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In the latest trading session, AutoZone (AZO) closed at $1,942.17, marking a +0.49% move from the previous day. This change outpaced the S&P 500's 1.89% loss on the day. Elsewhere, the Dow lost 1.3%, while the tech-heavy Nasdaq lost 0.17%.
Heading into today, shares of the auto parts retailer had lost 4.06% over the past month, outpacing the Retail-Wholesale sector's loss of 6.12% and lagging the S&P 500's loss of 1.79% in that time.
Wall Street will be looking for positivity from AutoZone as it approaches its next earnings report date. The company is expected to report EPS of $17.79, up 19.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.16 billion, up 8.66% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $107.24 per share and revenue of $15.53 billion, which would represent changes of +12.66% and +6.19%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for AutoZone. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. AutoZone is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, AutoZone is currently trading at a Forward P/E ratio of 18.02. Its industry sports an average Forward P/E of 17.63, so we one might conclude that AutoZone is trading at a premium comparatively.
It is also worth noting that AZO currently has a PEG ratio of 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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AutoZone, Inc. (AZO) : Free Stock Analysis Report
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