Yahoo Finance Here's Why AutoZone (AZO) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
AutoZone (AZO)
AutoZone, Inc. is one of the leading specialty retailers and distributors of automotive replacement parts and accessories in the United States. It operates in the Do-It-Yourself (DIY) retail, Do-It-for-Me (DIFM) auto parts and products markets. At the end of fiscal 2023, the company had 6,300 stores in the United States, 740 in Mexico and 100 in Brazil. The total store count was 7,140 as of Aug 26, 2023. Each store offers wide-ranging products for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products.
AZO is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 19.3X for the current fiscal year compared to the Automotive - Retail and Wholesale - Parts industry's P/E of 21.3X. Additionally, AZO has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 17.6X. Value investors should also note AZO's Price/Sales ratio of 2.9X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. 12 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $3.17 to $152.40 per share. AZO has an average earnings surprise of 7.7%.
AZO should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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AutoZone, Inc. (AZO) : Free Stock Analysis Report
