AAP Stock Analysis: Buy, Sell, or Hold?

AAP - ADVANCE AUTO PARTS INC

RETAIL-AUTO & HOME SUPPLY STORES
$48.01
-0.11 (-0.23%) ▼
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 25, 2026 24d

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
💡 BUY OPPORTUNITY: AAP shows positive signals but monitor for confirmation. Market pricing in 2.7% growth. Moderate conviction.

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$86.81
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$53.90
10.9% Margin of Safety

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 16.7x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: AAP is currently trading at $48.01, which is considered extended relative to its 30-day fair value range of $39.83 to $46.37. The stock's valuation (Forward PE: 18.0) is in line with its historical norms (16.7). At these levels, the market is pricing in 2.7% annual earnings growth.

Technical Outlook: Technically, AAP is in a strong downtrend. Immediate support is located at $39.92, while resistance sits at $50.98.

Market Sentiment: AAP has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.

Quick Decision Summary

Current Position EXTENDED
Fair Price Range $39.83 - $46.37
Company Quality Score 61/100 (BUY)
Volume Confirmation HIGH
Confidence Score 60.5%

All Signals

  • BEARISH: Price extended above range
  • BULLISH: Strong technical setup (60/100)
  • BULLISH: High volume confirmation
  • NEUTRAL: Near Wall St target ($51.29)
  • BULLISH: Expecting earnings turnaround to 2.7% growth with -5.2% revenue growth

Fair Price Analysis

30-Day Fair Range $39.83 - $46.37
Current vs Fair Value EXTENDED

Support & Resistance Levels

Support Level $39.92
Resistance Level $50.98
Current Trend Strong Downtrend

Fundamental Context

Forward P/E (Next Year Est.) 18.03
Wall Street Target $51.29 (+6.6%)
Revenue Growth (YoY) -5.2%
Earnings Growth (YoY) -66.4%
Profit Margin -4.4%
Valuation Premium vs History +2.7% premium
PE vs Historical 18.0 vs 16.7 FAIR
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +2.7% (market-implied from PE analysis)
1-Year Target $49.42 (+3%)
2-Year Target $50.75 (+6%)
3-Year Target $52.12 (+8%)
3-Yr Target (if PE normalizes) (PE: 18→17) PE COMPRESSION $48.29 (+0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 22.3, Growth: 47.0%) $189.03 (+293%)
Base: (SPY PE: 18.0, Growth: 47.0%) $152.81 (+218%)
Bear: (PE: 15.3, Growth: 47.0%) $129.89 (+170%)
Last updated: January 31, 2026 12:56 PM ET
Data refreshes hourly during market hours. Next update: 1:56 PM
🔥 Top Stocks Breaking Out Now
Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL

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Advanced AAP Option Strategies

Professional options setups generated by AI based on today's AAP price and gamma walls.

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