Advance Auto Parts: A Comprehensive Guide for Investors

Company Overview

Advance Auto Parts, Inc. (AAP) is the leading automotive aftermarket parts retailer in the United States, serving both professional and do-it-yourself (DIY) customers.

With over 6,300 stores across the country, AAP offers a wide range of automotive parts, accessories, and services, including:

• Batteries
• Brakes
• Filters
• Lighting
• Oil and fluids

Financial Performance

AAP has a strong financial track record, with steady growth in revenue and earnings over the past decade.

In 2021, the company reported:

• Revenue of $12.3 billion
• Net income of $733 million
• Earnings per share of $5.44

Analyst Consensus

Analysts are generally optimistic about AAP's future prospects.

According to a recent survey by Bloomberg, the median target price for AAP is $110.93, with a high estimate of $230.00 and a low estimate of $43.00.

Investment Considerations

Investors should consider the following factors before investing in AAP:

• Strong market position: AAP is the leading automotive aftermarket parts retailer in the U.S., with a large and loyal customer base.
• Steady financial performance: AAP has a track record of consistent growth and profitability.
• Positive analyst consensus: Analysts are generally optimistic about AAP's future prospects.
• Risks: AAP faces competition from other auto parts retailers and online sellers, and its profits could be impacted by economic downturns.

Conclusion

Advance Auto Parts is a well-established company with a strong market position and a track record of financial success.