The latest trading session saw AutoZone (AZO) ending at $3,826.15, denoting a +0.44% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 4.84%. On the other hand, the Dow registered a loss of 3.98%, and the technology-centric Nasdaq decreased by 5.97%.
Coming into today, shares of the auto parts retailer had gained 7.13% in the past month. In that same time, the Retail-Wholesale sector lost 5.85%, while the S&P 500 lost 4.7%.
Analysts and investors alike will be keeping a close eye on the performance of AutoZone in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $37.07, marking a 1.04% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.41 billion, indicating a 4.17% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $150.14 per share and a revenue of $18.82 billion, indicating changes of +2.74% and +1.78%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for AutoZone. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.86% lower. AutoZone is currently a Zacks Rank #4 (Sell).
With respect to valuation, AutoZone is currently being traded at a Forward P/E ratio of 25.37. Its industry sports an average Forward P/E of 21.64, so one might conclude that AutoZone is trading at a premium comparatively.
It's also important to note that AZO currently trades at a PEG ratio of 2.15. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts industry had an average PEG ratio of 1.76 as trading concluded yesterday.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons 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.
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AutoZone, Inc. (AZO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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