Advance Auto Parts stock surged over 5% on strong Q1 performance, but faces challenges

Investors saw Advance Auto Parts stock surge over 5% on Thursday, outpacing the S&P 500. Analyst David Bellinger raised the stock’s fair value to $44, citing strong first-quarter performance. He increased profit estimates for 2025 and 2026, but maintained a neutral recommendation due to ongoing challenges in the retail sector.

Despite the positive earnings beat, Mizuho analyst Bellinger noted the tough retail environment and lack of expected car sales growth. He believes Advance Auto Parts may struggle with its turnaround plan. While the stock has potential, caution is advised before investing in this competitive market.

Read more at Yahoo Finance: Why Advance Auto Parts Stock Trounced the Market on Thursday