AutoZone (AZO) closed the most recent trading day at $3,634.29, moving -1.28% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.47% for the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.9%.
Coming into today, shares of the auto parts retailer had gained 7.6% in the past month. In that same time, the Retail-Wholesale sector lost 1.03%, while the S&P 500 lost 0.16%.
The upcoming earnings release of AutoZone will be of great interest to investors. 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, our latest consensus estimate is calling for revenue of $4.3 billion, up 8.82% from the prior-year quarter.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for AutoZone. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.55% fall in the Zacks Consensus EPS estimate. At present, AutoZone boasts a Zacks Rank of #4 (Sell).
In the context of valuation, AutoZone is at present trading with a Forward P/E ratio of 24.7. This signifies a premium in comparison to the average Forward P/E of 19.28 for its industry.
It is also worth noting that AZO currently has a PEG ratio of 1.75. 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 1.46 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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