Today Advance Auto Parts (AAP) Hits New Lifetime High

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 $122.2 million.
  • AAP has traded 705,208 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 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 22.4. Currently there are 9 analysts that rate Advance Auto Parts a buy, no analysts rate it a sell, and 9 rate it a hold.

The average volume for Advance Auto Parts has been 732,200 shares per day over the past 30 days. Advance Auto Parts has a market cap of $9.7 billion and is part of the services sector and retail industry. The stock has a beta of 1.47 and a short float of 2.6% with 2.13 days to cover. Shares are up 22.7% year-to-date as of the close of trading on Friday.

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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 robust revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • AAP's very impressive revenue growth greatly exceeded the industry average of 0.0%. Since the same quarter one year prior, revenues leaped by 51.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • ADVANCE AUTO PARTS INC has improved earnings per share by 18.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 ($7.71 versus $5.33).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 19.4% when compared to the same quarter one year prior, going from $116.87 million to $139.49 million.
  • Net operating cash flow has increased to $239.43 million or 36.96% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 8.74%.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.71% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.

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