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Is AutoZone (AZO) Stock Outpacing Its Retail-Wholesale Peers This Year?

Zacks Equity Research

Investors focused on the Retail-Wholesale space have likely heard of AutoZone (AZO), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

AutoZone is one of 224 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. AZO is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for AZO's full-year earnings has moved 1.60% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that AZO has returned about 30.08% since the start of the calendar year. In comparison, Retail-Wholesale companies have returned an average of 11.26%. This means that AutoZone is outperforming the sector as a whole this year.

Looking more specifically, AZO belongs to the Automotive - Retail and Wholesale - Parts industry, which includes 5 individual stocks and currently sits at #53 in the Zacks Industry Rank. On average, this group has gained an average of 17.81% so far this year, meaning that AZO is performing better in terms of year-to-date returns.

AZO will likely be looking to continue its solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to the company.


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