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Reasons to Add AutoZone (AZO) Stock to Your Portfolio Now

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AutoZone, Inc.’s (AZO - Free Report) stock looks promising at the moment. The company has seen its shares pop 5.6% over the past three months.

If you haven’t taken advantage of the share price appreciation yet, the time is right for you to add the stock as it is poised to carry the momentum ahead.

What Makes AZO an Attractive Pick?

Solid Rank & VGM Score: AutoZone currently has a Zacks Rank #2 (Buy) and a VGM Score of B. Our research shows that stocks with a VGM Score of A or B combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.

An Outperformer: AutoZone has outperformed the industry it belongs to over the past six months. The company’s shares have shot up 23% compared with 9.4% gain recorded by the industry.



Positive Earnings Surprise History: AutoZone has an impressive earnings surprise history, outpacing the Zacks Consensus Estimate in each of the trailing four quarters, the positive average earnings surprise being 8.8%.

AutoZone recorded adjusted earnings of $13.47 per share in the first quarter of fiscal 2019 (ended Nov 17, 2018), beating the Zacks Consensus Estimate of $12.21. In the prior-year quarter, the figure was $10.

AutoZone’s revenues improved 2% year over year to $2.6 billion, almost in line with the Zacks Consensus Estimate. The rise in revenues was driven by improved performance in DIY and the company’s commercial growth, which recorded the highest increase since 2015.

Strong Growth Prospects: The Zacks Consensus Estimate for earnings for AutoZone is currently pegged at $59.05, reflecting year-over-year growth of 17.30%. 

AutoZone, Inc. Price and Consensus

 

 

Stocks to Consider

A few other top-ranked stocks in the auto space are Allison Transmission Holdings, Inc. (ALSN - Free Report) , Fox Factory Holding Corp. (FOXF - Free Report) and CarGurus, Inc. (CARG - Free Report) . While Allison Transmission and Fox Factory currently sport a Zacks Rank #1, CarGurus carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 2.3%.

Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 15.6%.

CarGurus has an expected long-term growth rate of 5%. Over the past year, shares of the company have climbed 3.8%.

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