AAP - 1 Growth Stock Down 70% to Buy Right Now
2023-07-16 11:15:00 ET
It's been a tough past year and a half for Advance Auto Parts (NYSE: AAP) . But it's been even tougher for its shareholders. The stock is down 70% from its early 2022 high, and lower by 37% just since the end of May. A combination of broken supply chains, inflation, and broad economic malaise is taking a measurable toll on the company's results. The first quarter's revenue growth of 1.3% is outright anemic, and same-store sales actually slipped a bit for the three-month stretch. Full-year sales and earnings guidance was lowered too, with the latter being nearly cut in half.
As the old adage goes, though, it's darkest before dawn. Advance Auto Parts is arguably at the "can't get any worse" stage of this highly problematic cycle. You can step into the stock at what's apt to be close to the bottom.
The auto parts business is a perennial winner. Most people just need their cars to work, and given the ever-growing cost of buying a new one, it makes good financial sense to keep older ones in good working order for as long as possible. Advance Auto Parts has been no exception to the market's consistent growth cadence.
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1 Growth Stock Down 70% to Buy Right Now