Is Advance Auto Parts, Inc. (AAP) A Good Stock To Buy?

Now, key hedge funds have been driving this bullishness. Soroban Capital Partners, managed by Eric W. Mandelblatt, initiated the most outsized position in Advance Auto Parts, Inc. (NYSE:AAP). Soroban Capital Partners had $90.1 million invested in the company at the end of the quarter. David Gallo’s Valinor Management LLC also initiated a $88.6 million position during the quarter. The other funds with new positions in the stock are David Greenspan’s Slate Path Capital, Josh Resnick’s Jericho Capital Asset Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s check out hedge fund activity in other stocks similar to Advance Auto Parts, Inc. (NYSE:AAP). These stocks are Twitter Inc (NYSE:TWTR), Pembina Pipeline Corp (NYSE:PBA), Chipotle Mexican Grill, Inc. (NYSE:CMG), and Federal Realty Investment Trust (NYSE:FRT). All of these stocks’ market caps are closest to AAP’s market cap.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $746 million. That figure was $2.78 billion in AAP’s case. Twitter Inc (NYSE:TWTR) is the most popular stock in this table. On the other hand Pembina Pipeline Corp (NYSE:PBA) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Advance Auto Parts, Inc. (NYSE:AAP) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None