We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Advanced Auto Parts Q2 Preview: Another EPS Beat Inbound?
Read MoreHide Full Article
The Zacks Retail and Wholesale Sector has been scorching hot over the last month, increasing by more than 13% in value and outperforming the S&P 500 by a fair margin. However, the sector is still deep in the red YTD.
A big-time player in the sector, Advanced Auto Parts (AAP - Free Report) , is on deck to reveal Q2 results on Tuesday, August 23rd, after market close.
Advanced Auto Parts primarily sells replacement parts (excluding tires), accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks.
In addition, the company sports a Zacks Rank #3 (Hold) with an overall VGM Score of a B. How does the auto retailer stack up heading into its print? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, Advanced Auto Parts shares have struggled, losing 12% in value and marginally underperforming the S&P 500.
Image Source: Zacks Investment Research
However, over the last month, AAP shares have posted market-beating returns, tacking on an impressive 9% in value.
Image Source: Zacks Investment Research
Additionally, the company carries enticing valuation levels, further bolstered by its Style Score of a B for Value. AAP’s 15.4X forward earnings multiple is well beneath its five-year median of 18.8X and represents a steep 43% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has lowered their earnings outlook for the quarter to be reported over the last 60 days. Still, the Zacks Consensus EPS Estimate of $3.75 reflects a double-digit 10.3% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
AAP’s top-line appears to be in excellent health as well – the company is forecasted to have generated $2.8 billion in revenue throughout the quarter, penciling in a modest 3.7% year-over-year uptick.
Quarterly Performance & Market Reactions
Advanced Auto has consistently reported strong bottom-line results, exceeding the Zacks Consensus EPS Estimate in five consecutive quarters. Just in its latest print, the auto retailer registered a 1.1% bottom-line beat.
Top-line results have also been rock-solid, with AAP recording eight top-line beats over its last nine quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the market hasn’t reacted well in response to AAP’s previous three quarterly prints, with shares moving down following all three.
Putting Everything Together
AAP shares still reside in the red year-to-date, but buyers have stepped up significantly over the past month, driving shares upwards.
Furthermore, the company sports solid valuation levels, with shares trading well below their five-year median and nowhere near their Zacks Sector.
A singular analyst has lowered their outlook for the quarter, but estimates still reflect strong growth on both the top and bottom-lines.
The company has consistently beaten quarterly estimates, but the market hasn’t reacted well as of late following its quarterly prints.
Heading into the release, Advanced Auto Parts (AAP - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 0.5%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Advanced Auto Parts Q2 Preview: Another EPS Beat Inbound?
The Zacks Retail and Wholesale Sector has been scorching hot over the last month, increasing by more than 13% in value and outperforming the S&P 500 by a fair margin. However, the sector is still deep in the red YTD.
A big-time player in the sector, Advanced Auto Parts (AAP - Free Report) , is on deck to reveal Q2 results on Tuesday, August 23rd, after market close.
Advanced Auto Parts primarily sells replacement parts (excluding tires), accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy-duty trucks.
In addition, the company sports a Zacks Rank #3 (Hold) with an overall VGM Score of a B. How does the auto retailer stack up heading into its print? Let’s take a closer look.
Share Performance & Valuation
Year-to-date, Advanced Auto Parts shares have struggled, losing 12% in value and marginally underperforming the S&P 500.
Image Source: Zacks Investment Research
However, over the last month, AAP shares have posted market-beating returns, tacking on an impressive 9% in value.
Image Source: Zacks Investment Research
Additionally, the company carries enticing valuation levels, further bolstered by its Style Score of a B for Value. AAP’s 15.4X forward earnings multiple is well beneath its five-year median of 18.8X and represents a steep 43% discount relative to its Zacks Sector.
Image Source: Zacks Investment Research
Quarterly Estimates
A singular analyst has lowered their earnings outlook for the quarter to be reported over the last 60 days. Still, the Zacks Consensus EPS Estimate of $3.75 reflects a double-digit 10.3% Y/Y uptick in quarterly earnings.
Image Source: Zacks Investment Research
AAP’s top-line appears to be in excellent health as well – the company is forecasted to have generated $2.8 billion in revenue throughout the quarter, penciling in a modest 3.7% year-over-year uptick.
Quarterly Performance & Market Reactions
Advanced Auto has consistently reported strong bottom-line results, exceeding the Zacks Consensus EPS Estimate in five consecutive quarters. Just in its latest print, the auto retailer registered a 1.1% bottom-line beat.
Top-line results have also been rock-solid, with AAP recording eight top-line beats over its last nine quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, the market hasn’t reacted well in response to AAP’s previous three quarterly prints, with shares moving down following all three.
Putting Everything Together
AAP shares still reside in the red year-to-date, but buyers have stepped up significantly over the past month, driving shares upwards.
Furthermore, the company sports solid valuation levels, with shares trading well below their five-year median and nowhere near their Zacks Sector.
A singular analyst has lowered their outlook for the quarter, but estimates still reflect strong growth on both the top and bottom-lines.
The company has consistently beaten quarterly estimates, but the market hasn’t reacted well as of late following its quarterly prints.
Heading into the release, Advanced Auto Parts (AAP - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of 0.5%.