AutoZone, Inc.

New York Stock Exchange
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AutoZone, Inc. (AZO) is Attracting Investor Attention: Here is What You Should Know

AI-generated analysis

📈 AutoZone shares gained +7.9% over the past month, slightly lagging the S&P 500's +9.3% gain and the broader auto parts industry's +5.9% increase.

🎯 Zacks prioritizes earnings estimate revisions over media rumors when appraising a stock's fundamental value and future fair price.

💰 AutoZone is projected to report quarterly earnings of $36.09 per share, representing a modest year-over-year growth of +2.1%.

📉 The consensus earnings estimate for the current fiscal year stands at $148.93 with a slight -0.2% revision over the last month.

🚀 Next-fiscal-year earnings expectations are significantly higher, with an estimate of $175.12 indicating +17.6% growth from the prior year.

📊 The company's quarterly revenue is expected to reach $4.86 billion, reflecting +8.8% growth compared to the previous year.

💵 Actual revenue for the last reported quarter was $4.27 billion (+8.2% YoY), which slightly missed the consensus estimate by -0.82%.

📉 EPS for the last quarter came in at $27.63, surpassing analyst expectations with a positive surprise of +1.96%.

📈 Over the last four quarters, AutoZone topped revenue estimates twice but only exceeded EPS estimates once.

💡 The company currently holds a Zacks Rank #3 (Hold), suggesting its stock is likely to perform in line with the broader market soon.

🧐 Based on valuation multiples and peer comparisons, AutoZone received a Zacks Value Style Score of D, indicating it trades at a premium.

🔍 Investors are advised that despite recent interest, the current fair value based on earnings projections has not fully driven significant upside momentum yet.

Bullish Signals
  • AutoZone is expected to post earnings of $36.09 per share for the current quarter, representing a year-over-year increase of +2.1%.
  • For the next fiscal year, the consensus earnings estimate of $175.12 indicates a strong projected growth of +17.6% from last year.
  • The consensus sales estimate for the current quarter is $4.86 billion, indicating robust revenue growth of +8.8% compared to last year.
  • For the next fiscal year, the revenue estimate of $22.07 billion reflects a continued positive growth trajectory of +7.5%.
  • In the last reported quarter, AutoZone reported EPS of $27.63 with a positive surprise of +1.96%, beating analyst expectations for profitability.
Risk Factors
  • AutoZone is graded D on the Zacks Value Style Score, indicating it is trading at a premium to its peers.
  • The stock has returned +7.9% over the past month, which lags behind the Zacks S&P 500 composite's +9.3% change, underperforming the broader market during this period.
  • Over the last four quarters, AutoZone surpassed earnings per share (EPS) estimates just once, demonstrating a history of missing or barely meeting profit targets.
  • The company topped revenue consensus estimates only two times in the last four quarters, suggesting potential weakness in its top-line growth consistency.
Full Analysis
AutoZone, Inc. (AZO) has recently appeared on Zacks.com's list of most searched stocks, attracting investor attention due to its strong recent performance. The retailer's shares have returned +7.9% over the past month, outperforming its industry peers within the Zacks Automotive - Retail and Wholesale - Parts industry, which gained 5.9%, though still lagging behind the Zacks S&P 500 composite, which rose +9.3%. While media releases often drive short-term price trends, Zacks emphasizes that long-term investment decisions are primarily driven by fundamental facts, specifically changes in earnings projections and their impact on a company's fair value. The analysis highlights AutoZone's earnings estimates as a key indicator of future potential. For the current quarter, the consensus estimate stands at $36.09 per share, representing a +2.1% year-over-year increase, with no change in the estimate over the last 30 days. On an annual basis, the fiscal year consensus estimate is $148.93 (+2.8% from the prior year), while the projection for the next fiscal year shows significant growth potential at $175.12, indicating a +17.6% increase over what is expected to be reported this year. Revenue estimates are also robust, with current quarter sales projected at $4.86 billion (+8.8% YoY) and full-year forecasts of $20.53 billion for the current fiscal year and $22.07 billion for the next, reflecting growth rates of +8.4% and +7.5%, respectively. In terms of valuation, AutoZone currently holds a Zacks Value Style Score of D, suggesting it trades at a premium compared to its peers. Historical data shows that in the last reported quarter, the company reported revenues of $4.27 billion against a consensus estimate of $4.31 billion (a -0.82% surprise), while earnings per share came in at $27.63 against an EPS estimate of $28.29 (though the text later clarifies an EPS surprise of +1.96%, noting that reported revenue beat estimates slightly less than expected but EPS surprised positively). Over the last four quarters, AutoZone has topped consensus revenue estimates twice and EPS estimates only once. Consequently, its proprietary Zacks Rank is #3 (Hold), implying that based on earnings estimate revisions, the stock may perform in line with the broader market in the near term rather than showing significant upward movement independent of general market trends.