Factors Likely to Have Influenced Earnings Results Advance Auto Parts (NYSE:AAP)

Earnings results for Advance Auto Parts (NYSE:AAP)

Advance Auto Parts Inc is expected* to report earnings on 06/02/2021 before market open. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 9 analysts’ forecasts, the consensus EPS forecast for the quarter is $3.08. The reported EPS for the same quarter last year was $0.91.

Analyst Opinion on Advance Auto Parts (NYSE:AAP)

19 Wall Street analysts have issued ratings and price targets for Advance Auto Parts in the last 12 months. Their average twelve-month price target is $193.39, predicting that the stock has a possible downside of 0.65%. The high price target for AAP is $230.00 and the low price target for AAP is $117.00. There are currently 2 sell ratings, 4 hold ratings and 13 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Advance Auto Parts has received a consensus rating of Buy. The company’s average rating score is 2.58, and is based on 13 buy ratings, 4 hold ratings, and 2 sell ratings. According to analysts’ consensus price target of $193.39, Advance Auto Parts has a forecasted downside of 0.6% from its current price of $194.65. Advance Auto Parts has been the subject of 10 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Advance Auto Parts (NYSE:AAP)

Advance Auto Parts has a dividend yield of 0.53%, which is in the bottom 25% of all stocks that pay dividends. Advance Auto Parts has only been increasing its dividend for 1 years. The dividend payout ratio of Advance Auto Parts is 11.75%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Advance Auto Parts will have a dividend payout ratio of 8.38% next year. This indicates that Advance Auto Parts will be able to sustain or increase its dividend.

Insiders buying/selling: Advance Auto Parts (NYSE:AAP)

In the past three months, Advance Auto Parts insiders have not sold or bought any company stock. Only 0.40% of the stock of Advance Auto Parts is held by insiders. 96.61% of the stock of Advance Auto Parts is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Advance Auto Parts (NYSE:AAP

Earnings for Advance Auto Parts are expected to grow by 16.26% in the coming year, from $10.27 to $11.94 per share. The P/E ratio of Advance Auto Parts is 27.22, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 22.68. The P/E ratio of Advance Auto Parts is 27.22, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 70.01. Advance Auto Parts has a PEG Ratio of 1.36. PEG Ratios above 1 indicate that a company could be overvalued. Advance Auto Parts has a P/B Ratio of 3.71. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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