Here is Why Hedge Funds Favor Advance Auto Parts (AAP)

Advance Auto Parts (NYSE:AAP) is 1 of the best Auto Parts stocks according to Hedge Funds.

On January 21, Aaron Reed from Northcoast Research indicated his optimism astir Advance Auto Parts (NYSE:AAP). He upgraded his standing connected the banal from Neutral to Buy, and estimated a terms people of $55, which yields an upside of implicit 14%. Reed’s standing is based connected his expectations of beardown request trends during 2026, pursuing the ongoing show enhancements.

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On the flip side, TD Cowen expert Max Rakhlenko reduced his terms people connected the banal substantially, from $62 to $46, and reiterated his Hold rating, according to The Fly. The revision was portion of the analyst’s people adjustments crossed his hardlines radical coverage.

Back connected December 16, Greg Melich of Evercore ISI had reaffirmed his In-Line standing for Advance Auto Parts (NYSE:AAP). In the process, helium revised his people terms estimation for the banal from $58 to $56. Despite this downward revision, the banal inactive offers implicit 16% upside imaginable to investors from the prevailing level.

Advance Auto Parts (NYSE:AAP) provides automotive aftermarket parts specified arsenic batteries, brake pads, chassis parts, clutches, motor parts, exhaust systems, and more. Serving some nonrecreational installers and DIY customers with a balanced income mix, the institution operates much than 4,700 Advance Auto Parts and Carquest stores.

While we admit the imaginable of AAP arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published astatine Insider Monkey.