Advance Auto Parts Inc (AAP): Today's Featured Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Advance Auto Parts ( AAP) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Advance Auto Parts fell 78 cents (-1.1%) to $73.15 on heavy volume. Throughout the day, 1.8 million shares of Advance Auto Parts exchanged hands as compared to its average daily volume of one million shares. The stock ranged in price between $73-$73.89 after having opened the day at $73.10 as compared to the previous trading day's close of $73.93. Other companies within the Retail industry that declined today were: Pacific Sunwear ( PSUN), down 19.6%, China Jo-Jo Drugstores ( CJJD), down 9.1%, Genesco ( GCO), down 8.7%, and QKL Stores ( QKLS), down 6.6%.
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Advance Auto Parts, Inc., together with its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP), and Autopart International (AI). Advance Auto Parts has a market cap of $5.73 billion and is part of the services sector. The company has a P/E ratio of 14.8, below the S&P 500 P/E ratio of 17.7. Shares are up 6.2% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Advance Auto Parts a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Advance Auto Parts as a buy. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Christopher & Banks Corporation ( CBK), up 24.5%, Liquidity Service ( LQDT), up 8.5%, SUPERVALU ( SVU), up 4.4%, and Gaiam Inc. Class A ( GAIA), up 3.7%, were all gainers within the retail industry with Wal-Mart Stores ( WMT) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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