In the latest close session, AutoZone (AZO) was up +2.33% at $3,786.03. The stock outperformed the S&P 500, which registered a daily gain of 0.5%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.43%.
The stock of auto parts retailer has risen by 7.29% in the past month, leading the Retail-Wholesale sector's gain of 5.24% and the S&P 500's gain of 0.18%.
The upcoming earnings release of AutoZone will be of great interest to investors. The company is forecasted to report an EPS of $27.19, showcasing a 3.89% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.3 billion, indicating a 8.82% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $148.55 per share and a revenue of $20.48 billion, representing changes of +2.54% and +8.11%, respectively, from the prior year.
Investors should also pay attention to any latest changes in 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 business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.56% decrease. AutoZone is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that AutoZone has a Forward P/E ratio of 24.91 right now. This indicates a premium in contrast to its industry's Forward P/E of 17.43.
Investors should also note that AZO has a PEG ratio of 1.77 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AZO's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 18% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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