Why AutoZone (AZO) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Automotive - Retail and Wholesale - Parts industry's P/E of 25.7X, shares of AutoZone are trading at a forward P/E of 17.9X. AZO also has a PEG Ratio of 1.4, a Price/Cash Flow ratio of 15.8X, and a Price/Sales ratio of 2.7X.
Many value investors pay close attention to a company's earnings as well. For AZO, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.54 to $147.96 per share for 2024. Per share AZO boasts an average earnings surprise of 9.9%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AZO to their portfolios.
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AutoZone, Inc. (AZO) : Free Stock Analysis Report
