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The most recent trading session ended with AutoZone (AZO) standing at $3,609.65, reflecting a -1.16% shift from the previouse trading day's closing. This change lagged the S&P 500's 2.03% gain on the day. Meanwhile, the Dow gained 1.23%, and the Nasdaq, a tech-heavy index, added 2.74%.
The auto parts retailer's shares have seen a decrease of 0.8% over the last month, surpassing the Retail-Wholesale sector's loss of 2.36% and the S&P 500's loss of 5.07%.
Analysts and investors alike will be keeping a close eye on the performance of AutoZone in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $37.07, reflecting a 1.04% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $4.41 billion, up 4.17% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $150.14 per share and a revenue of $18.82 billion, signifying shifts of +2.74% and +1.78%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for AutoZone. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.07% lower. Right now, AutoZone possesses a Zacks Rank of #4 (Sell).
Investors should also note AutoZone's current valuation metrics, including its Forward P/E ratio of 24.32. This signifies a premium in comparison to the average Forward P/E of 20.31 for its industry.
It's also important to note that AZO currently trades at a PEG ratio of 2.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Automotive - Retail and Wholesale - Parts industry had an average PEG ratio of 1.57.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 214, this industry ranks in the bottom 14% of all industries, numbering over 250.