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How Analysts Are Rating Auto Parts Companies in November

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Ratings for auto parts retailers

According to recent data by Reuters, 62%, 44%, and 48% of analysts have given “buy” recommendations for O’Reilly Automotive (ORLY), AutoZone (AZO), and Advance Auto Parts (AAP) stock, respectively.

For O’Reilly Automotive, 38% of analysts are recommending a hold, and for AutoZone, 52% are recommending a “hold.” About 41% of analysts are recommending a “hold” for Advance Auto Parts.

Currently, there are no “sell” recommendations for ORLY. For AZO and AAP, 4% and 11% of analysts, respectively, have recommended a “sell.”

Comparing the 12-month upside potential

As of November 21, 2017, auto parts retailers’ (XLY) 12-month stock target prices and their upside potentials are as follows:

  • O’Reilly Automotive: analyst consensus target price of $233.92, reflecting a return potential of ~8.5% from its market price of $215.69
  • AutoZone: analyst consensus target price of $644.91, reflecting an upside potential of ~2% from its market price of $632.40
  • Advance Auto Parts: analyst consensus target price of $107.98, reflecting an upside potential of 21.4% from its market price of $88.93

Recent updates

Advance Auto Parts reported its 3Q17 earnings last week. They fell 17.3% YoY (year-over-year) but beat analysts’ estimate. The earnings beat drove optimism in the stock, which rose 16.3% on the day of the release.

ORLY released its 3Q17 earnings last month, which reflected an 11% YoY rise. However, its gross profit margins didn’t show any improvement. AutoZone is expected to announce its 4Q17 earnings on December 5, 2017.

TESLA (TSLA) announced its worst quarterly results earlier this month amid ongoing Model 3 production problems. TSLA stock hasn’t seen any major gains after it unveiled its electric semi truck on November 16, 2017. Read Tesla Unveils Semi: Moving Beyond Cars to learn more.

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