AutoZone (AZO) Outperforms Broader Market: What You Need to Know
In the latest market close, AutoZone (AZO) reached $3,128.64, with a +0.92% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.47% for the day. On the other hand, the Dow registered a gain of 0.79%, and the technology-centric Nasdaq increased by 0.28%.
Shares of the auto parts retailer witnessed a gain of 0.7% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.09% and the S&P 500's gain of 3.48%.
The upcoming earnings release of AutoZone will be of great interest to investors. The company is predicted to post an EPS of $33.68, indicating a 3.47% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.3 billion, showing a 2.72% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $157.99 per share and revenue of $18.77 billion, which would represent changes of +8.11% and +1.53%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AutoZone. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.4% lower. Currently, AutoZone is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, AutoZone is currently being traded at a Forward P/E ratio of 19.62. For comparison, its industry has an average Forward P/E of 22.15, which means AutoZone is trading at a discount to the group.
We can also see that AZO currently has a PEG ratio of 1.57. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.54 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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AutoZone, Inc. (AZO) : Free Stock Analysis Report