AutoZone (AZO) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest close session, AutoZone (AZO) was down 1.53% at $3,968.57. This change lagged the S&P 500's 1.07% gain on the day. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 1.37%. Shares of the auto parts retailer have depreciated by 2.66% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 5.23%, and lagging the S&P 500's gain of 1.08%.The investment community will be paying close attention to the earnings performance of AutoZone in its upcoming release. The company is expected to report EPS of $32.27, down 0.77% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.62 billion, indicating a 7.98% growth compared to the corresponding quarter of the prior year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $153.38 per share and revenue of $20.36 billion. These totals would mark changes of +5.87% and +7.5%, respectively, from last year. Investors might also notice recent changes to analyst estimates for AutoZone. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.03% lower within the past month. As of now, AutoZone holds a Zacks Rank of #4 (Sell). With respect to valuation, AutoZone is currently being traded at a Forward P/E ratio of 26.28. This signifies a premium in comparison to the average Forward P/E of 18.52 for its industry. It's also important to note that AZO currently trades at a PEG ratio of 1.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.37 based on yesterday's closing prices. The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 184, positioning it in the bottom 26% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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