Why Advance Auto Parts Stock Slumped Today

• Evercore ISI lowered its terms people connected Advance Auto Parts banal today.

• Also today, rival AutoZone reported net -- and missed!

• 10 stocks we similar amended than Advance Auto Parts ›

Auto parts retailer Advance Auto Parts (NYSE: AAP) banal tumbled 6.7% done 11:55 a.m. ET Tuesday aft Wall Street banker Evercore ISI chopped its terms people to $58 per share.

Evercore can't beryllium blamed for the entirety of Advance Auto's losses today, however. I really fishy investors are punishing the banal much for what its rival, AutoZone (NYSE: AZO), said this morning.

Reporting net for its fiscal Q1 2026 today, AutoZone said its quarterly income were up 8% twelvemonth implicit twelvemonth astatine $4.6 billion, and same-store income grew 5.5%.

Neither fig was "bad," exactly. But AutoZone nevertheless fell abbreviated of expert forecasts for Q1 income and earnings, both. Earnings per stock of $31.04 looked peculiarly atrocious successful airy of forecasts for $32.40, wounded by a large 2 percentage-point diminution successful gross margin, and operating costs that accrued arsenic a percent of sales.

On the bottommost line, that worked retired to a 5% driblet successful AutoZone's net per share.

AutoZone and Advance Auto Parts some vie successful the automotive parts marketplace (obviously). Investors look to beryllium reasoning that if concern isn't large for AutoZone, a beardown and profitable performer successful this market, it's astir apt adjacent worse for Advance Auto Parts -- a overmuch weaker performer, and unprofitable successful 3 of its past six reported quarters.

To me, this seems a much apt crushed -- and a better reason -- for Advance Auto Parts to beryllium selling disconnected contiguous than the specified information of a random expert tweaking its Advance Auto terms people $2 lower.

It's besides a amended crushed for you to see selling Advance Auto Parts stock.

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