What 7 Analyst Ratings Have To Say About Advance Auto Parts

Advance Auto Parts, Inc. -4.72%

Advance Auto Parts, Inc.

AAP

51.83

-4.72%

Advance Auto Parts (NYSE:AAP) underwent analysis by 7 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 0 7 0 0
Last 30D 0 0 2 0 0
1M Ago 0 0 3 0 0
2M Ago 0 0 1 0 0
3M Ago 0 0 1 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $51.71, a high estimate of $60.00, and a low estimate of $45.00. Observing a downward trend, the current average is 4.24% lower than the prior average price target of $54.00.

price target chart

Interpreting Analyst Ratings: A Closer Look

The standing of Advance Auto Parts among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Zachary Fadem Wells Fargo Raises Equal-Weight $50.00 $40.00
Greg Melich Evercore ISI Group Raises In-Line $60.00 $56.00
Michael Baker DA Davidson Maintains Neutral $47.00 $47.00
Max Rakhlenko TD Cowen Lowers Hold $46.00 $62.00
Simeon Gutman Morgan Stanley Lowers Equal-Weight $45.00 $55.00
Greg Melich Evercore ISI Group Lowers In-Line $56.00 $58.00
Greg Melich Evercore ISI Group Lowers In-Line $58.00 $60.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Advance Auto Parts. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Advance Auto Parts compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of Advance Auto Parts's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Advance Auto Parts's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Advance Auto Parts analyst ratings.

Get to Know Advance Auto Parts Better

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.

Financial Milestones: Advance Auto Parts's Journey

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Negative Revenue Trend: Examining Advance Auto Parts's financials over 3M reveals challenges. As of 30 September, 2025, the company experienced a decline of approximately -5.21% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.

Net Margin: Advance Auto Parts's net margin is impressive, surpassing industry averages. With a net margin of -0.05%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Advance Auto Parts's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.05% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Advance Auto Parts's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.01%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Advance Auto Parts's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.4.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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