Advance Auto Parts Inc Stock Forecast:
According to 17 stock forecasts from analysts for Advance Auto Parts Inc, the average predicted price for the company over the next 12 months is $180.53. On average, the analysts rate Advance Auto Parts Inc as a “Buy.” However, Stock Target Advisor‘s own analysis of the company is “Slightly Bearish” based on 4 positive indicators and 9 negative indicators. The current stock price of Advance Auto Parts Inc is $151.80, which has decreased by 0.24% in the past week, 0.26% in the past month, and 31.91% in the last year.
Analysts Coverage Change:
Roth Capital Partners Downgrades Advance Auto Parts Inc. to a Neutral rating and lowers the price target to $140 from $180 on the company’s stock.
Positive Fundamentals:
Advance Auto Parts Inc. (AAP:NYE) is a highly regarded stock among investors due to several favorable characteristics, including its high market capitalization, positive cash flow, positive free cash flow, and superior dividend growth.
Market capitalization is a measure of a company’s size and is calculated by multiplying the number of outstanding shares by the stock’s current price. Advance Auto Parts Inc. has a high market capitalization, which is an indicator of its stability as larger companies tend to be more stable.
In addition to its high market capitalization, Advance Auto Parts Inc. has shown positive cash flow and positive free cash flow in the most recent four quarters. Positive cash flow indicates that the company is generating more cash than it is spending, which is a good sign for its financial stability and ability to meet its obligations. Positive free cash flow, on the other hand, indicates that the company is generating enough cash to reinvest in growth initiatives and pay dividends to its shareholders.
Another factor that makes Advance Auto Parts Inc. an attractive stock is its superior dividend growth. The company has shown top quartile dividend growth in the previous 5 years compared to its sector, which is an indicator of its financial strength and ability to return value to its shareholders.
In conclusion, Advance Auto Parts Inc. is a well-regarded stock due to its high market capitalization, positive cash flow, positive free cash flow, and superior dividend growth. These characteristics make it a stable and attractive investment option for those looking for long-term growth and income.
Negative Fundamentals:
Advance Auto Parts, Inc. is a publicly traded company that operates in the automotive parts retail industry. However, its stock performance has been below median in various aspects, including total returns, dividend returns, price-to-earnings, price-to-cash flow, price-to-free cash flow, return on equity, return on invested capital, and return on assets. Additionally, the company has also shown below median revenue growth over the past 5 years compared to its sector.
In summary, while Advance Auto Parts, Inc. may have a strong brand and presence in the market, its stock performance has not been up to par with its peers in the industry. Investing in the company’s stock may come with caution, as it is overpriced compared to its earnings and cash flow, and has shown poor performance in terms of return on equity, invested capital, and assets. Furthermore, the company has underperformed in terms of total returns and dividend returns, and has shown low revenue growth over the past 5 years.
FA Score (Fundamental Analysis):
The fundamental analysis of Advance Auto Parts Inc. is “Slightly Bearish” with a FA score of 3.1 out of 10, where 0 is very bearish and 10 is very bullish.
About Advance Auto Parts Inc.:
Advance Auto Parts, Inc. is a provider of replacement parts, accessories, batteries, and maintenance items for a variety of vehicles including cars, trucks, vans, and SUVs. Their product offerings range from battery accessories and brake pads to air conditioning chemicals and wiper blades. The company also offers a variety of services such as battery and wiper installation, engine light scanning, and oil and battery recycling. Their products are sold through their website and in stores under the Advance Auto Parts, Autopart International, Carquest, and Worldpac brands. The company was established in 1929 and is headquartered in Raleigh, North Carolina. They serve both professional installers and do-it-yourself customers.
