Here's Why Advance Auto Parts Accelerated Higher Today
Auto parts retailer Advance Auto Parts (NYSE: AAP) stock spiked 5.2% by 11 a.m. today as the market continues to warm to the deep value opportunity in the stock. In fact, as I write, the stock is up more than 28% on the year.
The case for buying the stock has remained the same and rests on the hope that its management can deliver operational performance, at least close to that of peers like AutoZone and O'Reilly Automotive.
As you can see below, its earnings before interest, taxation, depreciation, and amortization (EBITDA) margin is nowhere near its peers', which is why it trades on such a low price-to-sales ratio compared to them.
Source Fool.com
