The IBD SmartSelect Composite rating for Advance Auto Parts (AAP) was increased from 93 to 96 on Tuesday. The new rating shows that the stock outperforms 96% of all stocks in the most important criteria for stock selection.
The biggest winners in the market often have a rating of 95 or higher in the early stages of a new price action, so this is an important benchmark to look for when looking for the best stocks to buy and watch.
Advance Auto Parts erupted earlier but has dropped below the previous entry of 210.28 from a mug with no handle. In the event that a stock breaks out and then falls 7% or more below its entry price, it is considered a failed breakout. When that happens, it is best to wait for a new base to take shape.
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One weak point is the company’s 78 EPS rating, which shows the quarterly and annual growth in earnings per share. Make sure this improves to 80 or better to show that it is in the top 20% of all stocks.
Its accumulation / distribution rating of C shows roughly the same number of purchases and sales by institutional investors over the past 13 weeks.
Advance Auto Parts posted earnings growth of 234% in the first quarter. Revenue growth was 23% up from 12% in the previous report. That is four quarters of the increasing growth.
The company’s next quarterly report is expected on or about August 18.
Advance Auto Parts ranks 3rd among its competitors in the retail / wholesale auto industry group. Copart (CPRT) is the top ranked stock within the group.
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