AutoZone (AZO) closed at $3,166.93 in the latest trading session, marking a +1.91% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.39%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.6%.Coming into today, shares of the auto parts retailer had lost 2.34% in the past month. In that same time, the Retail-Wholesale sector gained 1.99%, while the S&P 500 gained 1.06%.The investment community will be paying close attention to the e ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AutoZone (AZO), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][3][8]. Group 1: Brokerage Recommendations - AutoZone has an average brokerage recommendation (ABR) of 1.50, indicating a consensus between Strong Buy and Buy, with 76% of recommendations being Strong Buy and 4% being Buy [2]. - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often fail to guide investors effectively [3][8]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [4][8]. Group 2: Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which correlate strongly with near-term stock price movements [6][9]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimates, while the ABR may not be up-to-date [7][10]. - AutoZone currently holds a Zacks Rank of 3 (Hold), indicating a cautious outlook despite the favorable ABR [12]. Group 3: Earnings Estimates - The Zacks Consensus Estimate for AutoZone's earnings for the current year remains unchanged at $158.09, suggesting stability in analysts' views on the company's earnings prospects [11]. - The lack of change in the consensus estimate, along with other factors, contributes to the Zacks Rank of 3 for AutoZone, indicating a need for caution despite the Buy-equivalent ABR [12].

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AutoZone (AZO) closed at $3,175.72 in the latest trading session, marking a +0.07% move from the prior day. This move outpaced the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq decreased by 0.09%.The auto parts retailer's stock has climbed by 0.65% in the past month, falling short of the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 3.3%.Investors will be eagerly watching for the performance of AutoZone in its upco ...

AutoZone's strengths, management, and financials-all in 12 minutes or less! Explore the exciting world of AutoZone (AZO 4.46%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities! *Stock prices used were the prices of Oct. 9, 2024. The video was published on Nov. 7, 2024. ...

Core Insights - AutoZone, Inc. experienced a significant Power Inflow at a price of $3026.84, indicating potential upward momentum in its stock price [2][4] - The Power Inflow is interpreted as a bullish signal by traders, suggesting a possible entry point for those looking to capitalize on the expected uptrend [2][3] - Following the Power Inflow, the stock reached a high price of $3057.42, resulting in returns of 1.0% and a close price of $3046.36, yielding a return of 0.6% [7] Order Flow Analytics - Order flow analytics involves analyzing the volume rate of retail and institutional orders to gain insights into market conditions [3] - This analysis helps traders identify trading opportunities and improve performance by interpreting market signals [5] Market Activity - The Power Inflow typically occurs within the first two hours of market opening and is driven by institutional activity, which helps gauge the stock's overall direction for the day [4] - Market participants are encouraged to incorporate effective risk management strategies alongside order flow analytics to navigate market uncertainties [5]

AutoZone (AZO) closed the latest trading day at $3,060.89, indicating a -1.45% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.78%.Coming into today, shares of the auto parts retailer had lost 1.4% in the past month. In that same time, the Retail-Wholesale sector lost 0.07%, while the S&P 500 gained 1.67%.The investment community will be closely ...

Revenue and Store Growth - Annual revenue increased from $11.9 billion in fiscal 2019 to $18.5 billion in fiscal 2024, with a compounded annual growth rate of approximately 9%[65] - Store count grew from 6,411 in 2019 to 7,353 in 2024, a compounded annual growth rate of approximately 3%[66] Workforce and Labor Market Challenges - Workforce consists of approximately 126,000 employees, representing the largest operating expense[71] - Labor market challenges, including wage pressures and potential unionization, could increase costs and impact operations[72][73] Supply Chain and Distribution - Directly imported approximately 13% of purchases in fiscal 2024, with risks related to global supply chain disruptions[81] - Significant investments in supply chain, including new distribution centers and technology initiatives, to support long-term store expansion[84] - Business interruptions, including weather events and public health crises, could disrupt supply chain and distribution networks[90] International Operations and Currency Risks - International operations face risks such as currency fluctuations, compliance with local laws, and challenges in adapting to foreign consumer preferences[86][88] - The net asset exposure in Mexican subsidiaries translated into U.S. dollars was $478.4 million at August 31, 2024, and $409.8 million at August 26, 2023[228] - The year-end exchange rates for the Mexican peso decreased by 17.9% against the U.S. dollar during fiscal 2024 and increased by 15.7% during fiscal 2023[228] - A hypothetical 10% adverse change in quoted foreign currency exchange rates would have resulted in a potential loss of approximately $43.5 million at August 31, 2024, and $37.3 million at August 26, 2023[228] Brand Reputation and Ethical Standards - Brand reputation is critical to sales growth, with risks from negative publicity, social media sentiment, and failure to meet ethical or environmental standards[93][95] Information Technology and Cybersecurity - Heavy reliance on information technology systems, with potential risks from system failures or cybersecurity breaches[96] - The company relies heavily on information technology systems, including third-party services, for key business processes such as sales data, customer data, and supply chain management. Delays in system maintenance or upgrades could expose the company to security risks and operational disruptions[97][99] - The company faces significant risks from cyber-attacks, including malware, phishing, and ransomware, which could lead to data breaches, reputational harm, and financial losses[103][104] - The company is investing in upgrading legacy IT systems and migrating applications to the cloud, which could result in operational challenges, cost overruns, and potential data loss[100] - The company handles large amounts of sensitive personal and business information, and failure to secure this data could lead to litigation, regulatory actions, and reputational damage[101][102] - The company is subject to evolving data privacy laws and regulations, which may require significant resources to comply with and could limit the use of data for personalized customer experiences[107][108] Financial and Credit Risks - The company is self-insured for certain operational costs, and an increase in insurance claims or healthcare costs could negatively impact financial performance[110][111] - A downgrade in the company's credit ratings could limit access to funding, increase borrowing costs, and adversely affect earnings[112][113] - The fair value of the company's debt was estimated at $9.0 billion as of August 31, 2024, and $7.3 billion as of August 26, 2023[225] - The company had $580.0 million in variable rate debt outstanding at August 31, 2024, compared to $1.2 billion at August 26, 2023[226] - Outstanding fixed rate debt was $8.4 billion at August 31, 2024, and $6.5 billion at August 26, 2023[226] - A one percentage point increase in interest rates would have reduced the fair value of the company's fixed rate debt by approximately $365.1 million at August 31, 2024[226] Legal and Regulatory Risks - The company faces legal and regulatory risks, including potential enforcement actions or litigation due to non-compliance with employment, environmental, and consumer protection laws[116][117] Climate Change and ESG Goals - Climate change and related regulatory responses could impact the company's operations, supply chains, and demand for products, particularly in regions like California[118] - The company has set ESG goals, including reducing GHG emissions, but achieving these goals is subject to risks such as technological availability, cost, and stakeholder expectations[119][122]

Core Viewpoint - AutoZone's recent earnings report showed mixed results, with earnings per share missing expectations while net sales exceeded estimates, indicating potential challenges ahead for the company [2][5]. Financial Performance - AutoZone reported earnings of $48.11 per share for Q4 fiscal 2024, a 3.5% increase year over year, but below the Zacks Consensus Estimate of $53.31 per share [2]. - Net sales grew 9% year over year to $6.20 billion, surpassing the Zacks Consensus Estimate of $6.18 billion [2]. - Domestic commercial sales reached $1.66 billion, up from $1.50 billion in the prior year, while domestic same-store sales increased by 0.2% [2]. - Gross profit rose to $3.26 billion from $3 billion in the prior year, and operating profit increased by 5.7% year over year to $1.29 billion [2]. Store Expansion and Inventory - During the quarter, AutoZone opened 68 new stores in the U.S., 31 in Mexico, and 18 in Brazil, bringing the total store count to 7,353 as of August 31, 2024 [3]. - Inventory increased by 6.8% year over year, with inventory per store at $837,000 compared to $807,000 a year ago [3]. Financial Position and Share Repurchases - As of August 31, 2024, AutoZone had cash and cash equivalents of $298.2 million, up from $277.1 million a year earlier, while total debt rose to $9 billion from $7.67 billion [4]. - The company repurchased 244,000 shares for $710.6 million during the fiscal fourth quarter at an average price of $2,915 per share, with $2.2 billion remaining under its current share repurchase authorization [4]. Market Sentiment and Estimates - There has been a downward trend in fresh estimates for AutoZone, with the consensus estimate shifting down by 6.37% [5]. - AutoZone currently holds a subpar Growth Score of D and a Momentum Score of F, but a grade of B on the value side, resulting in an aggregate VGM Score of C [6]. - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [6].

The latest trading session saw AutoZone (AZO) ending at $3,196.55, denoting a +0.77% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.92% for the day. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 1.6%.Shares of the auto parts retailer witnessed a gain of 4.21% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 1.69% and the S&P 500's gain of 2.68%.Market participants will be closely following t ...