Advance Auto Parts (AAP) stock surged on Thursday as investors celebrated the auto parts retailer’s latest earnings report. Adjusted earnings per share of -22 cents was well above Wall Street’s estimate of -82 cents, even if it was down 132.84% year-over-year compared to 67 cents.
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Adding to that was revenue of $2.58 billion, which surpassed analysts’ estimate of $2.5 billion. That’s despite a 24.3% drop in revenue year-over-year from $3.41 billion. The company also reaffirmed its 2025 outlook, boosting investor confidence in the face of tariffs.
All of this led to a 45.83% rally for AAP stock today, marking a huge recovering after tariffs put extreme pressure on the shares this year. However, AAP remains down 2.14% year-to-date. Today’s rally came with heavy trading as some 7.61 million shares changed hands, compared to a three-month daily average of 2.16 million units.
Is AAP Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Advance Auto Parts is Hold, based on one Buy, 15 Hold, and one Sell ratings over the last three months. With that comes an average AAP stock price target of $40.86, representing a potential 10.69% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
See more AAP stock analyst ratings
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