Why Is AutoZone (AZO) Up 7.1% Since Last Earnings Report?

It has been about a month since the last earnings report for AutoZone (AZO). Shares have added about 7.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is AutoZone due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

Currently, AutoZone has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise AutoZone has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

AutoZone belongs to the Zacks Automotive - Retail and Wholesale - Parts industry. Another stock from the same industry, Advance Auto Parts (AAP), has gained 14.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.

Advance Auto Parts reported revenues of $2 billion in the last reported quarter, representing a year-over-year change of -19%. EPS of -$1.18 for the same period compares with -$0.59 a year ago.

For the current quarter, Advance Auto Parts is expected to post a loss of $0.77 per share, indicating a change of -214.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +7.8% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Advance Auto Parts. Also, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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