Here's Why Advance Auto Parts Hit a Road Block in February
Shares of auto parts retailer Advance Auto Parts (NYSE: AAP) declined by 23.9% in February, according to data provided by S&P Global Market Intelligence. The decline came mainly after the company issued disappointing fourth-quarter 2024 earnings and 2025 guidance.This stock has been a value proposition for over a decade, and the fundamental value case remains the same. All the company needs to do is improve its operational metrics to be comparable to its peers, such as O'Reilly Automotive or AutoZone, and the stock should appreciate handsomely. Case closed.But it's a case that's turned out to be more of a Pandora's box for investors, management teams, numerous directors on the board, activist hedge funds like Starboard Value and, more lately, Third Point and Saddle Point. Continue reading
Shares of auto parts retailer Advance Auto Parts (NYSE: AAP) declined by 23.9% in February, according to data provided by S&P Global Market Intelligence. The decline came mainly after the company issued disappointing fourth-quarter 2024 earnings and 2025 guidance.
This stock has been a value proposition for over a decade, and the fundamental value case remains the same. All the company needs to do is improve its operational metrics to be comparable to its peers, such as O'Reilly Automotive or AutoZone, and the stock should appreciate handsomely. Case closed.
But it's a case that's turned out to be more of a Pandora's box for investors, management teams, numerous directors on the board, activist hedge funds like Starboard Value and, more lately, Third Point and Saddle Point.
