Advance Auto Parts (AAP), mcap=$11.6bn, price $192 vs $182
Leading N.A. automotive parts retailer through B&M stores and e-comm sites. In the middle-innings of the 5-year integration/turnaround process of its multiple brands to have unified supply and logistics chains, common IT infrastructure and etc. Trades at 13xEPS – beblow peers and below historical levels. Expected to re-rate as fruits of the turnaround become evident. 77% of sales to DIY segment, higher than peers. Recession-resistant industry.