
AAP Stock Forecast & Price Target
AAP Analyst Ratings
Bulls say
Advance Auto Parts is positioned for a positive financial outlook, anticipating sales of $8.574 billion with a slight year-over-year decline of 5.7%, while same-store sales are projected to grow by 0.9%, reflecting resilience in a competitive market. The company's operating margin is set to expand significantly, with guidance of 3.8%-4.5% for 2026, an increase of 130 to 200 basis points from 2.5% in 2025, which suggests effective management of operational efficiency and profitability. Additionally, the adjusted gross margins have shown strong performance at 44.2%, outpacing consensus expectations, and the projected path to 2027 includes ambitious targets that could significantly uplift earnings per share.
Bears say
The financial outlook for Advance Auto Parts is negatively impacted by anticipated decreases in expenses, adjusting from $878 million last year to a projected $795 million to $781 million, which raises concerns about profitability. Additionally, the revised earnings per share (EPS) forecast for 2025 has been lowered to $1.62 from an earlier estimate of $1.95, indicating a potential decline in financial performance as management's guidance suggests challenges ahead. Contributing factors to this negative outlook include weakening gross margins due to pricing pressures, decreased employment trends affecting retail sales, and increasing competition from both traditional and digital retail channels, which may hinder revenue growth and operational efficiencies.
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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