AutoZone (AZO) Rises But Trails Market: What Investors Should Know

AutoZone (AZO) ended the recent trading session at $3,427.55, demonstrating a +0.22% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.98%.Shares of the auto parts retailer have appreciated by 5.19% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 7.15% and outperforming the S&P 500's gain of 2.07%.Investors will be eagerly watching for the performance of AutoZone in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 4, 2025. The company is expected to report EPS of $29.11, up 0.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.98 billion, up 3.13% from the year-ago period.AZO's full-year Zacks Consensus Estimates are calling for earnings of $152.94 per share and revenue of $18.79 billion. These results would represent year-over-year changes of +4.65% and +1.63%, respectively.It is also important to note the recent changes to analyst estimates for AutoZone. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.09% lower. AutoZone is currently sporting a Zacks Rank of #3 (Hold).In the context of valuation, AutoZone is at present trading with a Forward P/E ratio of 22.36. For comparison, its industry has an average Forward P/E of 25.02, which means AutoZone is trading at a discount to the group.One should further note that AZO currently holds a PEG ratio of 1.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks