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AutoZone (AZO) Beats Stock Market Upswing: What Investors Need to Know

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The latest trading session saw AutoZone (AZO - Free Report) ending at $3,373.57, denoting a +1.43% adjustment from its last day's close. This change outpaced the S&P 500's 0.53% gain on the day. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.22%.

The auto parts retailer's stock has climbed by 1.3% in the past month, falling short of the Retail-Wholesale sector's gain of 2.71% and the S&P 500's gain of 2.69%.

Analysts and investors alike will be keeping a close eye on the performance of AutoZone in its upcoming earnings disclosure. The company is forecasted to report an EPS of $29.11, showcasing a 0.76% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.98 billion, up 3.13% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $152.94 per share and a revenue of $18.79 billion, indicating changes of +4.65% and +1.63%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for AutoZone. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.09% lower. AutoZone is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, AutoZone is currently exchanging hands at a Forward P/E ratio of 21.75. This indicates a discount in contrast to its industry's Forward P/E of 23.22.

We can additionally observe that AZO currently boasts a PEG ratio of 1.84. 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 industry currently had an average PEG ratio of 1.84 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 14, putting it in the top 6% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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