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 0.3%. By the end of trading, Advance Auto Parts fell $2.14 (-2.6%) to $80.74 on average volume. Throughout the day, 949,215 shares of Advance Auto Parts exchanged hands as compared to its average daily volume of 726,500 shares. The stock ranged in price between $80.57-$83.08 after having opened the day at $83.02 as compared to the previous trading day's close of $82.88. Other companies within the Retail industry that declined today were: Pharmerica Corporation ( PMC), down 16.7%, Bon-Ton Stores ( BONT), down 9.3%, Lumber Liquidators Holdings ( LL), down 6.7% and Sears Hometown & Outlet Stores ( SHOS), down 5.2%.
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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). Advance Auto Parts has a market cap of $6.1 billion and is part of the services sector. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are up 14.6% year to date as of the close of trading on Thursday. Currently there are 5 analysts that rate Advance Auto Parts a buy, no analysts rate it a sell, and 11 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 revenue growth, attractive valuation levels, 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, Ingles Markets ( IMKTA), down 6.1%, Natural Grocers by Vitamin Cottage ( NGVC), down 5.7%, dELiA*s ( DLIA), down 5.3% and Weis Markets ( WMK), down 4.9% , were all gainers within the retail industry with Costco Wholesale Corporation ( COST) 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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