTC
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43 Companies Amazon Could Destroy (Including One for a Second Time)
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AAP
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https://www.nasdaq.com/articles/43-companies-amazon-could-destroy-including-one-for-a-second-time-2019-11-27
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nan
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nan
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You would think e-commerce and cloud computing giant Amazon.com (AMZN), after more than 20 years of unfettered growth, would have run out of room to expand. But the company continues to scout new opportunities. Amazon will try its hand at almost any sort of business, does well at the bulk of them - and threatens to destroy dozens of other companies with its success.
The latest foray into unfamiliar territory? In September, Amazon announced a pilot program for a virtual medical clinic, which includes some in-home services, to be offered to its Seattle-area employees. The virtual clinic aspect would include video visits with doctors, nurse practitioners or registered nurses.
That's not Amazon's first venture outside its comfort zone, either. Amazon also is a grocer, a fashion venue, a peddler of handmade crafts and even its own delivery provider, just to name a few. Amazon has become at best a headache, and at worst a survival threat, for any rival in its path.
Here is a look at 43 companies that Amazon could kill. A year ago, we named 49 such businesses (as well as one it already knocked out). A handful of names dropped off the list - some successfully regrouped, while a few were officially knocked out. Others have been added as they've slipped into Amazon's warpath. Considering Amazon's ubiquitous presence, no company is ever truly safe.
SEE ALSO: Where Millionaires Live in America 2019
Advance Auto Parts, AutoZone, O'Reilly Automotive
The unchecked growth of Amazon didn't faze auto-parts suppliers such as O'Reilly Automotive (ORLY), AutoZone (AZO) and Advance Auto Parts (AAP) for a long time. Car parts are too heavy, bulky and specialized to be handled like a consumer-centric commodity. And besides, when mechanics (DIYers or the real thing) need a part to use in a repair, they usually want it quickly. The big three names in the auto parts retailing game haven't needed to worry.
But times have changed, helped along by inventory-management technology and delivery networks that are willing and able to handle goods they simply couldn't before. That's why Amazon was willing to enter the fray in January 2017.
All three stocks have since recovered from their initial setbacks. The underlying companies have finally shrugged off their shock and figured out how to compete with a price-busting Amazon. Advance Auto Parts, for instance, has embraced the idea of in-store pickups of online orders, not unlike the option now offered by many grocery chains.
However, Amazon hasn't yet unleashed its full potential on this front. It's disrupting the auto parts retailing industry gradually, just as it has other consumer-facing markets. Give it time.
SEE ALSO: 50 Top Stocks That Billionaires Love
Albertsons, Kroger, Walmart Grocery
Amazon's purchase of Whole Foods Market sent shockwaves through the organic-grocery business. But just as vulnerable (albeit in a different way) are more conventional grocers such as Kroger (KR), privately owned Albertsons and the grocery arm of Walmart (WMT). In fact, a year ago, Amazon was technically the biggest online grocer of the United States, boasting market share of 18%.
That has changed in the meantime. Walmart stepped up its game by growing its curbside pickup option to 2,100 U.S. locations, while Instacart leveraged its relationship with Costco (COST) and Kroger to beef up its share of the market from 4% to 8% over the past couple of years. That business had to come from somewhere.
As the number of places and opportunities for more traditional brick-and-mortar grocers to expand their online-ordering business shrink, however, Amazon's relative retreat will cool and likely reverse. Remember: Amazon has always played the "long game," and it's still learning the business, too, with a relatively limited market of 90 metropolitan areas. But it's already going on the offensive, announcing free Amazon Fresh deliveries for Prime members that have previously used the service.
SEE ALSO: 25 Small Towns With Big Millionaire Populations
Audiobooks.com, Playster
Amazon is the owner of Audible, which boasts the largest audiobook library in the world. That makes it a direct threat to Audiobooks.com and Playster, among others.
Don't dismiss this market's importance. Although audiobooks only generated a little less than $1 billion worth of revenue in the United States last year, the size of the market is growing. In 2018, the industry's revenue was up 24.5% year-over-year, extending a longstanding hot streak.
What was largely missing from the audiobook landscape for a long time was a central name to mainstream audiobooks, similar to the role Netflix (NFLX) played within the streaming video arena.
Amazon largely has become that player.
Audible controls about 41% of the audiobook market, as of the most recent look. And, like Netflix, being the first to become the dominant force in a particular market leaves little room for a second or third player ... which is all Playster and Audiobooks.com are in a position to enjoy from here. But playing second fiddle to Amazon in any business is a problem, especially when Audible can be sold as part of an Amazon Prime package.
SEE ALSO: Best and Worst States at Minting Millionaires Since the Financial Crisis
Barnes & Noble, Joseph-Beth Booksellers
Bookstore chain Barnes & Noble and Joseph-Beth Booksellers were the first major victims of the rise of Amazon. Remember: Initially, Amazon.com was an online bookstore, and the advent of e-readers - then tablets - made e-books commonplace, further displacing physical bookstores.
One end result for B&N is 12 consecutive years of declining sales, with a 13th likely underway. Another end result: 10 straight years of net store closures.
A glimmer of hope finally started to shine in June of this year, when hedge fund Elliot Management acquired the struggling chain of 627 bookstores in hopes of turning it around. The fund picked James Daunt, who led a successful turnaround of the U.K.'s largest book, to act as CEO of the now-privatized outfit.
The task ahead remains a monumental one though. As 1010data research analyst Brian Callahan opined on the buyout, "In our data sets, there is little indication that side of the business (books) has stopped the bleeding. They're just not getting people."
There's also little assurance that escaping the short-term-minded scrutiny of public investors is a surefire recipe for success. Toys "R" Us was privatized to no avail, as was RadioShack.
As for Joseph Beth, it's down to a handful of locations, though they're holding up. But it has a limited degree of much-needed scale, and scale is the key to surviving the Amazon juggernaut.
SEE ALSO: The 30 Best Mutual Funds in 401(k) Retirement Plans
Dailymotion, Smashcast, Mixer, YouTube Gaming and More
There are a number of specific gaming companies that, with the exception of YouTube Gaming, won't ring any bells with investors. But within video gaming circles, Smashcast, Dailymotion, Mixer (formerly Beam) and a whole slew of other non-descript names are plenty familiar. All of these organizations have developed platforms that allow gaming fans pay to watch other people play video games.
Yes, that's a real thing. And yes, it generates revenue for the player as well as the platform owner. Last year, Google's YouTube supplied 50 billion hours' worth of video gaming content.
What does that have to do with Amazon?
Amazon.com is the owner and operator of Twitch, which is the world's most popular destination to watch other individuals play video games. The players who make the video and Amazon split any subscription revenue created by a particular gamer's channel, so that player has an incentive to do well and grow his or her audience.
It's the behemoth in the business. Whereas YouTube Live aired 651.1 million hours of video game play during the first quarter of the year, Twitch delivered a stunning 2.7 billion hours of live video game viewing action - up 33% year-over-year.
It's possible there's room for more than one player in the game-streaming space. It's unlikely there's room for more than one dominant player.
SEE ALSO: The 25 Best Mutual Funds of All Time
Best Buy
There's no denying that electronics retailer Best Buy (BBY) pulled off a miracle.
The deeper Amazon.com waded into the consumer electronics market, the more trouble Best Buy found itself in. By 2012, chatter about Best Buy's impending doom was common. Many presumed the company would follow in Circuit City's footsteps to bankruptcy, as Amazon was simply too competitive.
But a funny thing happened on the road to oblivion. Turnaround artist Hubert Joly took the helm in 2012 and began working on a turnaround plan. It worked, at least according to Joly. He flatly said last year, "We have turned around the business, it's about where we go from here. We have not only survived but thrived and I don't believe this is a winner-takes-all market."
Q2 numbers suggest there's some truth to the matter. Company-wide revenue was up a couple of percentage points, as were same-store sales. Earnings improved by nearly 19%.
But hold off on the victory lap. For one, the further Best Buy works its way into the turnaround, the more its progress slows. Its numbers are seemingly closer to reaching a plateau than not, with much if not all of its revenue growth being attributable to inflation. If Best Buy isn't taking business away from Amazon, the e-commerce giant remains in good position to push back and rekindle its market share growth.
Also, Joly is no longer at the helm. He stepped down in June 2019, and was replaced by Corie Barry, who previously served as CFO and strategic transformation officer.
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Blue Apron, HelloFresh, Plated and Others
No one disputes Amazon.com has mastered the art of delivering anything and everything that isn't perishable, but what about pre-packaged meals?
Yep, it can do that too.
Amazon got into the business in 2017, and it has continued to improve its game ever since. Its entry into the race is a direct threat to the likes of rival meal kit outfits Blue Apron (APRN), HelloFresh and Plated.
The marketability and viability of the so-called "pure plays" in the business were never all that strong. They're all subject to the changing - usually rising - price of food, and it takes massive scale to make meal kits cost-effective enough to turn into a sustainable business. Blue Apron, for instance, is one of the biggest names in the business yet still hasn't recorded even a quarterly profit.
Another unsavory reality of the meal kit biz: Roughly three-fourths of Blue Apron's and HelloFresh's customers stop buying them (on a regular basis anyway) within about six months. The idea is creative, but it doesn't necessarily have longevity.
To the extent there is a viable meal kit market, however, Amazon has two advantages. One is that, on a global basis, almost 200 million people visit Amazon.com each month, and the company boasts an estimated 105 million Prime members in the U.S. alone. Amazon has mastered the art of keeping them lingering long enough that a wide swath of them will eventually give a meal kit a shot.
The other edge is that Amazon doesn't actually have to turn a profit selling those pre-packaged meals. It can extract a profit from those customers by selling them other products and services.
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Duracell, Energizer Holdings
Energizer Holdings (ENR), which of course is the name behind Energizer batteries, is one of the most recognizable names in the business. So is Duracell, which is held by Warren Buffett's Berkshire Hathaway (BRK.B).
Batteries currently sold under Amazon's "Basics" label don't exactly inspire deep brand loyalty. But don't dismiss the potential of Amazon's entry into the seemingly boring business. For whatever reason, batteries and diapers are the two big winners under the company's AmazonBasics umbrella. Amazon already outsells all other battery brands by commanding roughly one-third of that market. Energizer's market share, for reference, is a little better than 10%, while Duracell's piece of the market is closer to 20%.
The bigger concern for those rival brands is the fact that Amazon was able to enter the market and chip away some share for itself at all.
It's unlikely Duracell or Energizer will ever be wiped out completely. But Amazon doesn't even really promote its Basics battery other than as an add-on purchase at its website, and yet it already has proven disruptive to the two biggest brands in the business. The fact that it had a 97% share of online battery purchases in Q1 2019 means it's not going away.
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Etsy
Etsy (ETSY) was, and is, a brilliant idea.
Some things are just not meant to be made or sold in bulk. Handmade one-of-a-kinds still have a place in consumers' hearts, but makers of these goods are facing an increasingly tough time in just being able to show their wares to an increasingly distracted market. By bringing a huge number of artisans under one roof and promoting the entire collection, Etsy has successfully melded an old-school idea with the new.
But Amazon noticed, and responded. In 2015, the e-commerce giant launched Amazon Handmade, taking a stab at Etsy.
Credit must be given where it's due. Etsy has largely fended off the much bigger e-commerce rival, maximizing the value of featuring secondhand goods and handmade items, whereas Amazon's Handmade venue is mostly as cold and impersonal as the other channels of its e-commerce platform. CEO Josh Silverman, former eBay (EBAY) executive, led a 35.9% improvement in revenues for the first nine months of 2019.
Still, Amazon has time and size working in its favor, and it can slowly force its smaller rival into a corner. Etsy, in fact, took one step back in July of this year when it "encouraged" its sellers to offer free U.S. shipping on orders larger than $35. Storefront owners that didn't acquiesce wouldn't be featured as prominently as those that did. Some are complying, but others aren't. All of Etsy's sellers, however, are feeling a little more alienated after being sucker-punched by slightly higher transaction fees instituted in July 2018.
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FedEx, United Parcel Service
While both Uber Technologies (UBER) and Lyft Inc. (LYFT) had opportunities to delve into the package delivery business, neither ride-hailing outfit is interested in going down that route. Perhaps it's more of a logistical headache than it's worth, interfering with their people-moving business models.
However, Amazon.com isn't merely keeping smaller, would-be competitors from entering the market. With a fleet of 42 delivery jet aircraft and plans to expand its fleet to 70 aircraft by 2021, Amazon is encroaching onto turf presently controlled by United Parcel Service (UPS) and FedEx (FDX). The e-commerce giant rounds out its total delivery capacity with Amazon Delivery Service Partners.
The intent hasn't been to put the more established logistics service providers on the defensive. Rather, Amazon.com has built and continues to grow its own delivery network as a means of saving money and improving its overall customer service. FedEx CEO Fred Smith, however, now deems Amazon a competitor. Amazon feels likewise, calling it and UPS competitors in its annual report.
Time and opportunity will only encourage AMZN to monetize its delivery infrastructure even more than it already has - cutting out FedEx and UPS in the process.
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GameStop
GameStop (GME) historically has made its money by serving as the middleman, but the game publishing industry's move toward downloads and away from discs and cartridges is increasingly making the venue less of a destination for gamers.
Its August-quarter results underscore that idea. Global sales fell 14.3% to $1.29 billion, versus analyst estimates of $1.34 billion. The loss of 32 cents per share was far worse than the 21 cents the pros were modeling. The total adjusted loss of $32 million more than tripled the $10.2 million loss booked in Q2 2018. Perhaps worst of all, the retailer warned that same-store sales would likely fall by the low teens for fiscal 2019.
Don't misunderstand. GameStop also sells game downloads via its own website. Amazon does too. Neither venue is completely out of the loop when it comes to this paradigm shift underway within the gaming business.
But Amazon.com induces 2.6 billion unique visits every month now, and that figure just continues to swell. It draws a bigger crowd, and the gamers among them know they can buy downloads via the site. GameStop's website simply doesn't attract nearly as many people.
To its credit, activist investment fund Scion Asset Management has taken on a $10.6 million, 3% stake in the company, and has encouraged GameStop to use its healthy balance sheet to continue repurchasing stock. Lead investor Michael Burry believes next year's launch of new Microsoft (MSFT) Xbox and Sony (SNE) PlayStation consoles will drive much-needed traffic. But both companies continue to move in a manner that negates the need for any game retailer other than Amazon.
Hachette Book Group, Penguin Random House
Initially, the rise of Amazon.com wasn't only not a threat to book publishers - it was a benefit, making it easy for consumers to purchase a book rather than require a visit to an actual bookstore.
But technology never stops marching forward. The development of e-books and e-readers has quelled the need for printing and shipping while simultaneously positioning Amazon.com as an e-book hub. For the crowd that still prefers the feel of paper and the look of a volume on a bookshelf, Amazon's CreateSpace can arrange for a book to be printed on-demand - even just one at a time.
With that option on the table, traditional book publishers such as Penguin Random House and Hachette Book Group are struggling to justify their new role as middlemen that don't bring much value to the table. Amazon can do the marketing job too, or at least offer a platform that will allow an author to promote a book as effectively as a publishing house often does.
The results speak for themselves. In 2017, Jeff Bezos disclosed that more than a thousand independent authors using the Kindle Direct Publishing platform earned more than $100,000 apiece. Meanwhile, e-books drove roughly $12 billion in revenue last year. That's only a small fraction of the total publishing market's collective top line, but that tally is spread out among a huge number of publishers. At least two-thirds of all e-book revenue is generated via an Amazon digital publishing service.
The numbers prompt one key question: Who needs an old-school publisher?
InterActiveCorp, Yelp
Most consumers have heard of online business directory and review repository Yelp (YELP). Ditto for Angie's List, which InterActiveCorp (IAC) has some control of via its 84% stake in ANGI Homeservices (ANGI). What most consumers don't yet realize, however, is that Amazon is quietly encroaching into that market.
It's called Amazon Home Services, and it looks a lot like Angie's List. Homeowners looking for anything ranging from tech support to housecleaning services to yardwork can browse Amazon's curated list of service providers and read reviews regarding their previous work. Angie's List and Yelp offer similar information. And while Yelp also serves up information about a variety of other consumer-facing businesses such as restaurants or retail stores, there's no denying that Amazon Home Services is a viable alternative source of information on many fronts.
Given that Amazon already connects with so many consumers in so many ways, adding reviews to the mix wouldn't be a major technical hurdle.
Yelp doesn't appear to be on the defensive just yet ... at least not given its most recent quarterly earnings report that saw revenues improve by 9% year-over-year. But the headwind is brewing. Its Q2 top line was up 5%, versus 12% sales growth for the same quarter year earlier. Margins improved with expanding scale, but were it not for stock buybacks, per-share profit growth would have cooled too. InterActiveCorp is slowing down as well, and Amazon hasn't even yet applied its full-court press.
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Jo-Ann Fabrics
Even something as mundane and common, yet garment-specific, as fabric could be upended by Amazon.
At first glance, it doesn't appear Amazon has given its fabric and material business any particular special attention. Many of the sewing and craft supplies the website offers are featured on the same basic page used to sell all sorts of other goods. And the featured seller, Fabric.com, appears to be the beneficiary of the usual handoff Amazon makes when a customer needs something that can't be sold en masse.
But take a closer look at the website that Amazon.com redirects you to when you click on the sizeable at the top of the "Fabrics" page. You're buying fabric by the yard from Fabric.com, but Fabric.com is wholly owned by Amazon.
It's a very un-Amazon-like business, though the company knows something most consumers and investors don't: The fabric and sewing supply retailing market is worth about $4 billion per year, and globally, the textile market is expected to be worth more than $1 trillion by 2025.
That's more Amazon-like! Amazon's edge in the arena is that it has the much-needed scale that most textile outlets and retailers don't. That's a problem for Jo-Ann Fabrics.
Lululemon Athletica, Under Armour
If you own any activewear sporting the Goodsport, Rebel Canyon or Peak Velocity labels, you're actually wearing one of Amazon's homegrown house brands. The company got into the business for itself in late 2017.
The foray was a modest one - more of an experiment than something meant to make a splash. It largely was meant to fill gaps left unfilled by the athletic apparel names that weren't offering the entire breadth of their lineup at Amazon.com. Most everything Amazon does, however, starts small and eventually gets big enough to become disruptive.
It's a shot at names such as Lululemon Athletica (LULU) and Under Armour (UAA), which are well-recognized brands but fiscally struggling companies. Under Armour has been saddled by (admittedly shrinking) debt, while Lululemon is finding that an increasingly competitive environment isn't driving profits any higher despite rising revenue.
Nike (NKE) is vulnerable too, but being the biggest and most respected name in the business, it could just as easily benefit from the fact that Amazon has put other activewear manufacturers on the defensive. And in fact, Nike moved to cut any reliance on Amazon by taking its wares off the site, which will allow it to focus on its direct-to-consumer business.
It wouldn't be a stretch to think Amazon could wreak significant havoc in the semi-specialized apparel arena. Internet Retailer's report for 2019 indicates that U.S. online sales of apparel improved more than 18% last year, and now make up 34.4% of all U.S. clothing sales. That's up from 30.6% the year before, playing right into Amazon's expansive reach. In fact, Coresight Research reported in March that the e-commerce giant eclipsed Walmart and Target to become the world's biggest clothing retailer.
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Office Depot, Staples
Reminder: Office Depot (ODP) and OfficeMax are now one and the same company, having merged back in 2013 as a means of defending itself from the slow disintegration of the office supply business.
Amazon.com - and Amazon Business in particular - put that disintegration into motion.
It still wasn't enough. That's why Office Depot and privately held Staples sought a merger of their own a couple of years later, explaining that unless the two retailers worked as one, neither would survive. The Department of Justice didn't buy into the argument, however; it feared that whittling down the number of large brick-and-mortar office supply outfits would harm consumers.
Little has changed since then. Office Depot managed to top its second-quarter earnings estimates, catapulting ODP shares higher, but a closer look at the Q2 report reveals that not all of the tepid growth was even organic. It was driven by acquisitions and new initiatives. And there was no sales growth in Q3 - revenues declined 4% year-over-year.
Staples doesn't have to disclose its quarterly results, but it's difficult to see how it could be faring much better than ODP. Neither can compete with Amazon's prices, and low prices are everything to business customers.
Pandora
Satellite radio company Sirius XM (SIRI) threw Pandora a much-needed lifeline in early 2019, acquiring the struggling company for a modest $3.5 billion. But the online music platform still faces a steep uphill battle. Shortly after the Pandora/Sirius deal was consummated, eMarketer projected that Spotify's growth trajectory and Pandora's deteriorating membership would continue to dwindle. By 2021, Spotify's (SPOT) subscriber base should be larger than its rival's. If Sirius can't stop that bleeding, it might throw in the towel on Pandora altogether.
But Spotify isn't guaranteed to be a thriving survivor, either. It's also fighting a tough battle against a much bigger Apple (AAPL) and a much deeper-pocketed Amazon.com, which offers Amazon Music in several different packages. Amazon is able to leverage its Echo smart speaker line too. It recently offered an Echo Dot for a mere 99 cents to consumers who have a subscription to Amazon Music, which costs a modest $8 per month.
Whatever Amazon is doing, it's working. The e-commerce giant isn't forthcoming about its music subscriber numbers, but it was estimated in that by the middle of 2019, Amazon's music services grew 70% year-over-year, outpacing the growth Apple and Spotify mustered.
There's only room for so many music-streaming platforms in the marketplace. And while Amazon isn't the market leader - that's still Spotify - the presence of a disruptive Amazon Music could still be enough to displace Pandora.
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Rite Aid
Rite Aid (RAD) has been on its last legs for a while. Indeed, truth be told, it's surprising the pharmacy chain still is around in a recognizable form. Rivals CVS Health (CVS) and Walgreens (WBA) both enjoy scale that Rite Aid simply doesn't have, and Rite Aid's sale of nearly 2,000 of its stores by early 2018 only exacerbated the problem. It needs to improve relative profitability, which is more difficult to do - not easier - the smaller an organization becomes.
It might be Amazon that ultimately deals the proverbial death blow to the drugstore market's third-place player, however.
Amazon's 2018 purchase of online pharmacy PillPack is one reason. CVS and Walgreens can hold their own against the digitally operated rival, but Rite Aid doesn't have a solid enough foundation to do the same. The fact CVS and Walgreens are now in a heated tiff with Amazon's pharmacy operation underscores the depth of the threat. The two brick-and-mortar names are suggesting that PillPack hasn't secured the proper customer consent to transfer a doctor's prescription to the alternative provider.
Meanwhile, Rite Aid is increasingly facing off against Amazon with items sold on its store floors. Amazon's home-grown brand of consumables sold under the AmazonBasics label includes goods like hearing-aid batteries, light bulbs and plastic cups just to name a few.
Sears, JCPenney
In all fairness, Amazon has been making things tough for all brick-and-mortar retailers.
Sears (SHLDQ) was the wounded and sickest member of the herd, though, finally forced into bankruptcy protection a year ago ... and even then its ultimate survival remains in question. Meanwhile, it looked for a while like JCPenney (JCP) would be able to keep its head above water while former Home Depot (HD) Marvin Ellison led the retailer through a turnaround. His exit in early 2018, however, might be a not-so-subtle hint that it's only a matter of time before this ship sinks, too.
Amazon competes with both iconic retailers on most fronts. The e-commerce giant, for instance, also offers Maytag appliances, and may have been the driving force of the severed relationship between Sears and Whirlpool. As for JCPenney, hosting Sephoras within its stores has been one of its few recent success stories, but those goods also are available at Amazon.com.
Where Amazon has and continues to hit Sears and JCPenney hard, however, is in the apparel arena. As mentioned above, Amazon has become the country's largest clothing seller. Apparel is a huge category for JCPenney and Sears, and the fact that more than one-third of all apparel sales are now done online largely leaves both players on the outside looking in.
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Sprouts Farmers Market, The Fresh Market, Trader Joe's
It's not exactly a secret that people across the U.S., and around the world for that matter, are increasingly concerned about what they're eating. Chemicals and pesticides are completely out of fashion, as is genetically modified produce. En vogue are organic goods, and where at all possible, locally sourced foods.
It's a trend that initially sprang life for outfits such as Sprouts Farmers Market (SFM), The Fresh Market and Trader Joe's, which historically have been the go-to options for health-conscious consumers. Now that rival grocer Whole Foods Market is an Amazon holding, it can benefit from Amazon's strong marketing reach.
That's not the only edge Amazon has on its organic-grocery rivals, however.
Unlike Trader Joe's and Sprouts, Amazon doesn't necessarily have to turn a profit in the grocery biz anytime soon. As long as it can break even and/or be subsidized by the company's e-commerce operations, AMZN can win the organic grocery wars by attrition, and then focus on profits. The fact The Fresh Market announced more than a dozen store closings were in the works as of the middle of 2018 - and a handful more locales were added to the closure list this year - suggests the plan may be working.
The kicker: Amazon is no longer limiting itself to higher-end organic and whole-foods fare. The company announced in mid-2019 it was planning to build a chain of more conventional grocery stores. That's a threat to Kroger and Walmart, to be sure. But it could also peel off some less-than-completely loyal customers of Sprouts, TFM and Trader Joe's, too.
Teachers Pay Teachers
Teachers Pay Teachers is an unconventional, though brilliant, business idea. Rather than proverbially re-create the wheel, teachers can produce structured classroom handouts and materials, then sell them to other (often overworked) teachers who might not have the time to do so for themselves.
It's not exactly clear how big the market is. It's estimated that Teachers Pay Teachers - the biggest name in the business - generates just a little less than $10 million in annual revenue. It splits revenue with its participants on a 50/50 basis, so the teachers selling lesson plans are also effectively pocketing another $10 million per year, give or take. But for perspective: The market size for K-12 curriculum materials in the U.S. is estimated to be $8 billion per year. Less and less of that is being directed toward traditional providers, as teacher-made materials gain popularity.
Amazon's increasingly disruptive role in the middle of that melee is its relatively new Amazon Inspire site, which is "an open collaboration service that helps teachers to easily discover, gather, and share quality educational content with their community."
The problem for Teachers Pay Teachers and its peers? Amazon Inspire is free to use.
That might not always be the case, but as long as it's free, it's a threat to for-profit sites in the same arena. Conversely, should Amazon eventually opt to make it a profit center, it's apt to turn up the heat on promoting Amazon Inspire. Either way, it's already racked up a couple of victims: Educents and Teacher's Notebook, both of which had to shut down in 2018.
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W. W. Grainger
When Amazon officially entered the B2B (business-to-business) market in 2012 with what was then called AmazonSupply, few heads turned. It's not a scintillating market - particularly the maintenance and repair sliver of it - and it wasn't clear how well the company would be able to stand up to localized specialists like W. W. Grainger (GWW).
Investors should have given Amazon more credit. Although it has been a slow burn, the e-commerce behemoth might be prompting Grainger to make moves that often signal the advent of considerably tougher times.
The biggest of those red flags is price cuts Grainger has made, following Amazon's lead. The impact of those cuts, however, have yet to take shape. Bloomberg Intelligence analyst Christopher Ciolino explained in July, "W.W. Grainger's strategy of lowering prices to grab market share has spurred better than expected volume, yet growth is poised to moderate in 2019-20 amid a slowing industrial economy. An increasingly competitive market, including a growing threat from online rivals, may result in structurally lower prices and gross profit across the industry."
This doesn't suggest that the coming year will mark the end of Grainger. But it could be another slow step in that direction.
Toys "R" Us ... Again
In last year's rundown of companies that Amazon could end, Toys "R" Us was already a confirmed kill. The toy retailer never really worked its way out of its 2017 bankruptcy, so by March 2018, the organization finally decided to shutter all of its remaining stores for good.
Now it's back ... sort of.
Earlier in 2019, a consortium of private equity outfits purchased the still-loved toy retailer and is attempting to rebuild the Toys "R" Us chain in a much different way. While no new stores will be set up in time for this year's holiday shopping season, the brand's new owners seem to understand that a modern-era toy story has to offer immersive experiences. They also need to be smaller and feel less like a warehouse.
The effort will be interesting. But the kind of stores being planned are expensive and labor-intensive, and will require a re-training of consumers that have now become accustomed to purchasing toys from Target, Walmart and ... Amazon.
Then there's the not-so-small reality that once again a brick-and-mortar retailer could provide free "showrooming" services for Amazon. That's where consumers visit a physical store location to learn more about a particular product, then go online to make the purchase from Amazon at what's sure to be a lower price.
SEE ALSO: The Best Vanguard Funds for 401(k) Retirement Savers
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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SEE ALSO: Where Millionaires Live in America 2019 Advance Auto Parts, AutoZone, O'Reilly Automotive The unchecked growth of Amazon didn't faze auto-parts suppliers such as O'Reilly Automotive (ORLY), AutoZone (AZO) and Advance Auto Parts (AAP) for a long time. It's also fighting a tough battle against a much bigger Apple (AAPL) and a much deeper-pocketed Amazon.com, which offers Amazon Music in several different packages. Lululemon Athletica, Under Armour If you own any activewear sporting the Goodsport, Rebel Canyon or Peak Velocity labels, you're actually wearing one of Amazon's homegrown house brands.
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SEE ALSO: Where Millionaires Live in America 2019 Advance Auto Parts, AutoZone, O'Reilly Automotive The unchecked growth of Amazon didn't faze auto-parts suppliers such as O'Reilly Automotive (ORLY), AutoZone (AZO) and Advance Auto Parts (AAP) for a long time. It's also fighting a tough battle against a much bigger Apple (AAPL) and a much deeper-pocketed Amazon.com, which offers Amazon Music in several different packages. Whereas YouTube Live aired 651.1 million hours of video game play during the first quarter of the year, Twitch delivered a stunning 2.7 billion hours of live video game viewing action - up 33% year-over-year.
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SEE ALSO: Where Millionaires Live in America 2019 Advance Auto Parts, AutoZone, O'Reilly Automotive The unchecked growth of Amazon didn't faze auto-parts suppliers such as O'Reilly Automotive (ORLY), AutoZone (AZO) and Advance Auto Parts (AAP) for a long time. It's also fighting a tough battle against a much bigger Apple (AAPL) and a much deeper-pocketed Amazon.com, which offers Amazon Music in several different packages. If Best Buy isn't taking business away from Amazon, the e-commerce giant remains in good position to push back and rekindle its market share growth.
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SEE ALSO: Where Millionaires Live in America 2019 Advance Auto Parts, AutoZone, O'Reilly Automotive The unchecked growth of Amazon didn't faze auto-parts suppliers such as O'Reilly Automotive (ORLY), AutoZone (AZO) and Advance Auto Parts (AAP) for a long time. It's also fighting a tough battle against a much bigger Apple (AAPL) and a much deeper-pocketed Amazon.com, which offers Amazon Music in several different packages. What does that have to do with Amazon?
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2019-11-14 00:00:00 UTC
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3 Recession-Ready Stocks to Buy Right Now
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It's no secret that global economic growth is slowing right now, and many investors are worried that a downturn is coming. While it's important to note that most economists are not forecasting a recession, investors may still want to position themselves for one, or at least increase the weight of defensive stocks in their portfolios. In this context, here are three investment themes and stocks to prepare for a recessionary scenario.
Image source: Getty Images
Three investment themes to beat the recession
First, let's consider a few types of businesses, and the attributes that position them to outperform in a recession.
During economic slowdowns, consumers tend to delay buying new automobiles, so they need to keep their older vehicles running longer. Auto parts retailers like O'Reilly Automotive (NASDAQ: ORLY), AutoZone (NYSE: AZO) tend to benefit from that.
Animal health (companion and livestock) spending tends to be relatively immune to the vagaries of the economic cycle. Companies like Zoetis (NYSE: ZTS) should continue to do well in a recession.
Beverage can manufacturing has secular growth prospects as companies move to shift from less environmentally friendly plastics to metals, and sales volumes tend to hold up well in recessions, while raw material costs can fall too -- good news for Ball Corp. (NYSE: BLL).
Now, let's review some of the details behind these assertions.
Auto-parts retailers do well in a slowdown
You'd be hard-pressed to find many groups of stocks that grew both revenue and earnings through the last recession, but that's exactly what the auto parts retailers did, as the chart below shows. Trailing 12-month (TTM) revenue and earnings rose in the 2007-2011 period and it's no coincidence that U.S. light-vehicle sales declined over the period. Simply put, declining sales of new cars mean more miles driven by older cars -- which is music to the ears of those whose business it is to keep those vehicles on the road.
AZO Revenue (TTM) data by YCharts
Indeed, a similar pattern has been occurring in recent years, as first a slowdown and then an actual decline in light vehicle sales has been accompanied by sales growth for the auto parts retailers.
AZO Revenue (TTM) data by YCharts
When the next recession occurs, it's a safe bet that automobile sales will decline further, and auto parts retailers will benefit accordingly. The pick of the bunch is probably O'Reilly Automotive. Its relatively high exposure to the "Do It For Me" (DIFM) market (around 43% of total sales) means it's less exposed to threats from online competition. Professionals in the DIFM segment usually require their parts immediately, and will buy in-store if they can, as opposed to the Do It Yourself (DIY) crowd, who may have more time flexibility and willingness to wait for an e-tailer's delivery.
Zoetis offers defensive growth
During the last recession, Zoetis was still the animal healthcare segment of pharmaceutical giant Pfizer (NYSE: PFE). It has since spun off publicly, but to get an idea of how it might do as a stand-alone business in a downturn, let's focus on how it performed when it was part of Pfizer.
The picture is complicated further by Pfizer's merger with Wyeth (which added animal health solutions) in 2009, so I've used the figures for the legacy Pfizer animal health operations. Its flat growth in 2009 was a fairly commendable performance in a year when U.S. GDP shrank by 2.5%.
Data source: Pfizer presentations.
After a near 42% stock price rise so far in 2019, Zoetis now trades at 30 times its estimated 2020 EPS of $3.98 -- hardly a superficially cheap stock. There's little doubt it's been bid up by the market in part for its recession-resilient qualities. That said, if you are worried about a protracted slowdown in the economy, Zoetis is probably a good place to park some of your money.
An under-the-radar, recession-resistant stock
Ball Corp. is arguably the most interesting investment opportunity in this batch. It currently derives around 90% of its earnings from beverage packaging -- the rest comes from its aerospace operations. And here too, the evidence from the last recession suggests that Ball has the ability to grow its earnings during a downturn.
One reason for that is that the consumption of canned beverages -- and thus, demand for Ball's products -- isn't particularly tied to the cyclical behavior of the economy.
In addition, its costs are heavily exposed to the prices of raw materials, principally aluminum. If a protracted recession causes a slump in demand for aluminum then the decline in Ball's cost of sales due to lower aluminum prices could more than compensate for any revenue lost, even as it passed through those some of those lower prices to its customers.
A good example comes from 2009, in the heart of the Great Recession.
Beverage can packaging sales volumes in the Americas and Asia were up 2%, but sales revenues were down 3% "primarily as a result of the impact of lower aluminum prices" according to SEC filings. However, Ball's overall cost of sales fell in 2009, more than compensating for any lost revenue -- as shown by the fact that earnings grew in 2009 and 2010.
Ball Corp. Metric 2008 2009 2010
Revenue $6.826 billion $6.710 billion $7.630 billion
Cost of sales $5.700 billion $5.518 billion $6.255 billion
Gross profit $1.127 billion $1.193 billion $1.375 billion
Gross profit margin 16.5% 17.8% 18%
Earnings before interest and taxes $581 million $654 million $765 million
Data source: Company presentations.
Fast-forward to today. The company has divested itself of its more-cyclical food and aerosol container packaging businesses, and is in the middle of ramping up capacity to meet the demand growth generated by the trends toward preferring aluminum packaging to plastic. Consequently, CEO John Hayes said he now believes long-term unit volume growth is more likely to be 4% annually, rather than the previously forecast 2%.
Ball has already proven it can grow earnings in a recession. With its enhanced growth prospects in place, it could do so again.
10 stocks we like better than Zoetis
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*Stock Advisor returns as of June 1, 2019
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Idexx Laboratories. 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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While it's important to note that most economists are not forecasting a recession, investors may still want to position themselves for one, or at least increase the weight of defensive stocks in their portfolios. AZO Revenue (TTM) data by YCharts When the next recession occurs, it's a safe bet that automobile sales will decline further, and auto parts retailers will benefit accordingly. Professionals in the DIFM segment usually require their parts immediately, and will buy in-store if they can, as opposed to the Do It Yourself (DIY) crowd, who may have more time flexibility and willingness to wait for an e-tailer's delivery.
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Auto parts retailers like O'Reilly Automotive (NASDAQ: ORLY), AutoZone (NYSE: AZO) tend to benefit from that. If a protracted recession causes a slump in demand for aluminum then the decline in Ball's cost of sales due to lower aluminum prices could more than compensate for any revenue lost, even as it passed through those some of those lower prices to its customers. Metric 2008 2009 2010 Revenue $6.826 billion $6.710 billion $7.630 billion Cost of sales $5.700 billion $5.518 billion $6.255 billion Gross profit $1.127 billion $1.193 billion $1.375 billion Gross profit margin 16.5% 17.8% 18% Earnings before interest and taxes $581 million $654 million $765 million Data source: Company presentations.
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AZO Revenue (TTM) data by YCharts Indeed, a similar pattern has been occurring in recent years, as first a slowdown and then an actual decline in light vehicle sales has been accompanied by sales growth for the auto parts retailers. If a protracted recession causes a slump in demand for aluminum then the decline in Ball's cost of sales due to lower aluminum prices could more than compensate for any revenue lost, even as it passed through those some of those lower prices to its customers. Metric 2008 2009 2010 Revenue $6.826 billion $6.710 billion $7.630 billion Cost of sales $5.700 billion $5.518 billion $6.255 billion Gross profit $1.127 billion $1.193 billion $1.375 billion Gross profit margin 16.5% 17.8% 18% Earnings before interest and taxes $581 million $654 million $765 million Data source: Company presentations.
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AZO Revenue (TTM) data by YCharts Indeed, a similar pattern has been occurring in recent years, as first a slowdown and then an actual decline in light vehicle sales has been accompanied by sales growth for the auto parts retailers. Data source: Pfizer presentations. That's right -- they think these 10 stocks are even better buys.
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11176.0
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2019-11-14 00:00:00 UTC
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Advance Auto Falls Behind
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AAP
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https://www.nasdaq.com/articles/advance-auto-falls-behind-2019-11-14
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In this episode of MarketFoolery, host Chris Hill talks with senior Motley Fool analyst Jason Moser about some of today's business news. Advance Auto Parts (NYSE: AAP) dipped on its quarterly report, even with higher-than-expected profits and revenue -- investors want more than what Advance is putting up, and the competition is providing. Snap (NYSE: SNAP) popped on news that it's releasing a new version of Spectacles. Jason explains why investors shouldn't buy into Snap for its social media or ad dynamo potential, if they buy into Snap at all. Plus, the guys draw from the listener mailbag -- should investors buy into more than one index fund, or is one enough? Tune in to find out 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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{% render_component 'sa-returns-as-of' type='rg'%}
This video was recorded on Nov. 12, 2019.
Chris Hill: It's Tuesday, Nov. 12. Welcome to MarketFoolery! I'm Chris Hill. Back in studio, Jason Moser. Thanks for being here!
Jason Moser: Had so much fun yesterday, I thought hey, let's do it again! Right?
Hill: Well, I did mention it last week, we've got the annual meeting for The Motley Fool this Thursday and Friday. That just means we're recording everything in a shorter amount of time. Today, we're going to be recording Thursday's episode. It's all hands on deck. It's Foolapalooza, we're excited!
Moser: We've been at this for like 10 years, man. When I'm making that list of priorities out, Chris, let me tell you, you and MarketFoolery are right there at the top. Every day.
Hill: Don't tell your manager!
Moser: Don't you doubt it!
Hill: We're going to talk augmented reality. We're going to dip into the Fool mailbag. We're going to start in the automotive world. Third quarter profits and revenue for Advance Auto Parts came in higher than expected. It is the sixth consecutive quarter of new sales growth for Advance Auto Parts. Why is this stock falling 8%? This is a good quarter and continuing a pretty nice trend for them.
Moser: You say it was a good quarter. It wasn't really a bad quarter. Maybe I'll start with that. I think it was more of the same of what we've seen from this company over the past several quarters. I think the market is probably reacting. There was a little bit of a tightened guidance there on the comps numbers, their expectations on comp sales. Whether it's restaurants or auto parts, when it comes to retail, comps is obviously a metric that matters a lot in. I think they lowered that high end on the comps guidance by about 50 basis points. The market's probably a little bit concerned about that, along with the fact that there are some challenges that the business continues to witness. Now, let's talk about some of the positive trends, first. Their professional side of the business is continuing to show progress. Their e-commerce channels are continuing to show progress. They're making a lot of investments in their loyalty program, the Speed Perks loyalty program. Like any retailer, you're putting together a loyalty program to bring people back, to get more data, to sell them more stuff, give them rewards. It really creates that nice virtuous cycle and a long-lasting relationship. That's good. It does seem like, though, the headwinds, the problems, or concerns, maybe, outweigh the good. Transactions were down. There's still some traffic concerns there. No pun intended. Store traffic. When you look at the investments they're making in the business, they're trying to stanch this gross margin compression. When you stretch it out over further periods of time, when you look at it over the last five years, you can see they're having some issues, there really getting that gross margin stabilized. And that ultimately flows all the way down to the bottom line. Speaking of the bottom line, while they were able to grow earnings per share 11%, net income was only up about 6.5%, and a lot of that really is due to just managing the business, managing the cost side of the business. So they're repurchasing shares, that's helping boost that EPS number. So it's not all really that bad, it's just not that great. And when you look at the competition in this space, when you compare the five-year charts between Advance Auto Parts, AutoZone and O'Reilly, Advance is the clear laggard in. The problem is, over all that time, while O'Reilly and AutoZone have continued to make progress and separate themselves, it's really tough to gain that ground back. It's such a competitive space. That race down on the pricing side just continues to accelerate. It really is more difficult for them to make up that ground in. So you get to where we are today. Is it a value play or is it a value trap? It's hard to say, but I kind of feel like I'm leaning for the latter at this point, just based on the numbers that we're seeing today.
Hill: You mentioned the loyalty program. I think it's worth mentioning, loyalty programs for national chains, once upon a time, it just seemed like this nice bonus thing. Now, it seems like table stakes. Whether you're selling auto parts or coffee or whatever, if you don't have a loyalty program, you almost need to explain yourself. I have to believe that if you don't have a loyalty program that you are actively trying to grow, it's reasonable to assume that you've got cash flow problems. That seems like an investment worth making.
Moser: Yeah, and I think another challenge with loyalty programs, I find myself falling into this trap often, you go to any store and they ask you, "Are you a loyalty member?" And half the time, it's like, no, I'm not. "Do you want to sign up?" "No, I don't, I just want to buy my stuff and get out of here." A good example, I like to paint. So I go to the local art store. I get my stuff from time to time. I don't do it that often. Sometimes I buy stuff from there. Sometimes I buy it from somewhere else. But whenever I go to this store, they're like, "Hey, are you a member of the loyalty club?" And I'm like, "No, I'm not. I just want to pay for my stuff and get out here." Is it worth the extra 10% or 20% to me? Typically, it's not. I'm starting to value my time a little bit differently as opposed to when I was 20 years younger. I'm losing out on a little bit of savings, and that's my choice to make, but the store is really missing out on a lot of data that they could get from me, and they could really start catering to the specific things that I'm buying there. I feel like retailers need to figure something out there. There's a point of friction that they've not fully figured out in many cases.
Hill: Some of them have.
Moser: Some of them have. I don't know specifically what that is. Maybe it's the nature of what you're buying. When you use Starbucks' loyalty program, for example, it's pretty easy because you're going there on a daily basis. With a one-off purchase or the more infrequent purchases, it becomes a little bit more difficult to fully figure that out. I'm not saying I have that solution, but I think that's something that they need to work on. The more they can reduce that friction, the more data they're going to get, the longer the relationship they can create, and the better that works out for everyone.
Hill: Snap has launched Spectacles 3, the latest version of its glasses, now with augmented reality. For just $380, you can buy a pair, record video, apply 3D effects, and then post it to your Snapchat account or other social media networks. Shares of Snap, I should point out, are up a little bit today. Is there a reason for optimism for Snap's business based on this latest launch?
Moser: Maybe. I would say maybe. I think if you're looking for an investment in wearable technology, Snap is not it. I defy you to give me one reason why Snap is a better bet here as opposed to something like Apple or Microsoft or Alphabet. It's not. If you say it's because they're smaller and nimbler, and they can move faster and break things more quickly, that's not the case there. That's not an advantage here. That's actually a disadvantage. They don't have the same resources to devote to this kind of stuff. Frankly, I don't think they have the same talent. When you look at companies like Microsoft and Apple and Alphabet, they are working on that headset, augmented reality, mixed reality. They have more resources, they have more talent, they've been at it for a lot longer. Then you look back to what Snap ultimately is, it's an ad play. On its own, that's fine. But it is a niche social ad play. That, to me, makes it far more difficult to get behind as an investment. Contrary to popular belief, I really do want to like this company. In its lastearnings call management used the phrase augmented reality 21 times. That's right up my alley, in regard to the augmented reality service and the ideas that we're looking for. Founder and CEO Evan Spiegel said, in 10 years, he believes that consumers will widely adopt augmented reality glasses. I tend to agree with that. I just don't think it's going to be theirs. And that, perhaps, is the problem. I think really, when you look at this particular line of Spectacles, these Spectacles are geared more toward the creators that are using Snapchat. I think at the end of the day, this is really an investment in engagement. It's not something that you or I would necessarily buy. I think it's something that's meant for the high dollar creators that are giving Snapchat content on an ongoing basis. From that perspective, it's an investment in engagement. That probably makes sense for them. Again, we get back to that point where it's an ad play, it's a social niche ad play. They need to create engagement. This is going to be one way to do that.
Hill: To the point we were discussing earlier regarding money that you can invest when you're a business, you namechecked Microsoft, Apple, Alphabet, companies with really deep pockets. We were talking the other day about the Apple Watch. First iteration, not that great. Latest version, much better. Apple has not just the money to devote to improving their existing devices, but they've got the time because they've got the money. Snap, by their own admission, the first version of this didn't really work out. Presumably, version three is significantly better. You would hope so, if they're charging nearly $400 a pop for them. But they need this to be something that moves the needle more so than Apple does, in a shorter amount of time.
Moser: There's absolutely no question. Again, we go back to what is their main source of revenue today? It's advertising, plain and simple. So, for them to figure out a way to diversify that revenue stream, I applaud them for being on that now. I like the forward-thinking nature. But when you talk about companies like Apple and Microsoft, and let's throw Amazon in there, Alphabet, these are companies that not only have the resources and the talent, but they've got all the time in the world. They've got the fundamentals working in their favor. These are businesses that are clearly profitable. They make a ton of cash. That affords them all the time in the world. Right now, Snap is not there. Now, that's just because it's a younger company, still getting its feet underneath it. But when you look at the estimates out there in the analyst community, GAAP profitability is a really long way out for this company. GAAP profitability isn't going to happen until 2023. That all just goes back to, we've got a company here that's valued on excitement, it's valued on potential, it's not valued on fundamentals at all. It's got a leader that I don't think has proven himself yet, and he's in full control of this company and the direction in which they go. I think, as an investor, if you look at Snap and you think this is just some massive upside potential social play, that's a bit naive. I think we've seen the massive upside in social shake out. I think what you have here's an opportunity for a company to continue growing, develop its own identity, start embracing more technology, help steer us toward this new mixed reality technology space. One day, they'll be profitable. They'll have some fundamentals that we can value the company on. And it could continue to grow. And then maybe it makes sense as an investment. But this to me is clearly one where I would rather buy it after I've seen demonstrable success. Not, "Well, I think that they're going to do well down the road." We've seen a lot of those already. We hit Twitter like that every quarter, it was the potential, and that just doesn't always work out.
Hill: Shares of Snap up 150% this year.
Moser: Yeah. I mean, it's been a great year, no doubt. It's coming off an extremely low base and major pessimism. They really had nowhere to go but up. So, that, to me, is a sensible reaction. It's not been a good investment if you got in at the IPO. Again, I feel like it's one where it's more sensible to buy this thing once it's proven that it can succeed, that it's sustainable. Doing anything before that is going to be your higher-risk holding in your portfolio.
Hill: Our email address is marketfoolery@fool.com. Question from [...] Hope I'm pronouncing the name correctly, sorry about that. "I'm new to the investing world. You always say that investors should begin by first investing in index funds. After some research, I bought some shares of a broad market index fund ETF. While continuing my investment in index funds, is it preferable to continue buying more shares of my existing investment? Or, should I seek other investment fund opportunities as well? Thanks for all your help."
Great question! We do say that all the time, that it's such a great first step when you're starting to invest. Just get that exposure to the broad market. I am not one of those people who invests in multiple index funds, although there are people who do very well just looking at, once they start with a broad market fund, then they say, "I'm going to focus on a small-cap ETF, a small-cap index."
Moser: A lot of people are really only invested in funds. If you look at it from the perspective of just investing in your 401(k) or whatever your retirement vehicle may be, in most cases, you're choosing from funds in how you allocate your money. From that perspective, the short answer is yes, you can absolutely invest in more than one fund. You can reinvest in the fund that you own already. People can be very successful just investing in ETFs. I think that really, that gets to the greater point here of making sure that you understand what the ETF that you're invested in represents. When we consider this email, for example, and the fund in which he's invested, it's the Schwab broader market funded, ticker SCHB. I did a little research into that particular fund to get a better idea of, what does this fund actually represent? This is a really big fund here. This is a fund that holds essentially 2,500 U.S. stocks. For context, we talk a lot about the S&P 500. The S&P 500 is, surprise, 500. This particular fund owns a really big basket of stocks. So then you have to ask yourself, if you want to invest in another fund, you probably want to invest in that other fund to get exposure to something that you don't have exposure to already. Otherwise, maybe it just makes more sense to add to the fund that you already own. This fund itself is highly rated by Morningstar. It's reputable. It's Schwab, so costs are low, turnover is low. There are low frictional costs involved with it. It's a market cap weighted fund, so it skews toward the bigger companies. One argument for that could be that the bigger companies keep on winning, they keep on getting bigger, and you want to own those companies.
Generally speaking, yes, you can own as many index funds as you want, or ETFs. You want to just understand what is in the ETFs that you currently own, and then try to figure out, do I need to buy something else to get exposure to something else that I don't currently own? In this case, with SCHB, this is a fund that owns a lot. Most of those companies are probably represented by other funds that you would have access to anyway. So maybe in this case, you don't need to own another index fund. Maybe this is all you really need from that perspective, and you can just keep on adding to it. I own one index fund, the S&P 500. And I just keep adding to that every time I get paid here at work. I don't feel the need to go any further than that because I've also got individual stocks and I've got some real estate and other ways to diversify my portfolio. Hopefully that sheds a little bit of light on it. It really boils down to just understanding what's in that fund that you own. A lot of different ways you can find that out. If you just go to your trusty Google and type in the name of the fund, typically, that'll bring you either bring you to the homepage of the company that sponsors the fund, or it would take you to something like a Fool site or a Morningstar site or something where you can find the components of the fund. Just, understanding what is in the funds, that can help dictate where you put your future investment dollars.
Hill: Real quick before we wrap up. We talk about entertainment pretty frequently on this show. I came across in my Twitter feed a lot of entertainers tweeting about Rick Ludwin, who was an executive at NBC. Died the other day at the age of 71. I'll put this out on the MarketFoolery Twitter feed. A very nice obituary. All of these tributes about, sounds like, for someone who spent his life in the television industry as an executive, a pretty soft-spoken guy, a pretty mild-mannered guy. A lot of wonderful tributes being paid to him. From a business standpoint, Rick Ludwin is the lone executive in NBC who believed in a show that was originally called The Seinfeld Chronicles.
Moser: [laughs] He was that one guy.
Hill: He was. There were all these other executives who were like, "I don't know about this show. It seems like it's too New York. I don't think it's going to play well," that sort of thing. And Rick Ludwin believed in the show so much that he had money in a budget -- they did one episode, showed it to executives, they were like "Eh, I don't think so," they all turned it down. And he had money in a budget that was for specials. So, just, like, "Hey, we're going to do a concert special," any kind of primetime special that he wanted to do. He had money set aside in that budget. He took all of that money for four primetime specials and said, "I want four episodes. I'm going to get four episodes of The Seinfeld Chronicles. We're going to put it on TV." And that got the whole thing started.
Moser: That's an amazing story! When you think about, I mean, you talk about shows that have changed the world, I think Seinfeld is certainly one of those shows. That's one of those shows that continues to, I think, hold true in a lot of ways today. It has developed, obviously, a rabid fan base. Frankly, I think social media has only fueled that fire. That only happens every once in a while. We talk a lot about data, Netflix, Disney, all these companies using data to make decisions -- at the end of the day, these shows are art, and art is not so easily figured out. That's why they're special.
Hill: Right. We were talking before we started recording about reviews. Some people rely very heavily on movie reviews, TV reviews. Ultimately, it's the people who decide what they want to watch.
Moser: Precisely!
Hill: Thanks for being here!
Moser: 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's mixed by Dan Boyd. I'm Chris Hill. Thanks for listening! We'll see you tomorrow!
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Chris Hill owns shares of Amazon, Starbucks, and Walt Disney. Jason Moser owns shares of Alphabet (C shares), Amazon, Apple, Starbucks, Twitter, and Walt Disney. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Microsoft, Netflix, Starbucks, Twitter, and Walt Disney and recommends the following options: long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, long January 2021 $60 calls on Walt Disney, long January 2021 $85 calls on Microsoft, and short January 2020 $130 calls on Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts (NYSE: AAP) dipped on its quarterly report, even with higher-than-expected profits and revenue -- investors want more than what Advance is putting up, and the competition is providing. But when you look at the estimates out there in the analyst community, GAAP profitability is a really long way out for this company. GAAP profitability isn't going to happen until 2023.
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Advance Auto Parts (NYSE: AAP) dipped on its quarterly report, even with higher-than-expected profits and revenue -- investors want more than what Advance is putting up, and the competition is providing. But when you look at the estimates out there in the analyst community, GAAP profitability is a really long way out for this company. GAAP profitability isn't going to happen until 2023.
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Advance Auto Parts (NYSE: AAP) dipped on its quarterly report, even with higher-than-expected profits and revenue -- investors want more than what Advance is putting up, and the competition is providing. But when you look at the estimates out there in the analyst community, GAAP profitability is a really long way out for this company. GAAP profitability isn't going to happen until 2023.
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Advance Auto Parts (NYSE: AAP) dipped on its quarterly report, even with higher-than-expected profits and revenue -- investors want more than what Advance is putting up, and the competition is providing. But when you look at the estimates out there in the analyst community, GAAP profitability is a really long way out for this company. GAAP profitability isn't going to happen until 2023.
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11177.0
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2019-11-13 00:00:00 UTC
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Comparable Sales Put Advance Auto's Stock in Arrears
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AAP
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https://www.nasdaq.com/articles/comparable-sales-put-advance-autos-stock-in-arrears-2019-11-13
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Advance Auto Parts' (NYSE: AAP) fiscal third-quarter 2019 earnings report wasn't very dissimilar to recent filings: Year-over-year sales were flattish, and net income advanced in the low double-digits. Yet a minor revision to the auto parts retailer's full-year outlook deflated its stock by 7.5% in Tuesday's trading session. Below, we'll review the quarter's details and unravel why a slight recasting of 2019 guidance caused such a tumble in the "AAP" symbol. Note that all comparative numbers that follow refer to those of the prior-year quarter.
The essential numbers
Data source: Advance Auto Parts.
Highlights from the quarter
Image source: Getty Images.
Comparable sales increased by 1.2% after a flat showing in the second quarter.
Advance Auto's adjusted gross margin dipped roughy 40 basis points to 43.9%. Customer coupon redemptions of $14.0 million related to the launch of the company's "Speed Perks" loyalty program drove the margin decrease. The impact was slightly offset by operational leverage provided by supply-chain improvements.
Adjusted selling, general, and administrative expenses (SG&A) declined 74 basis points to 35% of sales, which management attributed to a decline in labor costs, lower insurance claims, and favorable occupancy expenses.
The leverage in SG&A helped lift adjusted operating margin by 36 basis points to 8.9%.
Advance Auto Parts repurchased $140 million of its common stock during the quarter. The company has completed $486 million worth of repurchases in the first nine months of the year, and the resulting reduction in share count helped boost third-quarter earnings per share (EPS) at a faster clip than net income, as seen in the table above. Advance Auto has $201 million remaining on its current repurchase authorization, and the company's board authorized an additional $700 million repurchase program on Nov. 8.
Why a minor change in guidance hit shares on Tuesday
For the most part, Advance Auto left its full-year 2019 financial framework unchanged on Tuesday. The company retained its annual revenue expectation of $9.65 billion to $9.75 billion and also kept its targeted adjusted operating margin range of 8% to 8.2% intact. The retailer did lower the top of its comparable sales band, though, and has now chalked in year-over-year comps growth of 1% to 1.5%, against last quarter's mark of 1% to 2%.
Shareholders reacted so forcefully to this incremental shift because Advance Auto Parts had already tamped down its comps growth goal last quarter, from a first-quarter range of 1% to 2.5%. As I discussed in my second-quarter earnings recap, the company has been closing underperforming stores in fiscal 2019, which, though ultimately beneficial, pressures its top line in the near term. A narrowing outlook for comparable sales exacerbates the drag on revenue, and two consecutive quarters of comps revisions haven't pleased investors.
However, there is some nuance to the reduced outlook that longer-term shareholders should understand. Part of the weight on comparable sales through the fiscal fourth quarter (and likely into the first quarter of 2020) comes from the company's launch of the Speed Perks loyalty program nationally in the third quarter beyond its initial two test markets.
The $14 million worth of coupon redemptions related to this launch (which I mentioned above) affected gross margin, but they also hit comparable sales, as redeemed customer coupons are booked as reductions in revenue, not as product costs. During the organization's earnings conference call, management made clear that the broader impact of the coupon offers would be beneficial, as Advance Auto is already seeing a high level of loyalty program sign-ups, as well as evidence that "Speed Perks 2.0" is attracting new customers to the company.
The following is an excerpt from CEO Tom Greco's comments on the Speed Perks rollout:
Speed Perks 2.0 is an important platform to help us improve [retail do-it-yourself (DIY)] performance both short and long term. Our goal here is to improve customer loyalty and share of wallet by leveraging first party data to personalize our offerings. Prior to launch, Speed Perks transactions were approximately 25% of total DIY transactions. This is low versus loyalty programs across broader retail. In the third quarter, we began to address this by providing new and improved benefits for our DIY customers. In addition, Speed Perks 2.0 includes technology enhancements for our team members to see Speed Perks member status at the point of sale.
Management estimated that Speed Perks was responsible for a 60 basis point headwind on comps in the third quarter, so it's obviously affecting the full-year outlook. But management believes that over time, loyalty enrollments and the ability to implement targeted offers to members will eventually result in higher comps. Multiyear shareholders of Advance Auto Parts should probably take the near-term impacts of this investment on earnings -- and share price -- in stride.
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. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
Asit Sharma has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Advance Auto Parts' (NYSE: AAP) fiscal third-quarter 2019 earnings report wasn't very dissimilar to recent filings: Year-over-year sales were flattish, and net income advanced in the low double-digits. Below, we'll review the quarter's details and unravel why a slight recasting of 2019 guidance caused such a tumble in the "AAP" symbol. Shareholders reacted so forcefully to this incremental shift because Advance Auto Parts had already tamped down its comps growth goal last quarter, from a first-quarter range of 1% to 2.5%.
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Advance Auto Parts' (NYSE: AAP) fiscal third-quarter 2019 earnings report wasn't very dissimilar to recent filings: Year-over-year sales were flattish, and net income advanced in the low double-digits. Below, we'll review the quarter's details and unravel why a slight recasting of 2019 guidance caused such a tumble in the "AAP" symbol. The essential numbers Data source: Advance Auto Parts.
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Advance Auto Parts' (NYSE: AAP) fiscal third-quarter 2019 earnings report wasn't very dissimilar to recent filings: Year-over-year sales were flattish, and net income advanced in the low double-digits. Below, we'll review the quarter's details and unravel why a slight recasting of 2019 guidance caused such a tumble in the "AAP" symbol. Advance Auto Parts repurchased $140 million of its common stock during the quarter.
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Advance Auto Parts' (NYSE: AAP) fiscal third-quarter 2019 earnings report wasn't very dissimilar to recent filings: Year-over-year sales were flattish, and net income advanced in the low double-digits. Below, we'll review the quarter's details and unravel why a slight recasting of 2019 guidance caused such a tumble in the "AAP" symbol. Advance Auto Parts repurchased $140 million of its common stock during the quarter.
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11178.0
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2019-11-12 00:00:00 UTC
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Why Advance Auto Parts, OrganiGram Holdings, and Tencent Music Entertainment Slumped Today
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-organigram-holdings-and-tencent-music-entertainment-slumped-today
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nan
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nan
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Tuesday was an up-and-down day on Wall Street, with major benchmarks eventually ending up close to where they started the session. Promises of greater clarity on U.S. trade policy turned out to be overly ambitious, and investors were left without any clear answers about whether to expect a deal with China in the near future. Some companies had to deal with bad news that sent their shares sharply lower. Advance Auto Parts (NYSE: AAP), OrganiGram Holdings (NASDAQ: OGI), and Tencent Music Entertainment (NYSE: TME) were among the worst performers. Here's why they did so poorly.
Advance stalls out
Shares of Advance Auto Parts dropped 7.5% after the retailer reported its third-quarter financial results. The company saw adjusted earnings per share rise 11% year over year, but investors were generally disappointed with sluggish sales growth numbers. Advance posted just a 1.2% rise in comparable-store sales during the quarter, and an increase in promotional coupon redemptions weighed slightly on gross margin levels as well. The auto parts retailer also reduced its full-year outlook for comps, now expecting just 1% to 1.5% growth. Advance has every opportunity to get back on track, but it'll take some effort to overcome some of the headwinds facing the industry right now.
Image source: Getty Images.
OrganiGram cuts guidance
OrganiGram saw its stock drop 19.5% following its latest corporate update. The cannabis company gave preliminary guidance for its fiscal fourth quarter, projecting revenue gains of almost 550% compared to year-earlier levels. However, after accounting for excise taxes, OrganiGram's quarterly revenue will be lower than it was in the third quarter. The company blamed falling sales, as well as packaging and inventory adjustments for OrganiGram's adjusted pre-tax operating earnings turning negative for the quarter. CEO Greg Engel was disappointed that the quarter didn't meet expectations, but he's still hopeful that being a leader in marijuana will pay off with stronger returns in the future.
Tencent Music goes out of tune
Finally, shares of Tencent Music Entertainment Group finished lower by 8%. The online music entertainment platform provider said that it enjoyed another solid period of growth in the third quarter of 2019, with a 42% rise in online music paying users to 35.4 million and a 31% jump in revenue. However, profits grew by only single-digit percentages year over year. Tencent Music attributed some of that expense to continued investment in product innovations aimed at retaining and expanding its user base. There's a lot going on in the Chinese internet and mobile space right now, and Tencent Music is working hard to remain a leading contender among the many companies cashing in on rising demand in the industry.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends OrganiGram 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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Advance Auto Parts (NYSE: AAP), OrganiGram Holdings (NASDAQ: OGI), and Tencent Music Entertainment (NYSE: TME) were among the worst performers. Promises of greater clarity on U.S. trade policy turned out to be overly ambitious, and investors were left without any clear answers about whether to expect a deal with China in the near future. CEO Greg Engel was disappointed that the quarter didn't meet expectations, but he's still hopeful that being a leader in marijuana will pay off with stronger returns in the future.
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Advance Auto Parts (NYSE: AAP), OrganiGram Holdings (NASDAQ: OGI), and Tencent Music Entertainment (NYSE: TME) were among the worst performers. The company saw adjusted earnings per share rise 11% year over year, but investors were generally disappointed with sluggish sales growth numbers. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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Advance Auto Parts (NYSE: AAP), OrganiGram Holdings (NASDAQ: OGI), and Tencent Music Entertainment (NYSE: TME) were among the worst performers. The online music entertainment platform provider said that it enjoyed another solid period of growth in the third quarter of 2019, with a 42% rise in online music paying users to 35.4 million and a 31% jump in revenue. Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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Advance Auto Parts (NYSE: AAP), OrganiGram Holdings (NASDAQ: OGI), and Tencent Music Entertainment (NYSE: TME) were among the worst performers. The company saw adjusted earnings per share rise 11% year over year, but investors were generally disappointed with sluggish sales growth numbers. However, after accounting for excise taxes, OrganiGram's quarterly revenue will be lower than it was in the third quarter.
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11179.0
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2019-11-12 00:00:00 UTC
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Consumer Sector Update for 11/12/2019: OSTK,SE,BREW,AAP
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-11-12-2019%3A-ostksebrewaap-2019-11-12
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nan
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nan
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Top Consumer Stocks
WMT -0.13%
MCD +0.42%
DIS +1.36%
CVS +0.74%
KO -0.16%
Consumer stocks continue to straddle their Tuesday starting marks shortly before Tuesday's closing bell, with the shares of consumer staples companies in the S&P 500 climbing almost 0.1% while the shares of consumer discretionary firms in the S&P 500 were posting a nearly 0.2% declien this afternoon.
Among consumer stocks moving on news:
(-) Overstock.com (OSTK) dropped 19% to its lowest share price in more than seven years at $7.60 after the online retailer announced to sell another $150 million of its common stocks from time-to-time through an at-the-market offering agreement with JonesTrading Institutional Services. JonesTrading has sold 5.84 million of the company's shares since August 2018, generating $150 million in gross proceeds, under a previous agreement. Overstock shares also were pressured Tuesday after the company reported a wider-than-expected Q3 net loss and a drop in revenue during the September quarter, also trailing Wall Street expectations.
In other sector news:
(+) Craft Brew Alliance (BREW) climbed as much as 123% on Tuesday, topping out at $16.26 a share, after Anheuser-Busch (BUD) late Monday announced plans to buy the 68.8% of the specialty beer producer it doesn't already own at $16.50 per share, representing a 126% premium to Monday's closing price. The $220 million deal is expected to close in 2020.
(+) Sea Ltd (SE) rose more than 18% after the Singapore-based digital entertainment company said its Q3 revenue more than tripled compared with year-ago levels, exceeding analyst estimates, and also increased its FY19 revenue outlook. Revenue grew 214% over the same quarter last year to $763.3 million, beating the Capital IQ consensus expecting $700.7 million in revenue for the three months ended Sept. 30.
(-) Advance Auto Parts (AAP) slid 7.5% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Analysts polled by Capital IQ are looking for a 1.46% rise in same-store sales this 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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(-) Advance Auto Parts (AAP) slid 7.5% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Among consumer stocks moving on news: (-) Overstock.com (OSTK) dropped 19% to its lowest share price in more than seven years at $7.60 after the online retailer announced to sell another $150 million of its common stocks from time-to-time through an at-the-market offering agreement with JonesTrading Institutional Services. Overstock shares also were pressured Tuesday after the company reported a wider-than-expected Q3 net loss and a drop in revenue during the September quarter, also trailing Wall Street expectations.
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(-) Advance Auto Parts (AAP) slid 7.5% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Top Consumer Stocks Among consumer stocks moving on news: (-) Overstock.com (OSTK) dropped 19% to its lowest share price in more than seven years at $7.60 after the online retailer announced to sell another $150 million of its common stocks from time-to-time through an at-the-market offering agreement with JonesTrading Institutional Services.
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(-) Advance Auto Parts (AAP) slid 7.5% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Consumer stocks continue to straddle their Tuesday starting marks shortly before Tuesday's closing bell, with the shares of consumer staples companies in the S&P 500 climbing almost 0.1% while the shares of consumer discretionary firms in the S&P 500 were posting a nearly 0.2% declien this afternoon. Among consumer stocks moving on news: (-) Overstock.com (OSTK) dropped 19% to its lowest share price in more than seven years at $7.60 after the online retailer announced to sell another $150 million of its common stocks from time-to-time through an at-the-market offering agreement with JonesTrading Institutional Services.
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(-) Advance Auto Parts (AAP) slid 7.5% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Among consumer stocks moving on news: (-) Overstock.com (OSTK) dropped 19% to its lowest share price in more than seven years at $7.60 after the online retailer announced to sell another $150 million of its common stocks from time-to-time through an at-the-market offering agreement with JonesTrading Institutional Services. JonesTrading has sold 5.84 million of the company's shares since August 2018, generating $150 million in gross proceeds, under a previous agreement.
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11180.0
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2019-11-12 00:00:00 UTC
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Tuesday Sector Laggards: Energy, Services
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AAP
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https://www.nasdaq.com/articles/tuesday-sector-laggards%3A-energy-services-2019-11-12
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nan
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nan
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Looking at the sectors faring worst as of midday Tuesday, shares of Energy companies are underperforming other sectors, showing a 0.5% loss. Within that group, Helmerich & Payne, Inc. (Symbol: HP) and National Oilwell Varco Inc (Symbol: NOV) are two large stocks that are lagging, showing a loss of 2.1% and 1.7%, respectively. Among energy ETFs, one ETF following the sector is the Energy Select Sector SPDR ETF (Symbol: XLE), which is down 0.6% on the day, and up 7.53% year-to-date. Helmerich & Payne, Inc., meanwhile, is down 9.95% year-to-date, and National Oilwell Varco Inc, is down 11.13% year-to-date. Combined, HP and NOV make up approximately 1.2% of the underlying holdings of XLE.
The next worst performing sector is the Services sector, showing a 0.2% loss. Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Viacom Inc (Symbol: VIAB) are the most notable, showing a loss of 7.0% and 3.5%, respectively. One ETF closely tracking Services stocks is the iShares U.S. Consumer Services ETF (IYC), which is up 0.1% in midday trading, and up 23.45% on a year-to-date basis. Advance Auto Parts Inc, meanwhile, is down 0.17% year-to-date, and Viacom Inc, is down 9.63% year-to-date. Combined, AAP and VIAB make up approximately 0.6% of the underlying holdings of IYC.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, four sectors are up on the day, while three sectors are down.
25 Dividend Giants Widely Held By ETFs »
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, AAP and VIAB make up approximately 0.6% of the underlying holdings of IYC. Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Viacom Inc (Symbol: VIAB) are the most notable, showing a loss of 7.0% and 3.5%, respectively. Combined, HP and NOV make up approximately 1.2% of the underlying holdings of XLE.
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Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Viacom Inc (Symbol: VIAB) are the most notable, showing a loss of 7.0% and 3.5%, respectively. Combined, AAP and VIAB make up approximately 0.6% of the underlying holdings of IYC. Within that group, Helmerich & Payne, Inc. (Symbol: HP) and National Oilwell Varco Inc (Symbol: NOV) are two large stocks that are lagging, showing a loss of 2.1% and 1.7%, respectively.
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Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Viacom Inc (Symbol: VIAB) are the most notable, showing a loss of 7.0% and 3.5%, respectively. Combined, AAP and VIAB make up approximately 0.6% of the underlying holdings of IYC. Among energy ETFs, one ETF following the sector is the Energy Select Sector SPDR ETF (Symbol: XLE), which is down 0.6% on the day, and up 7.53% year-to-date.
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Among large Services stocks, Advance Auto Parts Inc (Symbol: AAP) and Viacom Inc (Symbol: VIAB) are the most notable, showing a loss of 7.0% and 3.5%, respectively. Combined, AAP and VIAB make up approximately 0.6% of the underlying holdings of IYC. Within that group, Helmerich & Payne, Inc. (Symbol: HP) and National Oilwell Varco Inc (Symbol: NOV) are two large stocks that are lagging, showing a loss of 2.1% and 1.7%, respectively.
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11181.0
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2019-11-12 00:00:00 UTC
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Consumer Sector Update for 11/12/2019: SE,BREW,AAP
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-11-12-2019%3A-sebrewaap-2019-11-12
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nan
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nan
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Top Consumer Stocks
WMT +0.01%
MCD +0.19%
DIS +1.69%
CVS +0.59%
KO -0.36%
Consumer stocks were straddling their Tuesday starting marks, with the shares of consumer staples companies in the S&P 500 recently falling less than 0.1% while the shares of consumer discretionary firms in the S&P 500 were posting a nearly 0.1% gain this afternoon.
Among consumer stocks moving on news:
(+) Sea Ltd (SE) rose more than 18% after the Singapore-based digital entertainment company said its Q3 revenue more than tripled compared with year-ago levels, exceeding analyst estimates, and also increased its FY19 revenue outlook. Revenue grew 214% over the same quarter last year to $763.3 million, beating the Capital IQ consensus expecting $700.7 million in revenue for the three months ended Sept. 30.
In other sector news:
(+) Craft Brew Alliance (BREW) climbed as much as 123% on Tuesday, topping out at $16.26 a share, after Anheuser-Busch (BUD) late Monday announced plans to buy the 68.8% of the specialty beer producer it doesn't already own at $16.50 per share, representing a 126% premium to Monday's closing price. The $220 million deal is expected to close in 2020.
(-) Advance Auto Parts (AAP) slid over 8% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Analysts polled by Capital IQ are looking for a 1.46% rise in same-store sales this 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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(-) Advance Auto Parts (AAP) slid over 8% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Among consumer stocks moving on news: (+) Sea Ltd (SE) rose more than 18% after the Singapore-based digital entertainment company said its Q3 revenue more than tripled compared with year-ago levels, exceeding analyst estimates, and also increased its FY19 revenue outlook. In other sector news: (+) Craft Brew Alliance (BREW) climbed as much as 123% on Tuesday, topping out at $16.26 a share, after Anheuser-Busch (BUD) late Monday announced plans to buy the 68.8% of the specialty beer producer it doesn't already own at $16.50 per share, representing a 126% premium to Monday's closing price.
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(-) Advance Auto Parts (AAP) slid over 8% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Top Consumer Stocks Revenue grew 214% over the same quarter last year to $763.3 million, beating the Capital IQ consensus expecting $700.7 million in revenue for the three months ended Sept. 30.
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(-) Advance Auto Parts (AAP) slid over 8% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Consumer stocks were straddling their Tuesday starting marks, with the shares of consumer staples companies in the S&P 500 recently falling less than 0.1% while the shares of consumer discretionary firms in the S&P 500 were posting a nearly 0.1% gain this afternoon. Revenue grew 214% over the same quarter last year to $763.3 million, beating the Capital IQ consensus expecting $700.7 million in revenue for the three months ended Sept. 30.
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(-) Advance Auto Parts (AAP) slid over 8% after the retailer Tuesday lowered the top end of its forecast for 2019 comparable-store sales, now projecting sales growth at its stores open more than 12 months in a range of 1.0% to 1.5%, down from its prior guidance expecting an increase of between 1% to 2%. Top Consumer Stocks Consumer stocks were straddling their Tuesday starting marks, with the shares of consumer staples companies in the S&P 500 recently falling less than 0.1% while the shares of consumer discretionary firms in the S&P 500 were posting a nearly 0.1% gain this afternoon.
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11182.0
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2019-11-12 00:00:00 UTC
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Stocks Rise as Traders Monitor Trump's Speech
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AAP
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https://www.nasdaq.com/articles/stocks-rise-as-traders-monitor-trumps-speech-2019-11-12
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nan
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nan
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NASDAQ Composite +0.45% Dow +0.19% S&P 500 +0.33% Russell 2000 +0.36%
NASDAQ Advancers: 1295 Decliners: 1048
Today’s Volume (vs. Monday) +15.75%
Crude $57.00 +$0.14, Gold $1454.10 -$3.00, VIX 12.68 -0.01
Market Movers
President Trump speaks at Noon on U.S. economic policy in New York
U.S. NFIB Small Business Index for October higher than forecast at 102.4 vs 102 expected and higher than the 101.8 in September
Reaction to earnings: CVET +25%, DXC +14%, ROK + 13%, GO +8%, TSN +4.5%, DHI +1%, AAP -8%, CBS -2.5%
Chris’ Commentary
Markets are trading slightly higher this morning awaiting President Trump’s key speech at the Economic Club of New York at noon. Traders will be hanging on his every word looking for any insights to U.S.–China trade policy. White House spokesman Judd Deere said, “You can expect the president to highlight how his policies of lower taxes, deregulation, and fair and reciprocal trade have supported the longest economic recovery in U.S. history with record low unemployment, rising wages, and soaring consumer confidence." Expect the President to read the pre-prepared remarks, but look for interesting commentary if he goes off-script or fields Q&A.
Yesterday was Veterans Day and U.S. equity markets were open while the bond market and banks were closed. If you blinked or went to the Veterans Day parade or like me, watched your son play in a fall lacrosse tournament you might have missed it, but the Dow Jones Industrial Average made a new all-time high. The Nasdaq Composite, S&P 500 and the Russell 2000 all closed slightly lower. Yesterday’s trading volumes were some of the lightest of the year with only 5.5 billion shares trading on the consolidated tape. The average yearly daily trading volume on the consolidated tape is only 6.99 billion shares a day which is 3.3% less than 2018’s daily trading average.
Uncharacteristically today, all 11 of the major S&P 500 sectors are trading flat to higher. Not one sector is down at this moment though Staples are trading close to flat. The best performers are Healthcare and Basic Material. Crude oil is up over 1% while Gold is trades lower. The dollar is higher while the yield on the 10-yr sits at 1.95%.
Plenty of M&A and potential private equity deals announced this week. Dow componentWalgreens Boots Alliance (WBA) explores an offer from private equity firm KKR. This announcement yesterday helped give the Dow a boost to close at record highs. Also today, in the adult beverage sector, Anheuser-Busch InBev (BUD) announced they will acquired the remaining shares of Craft Brew Alliance (BREW) for $16.50 a shares in a deal expected to close by end of 2020. YTD, global M&A stands at $4.7 trillion of announced or proposed deals which is down 3.8% from this time last year. In North America, we have seen $2.4 trillion of deals which is down 3.2% from this point last year.
Alibaba (BABA) logged more than 268 billion yuan ($38.3 billion) of purchases during its Singles’ Day extravaganza yesterday exceeding last year’s record event. Bloomberg reported that this year’s 24-hour shopping event has become an annual ritual for Asia’s largest company, with an estimated half-billion shoppers browsing the site for deals. Shoppers from China to Russia and Argentina scoop up everything from Apple Inc. and Xiaomi Corp. gadgets to Ugandan mangoes.
Sector Recap
Brian’s Technical Take
With Brian out, I thought it would be appropriate to highlight the Main Street Index, better known as the Dow Jones Industrial Average. With the Index trading at all-time highs, it is interesting that the Dow still has room to run. Depending on the comments (or mood) of the President today, the index could be have a significant move (one way or another) as many of the Dow members' business lines are directly tied to international trade and specifically to China trade.
Below is the Dow’s 52-week chart.
Nasdaq's Market Intelligence Desk (MID) Team includes:
Charles Brown is Associate Vice President on The Market Intelligence Desk with over 20 years of equity capital markets experience. Charlie has extensive knowledge of equity trading on both floor and screen-based marketplaces. Charlie assists with the management of The Market Intelligence Desk and works with Nasdaq listed companies providing them with insightful objective trading analysis.
Steven Brown is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over twenty years of experience in equities. With a focus on client retention he currently covers the Financial, Energy and Media sectors.
Christopher Dearborn is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Chris has over two decades of equity market experience including floor and screen-based trading, corporate access, IPOs and asset allocation. Chris is responsible for providing timely, accurate and objective market and trading-related information to Nasdaq-listed companies.
Brian Joyce, CMT is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Before joining Nasdaq, Brian spent 16 years as an institutional trader executing equity and options orders for both the buy side and sell side. He also provided trading ideas and wrote technical analysis commentary for an institutional research offering. Brian focuses on helping Nasdaq’s Financial, Healthcare and Transportation companies, among others, understand the trading in their stock. Brian is a Chartered Market Technician (CMT).
Michael Sokoll, CFA is Associate Vice President on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience. In this role, he manages a team of professionals responsible for providing NASDAQ-listed companies with real-time trading analysis and objective market information.
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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NASDAQ Composite +0.45% Dow +0.19% S&P 500 +0.33% Russell 2000 +0.36% NASDAQ Advancers: 1295 Decliners: 1048 Today’s Volume (vs. Monday) +15.75% Crude $57.00 +$0.14, Gold $1454.10 -$3.00, VIX 12.68 -0.01 Market Movers President Trump speaks at Noon on U.S. economic policy in New York U.S. NFIB Small Business Index for October higher than forecast at 102.4 vs 102 expected and higher than the 101.8 in September Reaction to earnings: CVET +25%, DXC +14%, ROK + 13%, GO +8%, TSN +4.5%, DHI +1%, AAP -8%, CBS -2.5% Chris’ Commentary Markets are trading slightly higher this morning awaiting President Trump’s key speech at the Economic Club of New York at noon. White House spokesman Judd Deere said, “You can expect the president to highlight how his policies of lower taxes, deregulation, and fair and reciprocal trade have supported the longest economic recovery in U.S. history with record low unemployment, rising wages, and soaring consumer confidence." If you blinked or went to the Veterans Day parade or like me, watched your son play in a fall lacrosse tournament you might have missed it, but the Dow Jones Industrial Average made a new all-time high.
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NASDAQ Composite +0.45% Dow +0.19% S&P 500 +0.33% Russell 2000 +0.36% NASDAQ Advancers: 1295 Decliners: 1048 Today’s Volume (vs. Monday) +15.75% Crude $57.00 +$0.14, Gold $1454.10 -$3.00, VIX 12.68 -0.01 Market Movers President Trump speaks at Noon on U.S. economic policy in New York U.S. NFIB Small Business Index for October higher than forecast at 102.4 vs 102 expected and higher than the 101.8 in September Reaction to earnings: CVET +25%, DXC +14%, ROK + 13%, GO +8%, TSN +4.5%, DHI +1%, AAP -8%, CBS -2.5% Chris’ Commentary Markets are trading slightly higher this morning awaiting President Trump’s key speech at the Economic Club of New York at noon. Nasdaq's Market Intelligence Desk (MID) Team includes: Charles Brown is Associate Vice President on The Market Intelligence Desk with over 20 years of equity capital markets experience. Michael Sokoll, CFA is Associate Vice President on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience.
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NASDAQ Composite +0.45% Dow +0.19% S&P 500 +0.33% Russell 2000 +0.36% NASDAQ Advancers: 1295 Decliners: 1048 Today’s Volume (vs. Monday) +15.75% Crude $57.00 +$0.14, Gold $1454.10 -$3.00, VIX 12.68 -0.01 Market Movers President Trump speaks at Noon on U.S. economic policy in New York U.S. NFIB Small Business Index for October higher than forecast at 102.4 vs 102 expected and higher than the 101.8 in September Reaction to earnings: CVET +25%, DXC +14%, ROK + 13%, GO +8%, TSN +4.5%, DHI +1%, AAP -8%, CBS -2.5% Chris’ Commentary Markets are trading slightly higher this morning awaiting President Trump’s key speech at the Economic Club of New York at noon. Nasdaq's Market Intelligence Desk (MID) Team includes: Charles Brown is Associate Vice President on The Market Intelligence Desk with over 20 years of equity capital markets experience. Michael Sokoll, CFA is Associate Vice President on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience.
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NASDAQ Composite +0.45% Dow +0.19% S&P 500 +0.33% Russell 2000 +0.36% NASDAQ Advancers: 1295 Decliners: 1048 Today’s Volume (vs. Monday) +15.75% Crude $57.00 +$0.14, Gold $1454.10 -$3.00, VIX 12.68 -0.01 Market Movers President Trump speaks at Noon on U.S. economic policy in New York U.S. NFIB Small Business Index for October higher than forecast at 102.4 vs 102 expected and higher than the 101.8 in September Reaction to earnings: CVET +25%, DXC +14%, ROK + 13%, GO +8%, TSN +4.5%, DHI +1%, AAP -8%, CBS -2.5% Chris’ Commentary Markets are trading slightly higher this morning awaiting President Trump’s key speech at the Economic Club of New York at noon. With the Index trading at all-time highs, it is interesting that the Dow still has room to run. Charlie assists with the management of The Market Intelligence Desk and works with Nasdaq listed companies providing them with insightful objective trading analysis.
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11183.0
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2019-11-12 00:00:00 UTC
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AAP Makes Notable Cross Below Critical Moving Average
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AAP
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https://www.nasdaq.com/articles/aap-makes-notable-cross-below-critical-moving-average-2019-11-12
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nan
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nan
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $158.50, changing hands as low as $154.60 per share. Advance Auto Parts Inc shares are currently trading off about 8.2% 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $154.77.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $158.50, changing hands as low as $154.60 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $154.77. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $158.50, changing hands as low as $154.60 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $154.77. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $158.50, changing hands as low as $154.60 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $154.77. Click here to find out which 9 other stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed below their 200 day moving average of $158.50, changing hands as low as $154.60 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $154.77. Advance Auto Parts Inc shares are currently trading off about 8.2% on the day.
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11184.0
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2019-11-12 00:00:00 UTC
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S&P 500 Movers: AAP, DXC
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AAP
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https://www.nasdaq.com/articles/sp-500-movers%3A-aap-dxc-2019-11-12
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nan
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nan
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In early trading on Tuesday, shares of DXC Technology (DXC) topped the list of the day's best performing components of the S&P 500 index, trading up 14.1%. Year to date, DXC Technology has lost about 36.9% of its value.
And the worst performing S&P 500 component thus far on the day is Advance Auto Parts (AAP), trading down 7.7%. Advance Auto Parts is lower by about 1.1% looking at the year to date performance.
Two other components making moves today are Viacom (VIAB), trading down 3.8%, and Rockwell Automation (ROK), trading up 13.0% on the day.
VIDEO: S&P 500 Movers: AAP, DXC
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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And the worst performing S&P 500 component thus far on the day is Advance Auto Parts (AAP), trading down 7.7%. VIDEO: S&P 500 Movers: AAP, DXC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of DXC Technology (DXC) topped the list of the day's best performing components of the S&P 500 index, trading up 14.1%.
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And the worst performing S&P 500 component thus far on the day is Advance Auto Parts (AAP), trading down 7.7%. VIDEO: S&P 500 Movers: AAP, DXC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of DXC Technology (DXC) topped the list of the day's best performing components of the S&P 500 index, trading up 14.1%.
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And the worst performing S&P 500 component thus far on the day is Advance Auto Parts (AAP), trading down 7.7%. VIDEO: S&P 500 Movers: AAP, DXC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Tuesday, shares of DXC Technology (DXC) topped the list of the day's best performing components of the S&P 500 index, trading up 14.1%.
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And the worst performing S&P 500 component thus far on the day is Advance Auto Parts (AAP), trading down 7.7%. VIDEO: S&P 500 Movers: AAP, DXC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, DXC Technology has lost about 36.9% of its value.
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11185.0
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2019-11-12 00:00:00 UTC
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Consumer Sector Update for 11/12/2019: BREW, BUD, DHI, AAP, WMT, MCD, DIS, CVS, KO
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AAP
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https://www.nasdaq.com/articles/consumer-sector-update-for-11-12-2019%3A-brew-bud-dhi-aap-wmt-mcd-dis-cvs-ko-2019-11-12
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nan
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nan
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Top Consumer Stocks:
WMT: +0.38%
MCD: +0.19%
DIS: +0.88%
CVS: +0.10%
KO: +0.25%
Leading consumer stocks were trading higher pre-bell Tuesday.
Stocks moving on news include:
(+) Craft Brew Alliance (BREW), which was surging by more than 122% after Anheuser-Busch (BUD) said it will buy the remaining shares of Craft Brew Alliance that it does not already own for $16.50 per share.
(+) DR Horton (DHI) was up more than 2% after it reported fiscal Q4 earnings of $1.35 per share, up from $1.22 in the same period a year ago and topping the estimate of $1.25 from analysts polled by Capital IQ.
(-) Advance Auto Parts (AAP) was declining by more than 6% as it booked a Q3 adjusted EPS of $2.10, rising from $1.89 year ago and beating the $2.05 consensus forecast from analysts surveyed by Capital IQ. Advance Auto Parts also maintained its 2019 net sales outlook at $9.65 billion to $9.75 billion but lowered its comparable net sales guidance to between 1% and 1.5% from the previous estimate of 1% to 2%.
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) was declining by more than 6% as it booked a Q3 adjusted EPS of $2.10, rising from $1.89 year ago and beating the $2.05 consensus forecast from analysts surveyed by Capital IQ. Leading consumer stocks were trading higher pre-bell Tuesday. (+) DR Horton (DHI) was up more than 2% after it reported fiscal Q4 earnings of $1.35 per share, up from $1.22 in the same period a year ago and topping the estimate of $1.25 from analysts polled by Capital IQ.
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(-) Advance Auto Parts (AAP) was declining by more than 6% as it booked a Q3 adjusted EPS of $2.10, rising from $1.89 year ago and beating the $2.05 consensus forecast from analysts surveyed by Capital IQ. Stocks moving on news include: (+) Craft Brew Alliance (BREW), which was surging by more than 122% after Anheuser-Busch (BUD) said it will buy the remaining shares of Craft Brew Alliance that it does not already own for $16.50 per share. (+) DR Horton (DHI) was up more than 2% after it reported fiscal Q4 earnings of $1.35 per share, up from $1.22 in the same period a year ago and topping the estimate of $1.25 from analysts polled by Capital IQ.
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(-) Advance Auto Parts (AAP) was declining by more than 6% as it booked a Q3 adjusted EPS of $2.10, rising from $1.89 year ago and beating the $2.05 consensus forecast from analysts surveyed by Capital IQ. Stocks moving on news include: (+) Craft Brew Alliance (BREW), which was surging by more than 122% after Anheuser-Busch (BUD) said it will buy the remaining shares of Craft Brew Alliance that it does not already own for $16.50 per share. (+) DR Horton (DHI) was up more than 2% after it reported fiscal Q4 earnings of $1.35 per share, up from $1.22 in the same period a year ago and topping the estimate of $1.25 from analysts polled by Capital IQ.
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(-) Advance Auto Parts (AAP) was declining by more than 6% as it booked a Q3 adjusted EPS of $2.10, rising from $1.89 year ago and beating the $2.05 consensus forecast from analysts surveyed by Capital IQ. Top Consumer Stocks: Stocks moving on news include: (+) Craft Brew Alliance (BREW), which was surging by more than 122% after Anheuser-Busch (BUD) said it will buy the remaining shares of Craft Brew Alliance that it does not already own for $16.50 per share.
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11186.0
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2019-11-12 00:00:00 UTC
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Advance Auto Parts Q3 19 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-q3-19-earnings-conference-call-at-8%3A00-am-et-2019-11-12-0
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nan
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nan
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(RTTNews) - Advance Auto Parts, Inc. (AAP) will host a conference call at 8:00 AM ET on Nov. 12, 2019, to discuss Q3 19 earnings results.
To access the live webcast, log on to www.AdvanceAutoParts.com
To listen to the call, dial (844) 877-5989 with identification number is 2439758
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 Nov. 12, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (844) 877-5989 with identification number is 2439758 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 Nov. 12, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (844) 877-5989 with identification number is 2439758 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 Nov. 12, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (844) 877-5989 with identification number is 2439758 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 Nov. 12, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (844) 877-5989 with identification number is 2439758 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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11187.0
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2019-11-12 00:00:00 UTC
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Earnings: 3 Buy-Rated Stocks to Watch Tuesday
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AAP
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https://www.nasdaq.com/articles/earnings%3A-3-buy-rated-stocks-to-watch-tuesday-2019-11-12
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nan
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nan
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Earnings season isn’t over yet. While the majority of S&P 500 companies have already reported, Wall Street is still eagerly awaiting the results from a select few names. With the results generally being better-than-expected, investors can’t wait to see what is in store for the companies lining up to report.
Bearing this in mind, we wanted to dig a little deeper to get the lowdown on a few stocks that have yet to release their earnings reports. To get this done, we turned to TipRanks. The platform’s Stock Screener tool enabled us to pinpoint 3 must-watch tickers ahead of their upcoming releases today, all of which are currently buy-rated.
Let’s get started.
Advance Auto Parts, Inc. (AAP)
Advance Auto Parts has captured the Street’s attention thanks to its 19% rise over the last three months. That being said, one top analyst reminds investors to keep their expectations in check ahead of its earnings release.
While his bullish thesis remains very much intact, Wedbush’s Seth Basham points out that he expects results to fall in-line. Even though the company has taken a step in the right direction with its sales initiatives, it might not have boosted results as much as the car parts company had hoped. This lends itself to his forecasts of flat gross margins and somewhat sluggish comps of about 1%+ (vs consensus +1.2%).
Nonetheless, Basham is still “constructive” on AAP’s third quarter numbers. “Pricing actions driven mostly by tariffs should provide a sequentially stronger boost to AAP comps, and could also benefit gross margins, helping (along with supply chain cost leverage, which is key to the long-term story) to offset pressures from LIFO and unicap accounting,” he noted.
Basham adds that even if gross margins fall flat, it can be taken as a positive signal that the headwinds AAP faced in Q2 were only temporary. As a result, the four-star analyst kept his Buy recommendation and $180 price target. This target puts the potential twelve-month gain at 7%. (To watch Basham’s track record, click here)
Looking at the consensus breakdown, the rest of the Street’s take on AAP is more mixed. 9 Buy ratings, 4 Holds and 1 Sell give it a ‘Moderate Buy’ analyst consensus. Its $169 average price target indicates downside potential of 0.2%. (See Advance Auto Parts stock analysis on TipRanks)
Cronos Group Inc. (CRON)
Given the fact that it has been a tough quarter for the cannabis sector, all eyes are on Cronos Group before it announces earnings results.
Unlike other key players in the space, CRON has been impressing investors with its prudent spending. Many cultivators in the industry have struggled as a result of funding, but this doesn’t appear to be the case for CRON. The company is set to finance its cultivation JV, Cronos GrowCo, with a $100 million revolving term loan facility. Not to mention the cannabis name also saw its Australian operation close an AUD$20 million public offering.
Adding to the excitement, Q3 represents the first time that investors will get to see how its Lord Jones brand is performing. Cronos acquired the CBD brand for $300 million back in September.
Based on all the above, CIBC analyst John Zamparo still sees the cannabis stock as a buying proposition, with his estimates putting quarterly revenue at CA$13.3 million. While this is less than the CA$13.8 million consensus estimate, Zamparo’s prediction still brings the gain from Q2 to 30%-plus. The analyst also highlights Lord Jones as key area to watch, telling clients Lord Jones gross margins could come in 10 to 15 percentage points higher than existing cannabis operations.
To this end, the analyst kept a $15 price target along with his rating. This implies shares could soar 87% over the next twelve months. (To watch Zamparo’s track record, click here)
Similarly, other Wall Street analysts like what they’re seeing. With 5 Buys and 1 Hold received in the last three months, CRON earns a ‘Strong Buy’ Street consensus. Additionally, its $14 average price target suggests 73% upside potential. (See Cronos Group stock analysis on TipRanks)
Canadian Solar Inc. (CSIQ)
Canadian Solar is one of the leading providers of solar PV modules and other solar energy solutions. With tariffs presenting a potential threat to the company, Wall Street is waiting to see how CSIQ will fare in its third quarter.
The Trump administration announced that it would be imposing tariffs on bifacial solar panels. Even though the decision reversed an earlier ruling in June, a complete reversal was widely considered to be unexpected. This posed a cause for concern as CSIQ was recently awarded a 1.8 GW part-bifacial supply deal from EDF Renewables.
While it is concerning, Cascend Securities analyst Eric Ross believes that now is not the time to panic. “Bifacials are a no-brainer for low-cost additional capacity. This is a speedbump but not a tragic issue that will stop the massive ramp we’re seeing in solar likely to drive forward over the next several years,” he explained.
The analyst cites CSIQ as well-positioned within the markets in the U.S., Brazil, Mexico, Japan and China thanks to its shifting of capacity upstream to cells and modules, which are in undersupply, and away from products facing oversupply like ingots and wafers. With Ross betting on earnings jumping higher in the second half of 2019, it’s no wonder he maintained his Buy rating. He is also confident in CSIQ’s ability to surge 48% over the next twelve months according to the $25 price target. (To watch Ross’ track record, click here)
Turning to the rest of the Street, 2 Buys and 1 Hold issued in the last three months add up to a ‘Moderate Buy’ consensus. The upside potential lands at 68% based on the $28 average price target, significantly higher than Ross’ forecast. (See Canadian Solar stock analysis on TipRanks)
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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“Pricing actions driven mostly by tariffs should provide a sequentially stronger boost to AAP comps, and could also benefit gross margins, helping (along with supply chain cost leverage, which is key to the long-term story) to offset pressures from LIFO and unicap accounting,” he noted. Advance Auto Parts, Inc. (AAP) Advance Auto Parts has captured the Street’s attention thanks to its 19% rise over the last three months. Nonetheless, Basham is still “constructive” on AAP’s third quarter numbers.
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Advance Auto Parts, Inc. (AAP) Advance Auto Parts has captured the Street’s attention thanks to its 19% rise over the last three months. Nonetheless, Basham is still “constructive” on AAP’s third quarter numbers. “Pricing actions driven mostly by tariffs should provide a sequentially stronger boost to AAP comps, and could also benefit gross margins, helping (along with supply chain cost leverage, which is key to the long-term story) to offset pressures from LIFO and unicap accounting,” he noted.
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Advance Auto Parts, Inc. (AAP) Advance Auto Parts has captured the Street’s attention thanks to its 19% rise over the last three months. Nonetheless, Basham is still “constructive” on AAP’s third quarter numbers. “Pricing actions driven mostly by tariffs should provide a sequentially stronger boost to AAP comps, and could also benefit gross margins, helping (along with supply chain cost leverage, which is key to the long-term story) to offset pressures from LIFO and unicap accounting,” he noted.
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Basham adds that even if gross margins fall flat, it can be taken as a positive signal that the headwinds AAP faced in Q2 were only temporary. Advance Auto Parts, Inc. (AAP) Advance Auto Parts has captured the Street’s attention thanks to its 19% rise over the last three months. Nonetheless, Basham is still “constructive” on AAP’s third quarter numbers.
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11188.0
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2019-11-12 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-2019-11-12
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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 totaled $123.67 million, or $1.75 per share. This compares with $115.84 million, or $1.56 per share, in last year's third quarter.
Excluding items, Advance Auto Parts reported adjusted earnings of $148.22 million or $2.10 per share for the period.
Analysts had expected the company to earn $2.05 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 1.8% to $2.31 billion from $2.27 billion last year.
Advance Auto Parts earnings at a glance:
-Earnings (Q3): $148.22 Mln. vs. $139.96 Mln. last year. -EPS (Q3): $2.10 vs. $1.89 last year. -Analysts Estimate: $2.05 -Revenue (Q3): $2.31 Bln vs. $2.27 Bln last year.
-Guidance: Full year revenue guidance: $9,650 - $9,750 Mln
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Advance Auto Parts (AAP) revealed a profit for its third quarter that advanced from the same period last year. Excluding items, Advance Auto Parts reported adjusted earnings of $148.22 million or $2.10 per share for the period. Analysts had expected the company to earn $2.05 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 $148.22 million or $2.10 per share for the period. -Analysts Estimate: $2.05 -Revenue (Q3): $2.31 Bln vs. $2.27 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. Excluding items, Advance Auto Parts reported adjusted earnings of $148.22 million or $2.10 per share for the period. -Guidance: Full year revenue guidance: $9,650 - $9,750 Mln The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Advance Auto Parts (AAP) revealed a profit for its third quarter that advanced from the same period last year. This compares with $115.84 million, or $1.56 per share, in last year's third quarter. Excluding items, Advance Auto Parts reported adjusted earnings of $148.22 million or $2.10 per share for the period.
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11189.0
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2019-11-12 00:00:00 UTC
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Advance Auto Parts Q3 19 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-q3-19-earnings-conference-call-at-8%3A00-am-et-2019-11-12
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nan
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nan
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(RTTNews) - Advance Auto Parts, Inc. (AAP) will host a conference call at 8:00 AM ET on Nov. 12, 2019, to discuss Q3 19 earnings results.
To access the live webcast, log on to www.AdvanceAutoParts.com
To listen to the call, dial (844) 877-5989 with identification number 2439758.
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 Nov. 12, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (844) 877-5989 with identification number 2439758. 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 Nov. 12, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (844) 877-5989 with identification number 2439758. 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 Nov. 12, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (844) 877-5989 with identification number 2439758. 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 Nov. 12, 2019, to discuss Q3 19 earnings results. To access the live webcast, log on to www.AdvanceAutoParts.com To listen to the call, dial (844) 877-5989 with identification number 2439758. 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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11190.0
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2019-11-11 00:00:00 UTC
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Notable Monday Option Activity: AAP, DHI, DXC
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AAP
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https://www.nasdaq.com/articles/notable-monday-option-activity%3A-aap-dhi-dxc-2019-11-11
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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 7,412 contracts has been traded thus far today, a contract volume which is representative of approximately 741,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 95.5% of AAP's average daily trading volume over the past month, of 775,970 shares. Particularly high volume was seen for the $160 strike put option expiring November 15, 2019, with 1,659 contracts trading so far today, representing approximately 165,900 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange:
Horton Inc (Symbol: DHI) options are showing a volume of 20,494 contracts thus far today. That number of contracts represents approximately 2.0 million underlying shares, working out to a sizeable 47.2% of DHI's average daily trading volume over the past month, of 4.3 million shares. Especially high volume was seen for the $42 strike put option expiring November 15, 2019, with 2,325 contracts trading so far today, representing approximately 232,500 underlying shares of DHI. Below is a chart showing DHI's trailing twelve month trading history, with the $42 strike highlighted in orange:
And DXC Technology Co (Symbol: DXC) saw options trading volume of 16,604 contracts, representing approximately 1.7 million underlying shares or approximately 44.9% of DXC's average daily trading volume over the past month, of 3.7 million shares. Especially high volume was seen for the $30 strike call option expiring November 15, 2019, with 2,232 contracts trading so far today, representing approximately 223,200 underlying shares of DXC. Below is a chart showing DXC's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for AAP options, DHI 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 $160 strike put option expiring November 15, 2019, with 1,659 contracts trading so far today, representing approximately 165,900 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 7,412 contracts has been traded thus far today, a contract volume which is representative of approximately 741,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 95.5% of AAP's average daily trading volume over the past month, of 775,970 shares.
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Particularly high volume was seen for the $160 strike put option expiring November 15, 2019, with 1,659 contracts trading so far today, representing approximately 165,900 underlying shares of AAP. Below is a chart showing AAP's trailing twelve month trading history, with the $160 strike highlighted in orange: Horton Inc (Symbol: DHI) options are showing a volume of 20,494 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 7,412 contracts has been traded thus far today, a contract volume which is representative of approximately 741,200 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 7,412 contracts has been traded thus far today, a contract volume which is representative of approximately 741,200 underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $160 strike put option expiring November 15, 2019, with 1,659 contracts trading so far today, representing approximately 165,900 underlying shares of AAP. That number works out to 95.5% of AAP's average daily trading volume over the past month, of 775,970 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 7,412 contracts has been traded thus far today, a contract volume which is representative of approximately 741,200 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 95.5% of AAP's average daily trading volume over the past month, of 775,970 shares. Particularly high volume was seen for the $160 strike put option expiring November 15, 2019, with 1,659 contracts trading so far today, representing approximately 165,900 underlying shares of AAP.
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11191.0
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2019-10-16 00:00:00 UTC
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Wednesday Sector Leaders: Services, Materials
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AAP
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https://www.nasdaq.com/articles/wednesday-sector-leaders%3A-services-materials-2019-10-16
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nan
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nan
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Looking at the sectors faring best as of midday Wednesday, shares of Services companies are outperforming other sectors, up 0.2%. Within the sector, Masco Corp. (Symbol: MAS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 1.9% and 1.8%, respectively. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 0.2% on the day, and up 22.32% year-to-date. Masco Corp., meanwhile, is up 52.02% year-to-date, and Advance Auto Parts Inc is up 3.35% year-to-date. AAP makes up approximately 0.4% of the underlying holdings of IYC.
The next best performing sector is the Materials sector, higher by 0.2%. Among large Materials stocks, DuPont (Symbol: DD) and Linde plc (Symbol: LIN) are the most notable, showing a gain of 2.6% and 1.1%, respectively. One ETF closely tracking Materials stocks is the Materials Select Sector SPDR ETF (XLB), which is up 0.3% in midday trading, and up 15.58% on a year-to-date basis. DuPont, meanwhile, is down 39.32% year-to-date, and Linde plc is up 28.09% year-to-date. Combined, DD and LIN make up approximately 23.7% of the underlying holdings of XLB.
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 Wednesday. As you can see, four sectors are up on the day, while five sectors are down.
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 the sector, Masco Corp. (Symbol: MAS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 1.9% and 1.8%, respectively. AAP makes up approximately 0.4% of the underlying holdings of IYC. One ETF closely tracking Materials stocks is the Materials Select Sector SPDR ETF (XLB), which is up 0.3% in midday trading, and up 15.58% on a year-to-date basis.
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Within the sector, Masco Corp. (Symbol: MAS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 1.9% and 1.8%, respectively. AAP makes up approximately 0.4% of the underlying holdings of IYC. Among large Materials stocks, DuPont (Symbol: DD) and Linde plc (Symbol: LIN) are the most notable, showing a gain of 2.6% and 1.1%, respectively.
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Within the sector, Masco Corp. (Symbol: MAS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 1.9% and 1.8%, respectively. AAP makes up approximately 0.4% of the underlying holdings of IYC. Among the largest ETFs, one ETF closely following services stocks is the iShares U.S. Consumer Services ETF (Symbol: IYC), which is up 0.2% on the day, and up 22.32% year-to-date.
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Within the sector, Masco Corp. (Symbol: MAS) and Advance Auto Parts Inc (Symbol: AAP) are two large stocks leading the way, showing a gain of 1.9% and 1.8%, respectively. AAP makes up approximately 0.4% of the underlying holdings of IYC. Looking at the sectors faring best as of midday Wednesday, shares of Services companies are outperforming other sectors, up 0.2%.
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11192.0
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2019-10-07 00:00:00 UTC
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Why Advance Auto Parts Stock Jumped 20% in September
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AAP
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https://www.nasdaq.com/articles/why-advance-auto-parts-stock-jumped-20-in-september-2019-10-07
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nan
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nan
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What happened
Shares of Advance Auto Parts (NYSE: AAP) gained 19.9% last month, according to data provided by S&P Global Market Intelligence. Many stocks fell in August as investors worried about the potential impact from the escalated trade tensions between the U.S. and China. Advance Auto Parts got caught up in the broader sell-off, but saw its share price rebound strongly in September as investors realized that things may not be that bad after all.
In September, the stock was upgraded by Citigroup with a buy rating, which might have helped investor confidence as well.
Image source: Getty Images.
So what
The auto parts supplier reported a somewhat disappointing quarter in August but maintained full-year guidance. Comp sales were flat after posting much better growth to start the year. Management blamed sub-optimal weather for the flattening comps results. But the company expects a strong finish to the year, as management continues to improve the supply chain and make strides in e-commerce.
Now what
Advance has been making significant improvements to the supply chain and inventory optimization to improve margins. The analyst with Citigroup expects these investments to pay off despite the recent headwinds of channel and product mix, which caused gross margin to decrease by 0.42 percentage points in the second quarter.
Management sees better margin results in the second half of 2019. Analysts don't expect the supply chain initiatives to significantly improve margins until next year, based on current earnings estimates. They expect earnings to increase by 11% in 2019 and 14.4% in 2020. Sales are expected to grow by just 1.5% this year and pick up slightly to 2.4% next year.
The long-term picture looks good, as Advance Auto Parts should benefit from growing demand for pre-owned vehicles. More car buyers are choosing to fix up older vehicles instead of buying more expensive new cars, which favors long-term sales growth for the auto parts industry.
10 stocks we like better than Advance Auto Parts
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 1, 2019
John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of Advance Auto Parts (NYSE: AAP) gained 19.9% last month, according to data provided by S&P Global Market Intelligence. Advance Auto Parts got caught up in the broader sell-off, but saw its share price rebound strongly in September as investors realized that things may not be that bad after all. The analyst with Citigroup expects these investments to pay off despite the recent headwinds of channel and product mix, which caused gross margin to decrease by 0.42 percentage points in the second quarter.
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What happened Shares of Advance Auto Parts (NYSE: AAP) gained 19.9% last month, according to data provided by S&P Global Market Intelligence. But the company expects a strong finish to the year, as management continues to improve the supply chain and make strides in e-commerce. Analysts don't expect the supply chain initiatives to significantly improve margins until next year, based on current earnings estimates.
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What happened Shares of Advance Auto Parts (NYSE: AAP) gained 19.9% last month, according to data provided by S&P Global Market Intelligence. 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. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Advance Auto Parts wasn't one of them!
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What happened Shares of Advance Auto Parts (NYSE: AAP) gained 19.9% last month, according to data provided by S&P Global Market Intelligence. Advance Auto Parts got caught up in the broader sell-off, but saw its share price rebound strongly in September as investors realized that things may not be that bad after all. Analysts don't expect the supply chain initiatives to significantly improve margins until next year, based on current earnings estimates.
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11193.0
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2019-09-27 00:00:00 UTC
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We Did The Math SPYX Can Go To $80
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AAP
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https://www.nasdaq.com/articles/we-did-the-math-spyx-can-go-to-%2480-2019-09-27
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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 SPDR S&P 500 Fossil Fuel Reserves Free ETF (Symbol: SPYX), we found that the implied analyst target price for the ETF based upon its underlying holdings is $79.71 per unit.
With SPYX trading at a recent price near $72.63 per unit, that means that analysts see 9.75% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPYX's underlying holdings with notable upside to their analyst target prices are FLIR Systems, Inc. (Symbol: FLIR), Advance Auto Parts Inc (Symbol: AAP), and McKesson Corp (Symbol: MCK). Although FLIR has traded at a recent price of $53.54/share, the average analyst target is 10.95% higher at $59.40/share. Similarly, AAP has 10.76% upside from the recent share price of $160.38 if the average analyst target price of $177.64/share is reached, and analysts on average are expecting MCK to reach a target price of $153.20/share, which is 10.08% above the recent price of $139.17. Below is a twelve month price history chart comparing the stock performance of FLIR, AAP, and MCK:
Below is a summary table of the current analyst target prices discussed above:
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 FLIR, AAP, and MCK: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPYX's underlying holdings with notable upside to their analyst target prices are FLIR Systems, Inc. (Symbol: FLIR), Advance Auto Parts Inc (Symbol: AAP), and McKesson Corp (Symbol: MCK). Similarly, AAP has 10.76% upside from the recent share price of $160.38 if the average analyst target price of $177.64/share is reached, and analysts on average are expecting MCK to reach a target price of $153.20/share, which is 10.08% above the recent price of $139.17.
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Three of SPYX's underlying holdings with notable upside to their analyst target prices are FLIR Systems, Inc. (Symbol: FLIR), Advance Auto Parts Inc (Symbol: AAP), and McKesson Corp (Symbol: MCK). Similarly, AAP has 10.76% upside from the recent share price of $160.38 if the average analyst target price of $177.64/share is reached, and analysts on average are expecting MCK to reach a target price of $153.20/share, which is 10.08% above the recent price of $139.17. Below is a twelve month price history chart comparing the stock performance of FLIR, AAP, and MCK: Below is a summary table of the current analyst target prices discussed above: 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 10.76% upside from the recent share price of $160.38 if the average analyst target price of $177.64/share is reached, and analysts on average are expecting MCK to reach a target price of $153.20/share, which is 10.08% above the recent price of $139.17. Below is a twelve month price history chart comparing the stock performance of FLIR, AAP, and MCK: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPYX's underlying holdings with notable upside to their analyst target prices are FLIR Systems, Inc. (Symbol: FLIR), Advance Auto Parts Inc (Symbol: AAP), and McKesson Corp (Symbol: MCK).
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Below is a twelve month price history chart comparing the stock performance of FLIR, AAP, and MCK: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPYX's underlying holdings with notable upside to their analyst target prices are FLIR Systems, Inc. (Symbol: FLIR), Advance Auto Parts Inc (Symbol: AAP), and McKesson Corp (Symbol: MCK). Similarly, AAP has 10.76% upside from the recent share price of $160.38 if the average analyst target price of $177.64/share is reached, and analysts on average are expecting MCK to reach a target price of $153.20/share, which is 10.08% above the recent price of $139.17.
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11194.0
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2019-09-24 00:00:00 UTC
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Interesting AAP Put And Call Options For November 15th
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AAP
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https://www.nasdaq.com/articles/interesting-aap-put-and-call-options-for-november-15th-2019-09-24
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nan
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nan
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the November 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 15th contracts and identified one put and one call contract of particular interest.
The put contract at the $160.00 strike price has a current bid of $7.70. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $160.00, but will also collect the premium, putting the cost basis of the shares at $152.30 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $161.78/share today.
Because the $160.00 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 57%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.81% return on the cash commitment, or 33.75% 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 $160.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $165.00 strike price has a current bid of $7.30. If an investor was to purchase shares of AAP stock at the current price level of $161.78/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $165.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 6.50% if the stock gets called away at the November 15th 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 $165.00 strike highlighted in red:
Considering the fact that the $165.00 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 54%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.51% boost of extra return to the investor, or 31.65% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 39%, while the implied volatility in the call contract example is 37%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $161.78) to be 29%. 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 $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the November 15th expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the November 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 15th 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 $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the November 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new November 15th 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 15th 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 $165.00 strike highlighted in red: Considering the fact that the $165.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options become available this week, for the November 15th expiration.
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11195.0
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2019-09-16 00:00:00 UTC
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Interesting AAP Put And Call Options For January 2022
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AAP
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https://www.nasdaq.com/articles/interesting-aap-put-and-call-options-for-january-2022-2019-09-16
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nan
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nan
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Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 858 days until expiration the newly trading contracts represent a 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 January 2022 contracts and identified one put and one call contract of particular interest.
The put contract at the $155.00 strike price has a current bid of $23.50. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $155.00, but will also collect the premium, putting the cost basis of the shares at $131.50 (before broker commissions). To an investor already interested in purchasing shares of AAP, that could represent an attractive alternative to paying $157.32/share today.
Because the $155.00 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 62%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 15.16% return on the cash commitment, or 6.45% 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 $155.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $170.00 strike price has a current bid of $25.00. If an investor was to purchase shares of AAP stock at the current price level of $157.32/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $170.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 23.95% if the stock gets called away at the January 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 $170.00 strike highlighted in red:
Considering the fact that the $170.00 strike represents an approximate 8% 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 45%. 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 15.89% boost of extra return to the investor, or 6.76% 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 250 trading day closing values as well as today's price of $157.32) to be 29%. 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.
|
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 $170.00 strike highlighted in red: Considering the fact that the $170.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2022 expiration.
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Below is a chart showing AAP's trailing twelve month trading history, with the $170.00 strike highlighted in red: Considering the fact that the $170.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new January 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 $170.00 strike highlighted in red: Considering the fact that the $170.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2022 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAP options chain for the new January 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 January 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 $170.00 strike highlighted in red: Considering the fact that the $170.00 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in Advance Auto Parts Inc (Symbol: AAP) saw new options begin trading today, for the January 2022 expiration.
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11196.0
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2019-09-12 00:00:00 UTC
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Bullish Two Hundred Day Moving Average Cross - AAP
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AAP
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https://www.nasdaq.com/articles/bullish-two-hundred-day-moving-average-cross-aap-2019-09-12
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nan
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nan
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In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $158.93, changing hands as high as $160.15 per share. Advance Auto Parts Inc shares are currently trading off about 0.1% on the day. The chart below shows the one year performance of AAP shares, versus its 200 day moving average:
Looking at the chart above, AAP's low point in its 52 week range is $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $158.91.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $158.93, changing hands as high as $160.15 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $158.91. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $158.93, changing hands as high as $160.15 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $158.91. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $158.93, changing hands as high as $160.15 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $158.91. Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
In trading on Thursday, shares of Advance Auto Parts Inc (Symbol: AAP) crossed above their 200 day moving average of $158.93, changing hands as high as $160.15 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 $130.09 per share, with $186.15 as the 52 week high point — that compares with a last trade of $158.91. Advance Auto Parts Inc shares are currently trading off about 0.1% on the day.
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11197.0
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2019-09-10 00:00:00 UTC
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3 Ideas to Make Your Portfolio Recession-Resistant
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AAP
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https://www.nasdaq.com/articles/3-ideas-to-make-your-portfolio-recession-resistant-2019-09-10
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nan
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nan
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Nervous investors worried about a recession will surely be preparing themselves for the worst right now. While it's far from clear that the global economy -- or even the U.S. -- will fall into a recession in the next few years, there are warning signs. It's quite possible that a major country like Germany could be in a recession (defined as two consecutive quarters of economic contraction) by the time you read this article. Moreover, history suggests the global economy will fall into recession at some point. What's a worried equity investor to do? Here are three suggestions.
How to invest during a recession
The three ideas are as follows:
Buy stocks in an industry that is likely to do better in a recession -- this is where auto parts retailers like O'Reilly Automotive (NASDAQ: ORLY), AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) come in.
Invest in a sector whose prospects are largely independent of the economy, but whose stocks get sold off anyway -- this is where the healthcare sector comes in.
Park the money in cash and wait for an opportune time to buy-in.
Image source: Getty Images.
Auto parts retailers
A quick look at the share-price charts of O'Reilly, AutoZone, and Advance Auto Parts in the two-year period straddling the last recession shows a significant outperformance. There's a reason for this, and it's the tendency for consumers to skip buying a new car in troubled times in favor of running older cars longer. That's good news for auto parts retailers because older cars need more servicing.
^SPX data by YCharts. Shaded areas correspond to recessions.
As you can see below, that relationship appears to have continued in the last few years as U.S. retail car sales have passed a cyclical peak -- throw in a recession, and they are likely to decline further.
ORLY Revenue (TTM) data by YCharts. TTM = trailing 12 months.
The sector looked like a good value at the start of 2018, and the three stocks had a great year. But are they still a good value, particularly with concerns over potential pressure on margin coming from Amazon.com (NASDAQ: AMZN).
The answer to the valuation question probably depends on whether there will be a recession and how long it will be. An extended period of economic decline will lead to employment instability and consequently falling car sales. Of the three, O'Reilly is probably best positioned to deal with the long-term threat from Amazon due its relatively higher share of its revenue from in-house repair revenue -- the company generates 43% of its revenue from professional mechanics (as opposed to DIY).
This is important because professional customers tend to need the parts immediately. And O'Reilly has arguably the best distribution system in the industry with 90% of its stores receiving what it says are "multiple same-day deliveries of hard-to-find parts" from its hubs. This is something Amazon will find very hard to replicate.
Healthcare is relatively recession-resistant
The qualifier is important! Despite its defensive nature, healthcare isn't entirely recession-proof. That said, three companies are well worth looking at. Animal health (for livestock and companion animals) is a specific area that shouldn't be significantly hurt by a recession. Indeed, Pfizer's former animal health businesses -- now spun off into a company called Zoetis (NYSE: ZTS) -- actually grew organic revenue during the last recession.
Another exciting option in the healthcare sector is veterinary diagnostics company IDEXX Laboratories (NASDAQ: IDXX) -- a company that continues to grow profits at a double-digit rate.
A third option, industrial company Danaher (NYSE: DHR), is actually more of a healthcare company these days. It's attractive because of its excellent management team and heavy exposure to life sciences, diagnostics, and water-quality treatment. Progress in 2019 has been excellent, and the addition of General Electric's biopharma business later this year will give management an opportunity to boost its growth rate. Danaher's best days are clearly ahead of it.
Hold cash in reserve
History suggests that severe market dips are usually a good time for investors to start picking up stocks for the long-term. In this context, if you are worried about a recession causing a slump in asset classes such as equities then it's a good idea to keep some cash in reserve in order to take advantage of buying opportunities in your favorite stocks.
Final thoughts
All told, it's easy for investors to talk themselves into doomsday scenarios regarding the economy, and memories of 2008-2009 are still fresh. That said, if and when a recession occurs, history suggests the economy will revert back to growth soon enough. Nevertheless, if you want to try to protect yourself from a protracted slowdown, then the ideas suggested above are a good way to start.
10 stocks we like better than Zoetis
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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. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and Idexx Laboratories. 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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How to invest during a recession The three ideas are as follows: Buy stocks in an industry that is likely to do better in a recession -- this is where auto parts retailers like O'Reilly Automotive (NASDAQ: ORLY), AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) come in. Indeed, Pfizer's former animal health businesses -- now spun off into a company called Zoetis (NYSE: ZTS) -- actually grew organic revenue during the last recession. Hold cash in reserve History suggests that severe market dips are usually a good time for investors to start picking up stocks for the long-term.
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How to invest during a recession The three ideas are as follows: Buy stocks in an industry that is likely to do better in a recession -- this is where auto parts retailers like O'Reilly Automotive (NASDAQ: ORLY), AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) come in. Another exciting option in the healthcare sector is veterinary diagnostics company IDEXX Laboratories (NASDAQ: IDXX) -- a company that continues to grow profits at a double-digit rate. A third option, industrial company Danaher (NYSE: DHR), is actually more of a healthcare company these days.
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How to invest during a recession The three ideas are as follows: Buy stocks in an industry that is likely to do better in a recession -- this is where auto parts retailers like O'Reilly Automotive (NASDAQ: ORLY), AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) come in. Hold cash in reserve History suggests that severe market dips are usually a good time for investors to start picking up stocks for the long-term. In this context, if you are worried about a recession causing a slump in asset classes such as equities then it's a good idea to keep some cash in reserve in order to take advantage of buying opportunities in your favorite stocks.
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How to invest during a recession The three ideas are as follows: Buy stocks in an industry that is likely to do better in a recession -- this is where auto parts retailers like O'Reilly Automotive (NASDAQ: ORLY), AutoZone (NYSE: AZO) and Advance Auto Parts (NYSE: AAP) come in. Hold cash in reserve History suggests that severe market dips are usually a good time for investors to start picking up stocks for the long-term. That's right -- they think these 10 stocks are even better buys.
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11198.0
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2019-08-29 00:00:00 UTC
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3 Stocks to Own If You're Worried About a Recession
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AAP
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https://www.nasdaq.com/articles/3-stocks-to-own-if-youre-worried-about-a-recession-2019-08-29
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If you've been watching or reading the news recently, you've probably heard concerns about a recession slowly get louder and louder. Despite the U.S. economy's continuing to grow and add jobs, global growth outlooks have been cut, and escalating trade tensions between the world's two largest economies, the U.S. and China, only add to investor nervousness. If you're very concerned about a recession, it's a good idea to make a list of stocks that perform well during a downturn. And if you're here for some ideas, you're in luck: AutoZone (NYSE: AZO), Dollar Tree (NASDAQ: DLTR), and Ferrari (NYSE: RACE) are all intriguing options for their own reasons.
Do-it-yourself juggernaut
During the Great Recession, the S&P 500 shed roughly 38% of its value through the 18-month slowdown. Even finding stocks that traded flat over that time was considered a huge win for your portfolio, but AutoZone thrived, and its stock actually increased 35% over the same 18 months.
Why did AutoZone pop when the rest of the S&P 500 dropped? The answer may be simpler than you think, because as consumers felt the pinch in their wallets and as uncertainty about the economy intensified, many consumers saved a buck whenever they could. For some people that meant doing simple auto repairs and maintenance themselves instead of paying a repair shop. Even something as simple as consumers opting to change their own oil for a year brought a lot of foot traffic into automotive retailers.
Image source: Getty Images.
Further, the company has strong engagement through offering consumers tool loans, how-to videos, diagnostic equipment at its stores, and even repair guides – if you're going to go out on a limb and do your own basic repairs, AutoZone is known to be a great starting point. As the past recession went on, many consumers put off buying new cars, and as the age of vehicles on the road increased, the demand for maintenance, service, and small repairs rose.
Now, it's true that AutoZone was one of multiple auto retailers to thrive during the past recession: O'Reilly Automotive and Advance Auto Parts also jumped 16% and 15%, respectively. One reason AutoZone outperformed its primary competitors is likely its nationwide presence and brand image, which has helped the retailer achieve leading market share in the do-it-yourself market. Even if we avoid a recession in the near term, AutoZone recently decided to expand its plan for megahubs, a distribution network strategy to help improve inventory availability and speed of delivery in order to attract more commercial customers, which will only add to its impressive DIY business.
AutoZone offers investors an excellent option, as its business thrives when consumers need to save a buck, but another intriguing stock to own during a downturn is a good idea for a completely opposite reason: Ferrari's customers rarely need to save a buck.
What recession?
Many of us will unfortunately never obtain enough wealth that we can completely ignore possible recessions. But that's common for the type of consumer buying Ferrari's ultraluxury vehicles. Years ago at a Frankfurt car show, Fiat's CEO, the late Sergio Marchionne, quipped, "If you go to the Ferrari stand, there aren't any customers worried about the recession." Marchionne continued, according to Bloomberg, "The last Ferrari customers I saw at the show weren't crying."
As insensitive as it may seem to the masses that feel financial pain during recessions, Marchionne was right, wealthy people will buy extravagant Ferraris even during economic slowdowns. Even during the second quarter, as the vast majority of automakers saw slowing global demand, Ferrari logged an 8% vehicle shipment increase, which drove revenue 9% higher and net profit 14% higher.
One of the core advantages that make Ferrari an incredible stock and company is its exclusivity -- management literally sets the limit on the number of vehicles it wants to sell, and it often has a wait list or backlog of orders. That gives the company control over its sales growth and helps boost its lucrative pricing, as demand seems to always exceed supply, even during downturns. Just take a look at the company's margins compared to those of mainstream automakers, and you'll see the company is more an ultrapremium luxury manufacturer than it is an automaker.
RACE Operating Margin (Annual) data by YCharts
Mainstream automakers checked in near the bottom for operating margin, as they fail to generate anything near the average transaction prices (ATPs) or margins that Ferrari can, and well-known luxury automakers such as Aston Martin and BMW fared only slightly better. Here's the kicker: Not only would Ferrari's business do fine during a downturn, the company plans to accelerate its profits in the near term. In fact, it announced roughly a year ago that it plans to launch 15 new products, including the brand's first SUV, to double the company's profit by 2022.
One problem with Ferrari's stock is simply that its share price is almost as expensive as its vehicles. Ferrari trades at a sky-high forward consensus price-to-earnings multiple of 36 times. But if you're looking for a recession-proof stock, and one with a near-term growth story, maybe that price is warranted.
Dollars don't grow on trees
You might recall from earlier that during the past recession AutoZone increased 35% while the S&P 500 tanked 38%. You might not know that Dollar Tree actually did even better with an increase of 47% over the same 18-month stretch. There are two primary reasons Dollar Tree performed so well during the past recession: price and location.
Looking at the first factor, price, dollar chains generally operate on thin margins which enables them to pass on highly discounted goods to lower-income consumers. Consumer dollars can go further at a retailer such as Dollar Tree during recessions, and more people look to discount chains to try and stretch their earning power.
But there's more to the company's success than simply offering discounted goods for around a dollar. Dollar stores have long zeroed in on smaller communities that don't have a large grocery store presence, if any at all. That strategy has been met with some community criticism over the years as the discount chains have crippled sales of independent grocery stores, but it's a strategy that's paid off for investors.
DG data by YCharts
You could easily argue that Dollar Tree is in even better position for the next recession, as the company acquired Family Dollar in 2015 and now operates over 15,200 stores across 48 states and five Canadian provinces. That massive scale and experience operating under thin margins should help management wade through the uncertainty of escalating trade tensions and tariffs on Chinese goods. Further, Dollar Tree doesn't require innovation or a unique experience to drive its business: It simply operates small stores with lean staffing and a fraction of the product lines and inventory that larger retailers deal with. For all of those reasons, don't be surprised if Dollar Tree gives investors more bang for their buck during the next recession, just as it has in the past.
How to handle recession fears
We don't know when the next recession will be, but we know there will be one. It's important not to make any knee-jerk decisions and to keep your investing thesis focused on the long term. But that doesn't mean you can't add shares of recession-resilient stocks, whether you add businesses that thrive as consumers look to save or stretch their dollars, such as AutoZone or Dollar Tree, or businesses that cater to customers who have long stopped counting their dollars, such as Ferrari.
10 stocks we like better than Dollar Tree 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 quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Dollar Tree 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 June 1, 2019
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends BMW. 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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Even if we avoid a recession in the near term, AutoZone recently decided to expand its plan for megahubs, a distribution network strategy to help improve inventory availability and speed of delivery in order to attract more commercial customers, which will only add to its impressive DIY business. One of the core advantages that make Ferrari an incredible stock and company is its exclusivity -- management literally sets the limit on the number of vehicles it wants to sell, and it often has a wait list or backlog of orders. Further, Dollar Tree doesn't require innovation or a unique experience to drive its business: It simply operates small stores with lean staffing and a fraction of the product lines and inventory that larger retailers deal with.
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And if you're here for some ideas, you're in luck: AutoZone (NYSE: AZO), Dollar Tree (NASDAQ: DLTR), and Ferrari (NYSE: RACE) are all intriguing options for their own reasons. That massive scale and experience operating under thin margins should help management wade through the uncertainty of escalating trade tensions and tariffs on Chinese goods. But that doesn't mean you can't add shares of recession-resilient stocks, whether you add businesses that thrive as consumers look to save or stretch their dollars, such as AutoZone or Dollar Tree, or businesses that cater to customers who have long stopped counting their dollars, such as Ferrari.
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AutoZone offers investors an excellent option, as its business thrives when consumers need to save a buck, but another intriguing stock to own during a downturn is a good idea for a completely opposite reason: Ferrari's customers rarely need to save a buck. Consumer dollars can go further at a retailer such as Dollar Tree during recessions, and more people look to discount chains to try and stretch their earning power. But that doesn't mean you can't add shares of recession-resilient stocks, whether you add businesses that thrive as consumers look to save or stretch their dollars, such as AutoZone or Dollar Tree, or businesses that cater to customers who have long stopped counting their dollars, such as Ferrari.
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If you're very concerned about a recession, it's a good idea to make a list of stocks that perform well during a downturn. What recession? But that doesn't mean you can't add shares of recession-resilient stocks, whether you add businesses that thrive as consumers look to save or stretch their dollars, such as AutoZone or Dollar Tree, or businesses that cater to customers who have long stopped counting their dollars, such as Ferrari.
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11199.0
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2019-08-14 00:00:00 UTC
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3 Big Stock Charts for Wednesday: McKesson, O’Reilly Automotive and Seagate Technology
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AAP
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https://www.nasdaq.com/articles/3-big-stock-charts-for-wednesday%3A-mckesson-oreilly-automotive-and-seagate-technology-2019
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Hope for a de-escalation of a trade war turned what would have otherwise been an off day into a sizeable win. On Tuesday, the S&P 500 finished up to the tune of 1.48%, pulling most stocks higher with it.
Source: Shutterstock
Apple (NASDAQ:) did a lot of the heavy lifting, though General Electric (NYSE:) wasn’t far behind. The iPhone maker advanced 4.2%, as it’s one of the key beneficiaries of a cooling tariff war. GE stock rose 3.5% for the same basic reason, though the in shares of his company fanned the bullish flames.
Although few and far between, there were some losers. Advanced Micro Devices (NASDAQ:) was one of them. Although it too benefits from eased trade tensions, traders are still struggling to tack on even more gains after this year’s big rally.
Headed into the midpoint of the week, it’s Seagate Technology (NASDAQ:), McKesson (NYSE:) and O’Reilly Automotive (NASDAQ:) that merit a closer inspection as trading prospects. Here’s a detailed look at their stock charts.
McKesson (MCK)
With nothing more than a quick glance it would be easy to say McKesson is simply a volatile mess, and chalk up the bullishness seen since April to mere chance.
The move, however, is better organized and more meaningful than it may seem on the surface. Although certainly still choppy from one day to the next, MCK stock has crossed important lines, and found support at other lines that had to provide support in order to keep the rally in motion. Then there’s the kicker.
While still erratic, the daily volatility has been net-bullish. The purple 50-day average moved above the 200-day moving average line (marked in white on both stock charts) in June and never looked back.
O’Reilly Automotive (ORLY)
O’Reilly Automotive shares, unlike most other stocks at the time, ended last year on a bullish foot and continued on this year. It has more to do with the industry itself than ORLY in particular, as rival name Advance Auto Parts (NYSE:) dished out comparable returns. But, the underlying reasons don’t change the effect.
In that same vein though, recent weakness from AAP is slowly becoming clear in ORLY as well. Although O’Reilly Automotive shares have not yet reached their topping point, they’re inching closer every day. One more bad day could do the trick.
Another key floor now under attack is the 200-day moving average line, marked in white on both stock charts. It’s being tested again this week, and that’s happening on a regular basis.
Seagate Technology (STX)
March’s breakout effort from Seagate Technology ultimately failed. Although the move above the 200-day moving average line, plotted in white on both stock charts, was a bullish clue, the effort was halted at what has since become a well-established falling resistance line. It’s plotted in yellow on both stock charts.
The prospect of a recovery breakout has never really withered though. In fact, we’re closer now to one than we’ve been in a long while. That’s because a couple of key components to a full-blown bullish move weren’t in place then, but are now.
It’s only evident on the weekly chart, but STX stock has been logging higher lows since its early 2016 low. Buying on the dips has proven to be a fruitful strategy.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or , at @jbrumley.
More From InvestorPlace
The post appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In that same vein though, recent weakness from AAP is slowly becoming clear in ORLY as well. Source: Shutterstock Apple (NASDAQ:) did a lot of the heavy lifting, though General Electric (NYSE:) wasn’t far behind. Although it too benefits from eased trade tensions, traders are still struggling to tack on even more gains after this year’s big rally.
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In that same vein though, recent weakness from AAP is slowly becoming clear in ORLY as well. Headed into the midpoint of the week, it’s Seagate Technology (NASDAQ:), McKesson (NYSE:) and O’Reilly Automotive (NASDAQ:) that merit a closer inspection as trading prospects. The purple 50-day average moved above the 200-day moving average line (marked in white on both stock charts) in June and never looked back.
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In that same vein though, recent weakness from AAP is slowly becoming clear in ORLY as well. Headed into the midpoint of the week, it’s Seagate Technology (NASDAQ:), McKesson (NYSE:) and O’Reilly Automotive (NASDAQ:) that merit a closer inspection as trading prospects. O’Reilly Automotive (ORLY) O’Reilly Automotive shares, unlike most other stocks at the time, ended last year on a bullish foot and continued on this year.
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In that same vein though, recent weakness from AAP is slowly becoming clear in ORLY as well. Headed into the midpoint of the week, it’s Seagate Technology (NASDAQ:), McKesson (NYSE:) and O’Reilly Automotive (NASDAQ:) that merit a closer inspection as trading prospects. Another key floor now under attack is the 200-day moving average line, marked in white on both stock charts.
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