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AutoZone (AZO) Gains As Market Dips: What You Should Know

AutoZone (AZO) closed the most recent trading day at $1,907.73, moving +1.38% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.54%. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.

Prior to today's trading, shares of the auto parts retailer had lost 10.57% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 12.57% and lagged the S&P 500's loss of 7.87% in that time.

Investors will be hoping for strength from AutoZone as it approaches its next earnings release. On that day, AutoZone is projected to report earnings of $17.79 per share, which would represent year-over-year growth of 19.16%. Our most recent consensus estimate is calling for quarterly revenue of $3.16 billion, up 8.66% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $107.24 per share and revenue of $15.53 billion. These totals would mark changes of +12.66% and +6.19%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for AutoZone. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. AutoZone is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, AutoZone is currently trading at a Forward P/E ratio of 17.55. For comparison, its industry has an average Forward P/E of 17.23, which means AutoZone is trading at a premium to the group.

Meanwhile, AZO's PEG ratio is currently 1.59. 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 industry currently had an average PEG ratio of 1.31 as of yesterday's close.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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