Here's Why AutoZone (AZO) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
AutoZone (AZO)
AutoZone, Inc. is one of the leading specialty retailers and distributors of automotive replacement parts and accessories in the United States. It operates in the Do-It-Yourself (DIY) retail, Do-It-for-Me (DIFM) auto parts and products markets. At the end of fiscal 2023, the company had 6,300 stores in the United States, 740 in Mexico and 100 in Brazil. The total store count was 7,140 as of Aug 26, 2023. Each store offers wide-ranging products for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products.
AZO boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of AutoZone are trading at a forward earnings multiple of 17X, as well as a PEG Ratio of 1.3, a Price/Cash Flow ratio of 15.3X, and a Price/Sales ratio of 2.5X.
A company's earnings performance is important for value investors as well. For fiscal 2024, 10 analysts revised their earnings estimate higher in the last 60 days for AZO, while the Zacks Consensus Estimate has increased $2.98 to $150.58 per share. AZO also holds an average earnings surprise of 8.9%.
Investors should take the time to consider AZO for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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AutoZone, Inc. (AZO) : Free Stock Analysis Report
