Stock Price Trends

Advance Auto Parts Inc (AAP)

Advance Auto Parts, Inc. (AAP) is a leading provider of aftermarket automotive parts and accessories in the United States, catering to both professional installers and DIY enthusiasts. Headquartered in Raleigh, North Carolina, the company operates a vast network of stores and distribution centers, ensuring efficient delivery and availability of products. With a focus on customer satisfaction and an extensive selection of quality automotive components, Advance positions itself as a key player in the growing automotive aftermarket industry, leveraging technological advancements and e-commerce to enhance its market reach and service offerings.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 26.89% per annum.
  • AAP price at the close of March 13, 2026 was $51.73 and was inside the primary price channel.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 30.50% per annum.
  • AAP price at the close of March 13, 2026 was inside the secondary price channel.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of AAP price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: August 28, 2024
End date: March 13, 2026

a = 2.8055

b = 0.0007

s = 0.1603

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 26.89%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1603) – 1
= 89.90%

August 28, 2024 calculations

Top border of price channel:

Exp(Y869)
= Exp(a + b × X869 + 2 × s)
= Exp(a + b × 1,261 + 2 × s)
= Exp(2.8055 + 0.0007 × 1,261 + 2 × 0.1603)
= Exp(3.9489)
= $51.88

Bottom border of price channel:

Exp(Y869)
= Exp(a + b × X869 – 2 × s)
= Exp(a + b × 1,261 – 2 × s)
= Exp(2.8055 + 0.0007 × 1,261 – 2 × 0.1603)
= Exp(3.3076)
= $27.32

March 13, 2026 calculations

Top border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(2.8055 + 0.0007 × 1,823 + 2 × 0.1603)
= Exp(4.3156)
= $74.86

Bottom border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(2.8055 + 0.0007 × 1,823 – 2 × 0.1603)
= Exp(3.6743)
= $39.42

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 26.89% per annum.
  • AAP price at the close of March 13, 2026 was $51.73 and was inside the primary price channel.

Secondary Trend

Start date: July 8, 2025
End date: March 13, 2026

a = 5.6548

b = -0.0010

s = 0.1047

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0010) – 1
= -30.50%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.1047) – 1
= 52.04%

July 8, 2025 calculations

Top border of price channel:

Exp(Y1,082)
= Exp(a + b × X1,082 + 2 × s)
= Exp(a + b × 1,575 + 2 × s)
= Exp(5.6548 + -0.0010 × 1,575 + 2 × 0.1047)
= Exp(4.2943)
= $73.28

Bottom border of price channel:

Exp(Y1,082)
= Exp(a + b × X1,082 – 2 × s)
= Exp(a + b × 1,575 – 2 × s)
= Exp(5.6548 + -0.0010 × 1,575 – 2 × 0.1047)
= Exp(3.8753)
= $48.20

March 13, 2026 calculations

Top border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 + 2 × s)
= Exp(a + b × 1,823 + 2 × s)
= Exp(5.6548 + -0.0010 × 1,823 + 2 × 0.1047)
= Exp(4.0471)
= $57.23

Bottom border of price channel:

Exp(Y1,254)
= Exp(a + b × X1,254 – 2 × s)
= Exp(a + b × 1,823 – 2 × s)
= Exp(5.6548 + -0.0010 × 1,823 – 2 × 0.1047)
= Exp(3.6281)
= $37.64

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 30.50% per annum.
  • AAP price at the close of March 13, 2026 was inside the secondary price channel.