Advance Auto Parts (AAP) gears up to beat inflation woes. Is the stock a buy?
Advance Auto Parts, Inc. (NYSE: AAP) is a surprise winner of the pandemic, benefiting from the slowdown in the demand for new vehicles and increase in do-it-yourself (DIY) vehicle maintenance activities. More than two years into the crisis, rising inflation is putting pressure on DIY customers, the segment that contributed significantly to sales during the shutdown.
The Raleigh-headquartered company, a market leader in automotive aftermarket spare parts, sees continued softness in discretionary spending in the back half of the year. Hence it is pursuing initiatives to drive long-term profitable growth and return value to shareholders, such as better category management