Investors in Advance Auto Parts (NYSE: AAP) were left disappointed after S&P Global Ratings downgraded the company's debt to "junk" status, noting its sales underperformance relative to peers like AutoZone and O'Reilly Automotive in the last year and a half. In addition, S&P Global believes Advance Auto's "misguided" strategy of trying to hold pricing has led to market share erosion.

The news caused another leg down in a stock that's now down more than 60% this year as I write. Is it now time to go bargain-hunting for the stock, or is it one to avoid?

S&P Global's viewpoint seems at odds with Advance Auto Parts management's, and the difference of opinion may cause investors to exercise caution over the stock. The rating agency is critical of the strategy to keep profit margins high by holding prices, and believes Advance Auto has suffered a weakening in its "competitive standing." 

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Source Fool.com