In the latest trading session, AutoZone (
AZO Quick Quote AZO - Free Report) closed at $2,048.40, marking a -0.22% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.42%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.
Coming into today, shares of the auto parts retailer had gained 0.21% in the past month. In that same time, the Retail-Wholesale sector lost 3.85%, while the S&P 500 gained 0.39%.
Wall Street will be looking for positivity from AutoZone as it approaches its next earnings report date. In that report, analysts expect AutoZone to post earnings of $17.94 per share. This would mark year-over-year growth of 20.16%. Meanwhile, our latest consensus estimate is calling for revenue of $3.17 billion, up 8.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $107.35 per share and revenue of $15.54 billion, which would represent changes of +12.77% and +6.19%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.7% higher within the past month. AutoZone currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note AutoZone's current valuation metrics, including its Forward P/E ratio of 19.12. Its industry sports an average Forward P/E of 18.49, so we one might conclude that AutoZone is trading at a premium comparatively.
It is also worth noting that AZO currently has a PEG ratio of 1.73. 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.41 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.