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AutoZone (AZO) Increases Yet Falls Behind Market: What Investors Need to Know
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In the latest trading session, AutoZone (AZO - Free Report) closed at $3,119.59, marking a +0.23% move from the previous day. The stock lagged the S&P 500's daily gain of 1.04%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.
The auto parts retailer's shares have seen an increase of 9.73% over the last month, surpassing the Retail-Wholesale sector's loss of 8.36% and the S&P 500's loss of 6.74%.
The investment community will be closely monitoring the performance of AutoZone in its forthcoming earnings report. In that report, analysts expect AutoZone to post earnings of $53.61 per share. This would mark year-over-year growth of 15.39%. Alongside, our most recent consensus estimate is anticipating revenue of $6.2 billion, indicating a 9.03% upward movement from the same quarter last year.
AZO's full-year Zacks Consensus Estimates are calling for earnings of $151.37 per share and revenue of $18.5 billion. These results would represent year-over-year changes of +14.36% and +5.97%, respectively.
It is also important to note the recent changes to analyst estimates for AutoZone. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% downward. Right now, AutoZone possesses a Zacks Rank of #3 (Hold).
In the context of valuation, AutoZone is at present trading with a Forward P/E ratio of 20.56. This represents a discount compared to its industry's average Forward P/E of 22.77.
One should further note that AZO currently holds a PEG ratio of 1.56. 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 average PEG ratio for the Automotive - Retail and Wholesale - Parts industry stood at 1.54 at the close of the market yesterday.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 20% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AZO in the coming trading sessions, be sure to utilize Zacks.com.
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AutoZone (AZO) Increases Yet Falls Behind Market: What Investors Need to Know
In the latest trading session, AutoZone (AZO - Free Report) closed at $3,119.59, marking a +0.23% move from the previous day. The stock lagged the S&P 500's daily gain of 1.04%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.
The auto parts retailer's shares have seen an increase of 9.73% over the last month, surpassing the Retail-Wholesale sector's loss of 8.36% and the S&P 500's loss of 6.74%.
The investment community will be closely monitoring the performance of AutoZone in its forthcoming earnings report. In that report, analysts expect AutoZone to post earnings of $53.61 per share. This would mark year-over-year growth of 15.39%. Alongside, our most recent consensus estimate is anticipating revenue of $6.2 billion, indicating a 9.03% upward movement from the same quarter last year.
AZO's full-year Zacks Consensus Estimates are calling for earnings of $151.37 per share and revenue of $18.5 billion. These results would represent year-over-year changes of +14.36% and +5.97%, respectively.
It is also important to note the recent changes to analyst estimates for AutoZone. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% downward. Right now, AutoZone possesses a Zacks Rank of #3 (Hold).
In the context of valuation, AutoZone is at present trading with a Forward P/E ratio of 20.56. This represents a discount compared to its industry's average Forward P/E of 22.77.
One should further note that AZO currently holds a PEG ratio of 1.56. 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 average PEG ratio for the Automotive - Retail and Wholesale - Parts industry stood at 1.54 at the close of the market yesterday.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 20% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AZO in the coming trading sessions, be sure to utilize Zacks.com.