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Advance Auto Parts (AAP) Stock Analysis

Consumer Cyclical Updated September 17, 2026
$41.93
52W $37.89 – $65.20
57/100
$2.62B
31.2
1.03
AI Committee Verdict
Watch
57/100
Conviction: Contested · 50% agreement · 6 analysts
+25.7%
-12.7%
2.02:1
Contested

Is AAP Bullish or Bearish?

Mixed. Innellis AI committee rates Advance Auto Parts, Inc. (AAP) Watch with a composite score of 57/100 , based on 6 analysts with 50% agreement. Last updated September 17, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +3.05 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -16.95 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is split. Analysts see this stock differently enough that the current rating reflects genuine uncertainty, not a weak signal.

Bull & Bear Case

Bull Case
  • Price-to-book of 1.1x is a discount to asset value — Value
  • 5 consecutive earnings beats -- consistent execution — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • MACD histogram positive -- bullish momentum — Technical
  • News sentiment is positive (+0.67 across 3 articles, 14d) — News
Bear Case
  • P/E of 30.1 is moderate-to-rich — Value
  • ROE of only 3.8% -- cheap may mean cheap for a reason — Value
  • Debt-to-equity of 1.55 adds balance-sheet risk to the value case — Value
  • Revenue declining -1.3% YoY -- this is not a growth story right now — Growth
  • Price structure making lower highs and lower lows — Technical
  • Trend and market structure agree -- coherent bearish picture — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of September 17, 2026
Overall Committee Score
57/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 39%
of 178 Consumer Cyclical peers
Value Analyst neutral
46 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ Price-to-book of 1.1x is a discount to asset value
− P/E of 30.1 is moderate-to-rich
Growth Analyst bullish
60 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ 5 consecutive earnings beats -- consistent execution
− Revenue declining -1.3% YoY -- this is not a growth story right now
Technical Analyst neutral
46 / 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst neutral
45 / 100 · Moderate confidence
Moderate risk -- no single red flag, but nothing that clearly de-risks the position either
− High leverage (debt-to-equity 1.55) amplifies downside in a stress scenario
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
79 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
+ News sentiment is positive (+0.67 across 3 articles, 14d)
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2514.55)
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Investment Thesis Evolution

Committee score moved marginally from 57.0 to 57.0.

Analyst-level changes:
  • Value Analyst: +1 bearish signal(s).

Comparing 2026-09-16 to 2026-09-17 (1 day apart).

Technical Analysis

RSI (14)
41.6
Neutral
MACD Histogram
0.470
Bullish Momentum
Trend Direction
Downtrend
Weekly: Uptrend
Market Structure
Lh Ll
Support
$37.95
Resistance
$54.67
Bollinger %B
0.43
Inside Bands
Price vs Moving Averages
EMA 9
$43.95 Below
EMA 21
$45.82 Below
EMA 50
$49.78 Below
EMA 200
$52.42 Below

Fundamental Analysis

Valuation
78
Growth
95
Profitability
20
Financial Health
44
Cash Flow
70
Valuation
P/E Ratio 31.2×
P/B Ratio 1.16×
PEG Ratio 0.10
Dividend Yield 2.30%
52W High $65.20
52W Low $37.89
Quality & Growth
ROE 200.2%
ROA 37.2%
Gross Margin 4466.0%
Operating Margin 374.6%
Revenue Growth YoY
Debt / Equity 2.31
AI Fundamental Assessment
P/E ratio of 31.2 (rich relative to a 15-40x range); Price-to-book of 1.2x; PEG ratio of 0.1 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 2.0%; Return on assets of 0.4%; Net margin of 1.0%; Gross margin of 44.7%; Current ratio of 1.75 (healthy short-term liquidity); Debt-to-equity of 2.31; Free cash flow per share is positive (0.38); Most recent quarter beat estimates by 26.7%; 5 consecutive earnings beats; EPS growth accelerating (-10.5% -> +33.8% QoQ); Average YoY EPS growth of 49.3%; Analyst estimates rising over recent quarters
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