Here's Why Advance Auto Parts Crashed in August
Shares in auto parts retailer Advance Auto Parts (NYSE: AAP) slumped by 28.5% in August, according to data provided by S&P Global Market Intelligence. The move comes after a disappointing second-quarter earnings report and a slew of analyst downgrades.
Nine years ago, renowned activist investor Starboard Value laid out the value case for Advance Auto Parts. It was made based on classic value investor principles. Find a company that's notably underperforming its peers, in this case, O'Reilly Automotive and AutoZone, and look to replicate what its peers do so its metrics can improve to their levels, and the stock should rise significantly.
However, despite Starboard's extensive involvement and Tom Greco's tenure as CEO from 2016 to 2023, it can hardly be considered a success.
Source Fool.com
