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The most recent trading session ended with AutoZone (AZO) standing at $3,631.17, reflecting a -1.35% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.39%, and the technology-centric Nasdaq decreased by 0.05%.
The auto parts retailer's shares have seen an increase of 1.66% over the last month, surpassing the Retail-Wholesale sector's loss of 2.42% and the S&P 500's loss of 3.94%.
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 $37.07, showcasing a 1.04% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.41 billion, up 4.17% from the year-ago period.
AZO's full-year Zacks Consensus Estimates are calling for earnings of $150.14 per share and revenue of $18.82 billion. These results would represent year-over-year changes of +2.74% and +1.78%, respectively.
Investors might also notice recent changes to analyst estimates for AutoZone. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. Currently, AutoZone is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, AutoZone is at present trading with a Forward P/E ratio of 24.51. For comparison, its industry has an average Forward P/E of 20.37, which means AutoZone is trading at a premium to the group.
Also, we should mention that AZO has a PEG ratio of 2.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.59 based on yesterday's closing prices.