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The most recent trading session ended with AutoZone (AZO) standing at $3,259.91, reflecting a -1.02% shift from the previouse trading day's closing. This change was narrower than the S&P 500's 1.11% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 1.89%.
Coming into today, shares of the auto parts retailer had lost 0.92% in the past month. In that same time, the Retail-Wholesale sector lost 3.46%, while the S&P 500 lost 1.7%.
The upcoming earnings release of AutoZone will be of great interest to investors. It is anticipated that the company will report an EPS of $29.16, marking a 0.93% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.98 billion, up 3.13% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $153.09 per share and a revenue of $18.79 billion, signifying shifts of +4.76% and +1.63%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for AutoZone. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.73% downward. As of now, AutoZone holds a Zacks Rank of #3 (Hold).
In terms of valuation, AutoZone is currently trading at a Forward P/E ratio of 21.51. This signifies a discount in comparison to the average Forward P/E of 23.31 for its industry.
Meanwhile, AZO's PEG ratio is currently 1.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.82 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 184, putting it in the bottom 27% of all 250+ industries.