AutoZone (AZO) closed the most recent trading day at $1,187.98, moving -0.15% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.71%. Elsewhere, the Dow lost 0.81%, while the tech-heavy Nasdaq lost 0.79%.
Heading into today, shares of the auto parts retailer had gained 2.33% over the past month, lagging the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 4.77% in that time.
AZO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $11.91, up 3.66% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.58 billion, up 5.42% from the year-ago period.
AZO's full-year Zacks Consensus Estimates are calling for earnings of $66.10 per share and revenue of $12.20 billion. These results would represent year-over-year changes of +4.21% and +2.86%, respectively.
It is also important to note the recent changes to analyst estimates for AZO. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.26% higher. AZO currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AZO is holding a Forward P/E ratio of 18. For comparison, its industry has an average Forward P/E of 17.79, which means AZO is trading at a premium to the group.
We can also see that AZO currently has a PEG ratio of 1.6. 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 1.58 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 104, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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