AutoZone, Inc.

New York Stock Exchange
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Slightly Bullish +16

AutoZone (AZO) Stock Declines While Market Improves: Some Information for Investors - Yahoo Finance

AI-generated analysis

📉 AutoZone (AZO) closed down 1.49% at $3,387.00, underperforming the S&P 500's modest gain but matching the Dow's loss more closely than its technology-heavy peers like Nasdaq.

📉 Over the past month, AZO shares dropped 6.38%, significantly worse than the Retail-Wholesale sector's decline of 2.61% and the S&P 500's loss of 1.74%.

💰 Analysts project AutoZone's upcoming EPS at $36.09, representing a 2.06% increase year-over-year.

💵 Expected quarterly revenue for AutoZone is forecasted to reach $4.86 billion, indicating an 8.8% growth compared to the prior year's quarter.

📅 For the full year, consensus estimates project AutoZone earnings of $149.27 per share and revenue of $20.53 billion, with projected changes of +3.04% and +8.38% respectively.

📊 The Zacks Consensus EPS estimate for AutoZone has shifted 0.12% upward recently, yet the stock currently holds a Zacks Rank of #3 (Hold).

💸 AutoZone trades at a Forward P/E ratio of 23.03, which is a premium compared to its industry average Forward P/E of 17.85.

📈 The PEG ratio for AZO is 1.76, higher than the Automotive - Retail industry average of 1.43 as of yesterday's close.

🏭 The Automotive - Retail and Wholesale - Parts industry currently holds a Zacks Industry Rank of 199, placing it in the bottom 19% of all industries tracked.

📉 Ross Stores (ROST), mentioned for comparison, ended higher at $227.79 with a +1.2% gain, outperforming both the S&P 500 and the Dow.

📈 Over the past month, Ross Stores shares gained 2.33%, contributing to a sector-wide rise in Retail-Wholesale gains of 13.36%.

💰 Analysts expect Ross Stores' upcoming EPS to be $1.65, up 12.24% from the prior-year quarter.

📅 Full-year estimates for Ross Stores project earnings of $7.32 per share and revenue of $24.19 billion, representing changes of +10.74% and +6.34% respectively.

📉 Ross Stores' Zacks Consensus EPS estimate has remained stagnant, keeping the stock at a Zacks Rank of #3 (Hold).

💸 Ross Stores trades at a Forward P/E ratio of 30.75, which is slightly above its industry average Forward P/E of 28.09.

📈 ROST's PEG ratio is 3.07, matching the Retail - Discount Stores industry average exactly.

Bullish Signals
  • AutoZone's upcoming earnings are projected to show EPS growth of 2.06% and revenue growth of 8.8% compared to the prior year, indicating strong fundamentals.
  • Full-year consensus estimates project earnings per share of $149.27 and revenue of $20.53 billion, representing positive changes of +3.04% and +8.38% respectively from the prior year.
  • The Zacks Rank system has an impressive track record with #1 ranked stocks yielding an average annual return of +25% since 1988.
  • Ross Stores' upcoming earnings are expected to show EPS growth of 12.24% and revenue growth of 10.96% compared to the prior-year quarter, signaling robust performance.
  • Full-year consensus estimates for Ross Stores project earnings per share of $7.32 and revenue of $24.19 billion, representing changes of +10.74% and +6.34% respectively from the prior year.
  • Analyst optimism regarding AutoZone is reflected by a slight upward shift in consensus EPS estimates of 0.12% over the past month.
Risk Factors
  • AutoZone stock declined by 1.49% on a day when the broader S&P 500 gained 0.08%, underperforming the overall market.
  • Shares have dropped 6.38% over the last month, failing to match the sector's decline of 2.61% or the S&P 500's loss of 1.74%.
  • AutoZone trades at a premium valuation with a Forward P/E of 23.03 compared to an industry average of 17.85, potentially limiting upside if growth slows.
  • The stock carries a PEG ratio of 1.76, which is higher than the industry average of 1.43, suggesting the market may be pricing in overly optimistic earnings growth expectations.
  • AutoZone currently holds a Zacks Rank of #3 (Hold), ranking it in the bottom 19% of all 250+ industries analyzed by Zacks Investment Research.
Full Analysis
AutoZone (AZO) shares closed at $3,387.00, declining 1.49% despite the broader market showing mixed results, with the S&P 500 gaining 0.08%, the Dow losing 0.18%, and the Nasdaq rising 0.1%. Over the past month, AutoZone's stock has fallen 6.38%, significantly outperforming the Retail-Wholesale sector's 2.61% loss and the S&P 500's 1.74% decline. Investors are awaiting upcoming earnings results, with consensus estimates projecting quarterly earnings per share (EPS) of $36.09, a 2.06% increase year-over-year, and revenue of $4.86 billion, representing an 8.8% growth compared to the prior year quarter. Full-year projections forecast EPS of $149.27 (+3.04%) and revenue of $20.53 billion (+8.38%). Currently, AutoZone holds a Zacks Rank of #3 (Hold), following a 0.12% upward shift in consensus EPS estimates over the past month, while trading at a Forward P/E ratio of 23.03 and a PEG ratio of 1.76, both indicating a premium to their respective industry averages of 17.85 and 1.43. The company's industry ranks in the bottom 19% of all tracked industries according to Zacks metrics. Ross Stores (ROST) shares ended at $227.79, rising 1.2%, which was slightly above the S&P 500's gain of 1.02% but trailing the Dow's 1.62% rise and the Nasdaq's 0.89% increase. Over the last month, Ross Stores gained 2.33%, lagging behind the Retail-Wholesale sector's 13.36% gain and the S&P 500's 12.23% gain. Analysts anticipate quarterly EPS of $1.65, a 12.24% increase from the previous year, with revenue expected to reach $5.53 billion, an escalation of 10.96% year-over-year. Full-year estimates project earnings of $7.32 per share (+10.74%) and revenue of $24.19 billion (+6.34%). Ross Stores currently holds a Zacks Rank of #3 (Hold), as the consensus EPS estimate remained stagnant over the past month. Valuation metrics show the company trading at a Forward P/E ratio of 30.75, slightly higher than the industry average of 28.09, and a PEG ratio of 3.07, matching the industry average as of yesterday's close.