AutoZone (AZO) closed at $3,073.20 in the latest trading session, marking a +1.79% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.69% for the day. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq decreased by 1.33%.
The stock of auto parts retailer has risen by 0.84% in the past month, lagging the Retail-Wholesale sector's gain of 2.47% and the S&P 500's gain of 3.96%.
Market participants will be closely following the financial results of AutoZone in its upcoming release. The company's earnings per share (EPS) are projected to be $55.08, reflecting a 13.08% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.71 billion, reflecting a 7.52% rise from the equivalent quarter last year.
AZO's full-year Zacks Consensus Estimates are calling for earnings of $150.39 per share and revenue of $20.48 billion. These results would represent year-over-year changes of +3.81% and +8.13%, respectively.
Investors might also notice recent changes to analyst estimates for AutoZone. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% decrease. AutoZone is currently a Zacks Rank #4 (Sell).
Looking at its valuation, AutoZone is holding a Forward P/E ratio of 20.08. This expresses a premium compared to the average Forward P/E of 19.69 of its industry.
We can also see that AZO currently has a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Automotive - Retail and Wholesale - Parts industry was having an average PEG ratio of 1.75.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 33% of over 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.
To follow AZO in the coming trading sessions, be sure to utilize Zacks.com.
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AutoZone, Inc. (AZO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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