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AutoZone (AZO) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, AutoZone (AZO - Free Report) closed at $3,172.18, marking a -1.27% move from the previous day. This move lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1.39%.

Shares of the auto parts retailer have appreciated by 8.9% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.12% and the S&P 500's loss of 1.85%.

The upcoming earnings release of AutoZone will be of great interest to investors. It is anticipated that the company will report an EPS of $53.61, marking a 15.39% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.2 billion, up 9.03% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $151.37 per share and a revenue of $18.5 billion, indicating changes of +14.36% and +5.97%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AutoZone. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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, there's been a 0.13% fall in the Zacks Consensus EPS estimate. AutoZone currently has a Zacks Rank of #3 (Hold).

Investors should also note AutoZone's current valuation metrics, including its Forward P/E ratio of 21.23. This indicates a discount in contrast to its industry's Forward P/E of 23.99.

We can additionally observe that AZO currently boasts a PEG ratio of 1.61. 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. As the market closed yesterday, the Automotive - Retail and Wholesale - Parts industry was having an average PEG ratio of 1.62.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 168, this industry ranks in the bottom 34% of all industries, numbering over 250.

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.

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


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