In the latest market close, AutoZone (AZO) reached $3,747.02, with a -0.76% movement compared to the previous day. This change was narrower than the S&P 500's daily loss of 0.77%. Meanwhile, the Dow lost 0.95%, and the Nasdaq, a tech-heavy index, lost 0.87%.
Prior to today's trading, shares of the auto parts retailer had gained 8.54% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.54% and the S&P 500's gain of 11.54% in that time.
Market participants will be closely following the financial results of AutoZone in its upcoming release. The company plans to announce its earnings on May 27, 2025. In that report, analysts expect AutoZone to post earnings of $37.08 per share. This would mark year-over-year growth of 1.06%. In the meantime, our current consensus estimate forecasts the revenue to be $4.41 billion, indicating a 4.19% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $150.22 per share and a revenue of $18.82 billion, demonstrating changes of +2.79% and +1.8%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for AutoZone. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. As of now, AutoZone holds a Zacks Rank of #3 (Hold).
Looking at valuation, AutoZone is presently trading at a Forward P/E ratio of 25.13. This represents a premium compared to its industry's average Forward P/E of 20.07.
It's also important to note that AZO currently trades at a PEG ratio of 2.13. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.62 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 43, positioning it in the top 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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