AutoZone (AZO) closed the most recent trading day at $3,523.56, moving -1.11% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, added 0.04%.
Heading into today, shares of the auto parts retailer had gained 5.49% over the past month, lagging the Retail-Wholesale sector's gain of 12.89% and the S&P 500's gain of 12.24%.
Investors will be eagerly watching for the performance of AutoZone in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 26, 2026. The company's earnings per share (EPS) are projected to be $36.09, reflecting a 2.06% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.86 billion, up 8.8% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $148.93 per share and revenue of $20.53 billion, which would represent changes of +2.8% and +8.38%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AutoZone. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% decrease. As of now, AutoZone holds a Zacks Rank of #3 (Hold).
With respect to valuation, AutoZone is currently being traded at a Forward P/E ratio of 23.92. This expresses a premium compared to the average Forward P/E of 18.47 of its industry.
We can additionally observe that AZO currently boasts a PEG ratio of 1.83. 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 1.63 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 198, which puts it in the bottom 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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AutoZone, Inc. (AZO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).