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AutoZone (AZO) Stock Moves -0.63%: What You Should Know

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AutoZone (AZO - Free Report) closed at $2,545.98 in the latest trading session, marking a -0.63% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.54%. Elsewhere, the Dow lost 1.45%, while the tech-heavy Nasdaq lost 0.16%.

Heading into today, shares of the auto parts retailer had gained 0.73% over the past month, lagging the Retail-Wholesale sector's gain of 0.95% and the S&P 500's gain of 4.54% in that time.

Investors will be hoping for strength from AutoZone as it approaches its next earnings release, which is expected to be December 6, 2022. The company is expected to report EPS of $24.82, down 3.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.82 billion, up 4.16% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $125.33 per share and revenue of $17.02 billion, which would represent changes of +6.95% and +4.71%, 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. 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. AutoZone is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, AutoZone is holding a Forward P/E ratio of 20.44. This valuation marks a premium compared to its industry's average Forward P/E of 18.75.

It is also worth noting that AZO currently has a PEG ratio of 1.54. 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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