Advance Auto Parts Inc. (NYSE:AAP) has a beta of 1.37, a 12-month trailing P/E ratio of 26.31, and a growth ratio of 2.17. The stock’s Relative Strength Index (RSI) is 37.24, with weekly volatility at 2.76% and ATR at 4.61. The AAP stock’s 52-week price range has touched low of $130.33 and a $210.18 high. Its shares traded lower over the last trading session, losing -1.39% on 05/25/21. The shares fell to a low of $187.16 before closing at $188.00. Intraday shares traded counted 1.13 million, which was -34.06% lower than its 30-day average trading volume of 846.22K. AAP’s previous close was $190.65 while the outstanding shares total 67.70M.
Investors have identified the Specialty Retail company Advance Auto Parts Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $12.43 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Advance Auto Parts Inc. (AAP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 6.27 billion total, with 4.74 billion as their total liabilities.
AAP were able to record 702.11 million as free cash flow during the 08/17/2021 quarter of the year, this saw their quarterly net cash flow reduce by 416.33 million. In cash movements, the company had a total of 969.69 million as operating cash flow.
Potential earnings growth for Advance Auto Parts Inc. (AAP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/17/2021 quarter of the year, Advance Auto Parts Inc. recorded a total of 2.37 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 10.68% coming in sequential stages and their sales for the 08/17/2021 quarter reducing by -7.48%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.28 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.08 billion. This allows shareholders to hold on to 67.70M with the recently reported earning now reading 1.65 cents per share. This is a figure that compared to analyst’s prediction for their 08/17/2021 (1.87 cents a share).
Having a look at the company’s valuation, the company is expected to record 11.79 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AAP sounds very interesting.
Is the stock of AAP attractive?
In related news, President and CEO, Greco Thomas bought 7,285 shares of the company’s stock in a transaction that recorded on Jun 15. The purchase was performed at an average price of 136.13, for a total value of 991,707. As the purchase deal closes, the EVP, General Counsel, Corp Sec, Finley Tammy M now sold 88 shares of the company’s stock, valued at 12,894. Also, SVP, Controller and CAO, Page Andrew E sold 720 shares of the company’s stock in a deal that was recorded on Jun 04. The shares were cost at an average price of 141.38 per share, with a total market value of 101,794. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
14 out of 25 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on Advance Auto Parts Inc.. 1 analysts has assigned a Sell rating on the AAP stock. The 12-month mean consensus price target for the company’s shares has been set at $215.56.