AutoZone (AZO) Rises But Trails Market: What Investors Should Know

Core Viewpoint - AutoZone is set to report its earnings on March 4, 2025, with expectations of a slight increase in EPS and revenue compared to the previous year [2][3]. Company Performance - AutoZone's stock closed at $3,427.55, reflecting a +0.22% change from the previous day, which is lower than the S&P 500's gain of 0.67% [1]. - Over the past month, AutoZone shares have appreciated by 5.19%, underperforming the Retail-Wholesale sector's gain of 7.15% but outperforming the S&P 500's gain of 2.07% [1]. Earnings Estimates - The upcoming earnings report is expected to show EPS of$ 29.11, a 0.76% increase year-over-year, and net sales of $3.98 billion, up 3.13% from the prior year [2]. - Full-year estimates project earnings of$ 152.94 per share and revenue of $18.79 billion, representing year-over-year changes of +4.65% and +1.63%, respectively [3]. Analyst Sentiment - Recent changes in analyst estimates indicate a favorable outlook on AutoZone's business health and profitability [3]. - The consensus EPS projection has moved 0.09% lower in the past 30 days, and AutoZone currently holds a Zacks Rank of 3 (Hold) [5]. Valuation Metrics - AutoZone is trading with a Forward P/E ratio of 22.36, which is below the industry average of 25.02, indicating a discount compared to its peers [6]. - The company has a PEG ratio of 1.89, aligning with the average PEG ratio for the Automotive - Retail and Wholesale - Parts industry [7]. Industry Context - The Automotive - Retail and Wholesale - Parts industry is ranked 66 in the Zacks Industry Rank, placing it in the top 27% of over 250 industries [8].