Why AutoZone (AZO) Dipped More Than Broader Market Today

In the latest close session, AutoZone (AZO) was down 1.06% at $2,951.61. This change lagged the S&P 500's daily loss of 0.58%. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.32%.

The auto parts retailer's stock has dropped by 2.76% in the past month, exceeding the Retail-Wholesale sector's loss of 5.84% and lagging the S&P 500's loss of 0.36%.

Market participants will be closely following the financial results of AutoZone in its upcoming release. The company plans to announce its earnings on September 22, 2026. The company's earnings per share (EPS) are projected to be $54.97, reflecting a 12.85% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.71 billion, indicating a 7.52% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $150.98 per share and revenue of $20.48 billion, indicating changes of +4.22% and +8.13%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for AutoZone. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. Currently, AutoZone is carrying a Zacks Rank of #4 (Sell).

In terms of valuation, AutoZone is currently trading at a Forward P/E ratio of 17. This represents a discount compared to its industry average Forward P/E of 17.43.

Also, we should mention that AZO has a PEG ratio of 1.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Automotive - Retail and Wholesale - Parts industry held an average PEG ratio of 2.18.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 71, positioning it in the top 29% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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