The latest trading session saw AutoZone (AZO) ending at $3,762.60, denoting a +1.56% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.15%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.09%.
Shares of the auto parts retailer have depreciated by 2.84% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.27% and the S&P 500's loss of 0.21%.
The upcoming earnings release of AutoZone will be of great interest to investors. The company's earnings report is expected on May 27, 2025. It is anticipated that the company will report an EPS of $37.07, marking a 1.04% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.41 billion, reflecting a 4.17% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $150.14 per share and a revenue of $18.82 billion, representing changes of +2.74% and +1.78%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. AutoZone is holding a Zacks Rank of #4 (Sell) right now.
Looking at valuation, AutoZone is presently trading at a Forward P/E ratio of 24.68. This expresses a premium compared to the average Forward P/E of 20.21 of its industry.
We can also see that AZO currently has a PEG ratio of 2.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Automotive - Retail and Wholesale - Parts industry stood at 1.58 at the close of the market yesterday.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 159, positioning it in the bottom 36% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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AutoZone, Inc. (AZO) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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