3 Red Flags Waving for Advance Auto Parts Stock

There's something wrong with auto-parts retailer Advance Auto Parts (NYSE: AAP), and the stock is worth avoiding until the company fixes its course. In this article, I'm going to highlight a few charts that date back to when an activist hedge fund, Starboard Value, unveiled a stake in the company (Sept. 2015) and further discuss the key metrics to watch for this company.

It was a classic value investment argument back in 2015, and it's arguably the same case now. The idea is Advance's operational metrics so clearly lag its nearest peers, O'Reilly Automotive (NASDAQ: ORLY) and AutoZone (NYSE: AZO), that all the company needs to do is improve its operations to something resembling its rivals to generate significant value for investors.

Unfortunately, the tale told in the the price chart below shows the company is still very far from achieving its aim.

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Source Fool.com