AutoZone (AZO) Gains As Market Dips: What You Should Know
AutoZone (AZO) closed at $2,041.53 in the latest trading session, marking a +1.25% move from the prior day. This change outpaced the S&P 500's 1.26% loss on the day. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq lost 0.44%.
Heading into today, shares of the auto parts retailer had gained 8.39% over the past month, outpacing the Retail-Wholesale sector's gain of 7.3% and the S&P 500's gain of 6.07% in that time.
AutoZone will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $25.78, down 2.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.71 billion, up 1.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $111.68 per share and revenue of $15.86 billion. These totals would mark changes of +17.32% and +8.44%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AutoZone. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.83% higher. AutoZone currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AutoZone is holding a Forward P/E ratio of 18.06. This valuation marks a premium compared to its industry's average Forward P/E of 16.77.
Meanwhile, AZO's PEG ratio is currently 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AZO in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AutoZone, Inc. (AZO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
