In the latest trading session, AutoZone (AZO) closed at $3,671.61, marking a -1.36% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.84%. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 1.43%.
Shares of the auto parts retailer have appreciated by 13.89% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 6.19%, and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of AutoZone in its upcoming earnings disclosure. In that report, analysts expect AutoZone to post earnings of $27.59 per share. This would mark a year-over-year decline of 2.47%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.3 billion, indicating a 8.82% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $149.02 per share and a revenue of $20.47 billion, representing changes of +2.86% and +8.07%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for AutoZone. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.55% lower. AutoZone is currently a Zacks Rank #4 (Sell).
In terms of valuation, AutoZone is currently trading at a Forward P/E ratio of 24.98. This denotes a premium relative to the industry average Forward P/E of 17.59.
One should further note that AZO currently holds a PEG ratio of 1.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.44 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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