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AutoZone (AZO) Stock Drops Despite Market Gains: Important Facts to Note

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AutoZone (AZO - Free Report) closed at $4,233.30 in the latest trading session, marking a -2.06% move from the prior day. This change lagged the S&P 500's 0.47% gain on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.94%.

The auto parts retailer's shares have seen an increase of 7.87% over the last month, surpassing the Retail-Wholesale sector's gain of 3.05% and the S&P 500's gain of 2.32%.

Analysts and investors alike will be keeping a close eye on the performance of AutoZone in its upcoming earnings disclosure. The company's earnings report is set to go public on September 23, 2025. It is anticipated that the company will report an EPS of $51.1, marking a 6.21% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.23 billion, indicating a 0.35% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $147.09 per share and revenue of $18.92 billion, which would represent changes of +0.65% and 0%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AutoZone. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.92% lower. AutoZone is currently a Zacks Rank #4 (Sell).

With respect to valuation, AutoZone is currently being traded at a Forward P/E ratio of 25.87. This denotes a premium relative to the industry average Forward P/E of 24.34.

Also, we should mention that AZO has a PEG ratio of 2.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Automotive - Retail and Wholesale - Parts industry was having an average PEG ratio of 1.63.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 223, placing it within the bottom 10% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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.


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