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Dec 24, 2019
Advance Auto Parts(AAP, $160.51) is buying Transformco 's DieHard battery business for $200 million

Advance Auto Parts(AAP, $160.51) is buying Transformco 's DieHard battery business for $200 million

Auto aftermarket parts retail giant Advance Auto Parts  announced that it was purchasing  DieHard battery unit from Transformco (owner of Sears and Kmart stores) for $200 million in cash.

Following the acquisition, Sears  will be able to continue to sell DieHard auto batteries at its stores. Transformco will still be able to make products for the brand as long as they are not auto-related.

Advance Auto Parts plans to sell DieHard auto batteries in its more than 4,800 stores.

Related Ticker: AAP

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


AAP's RSI Indicator remains in oversold zone for 1 day

It is expected that a price bounce should occur soon.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AAP advanced for three days, in of 289 cases, the price rose further within the following month. The odds of a continued upward trend are .

AAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on August 18, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on AAP as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for AAP turned negative on August 20, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .

AAP moved below its 50-day moving average on August 14, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for AAP crossed bearishly below the 50-day moving average on August 11, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where AAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

Fundamental Analysis (Ratings)

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.138) is normal, around the industry mean (2.987). P/E Ratio (23.788) is within average values for comparable stocks, (70.891). Projected Growth (PEG Ratio) (1.150) is also within normal values, averaging (0.977). Dividend Yield (0.023) settles around the average of (0.026) among similar stocks. P/S Ratio (0.301) is also within normal values, averaging (49.398).

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. AAP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. AAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.

Notable companies

The most notable companies in this group are AutoZone (NYSE:AZO), Advance Auto Parts (NYSE:AAP), Goodyear Tire & Rubber Company (The) (NASDAQ:GT).

Industry description

OEM or Original Equipment Manufacturer of auto parts refers to the original producer of a vehicles components, and so OEM car parts are usually identical to the parts used in producing the vehicle in the first place. OEM parts tend to fit the specifications of a particular model, and their compatibility is often guaranteed by the automaker itself. OEM parts could be more expensive to buy (compared to other vendors’ products) when a consumer goes for replacement. However, increased competition from aftermarket parts/third-party vendors could, in some cases, keep EOM prices in check. The industry might progress further in adopting newer technologies like 3D printing to boost supply chain performance and quality. Aptiv PLC, Magna International Inc. and BorgWarner Inc. are major OEMs for autos.

Market Cap

The average market capitalization across the Auto Parts: OEM Industry is 5.38B. The market cap for tickers in the group ranges from 206 to 72.09B. ORLY holds the highest valuation in this group at 72.09B. The lowest valued company is JBZY at 206.

High and low price notable news

The average weekly price growth across all stocks in the Auto Parts: OEM Industry was -2%. For the same Industry, the average monthly price growth was -1%, and the average quarterly price growth was -0%. GTEC experienced the highest price growth at 30%, while AAP experienced the biggest fall at -25%.

Volume

The average weekly volume growth across all stocks in the Auto Parts: OEM Industry was 18%. For the same stocks of the Industry, the average monthly volume growth was -15% and the average quarterly volume growth was -14%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 46
P/E Growth Rating: 58
Price Growth Rating: 58
SMR Rating: 79
Profit Risk Rating: 87
Seasonality Score: -33 (-100 ... +100)
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General Information

an operator of automotive parts and accessories stores

Industry AutoPartsOEM

Profile
Details
Industry
Specialty Stores
Address
4200 Six Forks Road
Phone
+1 540 362-4911
Employees
69000
Web
https://www.advanceautoparts.com
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