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.

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 $105.4 million.
  • AAP has traded 7,258 shares today.
  • AAP is trading at a new lifetime high.

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More details on AAP:

Advance Auto Parts, Inc., through its subsidiaries, operates as a specialty retailer of automotive replacement parts, accessories, batteries, and maintenance items. The stock currently has a dividend yield of 0.1%. AAP has a PE ratio of 25. Currently there are 10 analysts that rate Advance Auto Parts a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for Advance Auto Parts has been 1.1 million shares per day over the past 30 days. Advance Auto Parts has a market cap of $12.5 billion and is part of the services sector and retail industry. The stock has a beta of 0.95 and a short float of 8.3% with 8.53 days to cover. Shares are up 8.7% year-to-date as of the close of trading on Wednesday.

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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 solid stock price performance, revenue growth, expanding profit margins, good cash flow from operations and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, AAP's share price has jumped by 36.24%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 2.3%. 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.
  • ADVANCE AUTO PARTS INC reported flat earnings per share in the most recent quarter. 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 $6.71 versus $5.33 in the prior year. This year, the market expects an improvement in earnings ($8.26 versus $6.71).
  • 48.62% is the gross profit margin for ADVANCE AUTO PARTS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 4.87% trails the industry average.
  • Net operating cash flow has increased to $102.21 million or 25.98% when compared to the same quarter last year. Despite an increase in cash flow, ADVANCE AUTO PARTS INC's average is still marginally south of the industry average growth rate of 30.50%.

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