AutoZone, Inc.

New York Stock Exchange
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Slightly Bullish +25

AutoZone (AZO) Stock Slides as Market Rises: Facts to Know Before You Trade

AI-generated analysis

📉 AutoZone stock closed at $3,540.92, dropping 1.48% while major market indices like the S&P 500 and Nasdaq posted gains.

🏬 The retailer's shares have risen only 1.28% this month, lagging significantly behind its sector peers which gained over 11%.

📅 Investors are awaiting earnings to be released on May 26, 2026, with analysts forecasting EPS of $36.09 and revenue of $4.86 billion.

🔮 Full-year consensus estimates project earnings of $148.93 per share and revenue of $20.53 billion, reflecting modest growth trends.

📉 Recent analyst estimates for AutoZone have drifted 0.23% lower over the last 30 days, resulting in a current Zacks Rank of #3 (Hold).

💰 The company trades at a Forward P/E ratio of 23.38, which is notably higher than its industry average of 18.24.

📊 AutoZone's PEG ratio is 1.78 compared to an industry average of 1.58, indicating growth expectations are priced in.

🏭 The Automotive - Retail and Wholesale Parts industry currently ranks at Zacks Industry Rank 173, placing it in the bottom 30% of all industries.

📉 Research indicates that stocks in top-rated industries generally outperform those in lower-rated industries by a factor of two to one.

⚠️ Analysts suggest investors should monitor revisions to earnings estimates as they often correlate with imminent stock price performance.

Bullish Signals
  • AutoZone is forecasted to report earnings per share (EPS) of $36.09 for the upcoming quarter, representing a 2.06% upward movement from the corresponding quarter of the prior year.
  • The consensus estimate projects revenue of $4.86 billion for the quarter, reflecting an 8.8% rise from the equivalent quarter last year.
  • For the full year, analysts forecast earnings of $148.93 per share and revenue of $20.53 billion, indicating positive growth changes of +2.8% and +8.38%, respectively, compared to the previous year.
  • AutoZone holds a Zacks Rank of #3 (Hold), with historical data showing that stocks rated #1 in this system produced an average annual return of +25% since 1988.
Risk Factors
  • The stock closed down -1.48% while major market indices like the S&P 500 and Nasdaq rose, indicating relative underperformance despite a modest 1.28% gain over the last month.
  • Shares are lagging significantly behind their peers, trailing the Retail-Wholesale sector's substantial 11.15% gain over the same period.
  • The stock carries a premium valuation with a Forward P/E ratio of 23.38 compared to an industry average of 18.24, suggesting potential downside if growth expectations are not met.
  • Attractive value is also questioned by a PEG ratio of 1.78, which exceeds the industry average of 1.58, indicating the stock may be overpriced relative to its projected earnings growth.
  • The company holds a Zacks Rank of #3 (Hold), reflecting neutral analyst sentiment rather than strong buy or accumulation interest.
  • AutoZone is ranked in the bottom 30% echelons across all industries with a Zacks Industry Rank of 173, placing it at a significant disadvantage compared to top-rated sectors which historically outperform by a factor of 2 to 1.
Full Analysis
AutoZone (AZO) stock closed at $3,540.92, down 1.48% for the session despite broader market gains with the S&P 500 rising 0.81%. While shares have gained 1.28% over the last month, they significantly underperformed the Retail-Wholesale sector which saw an 11.15% gain. Investors are anticipating upcoming earnings on May 26, 2026, with analysts forecasting EPS of $36.09 and revenue of $4.86 billion for that quarter. Annual consensus estimates project earnings of $148.93 per share and revenue of $20.53 billion. Valuation metrics indicate AutoZone trades at a Forward P/E of 23.38, which is above the industry average of 18.24. The stock also has a PEG ratio of 1.78 compared to an industry average of 1.58. Analyst forecast revisions have been slightly negative with the consensus EPS estimate moving down 0.23% in the last month, resulting in a Zacks Rank of #3 (Hold). The automotive parts industry holds a Zacks Industry Rank of 173, placing it in the bottom 30% of all rated industries. The article suggests following these metrics and mentions a free report on best stocks from Zacks Investment Research.