AutoZone (AZO – Free Report) closed at $2,545.98 in the last trading session, marking a move of -0.63% from the previous day. That change was smaller than the S&P 500’s daily loss of 1.54%. Elsewhere, the Dow lost 1.45 percent, while the tech-heavy Nasdaq lost 0.16 percent.
As of today, shares of the auto parts retailer have gained 0.73% in the past month, trailing the Retail-Wholesale sector’s 0.95% gain and the S&P 500’s 4.54% gain over that period.
Investors will be hoping for strength from AutoZone as it approaches its next earnings release, which is expected to take place on December 6th, 2022. The company is expected to report EPS of $24.82, down 3 .39% compared to the quarter of the previous year. Meanwhile, our latest consensus estimate calls for revenue of $3.82 billion, up 4.16% from the year-ago quarter.
For the full year, our Zacks Consensus Estimates call for earnings of $125.33 per share and revenue of $17.02 billion, which would represent +6.95% and +4.71% year-over-year changes, respectively .
It’s also important to note the recent changes in analyst estimates for AutoZone. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive revisions to estimates as a good sign for the company’s business prospects.
Research indicates that these estimate revisions are directly correlated with short-term stock price movements. To take advantage of this, we developed Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has an outstanding, externally audited track record of success, with the #1 stock delivering an average annual return of +25% since 1988. The Zacks Consensus EPS Estimate has fallen 0.04% in the past month. AutoZone currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, AutoZone has a Forward P/E ratio of 20.44. This valuation marks a premium compared to its industry average Forward P/E of 18.75.
It is also worth noting that AZO currently has a PEG ratio of 1.54. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. Automotive – Retail & Wholesale – Parts stocks average a PEG ratio of 1.79 based on yesterday’s closing prices.
The Automotive Industry – Retail and Wholesale – Parts is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 165, which places it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank measures 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% of industries outperform the bottom half by a factor of 2 to 1.
To track AZO in the following trading sessions, be sure to use Zacks.com.