Back to top

Image: Bigstock

AutoZone (AZO) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

AutoZone (AZO - Free Report) closed the most recent trading day at $2,062.49, moving +1.4% from the previous trading session. This change outpaced the S&P 500's 0.1% loss on the day. Elsewhere, the Dow lost 0.47%, while the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the auto parts retailer had gained 2.27% in the past month. In that same time, the Retail-Wholesale sector lost 0.65%, while the S&P 500 gained 3.67%.

AutoZone will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $17.94, up 20.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.17 billion, up 8.74% from the year-ago period.

AZO's full-year Zacks Consensus Estimates are calling for earnings of $107.35 per share and revenue of $15.54 billion. These results would represent year-over-year changes of +12.77% and +6.19%, respectively.

Investors might also notice recent changes to analyst estimates for AutoZone. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.57% higher within the past month. AutoZone is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, AutoZone is currently trading at a Forward P/E ratio of 18.95. Its industry sports an average Forward P/E of 18.37, so we one might conclude that AutoZone is trading at a premium comparatively.

We can also see that AZO currently has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AZO's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 13, putting it in the top 6% 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.

You can find more information on all of these metrics, and much more, on

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

AutoZone, Inc. (AZO) - free report >>

Published in