Can AutoZone (AZO) Stock Maintain Strength Following its Quarterly Report?

Saturday, February 23, 2019 7:52 AM | Michael Fowlkes

What's Happening with AZO

Auto parts retailer AutoZone (AZO) reports its fiscal second-quarter numbers this week. The company will report before the market open February 26 and analysts expect earnings of $9.97 per share on sales of $2.45 billion. During the same period last year AutoZone earned $8.47 per share on revenue of $2.4 billion.

Technical Analysis

AZO was recently trading at $908.56 down $18.19 from its 12-month high and $317.80 above its 12-month low. InvestorsObserver's Stock Score Report gives AZO a 80 long-term technical score and a 87 short-term technical score. The stock has recent support above $875 and recent resistance below $925. Of the 13 analysts who cover the stock 7 rate it Strong Buy, 0 rate it Buy, 6 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, AZO gets a score of 77 from InvestorsObserver's Stock Score Report.

Analysts' Thoughts

AutoZone stock is trading just pennies below its all-time high ahead of the upcoming quarterly report. The stock is down a bit in the last few trading sessions, mostly in sympathy to weakness in its Advance Auto Parts (AAP). Advance Auto recently announced better than expected earnings for its recent quarter, but sales were just a bit under the consensus and same store sales were weaker than expected. AAP dipped on the report and dragged AZO stock down a little with it.

AutoZone has a good earnings track record, with positive earnings surprises the last four quarters and better than expected sales the last two. The street expects another solid set of numbers with a whisper number of $10.15 for the quarter. Earnings growth has been fantastic, with profits up 14.5% per annum over the last five years and looking ahead analysts expect profits to climb by 11% annually over the next five years. The stock's valuation is favorable with a forward P/E of 14.4 and analysts have an average price target of $923.18.

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