Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is There a Reason to Be Optimistic about Advanced Auto Parts, Inc. (AAP)?

Auto Retailers vs Automakers

The trend of automakers overtaking auto retailers, at least for the interim, caused analysts to predict a marginal increase in auto sales for the year. General Motors surged 60%, while Ford shot up by 56% since the dip in July of last year. Competitors Toyota and Honda have gained upwards of 25% since November 2012 due to the reduced power of the Yen. Will retailers be able to turn the tide and recover?

Will Advanced Auto Parts, Inc. (NYSE:AAP) Move Upward?

The specialty retailer of automotive parts may appear to be lagging behind in terms of sales, especially when compared to US automakers, but the practical entry point and the regrowth over the past fifty-two weeks means that AAP may still be able to catch up and rise in the market.

The lost ground, considering the stock’s history, indicates that it is not that difficult to recapture its glory from prior to the recession. It may still generate modest growth and profits through an eventual comeback, although it could take a while for Advanced Auto Parts to recuperate and join the fold of some of the most in-demand stocks in the industry today. Based on growth , however, Autozone and O ‘Reilly may appear to be better short-term buys because they outdrove Advanced in terms of stock decline and past performance; but for the long term, the latter’s plans for expansion may put it in the lead once again.

The article Is There a Reason to Be Optimistic about Advanced Auto Parts? originally appeared on Fool.com and is written by Rhodora Dagatan.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!