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AutoZone (AZO) Outperforms Broader Market: What You Need to Know

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AutoZone (AZO - Free Report) closed the latest trading day at $3,146.07, indicating a +1.42% change from the previous session's end. This change outpaced the S&P 500's 0.71% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.6%.

The auto parts retailer's shares have seen a decrease of 0.96% over the last month, not keeping up with the Retail-Wholesale sector's gain of 8.01% and the S&P 500's gain of 6.41%.

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 $33.86, signifying a 4.02% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.31 billion, showing a 2.86% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $158.25 per share and a revenue of $18.81 billion, signifying shifts of +8.29% and +1.71%, respectively, from the last year.

Any recent changes to analyst estimates for AutoZone should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.25% lower. AutoZone is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, AutoZone is at present trading with a Forward P/E ratio of 19.6. This denotes a discount relative to the industry's average Forward P/E of 21.96.

It is also worth noting that AZO currently has a PEG ratio of 1.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. AZO's industry had an average PEG ratio of 1.53 as of yesterday's close.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 222, finds itself in the bottom 12% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow AZO in the coming trading sessions, be sure to utilize Zacks.com.


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