So, AAP has become the best bargain for the next several years. AAP's earnings report wasn't good but everything that is wrong that caused certain aspects of it to be off, are very fixable. They overspent, they had supply chain issues, pricing issues, a high divvy, opening new stores...those issues are well into correcting themselves. I don't think its at all unreasonable to assume those issues have already been into correction mode since well before this earnings report. within a year I would expect that enormous gap to close as each earnings report shows the real value of tangible improvement through reigning in key, but also very fixable "controllables.
Now, Secondly...TSLA has changed the pace of the EV revolution and sped it up by at least 5 years. Gasoline will still reign supreme, in my opinion, for at least another decade, which is where AAP would close all existing gaps. Aftermarket parts will only become more, and more sought for the next 10 years as those who hold out on transitioning to electric due to their own reasons seek to keep their vehicle going.
This is all merely speculation, they are merely my ideas about what could be a good mid-term play especially the longer it remains under 70. Showing reasonable improvement in those areas in a quarter is feasible in my opinion but I think it makes sense. Reading their earnings report + chart analysis was my due diligence.
Now, Secondly...TSLA has changed the pace of the EV revolution and sped it up by at least 5 years. Gasoline will still reign supreme, in my opinion, for at least another decade, which is where AAP would close all existing gaps. Aftermarket parts will only become more, and more sought for the next 10 years as those who hold out on transitioning to electric due to their own reasons seek to keep their vehicle going.
This is all merely speculation, they are merely my ideas about what could be a good mid-term play especially the longer it remains under 70. Showing reasonable improvement in those areas in a quarter is feasible in my opinion but I think it makes sense. Reading their earnings report + chart analysis was my due diligence.
Comment:
It is so oversold. the volume profile on the right shows nothing but buying activity. This is simply a "supply zone." The DMI is curling down. The sell-off is conceding. There will be small areas of resistance on the way up but 1 or two good earnings will easily fix that.
Comment:
Move to a 1h time frame. the downtrend has been steadily weakening since earnings. it will move to the larger time frame, in my opinion...sooner than later.