In the latest close session, AutoZone (AZO) was up +1.26% at $3,066.06. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq decreased by 0.83%.
The auto parts retailer's shares have seen a decrease of 1.52% over the last month, not keeping up with the Retail-Wholesale sector's gain of 7.52% and the S&P 500's gain of 3.52%.
The investment community will be paying close attention to the earnings performance of AutoZone in its upcoming release. On that day, AutoZone is projected to report earnings of $55.08 per share, which would represent year-over-year growth of 13.08%. Alongside, our most recent consensus estimate is anticipating revenue of $6.71 billion, indicating a 7.52% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $150.39 per share and a revenue of $20.48 billion, demonstrating changes of +3.81% and +8.13%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for AutoZone. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 shifted 0.08% downward. AutoZone currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, AutoZone is currently exchanging hands at a Forward P/E ratio of 20.13. This expresses a premium compared to the average Forward P/E of 20.07 of its industry.
Investors should also note that AZO has a PEG ratio of 1.54 right now. 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 1.78 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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AutoZone, Inc. (AZO): Free Stock Analysis Report
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