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AutoZone (AZO) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, AutoZone (AZO - Free Report) closed at $2,193.25, marking a -0.17% move from the previous day. This change lagged the S&P 500's daily gain of 0.66%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the auto parts retailer had lost 1.18% in the past month. In that same time, the Retail-Wholesale sector lost 2.55%, while the S&P 500 lost 3.79%.

Investors will be hoping for strength from AutoZone as it approaches its next earnings release, which is expected to be September 19, 2022. In that report, analysts expect AutoZone to post earnings of $38.31 per share. This would mark year-over-year growth of 7.25%. Our most recent consensus estimate is calling for quarterly revenue of $5.14 billion, up 4.54% from the year-ago period.

It is also important to note the recent changes to analyst estimates for AutoZone. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 0.08% lower. AutoZone is currently a Zacks Rank #3 (Hold).

Looking at its valuation, AutoZone is holding a Forward P/E ratio of 17.83. This represents a premium compared to its industry's average Forward P/E of 16.65.

We can also see that AZO currently has a PEG ratio of 1.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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