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AutoZone's Earnings Forecast and Stock Performance Insights

AutoZone remains steady at $3,880.15 amidst market fluctuations. With an upcoming earnings release, estimates show slight year-over-year growth but trailing behind sector performance. Investors should watch for revisions in forecasts. Earnings per Share projected at $37 is of interest.

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AI Rating:   6

Earnings Per Share (EPS): AutoZone is projected to report earnings of $37 per share for the upcoming earnings release, representing year-over-year growth of 0.84%. This slight increase indicates stability in earnings but does not offer strong growth metrics when compared to overall market performance. The annual EPS estimate reflects a growth rate of +2.63%, suggesting that while AutoZone is performing adequately, it may not capitalize on stronger growth patterns seen in competitors and the sector overall.

Revenue Growth: The upcoming revenue estimate is forecasted at $4.41 billion, marking a 4.07% increase from the same quarter last year. Although this shows a positive trajectory, it is also lagging behind the Retail-Wholesale sector’s growth. For the full year, a revenue projection of $18.83 billion indicates a modest increase of +1.82%, further emphasizing the company's challenges in outperforming its peers.

While AutoZone's current Forward P/E of 25.87 signifies that the stock is trading at a premium compared to the industry average of 20.89, investors should consider this valuation in the context of overall earnings growth that might not meet the expectations set by the sector. Similarly, the PEG ratio of 2.2 suggests that the stock could be overvalued given the growth rate, compared to the average PEG of 1.67 in the industry.

The Zacks Rank reflects a #3 (Hold) status, indicating a neutral market stance. The slight increase in the consensus EPS estimate by 0.11% may suggest minimal positive sentiment from analysts regarding future performance. However, the current analysis indicates that while AutoZone is a stable entity with minor growth, it presently lacks the robust, exceeding expectations metrics that investors look for in high-potential stock opportunities.

In summary, AutoZone shows stability in earnings and revenue expectations, yet current valuations and performance lag behind sector averages, indicating caution for investors looking for strong, short-term returns.

Stocks:  AZO