Zacks Research Analysts Boost Earnings Estimates for AAP

Advance Auto Parts, Inc. (NYSE:AAP) – Stock analysts at Zacks Research raised their Q2 2026 earnings estimates for shares of Advance Auto Parts in a research report issued to clients and investors on Friday, February 27th. Zacks Research analyst Team now forecasts that the company will post earnings of $0.80 per share for the quarter, up from their prior estimate of $0.69. The consensus estimate for Advance Auto Parts’ current full-year earnings is ($0.46) per share. Zacks Research also issued estimates for Advance Auto Parts’ Q3 2026 earnings at $0.89 EPS, Q4 2026 earnings at $0.66 EPS, FY2026 earnings at $2.72 EPS, Q2 2027 earnings at $1.06 EPS, Q3 2027 earnings at $1.13 EPS, Q4 2027 earnings at $0.90 EPS and FY2027 earnings at $3.75 EPS.

Several other research analysts also recently weighed in on AAP. BMO Capital Markets increased their price target on shares of Advance Auto Parts from $55.00 to $60.00 and gave the stock a “market perform” rating in a research report on Tuesday, February 17th. Truist Financial raised their target price on Advance Auto Parts from $48.00 to $57.00 and gave the stock a “hold” rating in a report on Tuesday, February 17th. DA Davidson set a $58.00 target price on Advance Auto Parts in a research report on Tuesday, February 17th. Citigroup upgraded Advance Auto Parts from a “hold” rating to a “buy” rating in a research report on Wednesday, January 21st. Finally, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Advance Auto Parts in a research note on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $53.03.

Advance Auto Parts Price Performance

Shares of NYSE:AAP opened at $53.15 on Monday. The company has a quick ratio of 0.87, a current ratio of 1.75 and a debt-to-equity ratio of 1.55. The stock has a market capitalization of $3.19 billion, a PE ratio of 72.81, a price-to-earnings-growth ratio of 0.72 and a beta of 1.11. The firm’s 50 day moving average price is $47.71 and its 200-day moving average price is $52.12. Advance Auto Parts has a twelve month low of $28.89 and a twelve month high of $70.00.

Advance Auto Parts (NYSE:AAP) last released its quarterly earnings results on Friday, February 13th. The company reported $0.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.45. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The firm had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $1.95 billion. During the same period last year, the business posted ($10.16) EPS. The company’s revenue for the quarter was down 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS.

Institutional Investors Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently modified their holdings of the stock. Price T Rowe Associates Inc. MD lifted its holdings in shares of Advance Auto Parts by 18.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company’s stock worth $293,751,000 after buying an additional 1,190,094 shares in the last quarter. Federated Hermes Inc. increased its holdings in Advance Auto Parts by 4.4% in the 4th quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock valued at $110,499,000 after acquiring an additional 117,648 shares during the last quarter. State Street Corp boosted its holdings in shares of Advance Auto Parts by 3.9% during the 4th quarter. State Street Corp now owns 2,499,981 shares of the company’s stock valued at $98,249,000 after purchasing an additional 92,861 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Advance Auto Parts by 559.0% during the 3rd quarter. American Century Companies Inc. now owns 1,519,591 shares of the company’s stock valued at $93,303,000 after purchasing an additional 1,288,986 shares during the last quarter. Finally, Royce & Associates LP grew its position in shares of Advance Auto Parts by 30.5% during the fourth quarter. Royce & Associates LP now owns 1,478,633 shares of the company’s stock valued at $58,110,000 after purchasing an additional 345,217 shares in the last quarter. Institutional investors own 88.70% of the company’s stock.

Advance Auto Parts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 10th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.9%. The ex-dividend date is Friday, April 10th. Advance Auto Parts’s dividend payout ratio is presently 136.99%.

About Advance Auto Parts

Advance Auto Parts, Inc (NYSE: AAP) is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company’s product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.