Advance Story

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AAP -- USA Stock  

USD 166.04  1.20  0.73%

Advance Auto Accounts Payable Turnover is very stable at the moment as compared to the past year. Advance Auto reported last year Accounts Payable Turnover of 3.51. As of 16th of February 2021, Operating Margin is likely to grow to 9.96, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop about 1.2 B. The basic rationale for this perspective is to give insiders our perspective on Advance for March. We will forecast Advance Auto value for insiders.
Published over a week ago
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Should you continue to rely on Advance Auto (NYSE:AAP) management?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Advance Auto has an asset utilization ratio of 501.21 percent. This suggests that the company is making $5.01 for each dollar of assets. An increasing asset utilization means that Advance Auto Parts is more efficient with each dollar of assets it utilizes for everyday operations.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Advance Auto Parts. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Advance Auto

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Advance Auto's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Advance Auto in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Advance Auto. Your research has to be compared to or analyzed against Advance Auto's peers to derive any actionable benefits. When done correctly, Advance Auto's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Advance Auto Parts.

How important is Advance Auto's Liquidity

Advance Auto financial leverage refers to using borrowed capital as a funding source to finance Advance Auto Parts ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Advance Auto financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Advance Auto's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Advance Auto, but it might be worth checking our own buy vs. sell analysis

Breaking it down a bit more

The recent indifference towards the small price fluctuations of Advance Auto Parts could raise concerns from insiders as the firm it trading at a share price of 155.51 on 1,913,889 in volume. The company directors and management did not add any value to Advance Auto investors in January. However, most investors can still diversify their portfolios with Advance Auto Parts to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.96. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Returns Breakdown

Return on Investment28.71
Return on Assets0.0557
Return on Equity0.18
Return Capital0.19
Return on Sales0.0757

Advance showing symptom of lower volatility

Recent Information Ratio is up to -0.06. Price may decline again. Advance Auto Parts exhibits very low volatility with skewness of -0.07 and kurtosis of 1.79. However, we advise investors to further study Advance Auto Parts technical indicators to make sure all market info is available and is reliable.

The Bottom Line

Although other entities within the specialty retail industry are still a little expensive, even after the recent corrections, Advance Auto may offer a potential longer-term growth to insiders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take in nor quit any shares of Advance Auto at this time. The Advance Auto Parts risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Advance Auto.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Advance Auto Parts. Please refer to our Terms of Use for any information regarding our disclosure principles.

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