Opinions
Jenny Harrington, CEO, Gilman Hill Asset Management
Advance Auto Parts
AAP-N
BUY
Apr 26, 2023
N/A
Stock price when the opinion was issued
Automotive
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BUY
Just bought it. Stock is down 40% this year. In 2021, they started to jack the dividend up, now paying a 4.1% dividend and trades at 11.6x. Peers like AutoZone trade around 20-26x PE. They will be resilient in a tough economy where you can delay buying a car, but you will always need to pay for repairs and auto parts. Earnings, though, will stay flat next year, she thinks. Solid and better than a bond.
Automotive
BUY
Allan Tong’s Discover Picks Some basics: AAP averages a million shares a day, trades at 18.85x earnings, and pays a dividend of 4.08% which is based on a 70.5% payout ratio. Its beta is 1.19, and shares are currently trading below their 50-day ($160.35) and 200-day ($182.54) moving averages. The stock has fallen from highs earlier this year around $244. Read AAA: parts and supplies for our full analysis.
Automotive
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She took a loss. AAP is undervalued and earnings are resilient. Huge free cash flow that managers have returned to shareholders. Just sold it for tax loss and offset gains, but she will buy this back.