Advance Auto Parts reports Q4 numbers February 21

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Auto parts retailer Advance Auto Parts (AAP) will report fourth-quarter results before the market open February 21. The consensus calls for earnings of $0.65 per share for the quarter, versus $1.00 during the same period last year. After a rough 2017, AAP gained positive traction in the last month of the year, and is currently up 1.8% for 2018.

Technical Analysis

AAP was recently trading at $107.90, down $61.65 from its 12-month high and $29.09 above its 12-month low. Technical indicators for AAP are bearish with a possible trend reversal. The stock has recent support above $105.25 and recent resistance below $115.50. Of the 20 analysts who cover the stock, seven rate it a “strong buy”, two rate it a “buy”, eight rate it a “hold”, one rates it a “sell”, and two rate it a “strong sell”.  AAP gets a score of 36 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

AAP greatly underperformed the overall market in 2017, but the stock hit a bottom in November after a strong Q3 earnings beat, and has trended higher since. Shares did run into some selling pressure with the overall market, but that was to be expected, and shares should continue to trend higher as long as the market continues to recover and the quarterly report does not show any weakness. The Street expects another earnings beat, with a whisper number of $0.68, versus the consensus $0.65. If the company is able to top estimates again, shares should move higher, but with a P/E of 22.2, the upside could be limited barring a huge beat. AAP is currently trading at $106.06, and analysts have an average price target of $111.50 on the stock.

About Advance Auto Parts Inc W/I

Advance Auto Parts is one of the industry's largest retailers of aftermarket automotive parts, tools, and accessories to do-it-yourself customers in North America. Advance operated 5,109 stores as of the end of 2018, in addition to servicing 1,231 independently owned Carquest stores. The company's Worldpac unit is a premier distributor of imported original-equipment parts. Advance derived 58% of its 2018 sales from commercial clients, up from 30%-40% before the General Parts deal.

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