
AAP Stock Forecast & Price Target
AAP Analyst Ratings
Bulls say
Advance Auto Parts is projected to achieve sales of $8.574 billion in the upcoming fiscal period, with operating margins expected to expand significantly from previous levels, driven by improved operational efficiencies. The company’s adjusted gross margins of 44.2%, surpassing consensus estimates, alongside a 1%-2% growth in same-store sales, underline stronger profitability potential. Furthermore, with a well-defined margin expansion plan targeting 3.8%-4.5% by 2026 and aspirations for $9 billion in sales with 7% operating profits by 2027, the outlook remains favorable, supported by a recent 48% increase in stock performance.
Bears say
Advance Auto Parts is facing significant challenges that contribute to a negative outlook on its stock, including a forecasted decline in expenses and an adjusted earnings per share (EPS) projection of $1.62 for 2025, which is lower than previous estimates. The company's anticipated sales for 2027 are projected to be around $8.887 billion, with margins expected to shrink to 4.8%, indicating deteriorating profitability. Additionally, external factors such as decreasing employment trends, rising fuel costs, and intensifying competition further threaten sales and operational efficiencies, highlighting the overall weakness in consumer spending and market conditions.
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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