On May 28, 2023, Wedbush issued a research note reporting that Advance Auto Parts had its price objective lowered from $145.00 to $115.00. This news may come as a surprise to investors who were banking on AAP’s potential growth in the upcoming years. However, the report also indicates that there is still a potential upside of 3.92% from the company’s current price.
This follows on from AAP’s quarterly earnings results announcement on February 28th, where the company beat analysts’ consensus estimates of $2.41 EPS by reporting $2.88 EPS for the quarter. The firm had revenue of $2.47 billion for the quarter, compared to analyst estimates of $2.42 billion, indicating a year-over-year increase in revenue by 3.2%.
Despite this positive news and successful quarter, it seems that Wedbush has revised its outlook for AAP due to factors not disclosed in their research note – whether it be macroeconomic conditions, competition pressure or other market forces.
As investors seek to make informed decisions when investing their money in stocks, this news provides an opportunity to reassess AAP’s future prospects and consider alternative options for potentially better returns.
Sell-side analysts anticipate that AAP will post 10.64 EPS for the current year – which is still an impressive result given their performance over the past few quarters; however with this new development, only time will tell if this prediction holds true.
In conclusion, based on recent developments and AAP’s previous successes in revenue and EPS growth over consecutive quarters – cautious optimism should guide investors moving forward as they adjust their portfolios accordingly following Wedbush’s latest report on Advanced Auto Parts (AAP).
Mixed Reviews and Insights for Advance Auto Parts Stock
Advance Auto Parts, Inc. has seen a range of research reports from various analysts regarding the company’s stock. On May 28, 2023, data from Bloomberg showed that Advance Auto Parts presently has a consensus rating of “Hold” and a consensus price target of $153.65. This followed research notes from Wells Fargo & Company, Evercore ISI, Roth Capital, Argus, and Raymond James, among others.
Wells Fargo & Company, in a research note on May 15th 2023, announced that they lowered their price target on shares of Advance Auto Parts from $150.00 to $125.00 with an “equal weight” rating on the stock; this came after other analysts had also released pricing opinions on the company’s stock in previous months.
Further to this, institutional investors and hedge funds have recently bought and sold shares of AAP. Institutional investors own approximately 96.04% of the company’s stock therefore signalling towards high demand for Advance Auto Parts products.
The Raleigh-based organization engages in the supply and distribution of automotive aftermarket parts to both professional installers and do-it-yourself customers alike into various segments including but not liimited to Advance Auto Parts/Carquest U.S., Carquest Canada, Worldpac and Independents. According to data released by Bloomberg the company currently holds a market capitalization worth $6.56 billion while sustaining P/E ratio is evaluated at 13.50 coupled with a PEG ratio measured at 0.95 alongside beta being calculated at 1.10 indicating relatively low volatility compared to other stocks.
In conclusion, it seems as though Advance Auto Parts has received mixed reactions lately by different research analysts and many investors are closely monitoring their respective insight about its profitability going forward especially when weighed against different investment alternatives available out there in order to come up with informed judgement before making any crucial decision related specifically towards investing or trading activity during these tricky times.