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

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AutoZone (AZO - Free Report) closed the most recent trading day at $2,425.60, moving -0.87% from the previous trading session. This move lagged the S&P 500's daily gain of 0.87%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.08%.

Heading into today, shares of the auto parts retailer had gained 6.86% over the past month, outpacing the Retail-Wholesale sector's gain of 5.85% and lagging the S&P 500's gain of 10.5% in that time.

Investors will be hoping for strength from AutoZone as it approaches its next earnings release. In that report, analysts expect AutoZone to post earnings of $24.82 per share. This would mark a year-over-year decline of 3.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.82 billion, up 4.16% from the year-ago period.

AZO's full-year Zacks Consensus Estimates are calling for earnings of $125.33 per share and revenue of $17.02 billion. These results would represent year-over-year changes of +6.95% and +4.71%, respectively.

It is also important to note the recent changes to analyst estimates for AutoZone. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. AutoZone is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that AutoZone has a Forward P/E ratio of 19.52 right now. For comparison, its industry has an average Forward P/E of 18.72, which means AutoZone is trading at a premium to the group.

It is also worth noting that AZO currently has a PEG ratio of 1.47. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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