Advance Stock Performance

AAP -  USA Stock  

USD 181.89  1.35  0.74%

Advance Auto has performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.9436, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Advance's beta means in this case. Advance Auto returns are very sensitive to returns on the market. As the market goes up or down, Advance Auto is expected to follow. Although it is extremely important to respect Advance Auto Parts historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Advance Auto Parts technical indicators, you can presently evaluate if the expected return of 0.0708% will be sustainable into the future. Advance Auto Parts right now shows a risk of 1.79%. Please confirm Advance Auto Parts semi variance, and the relationship between the maximum drawdown and daily balance of power to decide if Advance Auto Parts will be following its price patterns.
  
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Advance Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Advance Auto Parts are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Advance Auto is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the insiders. ...more

Advance Price Channel

Quick Ratio0.27
Fifty Two Week Low176.72
Target High Price294.00
Fifty Two Week High244.55
Payout Ratio34.03%
Trailing Annual Dividend Yield1.28%
Target Low Price159.00

Advance Auto Relative Risk vs. Return Landscape

If you would invest  13,843  in Advance Auto Parts on February 23, 2022 and sell it today you would earn a total of  4,346  from holding Advance Auto Parts or generate 31.39% return on investment over 90 days. Advance Auto Parts is generating 0.0708% of daily returns assuming volatility of 1.7898% on return distribution over 90 days investment horizon. In other words, 15% of stocks are less volatile than Advance, and above 99% of all equities are expected to generate higher returns over the next 90 days.
 Daily Expected Return (%) 
      Risk (%) 
Considering the 90-day investment horizon Advance Auto is expected to generate 1.72 times more return on investment than the market. However, the company is 1.72 times more volatile than its market benchmark. It trades about 0.04 of its potential returns per unit of risk. The DOW is currently generating roughly 0.04 per unit of risk.

Advance Auto Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Advance Auto's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Advance Auto Parts, and traders can use it to determine the average amount a Advance Auto's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0396

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Estimated Market Risk
 1.79
  actual daily
 
 15 %
of total potential
 
1515
Expected Return
 0.07
  actual daily
 
 1 %
of total potential
 
11
Risk-Adjusted Return
 0.04
  actual daily
 
 2 %
of total potential
 
22
Based on monthly moving average Advance Auto is performing at about 2% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Advance Auto by adding it to a well-diversified portfolio.

About Advance Auto Performance

To evaluate Advance Auto Parts Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Advance Auto generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Advance Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Advance Auto Parts stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Advance's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash5.6 M3.1 M
Return on Investment 20.63  26.54 
Return on Average Assets 0.05  0.06 
Return on Average Equity 0.19  0.19 
Return on Invested Capital 0.11  0.16 
Return on Sales 0.08  0.08 
Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company was founded in 1929 and is based in Raleigh, North Carolina. Advance Auto operates under Specialty Retail classification in the United States and is traded on New York Stock Exchange. It employs 41000 people.

Things to note about Advance Auto Parts

Checking the ongoing alerts about Advance Auto for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Advance Auto Parts help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Advance Auto Alerts

Equity Alerts and Improvement Suggestions

Advance Auto Parts has a strong financial position based on the latest SEC filings
Latest headline from www.benzinga.com: Weak Housing Data Raises Profit Margin Concerns Causing Stocks To Plunge - Benzinga - Benzinga
Please continue to Trending Equities. Note that the Advance Auto Parts information on this page should be used as a complementary analysis to other Advance Auto's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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When running Advance Auto Parts price analysis, check to measure Advance Auto's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Advance Auto is operating at the current time. Most of Advance Auto's value examination focuses on studying past and present price action to predict the probability of Advance Auto's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Advance Auto's price. Additionally, you may evaluate how the addition of Advance Auto to your portfolios can decrease your overall portfolio volatility.
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Is Advance Auto's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Advance Auto. If investors know Advance will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Advance Auto listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Advance Auto Parts is measured differently than its book value, which is the value of Advance that is recorded on the company's balance sheet. Investors also form their own opinion of Advance Auto's value that differs from its market value or its book value, called intrinsic value, which is Advance Auto's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Advance Auto's market value can be influenced by many factors that don't directly affect Advance Auto's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Advance Auto's value and its price as these two are different measures arrived at by different means. Investors typically determine Advance Auto value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Advance Auto's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.