In the latest trading session, AutoZone (AZO) closed at $3,992.48, marking a -1.09% move from the previous day. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.01%.
Shares of the auto parts retailer witnessed a gain of 9.61% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 3.3%, and the S&P 500's gain of 3.46%.
The investment community will be paying close attention to the earnings performance of AutoZone in its upcoming release. The company is predicted to post an EPS of $51.42, indicating a 6.88% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.23 billion, up 0.35% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $147.67 per share and revenue of $18.92 billion. These totals would mark changes of +1.05% and +2.34%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AutoZone. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. As of now, AutoZone holds a Zacks Rank of #3 (Hold).
From a valuation perspective, AutoZone is currently exchanging hands at a Forward P/E ratio of 27.33. This valuation marks a premium compared to its industry average Forward P/E of 23.98.
It's also important to note that AZO currently trades at a PEG ratio of 2.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive – Retail and Wholesale – Parts industry currently had an average PEG ratio of 1.68 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 196, finds itself in the bottom 21% echelons of all 250+ industries.
