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AutoZone (AZO) stock: still going strong

8:48 pm ET, 17 Sep 2018

AutoZone, Inc. (AZO) shares are trading at $747.61.  The company is announcing its quarterly earnings results on Tuesday before the market opens. What's driving AZO stock price? And what should investors know about AutoZone?

AutoZone is a leading retailer and distributor of automotive replacement parts and accessories with 5,540 stores in the U.S. and a total of 6,062 including those in Mexico and Brazil. It benefits from the nationwide presence and a strong brand value.

The bulls are betting on the company because it has solid returns on invested capital, which have averaged 30% in the past five years. On the other hand, a certain portion of investors worries that Amazon might steal the steady revenue stream from AutoZone because it entered the B2B market last year. The company derives around 80% of its revenue from the do-it-yourself market.

The next quarterly results will be released before the market opens on September 18, 2018. For the upcoming earnings, analysts expect the company to earn $17.92 per share on revenue of $3.59 billion.

What is the sentiment towards the AZO stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is positive.

Over the last month, AutoZone, Inc. (AZO) returned +3.52%.

AutoZone, Inc. (AZO) average analyst price target ($759.15) is -0.76% below its current price ($764.98).

For the latest price and information on AutoZone, Inc., please visit Finstead and search for "AZO price" or "AZO news".

AutoZone, Inc. (AZO) Stock Guide

Updated at: 11:56 am ET, 17 Sep 2020

Before we start: if you're looking for AZO stock price, you can quickly find it out by visiting Finny and typing "AZO quote". If you're looking for a quick scoop on AZO stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AZO". You'll get all this info in one place. Or you can just type "AZO news" to get the latest stock news.

Looking to buy or sell AutoZone, Inc. (AZO)? Interested in getting the full scoop on AZO, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AZO stock guide, we'll address key questions about AZO, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AZO earnings?
2. What is AZO stock forecast (i.e., prediction)?
3. AZO buy or sell? What is AZO Finny Score?
4. What are the reasons to buy AZO? Why should I buy AZO stock?
5. What are the reasons to sell AZO? Why should I sell AZO stock?
6. What are AZO key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AZO earnings?

AZO trailing 12-month earnings per share (EPS) is $64.01.

Analyst Predictions

2. What is AZO stock forecast (i.e., prediction)?

Based on AZO analyst price targets, AZO stock forecast is $1,284.53 (for a year from now). That means the average analyst price target for AZO stock is $1,284.53. The prediction is based on 27 analyst estimates.

The low price target for AZO is $1,140.00, while the high price target is $1,500.00.

AZO analyst rating is Buy.

Analysis

3. AZO buy or sell? What is AZO Finny Score?

#{finnyScore:29}Our quantitative analysis shows 2 reasons to buy and 5 reasons to sell AZO, resulting in Finny Score of 29.

4. What are the reasons to buy AZO? Why should I buy AZO stock?

Here are the reasons to buy AZO stock:

  • AutoZone’s leadership in the DIY segment has given the firm a comprehensive national store network which the firm can leverage to quickly build commercial sales.
  • Price takes a back seat to differentiation on the basis of service across the industry (especially convenience and part availability), which limits competition despite high margins.
  • We do not anticipate Amazon’s efforts to expand in automotive-parts retail will materially disrupt incumbent retailers, as we expect their high service levels will be difficult to replicate and should continue to command a premium price.
  • AZO profitability is improving. The YoY profit margin change was 0.16 percentage points. See AZO profitability chart.
  • AZO average analyst rating is Buy. See AZO analyst rating chart.

5. What are the reasons to sell AZO? Why should I sell AZO stock?

Let's look at the reasons to sell AZO stock (i.e., the bear case):

  • Vehicles are becoming more complex, limiting repairs that a motorist can execute independently; if drivers move away from DIY repairs, AutoZone could suffer as it relies on such revenues for about 80% of sales.
  • The dearth of large, professional-focused retailers available for acquisition will force AutoZone to grow its commercial sales organically, which could take time as relationships take years to develop.
  • Many of AutoZone’s locations were built to cater to DIY customers, limiting their ability to draw professional clients due to their distance from repair shops.
  • AZO stock price ($1220.27) is close to the 52-week high ($1262.36). Perhaps now is a good time to sell? See AZO price chart.
  • AZO quarterly revenue growth was -0.10%, lower than the industry and sector average revenue growth (0.81% and 0.78%, respectively). See AZO revenue growth chart.
  • AZO Price/Sales ratio is 2.36, which is high compared to its industry peers’ P/S ratios. See AZO forward Price/Sales ratio chart.
  • AZO short interest (days to cover the shorts) ratio is 2.74. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AZO short interest ratio chart.
  • AZO cash to debt ratio is 0.07, lower than the average industry (0.16) and sector (0.13) cash to debt ratio. See AZO cash to debt chart.

Key Stats

6. What are AZO key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AZO:

Metrics AZO
Price $1,150.89
Average Price Target / Upside $1,389.06 / 20.69%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Specialty Retail
Sector Consumer Cyclical
Number of Employees 90,000
Market Cap $27.33B
Forward P/E Ratio 14.08
Price/Book Ratio 2.16
Revenue (TTM) $12.63B
YoY Quarterly Revenue Growth 14.00%
Profit Margin 13.72%

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