AutoZone (AZO) Stock Sinks As Market Gains: Here's Why

Company Performance - AutoZone's stock closed at $3,239.62, reflecting a -0.36% change from the previous day, underperforming the S&P 500's gain of 0.16% [1] - The stock has decreased by 3.53% over the past month, contributing to the Retail-Wholesale sector's decline of 4.64% and exceeding the S&P 500's loss of 2.2% [1] Upcoming Earnings - AutoZone is expected to report earnings of$ 29.16 per share, indicating a year-over-year growth of 0.93% [2] - Revenue is projected to be $3.98 billion, representing a 3.13% increase compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at$ 153.09 per share and revenue at $18.79 billion, reflecting changes of +4.76% and +1.63% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates indicate changing business trends, with upward revisions suggesting analysts' positive outlook on AutoZone's operations [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks AutoZone at 3 (Hold) [6] Valuation Metrics - AutoZone has a Forward P/E ratio of 21.24, which is lower than the industry's average Forward P/E of 23.69 [7] - The PEG ratio for AutoZone stands at 1.8, compared to the industry average of 1.82 [7] Industry Context - The Automotive - Retail and Wholesale - Parts industry ranks in the bottom 38% of all industries, with a Zacks Industry Rank of 157 [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]