AutoZone (AZO) Gains But Lags Market: What You Should Know

In the latest trading session, AutoZone (AZO) closed at $3,664.25, marking a +0.01% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 3.26%. At the same time, the Dow added 2.81%, and the tech-heavy Nasdaq gained 4.35%.The auto parts retailer's stock has climbed by 0.11% in the past month, falling short of the Retail-Wholesale sector's gain of 4.56% and the S&P 500's gain of 3.78%.Analysts and investors alike will be keeping a close eye on the performance of AutoZone in its upcoming earnings disclosure. The company's earnings report is set to go public on May 27, 2025. On that day, AutoZone is projected to report earnings of $37 per share, which would represent year-over-year growth of 0.84%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.41 billion, indicating a 4.07% increase compared to the same quarter of the previous year.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $150.33 per share and revenue of $18.83 billion. These totals would mark changes of +2.87% and +1.82%, respectively, from last year.Investors should also take note of any recent adjustments to analyst estimates for AutoZone. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.12% increase. Right now, AutoZone possesses a Zacks Rank of #3 (Hold).Looking at valuation, AutoZone is presently trading at a Forward P/E ratio of 24.37. For comparison, its industry has an average Forward P/E of 19.46, which means AutoZone is trading at a premium to the group.Also, we should mention that AZO has a PEG ratio of 2.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Automotive - Retail and Wholesale - Parts industry held an average PEG ratio of 1.59.The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% 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.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoZone, Inc. (AZO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks