Advance Auto Parts (AAP) stock has cratered over the last two years – losing about 70% of its value. However, new management announced in conjunction with 2Q23 earnings this morning could be the catalyst for a turnaround. While AAP once again cut full year operating margin and EPS guidance, the stock is holding up in the premarket as Wall Street seems to like its new CEO. Tom Greco is out and Shane O’Kelly – most recently the CEO of Home Depot Supply – is in effective September 11. The Wall Street Journal’s Spencer Jakab suggested on Saturday that a respected outsider could cause the stock to bounce immediately (“Advance Auto Parts Could Run Like A Dream Again With A New CEO” [SUBSCRIPTION REQUIRED], August 19).
Disclosure: Top Gun is long shares of AAP.