
AAP Stock Forecast & Price Target
AAP Analyst Ratings
Bulls say
Advance Auto Parts has projected sales of $8.574 billion, reflecting a decline of 5.7%, yet anticipates operating margin expansion by 180 basis points to 2.2%. The company's hub-and-spoke distribution model is successfully driving above-expectation comp performance, particularly in markets serviced by these hubs, resulting in an estimated 100 basis points comp lift. Despite challenges in the do-it-yourself sector, continuous improvement in the professional channel, along with favorable pricing dynamics contributing to about 2% same SKU inflation, supports a positive outlook for the company's financial performance.
Bears say
Advance Auto Parts's financial outlook reflects several fundamental challenges contributing to a negative assessment. The company reiterated its full-year sales forecast at $8.4 to $8.6 billion, yet made a significant reduction in its earnings per share (EPS) estimate to a range of $1.20 to $2.20, driven by increased interest expenses from a new debt offering. Additionally, the retailer faces considerable risks, including subdued comparable store sales growth, challenges in maintaining gross margins amid competitive pressures, and external factors such as high fuel prices and unpredictable weather that may further hinder consumer spending and operational efficiency.
This aggregate rating is based on analysts' research of Advance Auto Parts and is not a guaranteed prediction by Public.com or investment advice.
AAP Analyst Forecast & Price Prediction
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