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

Consequently, key hedge funds have jumped into Advance Auto Parts, Inc. (NYSE:AAP) headfirst. Point72 Asset Management assembled the most valuable position in Advance Auto Parts, Inc. (NYSE:AAP). Point72 Asset Management had $218.9 million invested in the company at the end of the quarter. Barry Rosenstein’s JANA Partners also made a $84.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Benjamin A. Smith’s Laurion Capital Management, Gregory Thomas’s Carbonado Capital, and Jorge Paulo Lemann’s 3G Capital.

Let’s also examine hedge fund activity in other stocks similar to Advance Auto Parts, Inc. (NYSE:AAP). These stocks are KeyCorp (NYSE:KEY), Macy’s, Inc. (NYSE:M), Waters Corporation (NYSE:WAT), and Autoliv Inc. (NYSE:ALV). This group of stocks’ market caps match 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 $785 million. That figure was $1.72 billion in AAP’s case. Macy’s, Inc. (NYSE:M) is the most popular stock in this table. On the other hand Autoliv Inc. (NYSE:ALV) is the least popular one with only 10 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.