Stock Valuation and Analysis

• What is the ticker symbol of the company you chose? AZO

• What is the Current Stock Price? 721.15

• What is the Market Cap for the stock you chose? 20.62B

• What is the Price to Earnings Ratio? 17.22

• What is the Dividend and Yield? N/A

• What is the Enterprise Value? 25.41B

• What is the Beta? .64

• Was there a Stock Split, and if so, when? The first split for AZO took place on February 03, 1992. This was a 2 for 1 split, meaning for each share of AZO owned pre-split, the shareholder now owned 2 shares.  AZO's second split took place on April 21, 1994. This was a 2 for 1 split, meaning for each share of AZO owned pre-split, the shareholder now owned 2 shares.

• What was the closing stock price for the last 5 days? 731.00

• What was the 52 Week High for this stock? 819.54

• What is the Book Value per Share? N/A

• What type of rating are analysts recommending (i.e. buy, hold, etc.)? Buy

• What is the target price analysts are predicting for this stock? 879.05

• What is the analyst's average revenue estimate for next year? AutoZone Inc. (NYSE:AZO) – Wedbush reduced their Q2 2017 earnings per share (EPS) estimates for AutoZone in a research note issued on Thursday. Wedbush analyst S. Basham now forecasts that the firm will post earnings of $8.15 per share for the quarter, down from their prior estimate of $8.26. Wedbush currently has a “Outperform” rating on the stock. Wedbush also issued estimates for AutoZone’s Q2 2018 earnings at $9.18 EPS.

What are some of the significant news items and press releases made by the company over the last year? 

AutoZone (AZO) Enters Oversold Territory

Zacks Equity Research

ZacksJanuary 25, 2017

AutoZone, Inc. AZO has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock. And for technical investors there is some hope when looking at AZO given that, according to its RSI reading of 21.09, it is now in oversold territory.

What is RSI?

RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.

Other Factors

Yet, AZO’s low RSI value isn’t the only reason to have some optimism over a coming turnaround, as there has been plenty of positive earnings estimate revision activity as of late. This is especially true when investors take a deep dive into some of these estimate revision stats and recent changes to AutoZone’s earnings consensus.

Over the past two months, investors have seen 8 earnings estimate revisions move higher, compared with 1 lower, at least when looking at the key current year time frame. And the consensus estimate for AZO has also been on an upward trend over the past 60 days, as estimates have risen from $ 45.46/share two months ago to just $ 45.63/share right now.

If this wasn’t enough, AutoZone also has a Zacks Rank #2 (Buy) which puts it into rare company among its peers. So, given all of these factors, investors may want to consider getting in on this stock now (or holding on), as there are some favorable trends that could bubble up for this stock before long.

So far in this series, we’ve covered AutoZone’s (AZO) 1Q17 revenues, margins, and valuation multiples. Currently, the company’s valuation multiples are trading lower than peers O’Reilly Automotive (ORLY), and Advance Auto Parts (AAP). Now let’s see what a technical analysis reveals about AutoZone stock.

As of December 7, 2016, AutoZone stock is trading on a bullish note at $809.47. On July 11, 2016, the stock posted an all-time high of $819.54. Since then, the price has tested this major horizontal resistance level twice.

When the price once again comes close to this key resistance level, it will be backed by underlying strong industry and company fundamentals. AZO’s 14-day RSI (relative strength index), the key momentum indicator, is still hovering at 66.6, just below the overbought territory. That number confirms a positive bias and suggests that the stock could post a new all-time high in the near future.

A breach of its all-time high of $819.54 could attract fresh buying for AutoZone stock.

On the downside, a major horizontal support level lies near $776. Only an early breach of this key support level could negate the above-mentioned possibility and turn sentiments to negative.