The latest trading session saw AutoZone (AZO) ending at $3,566.72, denoting a +1.93% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 9.52%. Elsewhere, the Dow saw an upswing of 7.87%, while the tech-heavy Nasdaq appreciated by 12.16%.
The auto parts retailer's stock has dropped by 1.79% in the past month, exceeding the Retail-Wholesale sector's loss of 13.14% and the S&P 500's loss of 13.47%.
The upcoming earnings release of AutoZone will be of great interest to investors. The company is forecasted to report an EPS of $37.07, showcasing a 1.04% upward movement from the corresponding quarter of the prior 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.
For the full year, the Zacks Consensus Estimates project earnings of $150.14 per share and a revenue of $18.82 billion, demonstrating changes of +2.74% and +1.78%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for AutoZone. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has moved 0.1% lower. AutoZone currently has a Zacks Rank of #3 (Hold).
Looking at valuation, AutoZone is presently trading at a Forward P/E ratio of 23.31. Its industry sports an average Forward P/E of 19.13, so one might conclude that AutoZone is trading at a premium comparatively.
One should further note that AZO currently holds a PEG ratio of 1.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Retail and Wholesale - Parts industry was having an average PEG ratio of 1.6.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 36% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AutoZone, Inc. (AZO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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