Shares of Advanced Auto Parts plummeted to a 10-year low Wednesday following an earnings report that fell (far short) of expectations. 

“This is the big headline in retail this morning. This stock is now down 30%,” explains Brian McGough in this clip from The Call @ Hedgeye. “If you’re looking at dumpster diving buying stocks, I would not touch Advanced Auto Parts.” 

McGough said the company is cutting price because it’s losing share to competitors AutoZone and O’Reilly Auto Parts. 

“There’s no way it can structurally close the gap on O’Reilly,” McGough adds. “It’s like me saying I can slam dunk a basketball. I can’t do it. I’m 5’6”. This company will just never get it done.” 

“Valuation isn’t the catalyst. Momentum of the business is. The rate of change at the top line, the quad that we’re in, the consumer recession that we’re entering,” Keith McCullough says. “We can only say it six months ago and repeat it today, but the fact of the matter is we’ve been saying it for going on 18 months.” 

Watch the full clip above. 

McGough: This Earnings Disaster Is Another Sign Of Consumer Recession $AAP - Call Banner