Advance Auto Parts Inc

AAP shows stabilization after a post-capitulation flush, trading in a consolidation above the capitulation low. Oversold context and the active post-capitulation pattern support a tactical mean-reversion rebound, yet lack of clear EMA acceptance and resistance from declining 50SMA/200SMA warrant patience. Medium-term bias remains bullish, but execution is deferred pending reclaim of key EMAs or range expansion.

• ↑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.