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.
Momentum Indicator for AAP turns positive, indicating new upward trend
AAP saw its Momentum Indicator move above the 0 level on December 27, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for AAP just turned positive on December 31, 2024. Looking at past instances where AAP's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AAP advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 252 cases where AAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AAP moved out of overbought territory on January 03, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where AAP's Stochastic Oscillator exited the overbought zone, the price fell further within 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 .
AAP broke above its upper Bollinger Band on December 31, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (2.019) is normal, around the industry mean (12.485). AAP has a moderately high P/E Ratio (170.860) as compared to the industry average of (36.657). Projected Growth (PEG Ratio) (1.623) is also within normal values, averaging (2.650). Dividend Yield (0.026) settles around the average of (0.034) among similar stocks. P/S Ratio (0.451) is also within normal values, averaging (19.379).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AAP’s price grows at a higher 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 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 75, placing this stock worse than average.
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an operator of automotive parts and accessories stores
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