How has AAP developed?
Advance Auto Parts, Inc. (NYSE: AAP) is an automotive spare parts provider that supports both professional installers and DIY enthusiasts. The company operates over 4,800 stores and 170 Worldpac offices in the United States, Canada, Puerto Rico, and the US Virgin Islands. Advance Auto Parts also serves more than 1,200 independent Carquest branded stores in Mexico, Grand Cayman, the Bahamas, Turks and Caicos Islands, and the British Virgin Islands.
The AAP share price is up 66% over the past 12 months, hitting a multi-year high of $ 198 just yesterday – a big step up from April 2020 Bottom of $ 112.41. Additionally, Advance Auto Parts stocks are up more than 22% year-to-date and have a dividend yield of 0.52%.
Advance Auto Parts is expected to release the next quarterly publicationFinancial results on May 17th. So far, AAP has exceeded earnings expectations in two of its last four earnings reports. For the first quarter of 2020, Advance Auto Parts missed analysts’ estimates by a margin of $ 0.82 and reported earnings per share (EPS) of $ 0.91. For the second quarter of 2020, AAP massively increased its earnings per share to $ 2.92, beating expectations with a margin of $ 0.94. For the third quarter of 2020, Advance Auto Parts saw earnings decline to $ 2.81 per share, beating estimates by $ 0.15. In its latest quarterly report, Advance Auto Parts reported earnings per share of $ 1.87, exceeding expectations by $ 0.10.
Basically, Advance Auto Parts is a slowly and steadily growing company. Advance Auto Parts stock is probably best suited for long-term investors who are content with modest profits. The positive news for investors is that AAP has a price-to-earnings-ratio of 19.72, which is a huge improvement over current value.
Regardless, analysts are optimistic about security today. In particular, 10 of the 15 in the reporting have a “buy” or “strong buy” recommendation, while the remaining five carry a lukewarm “hold” or worse.