Jim Cramer Says "I'm Going to say no to Advance Auto Parts"

Advance Auto Parts, Inc. (NYSE:AAP) is one of the stocks Jim Cramer recently talked about. During the lightning round, a caller inquired after Cramer’s thoughts on the company, and he said:

“I’m going to say no to Advance Auto Parts because I’m going to say yes to AutoZone. Get into the zone, my friend.”

Advance Auto Parts (NYSE:AAP) sells automotive replacement parts, accessories, and maintenance products for both professionals and DIY customers. Additionally, the company provides services like battery installation, system testing, and tool rentals. Curreen Capital stated the following regarding Advance Auto Parts, Inc. (NYSE:AAP) in its Q4 2024 investor letter:

“Since then, the S&P has gone up strongly, while the ugly ducklings that we bought have largely remained out of favor, for longer than I would have expected. We continue to implement our investment strategy, paying attractive prices for good businesses that are increasing their value. This should be rewarded in the stock market over time, but lately that process has been particularly slow and uneven.

As another example, I would have expected both VF Corp and Advance Auto Parts, Inc. (NYSE:AAP) to have performed well last year, as the company’s situations are similar, and both made good progress on their turnarounds. In each case, the fundamentals are solid or improving, and I would have thought that they all would rise.

Advance Auto Parts is a store-based retailer of aftermarket automotive parts and supplies. This includes batteries, windshield wipers and fluid, air filters, motor oil, etc. The company has historically earned decent (approaching 20%) returns on tangible capital. The company is attempting a turnaround, and has fixed its balance sheet and is improving operations. Advance Auto currently trades at an attractive upside-to-downside ratio.”

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Disclosure: None. This article is originally published at Insider Monkey.