Advance Auto Parts, Inc. (AAP): 1 Improving Stock You Should Consider Buying Right Now

In addition, Advance Auto is also focused on improving its presence in the commercial space. It acquired BWP, which is well-positioned in the Northeast commercial market. This acquisition is expected to aid Advance Auto’s commercial initiatives by adding $170 million to $180 million in revenue this fiscal year. The company’s results in the previous quarter were driven by its initiatives in the commercial business and it is intent on improving it further through its B2B e-commerce website.

The takeaway

Advance Auto is gradually looking to improve its business and it is making the correct moves. While improvement in sales of new cars might create a short-term pressure, it goes without saying that vehicle owners will ultimately turn to aftermarket retailers such as Advance Auto for maintenance. The company’s new stores should start contributing positively to same-store sales in the future and its advances in the commercial space are noteworthy.

Also, the stock seems fairly valued at a trailing P/E of 15.1 times and a forward P/E multiple of 12.9 times suggests that earnings growth is on the way. Moreover, a small dividend yield of 0.30% is another perk that potential investors would enjoy if they decide to buy this stable and steadily improving stock.

The article 1 Improving Stock You Should Consider Buying Right Now originally appeared on Fool.com and is written by Harsh Chauhan.

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