We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
Advance Auto Parts (AAP) Face Expense Woes: Time to Sell?
Read MoreHide Full Article
On Sep 13, we issued an updated research report on Advance Auto Parts, Inc. (AAP - Free Report) .
This Roanoke, VA-based company is engaged in automotive aftermarket industry, and sells replacement parts, accessories, batteries and maintenance items for cars, vans, sport utility vehicles, light and heavy trucks. Over the past 30 days, the stock has seen the Zacks Consensus Estimate for current-quarter earnings being revised 23.2% downward to $1.24 per share. During the same time, the Zacks Consensus Estimate for current-year earnings declined 17.9% to $5.18 per share.
The company is witnessing a rise in selling, general and administrative (SG&A) expenses. The rise can be attributed to higher investments in customer-focused strategies. Also, elevated expenses pertaining to medical, insurance and support center worsened the situation. Auto Parts has underperformed the industry it belongs to over the last six months. The company’s shares have lost 34.6% compared with a 21.7% decline registered by the industry.
Also, improved quality of new vehicles is a cause for concern for the company. Enhanced quality of new vehicles can result in lower demand for repair and maintenance parts, as customers are likely to buy new vehicles instead of maintaining old ones. This is adversely affecting the sales of Advance Auto Parts.
Also, in the in the second quarter of fiscal 2017 (ended Jul 15, 2017), Advance Auto Parts reported a 16.8% decline in adjusted earnings to $1.58 per share compared with $1.90 in the prior-year quarter. The figure also missed the Zacks Consensus Estimate of $1.65.
Advance Auto Parts currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked automobile stocks are Toyota Motor Corp. (TM - Free Report) , Daimler AG and Volkswagen AG . While Toyota and Daimler sport a Zacks Rank #1 (Strong Buy), Volkswagen carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Toyota has a long-term growth rate of 7%.
Daimler has an expected long-term earnings growth rate of 2.8%
Volkswagen has an expected long-term earnings growth rate of 8.9%
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
Image: Bigstock
Advance Auto Parts (AAP) Face Expense Woes: Time to Sell?
On Sep 13, we issued an updated research report on Advance Auto Parts, Inc. (AAP - Free Report) .
This Roanoke, VA-based company is engaged in automotive aftermarket industry, and sells replacement parts, accessories, batteries and maintenance items for cars, vans, sport utility vehicles, light and heavy trucks. Over the past 30 days, the stock has seen the Zacks Consensus Estimate for current-quarter earnings being revised 23.2% downward to $1.24 per share. During the same time, the Zacks Consensus Estimate for current-year earnings declined 17.9% to $5.18 per share.
The company is witnessing a rise in selling, general and administrative (SG&A) expenses. The rise can be attributed to higher investments in customer-focused strategies. Also, elevated expenses pertaining to medical, insurance and support center worsened the situation. Auto Parts has underperformed the industry it belongs to over the last six months. The company’s shares have lost 34.6% compared with a 21.7% decline registered by the industry.
Also, improved quality of new vehicles is a cause for concern for the company. Enhanced quality of new vehicles can result in lower demand for repair and maintenance parts, as customers are likely to buy new vehicles instead of maintaining old ones. This is adversely affecting the sales of Advance Auto Parts.
Also, in the in the second quarter of fiscal 2017 (ended Jul 15, 2017), Advance Auto Parts reported a 16.8% decline in adjusted earnings to $1.58 per share compared with $1.90 in the prior-year quarter. The figure also missed the Zacks Consensus Estimate of $1.65.
Advance Auto Parts currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked automobile stocks are Toyota Motor Corp. (TM - Free Report) , Daimler AG and Volkswagen AG . While Toyota and Daimler sport a Zacks Rank #1 (Strong Buy), Volkswagen carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Toyota has a long-term growth rate of 7%.
Daimler has an expected long-term earnings growth rate of 2.8%
Volkswagen has an expected long-term earnings growth rate of 8.9%
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
See these buy recommendations now >>