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AutoZone (AZO) Stock Declines While Market Improves: Some Information for Investors

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AutoZone (AZO - Free Report) closed at $3,392.97 in the latest trading session, marking a -0.95% move from the prior day. This move lagged the S&P 500's daily gain of 0.01%. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.26%.

Heading into today, shares of the auto parts retailer had gained 3.22% over the past month, outpacing the Retail-Wholesale sector's gain of 0.76% and the S&P 500's loss of 2.26% in that time.

The investment community will be closely monitoring the performance of AutoZone in its forthcoming earnings report. The company is scheduled to release its earnings on March 4, 2025. 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. Alongside, our most recent consensus estimate is anticipating revenue of $3.99 billion, indicating a 3.33% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $153 per share and a revenue of $18.8 billion, representing changes of +4.69% and +1.67%, respectively, from the prior 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. Right now, AutoZone possesses a Zacks Rank of #3 (Hold).

Digging into valuation, AutoZone currently has a Forward P/E ratio of 22.39. This represents a discount compared to its industry's average Forward P/E of 24.14.

It's also important to note that AZO currently trades at a PEG ratio of 1.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.89 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 60, which puts it in the top 24% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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