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AutoZone (AZO) Increases Despite Market Slip: Here's What You Need to Know

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AutoZone (AZO - Free Report) closed at $3,318.08 in the latest trading session, marking a +2.25% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.34% for the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.

The auto parts retailer's stock has dropped by 7.2% in the past month, falling short of the Retail-Wholesale sector's gain of 2.04% and the S&P 500's gain of 1.19%.

Market participants will be closely following the financial results of AutoZone in its upcoming release. The company's upcoming EPS is projected at $27.54, signifying a 2.65% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.3 billion, indicating a 8.89% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $149.38 per share and a revenue of $20.49 billion, representing changes of +3.11% and +8.18%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AutoZone. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.19% lower. AutoZone currently has a Zacks Rank of #3 (Hold).

With respect to valuation, AutoZone is currently being traded at a Forward P/E ratio of 21.72. This expresses a premium compared to the average Forward P/E of 15.39 of its industry.

One should further note that AZO currently holds a PEG ratio of 1.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Automotive - Retail and Wholesale - Parts industry had an average PEG ratio of 1.28.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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