Trade-Ideas: Advance Auto Parts (AAP) Is Today's New Lifetime High Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Advance Auto Parts (AAP) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Advance Auto Parts as such a stock due to the following factors:
- AAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $127.0 million.
- AAP has traded 3,676 shares today.
- AAP is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AAP with the Ticky from Trade-Ideas. See the FREE profile for AAP NOW at Trade-IdeasMore details on AAP: Advance Auto Parts, Inc., through its subsidiaries, operates as a specialty retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP), and Autopart International (AI). The stock currently has a dividend yield of 0.2%. AAP has a PE ratio of 22.2. Currently there are 8 analysts that rate Advance Auto Parts a buy, no analysts rate it a sell, and 8 rate it a hold.The average volume for Advance Auto Parts has been 934,300 shares per day over the past 30 days. Advance Auto Parts has a market cap of $9.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.93 and a short float of 2.5% with 1.83 days to cover. Shares are up 13.8% year-to-date as of the close of trading on Thursday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Advance Auto Parts as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 6.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, AAP's share price has jumped by 60.45%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- ADVANCE AUTO PARTS INC's earnings per share declined by 23.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ADVANCE AUTO PARTS INC increased its bottom line by earning $5.33 versus $5.22 in the prior year. This year, the market expects an improvement in earnings ($7.50 versus $5.33).
- The gross profit margin for ADVANCE AUTO PARTS INC is rather high; currently it is at 53.20%. Regardless of AAP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.49% trails the industry average.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Specialty Retail industry and the overall market, ADVANCE AUTO PARTS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full Advance Auto Parts Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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