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AutoZone (AZO) Ascends But Remains Behind Market: Some Facts to Note

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In the latest trading session, AutoZone (AZO - Free Report) closed at $3,059.83, marking a +0.44% move from the previous day. This change lagged the S&P 500's 1.23% gain on the day. On the other hand, the Dow registered a gain of 1.02%, and the technology-centric Nasdaq increased by 1.43%.

Shares of the auto parts retailer have depreciated by 0.23% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.58% and outperforming the S&P 500's loss of 0.54%.

Analysts and investors alike will be keeping a close eye on the performance of AutoZone in its upcoming earnings disclosure. The company is forecasted to report an EPS of $33.60, showcasing a 3.23% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.3 billion, indicating a 2.61% increase compared to the same quarter of the previous year.

AZO's full-year Zacks Consensus Estimates are calling for earnings of $158.09 per share and revenue of $18.8 billion. These results would represent year-over-year changes of +8.18% and +1.69%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for AutoZone. Such recent modifications usually signify the changing landscape 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.1% lower. AutoZone is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AutoZone has a Forward P/E ratio of 19.27 right now. This represents a discount compared to its industry's average Forward P/E of 21.87.

It's also important to note that AZO currently trades at a PEG ratio of 1.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Automotive - Retail and Wholesale - Parts industry had an average PEG ratio of 1.52 as trading concluded yesterday.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 16% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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