
AAP Stock Forecast & Price Target
AAP Analyst Ratings
Bulls say
Advance Auto Parts is poised for a positive financial trajectory, forecasting sales of $8.574 billion with a slight decline of 5.7% alongside same-store sales growth of 0.9%. The company projects a significant expansion in operating margins, estimated to reach 3.8% to 4.5% in 2026, marking an increase of 130 to 200 basis points compared to 2.5% in 2025, and a further expected rise of 250 to 320 basis points by 2027. Notably, gross margins have shown strength with adjusted figures at 44.2%, surpassing consensus expectations and reflecting an impressive year-over-year increase of 520 basis points, contributing to overall favorable earnings adjustments.
Bears say
Advance Auto Parts faces several fundamental challenges that contribute to a negative outlook on its stock. The company anticipates a significant reduction in expenses, projecting a decrease from $878 million to approximately $795 million to $781 million, which further aligns with a lowered earnings per share (EPS) forecast for 2025 at $1.62 compared to a previously estimated $1.95. Furthermore, facing intense competition and pressures from rising prices, employment trends, and unfavorable economic conditions could lead to a decline in unit volumes, hampering sales growth and weakening gross margins in the face of pricing pressures.
This aggregate rating is based on analysts' research of Advance Auto Parts and is not a guaranteed prediction by Public.com or investment advice.
AAP Analyst Forecast & Price Prediction
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