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Here's Why AutoZone (AZO) Fell More Than Broader Market
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In the latest market close, AutoZone (AZO - Free Report) reached $3,172.05, with a -1.44% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.18%.
Shares of the auto parts retailer have appreciated by 5.56% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 1.71% and the S&P 500's gain of 2.76%.
The investment community will be closely monitoring the performance of AutoZone in its forthcoming earnings report. It is anticipated that the company will report an EPS of $33.60, marking a 3.23% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.3 billion, up 2.61% from the prior-year quarter.
AZO's full-year Zacks Consensus Estimates are calling for earnings of $158.09 per share and revenue of $18.8 billion. These results would represent year-over-year changes of +8.18% and +1.69%, respectively.
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 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.64% decrease. AutoZone is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AutoZone is holding a Forward P/E ratio of 20.36. This signifies a discount in comparison to the average Forward P/E of 22.23 for its industry.
One should further note that AZO currently holds a PEG ratio of 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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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Here's Why AutoZone (AZO) Fell More Than Broader Market
In the latest market close, AutoZone (AZO - Free Report) reached $3,172.05, with a -1.44% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.05% for the day. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.18%.
Shares of the auto parts retailer have appreciated by 5.56% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 1.71% and the S&P 500's gain of 2.76%.
The investment community will be closely monitoring the performance of AutoZone in its forthcoming earnings report. It is anticipated that the company will report an EPS of $33.60, marking a 3.23% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.3 billion, up 2.61% from the prior-year quarter.
AZO's full-year Zacks Consensus Estimates are calling for earnings of $158.09 per share and revenue of $18.8 billion. These results would represent year-over-year changes of +8.18% and +1.69%, respectively.
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 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.64% decrease. AutoZone is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AutoZone is holding a Forward P/E ratio of 20.36. This signifies a discount in comparison to the average Forward P/E of 22.23 for its industry.
One should further note that AZO currently holds a PEG ratio of 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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.