Summary
- AAP had a huge run in 2018.
- But that has left the stock majorly overvalued.
- I think it is the weakest of the three pure play auto parts retailers, but has the highest valuation.
A huge 2018 has the stock overvalued
Advance Auto Parts (AAP) had a monster 2018 as shares rallied by more than half. The bottom that was struck in late November of 2017 proved to be an outstanding buying opportunity as shares more than doubled before pulling back in the past couple of months. Still, shares of Advance are quite elevated as investors have been very excited by recent results, and I think it is still a prime opportunity to sell the stock and buy it at a lower valuation in the future.
