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AutoZone (AZO) Increases Despite Market Slip: Here's What You Need to Know

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The most recent trading session ended with AutoZone (AZO - Free Report) standing at $3,406.66, reflecting a +0.3% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.47%.

The auto parts retailer's shares have seen an increase of 2.12% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.51% and the S&P 500's gain of 2.6%.

The upcoming earnings release of AutoZone will be of great interest to investors. The company's earnings report is expected on March 4, 2025. The company's upcoming EPS is projected at $29.11, signifying a 0.76% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $3.98 billion, up 3.13% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $152.94 per share and a revenue of $18.79 billion, representing changes of +4.65% and +1.63%, respectively, from the prior year.

Any recent changes to analyst estimates for AutoZone should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, AutoZone holds a Zacks Rank of #4 (Sell).

Investors should also note AutoZone's current valuation metrics, including its Forward P/E ratio of 22.21. This denotes a discount relative to the industry's average Forward P/E of 25.

One should further note that AZO currently holds a PEG ratio of 1.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.88 at yesterday's closing price.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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