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AutoZone (AZO) Dips More Than Broader Markets: What You Should Know

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AutoZone (AZO - Free Report) closed the most recent trading day at $2,258.83, moving -1.35% from the previous trading session. This move lagged the S&P 500's daily loss of 0.8%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.03%.

Prior to today's trading, shares of the auto parts retailer had gained 8.83% over the past month. This has outpaced the Retail-Wholesale sector's loss of 7.11% and the S&P 500's loss of 5.13% in that time.

AutoZone will be looking to display strength as it nears its next earnings release. On that day, AutoZone is projected to report earnings of $25.21 per share, which would represent a year-over-year decline of 1.87%. Our most recent consensus estimate is calling for quarterly revenue of $3.83 billion, up 4.28% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $125.22 per share and revenue of $17.05 billion. These totals would mark changes of +6.85% and +4.88%, respectively, from last 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 company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 2.55% higher. AutoZone is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note AutoZone's current valuation metrics, including its Forward P/E ratio of 18.29. For comparison, its industry has an average Forward P/E of 15.73, which means AutoZone is trading at a premium to the group.

Investors should also note that AZO has a PEG ratio of 1.38 right now. 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. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.66 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 176, putting it in the bottom 31% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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