The Analyst Verdict: Advance Auto Parts In The Eyes Of 15 Experts

15 analysts have expressed a variety of opinions on Advance Auto Parts AAP over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 0 13 1 1
Last 30D 0 0 1 0 0
1M Ago 0 0 3 0 1
2M Ago 0 0 9 1 0
3M Ago 0 0 0 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $45.67, a high estimate of $52.00, and a low estimate of $35.00. This current average reflects an increase of 12.68% from the previous average price target of $40.53.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Advance Auto Parts by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
David Bellinger Mizuho Raises Neutral $44.00 $38.00
Greg Melich Evercore ISI Group Raises In-Line $52.00 $50.00
Kate McShane Goldman Sachs Lowers Sell $46.00 $48.00
Greg Melich Evercore ISI Group Raises In-Line $50.00 $45.00
Sam Hudson Redburn Atlantic Raises Neutral $45.00 $28.00
Scott Stember Roth Capital Raises Neutral $50.00 $40.00
Michael Lasser UBS Raises Neutral $50.00 $36.00
Michael Baker DA Davidson Raises Neutral $47.00 $45.00
Elizabeth Suzuki B of A Securities Raises Underperform $39.00 $33.00
Kate McShane Goldman Sachs Raises Neutral $48.00 $43.00
Tristan Thomas-Martin BMO Capital Raises Market Perform $50.00 $40.00
Simeon Gutman Morgan Stanley Raises Equal-Weight $48.00 $45.00
Greg Melich Evercore ISI Group Raises In-Line $45.00 $35.00
Zachary Fadem Wells Fargo Lowers Equal-Weight $35.00 $40.00
Michael Lasser UBS Lowers Neutral $36.00 $42.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Advance Auto Parts. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Advance Auto Parts compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Advance Auto Parts's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Advance Auto Parts's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Advance Auto Parts analyst ratings.

About Advance Auto Parts

Advance Auto Parts is a leading auto-parts retailer in North America with more than 4,000 store and branch locations. About half of the firm's sales are geared toward the professional channel, with the remaining sales in the do-it-yourself market. Through its vast store footprint and distribution network, Advance manages thousands of stock-keeping units for various vehicle makes and models. The retailer primarily competes on the basis of inventory availability and service speed, making the operating efficiency of its hub-and-spoke distribution model critical to meeting customer needs.

Key Indicators: Advance Auto Parts's Financial Health

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3M period, Advance Auto Parts faced challenges, resulting in a decline of approximately -6.82% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: Advance Auto Parts's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 0.93%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.1%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Advance Auto Parts's ROA excels beyond industry benchmarks, reaching 0.22%. This signifies efficient management of assets and strong financial health.

Debt Management: Advance Auto Parts's debt-to-equity ratio is below the industry average. With a ratio of 1.67, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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