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In the latest trading session, AutoZone (AZO) closed at $3,569.24, marking a -0.95% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.36%. Meanwhile, the Dow lost 2.48%, and the Nasdaq, a tech-heavy index, lost 2.55%.
Shares of the auto parts retailer witnessed a loss of 0.08% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 4.2% and the S&P 500's loss of 5.6%.
Analysts and investors alike will be keeping a close eye on the performance of AutoZone in its upcoming earnings disclosure. The company's upcoming EPS is projected at $37.07, signifying a 1.04% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.41 billion, reflecting a 4.17% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $150.14 per share and a revenue of $18.82 billion, indicating changes of +2.74% and +1.78%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for AutoZone. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. AutoZone is currently a Zacks Rank #4 (Sell).
Investors should also note AutoZone's current valuation metrics, including its Forward P/E ratio of 24. This indicates a premium in contrast to its industry's Forward P/E of 19.81.
Also, we should mention that AZO has a PEG ratio of 2.04. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. AZO's industry had an average PEG ratio of 1.55 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 35% of all industries, numbering over 250.