In the latest close session, AutoZone (AZO) was up +1.63% at $3,522.02. This move outpaced the S&P 500's daily loss of 0.06%. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.06%.
Shares of the auto parts retailer witnessed a gain of 1.13% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.39%, and the S&P 500's gain of 1.99%.
Investors will be eagerly watching for the performance of AutoZone in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $27.43, reflecting a 3.04% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.31 billion, up 8.94% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $149.03 per share and a revenue of $20.49 billion, indicating changes of +2.87% and +8.19%, respectively, from the former year.
Any recent changes to analyst estimates for AutoZone should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% lower within the past month. Right now, AutoZone possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, AutoZone is currently exchanging hands at a Forward P/E ratio of 23.25. Its industry sports an average Forward P/E of 17.31, so one might conclude that AutoZone is trading at a premium comparatively.
One should further note that AZO currently holds a PEG ratio of 1.65. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 203, finds itself in the bottom 18% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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AutoZone, Inc. (AZO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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