Is Advance Auto Parts Setting Up for a Big Move?
StockNews
Published Sep 20, 2021 09:29AM ET
Updated Sep 20, 2021 10:31AM ET
Is Advance Auto Parts Setting Up for a Big Move?
A down channel chart pattern has formed in the chart of Advance Auto Parts (NYSE:AAP) over the past two months. This occurs through a combination of a line of support that runs parallel to a line of resistance. If the stock breaks through either level, a big move is expected. Read more to learn how to take advantage of this trade.Advance Auto Parts (AAP) is one of the industry's largest retailers of aftermarket automotive parts, tools, and accessories to do-it-yourself customers in North America. AAP operated 4,976 stores as of the end of 2020, in addition to servicing 1,277 independently owned Carquest stores.
The company has been expanding its footprint by opening new stores and increasing its online presence. In addition, AAP has continued to make progress on its Do It Yourself (DIY) e-commerce platform. Plus, its acquisition of the DieHard brand is aiding sales growth.
AAP has a current ratio of 1.3, which indicates it has more than enough liquidity to handle short-term obligations. This has led to a Quality Grade of A in our POWR Ratings system. Its gross margin of 44.9% is also above the industry average.
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