4-Star Stocks Poised to Pop: Advance Auto Parts
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, automotive aftermarket parts specialist Advance Auto Parts (NYS: AAP) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Advance Auto's business and see what CAPS investors are saying about the stock right now.
Advance Auto facts
Headquarters (founded) | Roanoke, Va. (1929) |
Market Cap | $6.7 billion |
Industry | Automotive retail |
Trailing-12-Month Revenue | $6.2 billion |
Management | CEO Darren Jackson (since 2008) |
Return on Equity (average, past 3 years) | 31.5% |
Cash/Debt | $57.9 million / $432.2 million |
Dividend Yield | 0.3% |
Competitors | AutoZone |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 91% of the 258 members who have rated Advance Auto believe the stock will outperform the S&P 500 going forward.
A couple of months ago, one of those Fools, Wakester0, touched on the tailwind working in the stock's favor:
In 1995, the average passenger car in operation in the U.S. was 8.4 years old, compared to 11 years old nowadays. Although new sales are starting to pick up, it will take a while before the average age comes back down. These older cars will be around for while and will need more frequent repairs; [Advance Auto] has a good business model and fills a niche to meet that demand.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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