Lumida
/AAP
⌘K
Advance Auto Parts Inc

Advance Auto Parts Inc

AAP
$42.46USD↓-0.79%-0.34 today

MARKET CAP

2.6B

P/E (TTM)

58.2x

FWD P/E

—

DAY RANGE

$41 – $42

52W RANGE

$38
$65

AI Summary

Stalk
TrimMedium

The decisive support failure and sustained downtrend confirm a medium-term bearish bias, but with price deeply oversold and consolidating near lows, immediate sell execution is unfavorable. Deferred selling into minor rallies or resistance zones—such as the prior support turned near the broken horizontal level or EMAs—offers better risk-reward. Overall, maintain bearish posture and trim rather than chasing current weakness.

  • ↑Adjusted EPS $1.03 in Q2 vs $0.77 prior year; YTD free cash flow $120M.
  • ↑Gross margin expanded to 46.2% aided by efficiencies and tariff refunds.
  • ↓DIY segment sales fell ~0.5% as household budgets tighten further.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Advance Auto Parts (NYSE: AAP) is a leading retailer in the automotive aftermarket, providing a broad spectrum of automotive parts, accessories, and maintenance products to both professional installers and do-it-yourself (DIY) customers. The company operates primarily within the U.S. market, emphasizing a strategic pivot towards strengthening its presence in the professional (Pro) channel while integrating systems designed to enhance operational efficiency and customer satisfaction amidst fluctuating economic conditions.

Bull says

  • ↑Adjusted EPS $1.03 in Q2 vs $0.77 prior year; YTD free cash flow $120M.
  • ↑Gross margin expanded to 46.2% aided by efficiencies and tariff refunds.
  • ↑Pro channel sales grew in low single digits, outpacing DIY weakness.
  • ↑Plans to open 15–20 new market hubs to boost service reach.
  • ↑High book-to-price ratio and 2.66% dividend yield support valuation.
  • ↑Solid liquidity positions ensure short-term obligations are met.

Bear says

  • ↓DIY segment sales fell ~0.5% as household budgets tighten further.
  • ↓Debt exposure remains high despite $30M note repurchases.
  • ↓$300M planned capex may strain free cash flow if returns lag.
  • ↓Weak profitability and growth metrics suggest profit conversion challenges.
  • ↓Inflation risks and consumer spending volatility threaten sales.
  • ↓Elevated short interest and bearish analyst ratings signal caution.

Investment themes with AAP

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-20-2026neutral

Transcript signals

Bull points

  • financial officer
  • Shane will begin today's call with an update on the business and our strategic priorities. Later, Ryan will discuss results for the second quarter and provide an update on FOLIA 2025 guidance.
  • In Q2, we also achieved an important milestone in our turnaround journey with the return to profitability. This was supported by actions to optimize our store footprint and progress with our strategic initiatives.

Bear points

  • we're expecting about low to mid single-digit inflation to back after year.
  • Net sales from continuing operations were $2 billion, an 8% decline compared to last year.
  • For the quarter, transactions declined in the low single digit range, while ticket was positive and improved compared to Q1.
Read full transcript analysis ›