Trade-Ideas LLC identified

Advance Auto Parts

(

AAP

) as a pre-market mover with heavy volume 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 $132.0 million.
  • AAP traded 138,757 shares today in the pre-market hours as of 8:46 AM, representing 13.3% of its average daily volume.

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-Ideas

More details on AAP:

Advance Auto Parts, Inc., through its subsidiaries, engages in the automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The stock currently has a dividend yield of 0.2%. AAP has a PE ratio of 23. Currently there are 9 analysts that rate Advance Auto Parts a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Advance Auto Parts has been 694,600 shares per day over the past 30 days. Advance Auto Parts has a market cap of $10.9 billion and is part of the services sector and retail industry. The stock has a beta of 0.84 and a short float of 6.1% with 3.68 days to cover. Shares are down 4.3% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 reasonable valuation levels, solid stock price performance, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • After a year of stock price fluctuations, the net result is that AAP's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.18 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 47.76% is the gross profit margin for ADVANCE AUTO PARTS INC which we consider to be strong. 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 2.69% trails the industry average.
  • Net operating cash flow has remained constant at $169.55 million with no significant change when compared to the same quarter last year. Despite stable cash flow, ADVANCE AUTO PARTS INC's cash flow growth rate is still lower than the industry average growth rate of 11.27%.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.