Is the Needle Ready to Move for AutoZone, Inc. (NYSE:AZO)?

AutoZone, Inc. (NYSE:AZO) has moved 5.25% over the past week and is currently priced at $634.65 after moving 0.93% in the most recent session.  Despite the cheap price tag, let’s take a closer look at the recent performance and where the price is situated in comparison to its averages.

After a recent check, shares of AutoZone, Inc. (NYSE:AZO) have been seen trading 0.22% off of the 50-day high and 19.07% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are 5.95% away from the 20-day moving average and 7.80% off of the 50-day average. If we take a wider approach, shares have been trading 2.44% away from the 200-day moving average.

Over the last year, AutoZone, Inc. (NYSE:AZO)’s stock has performed -18.59%. For the last six months, the stock has performed -4.56%. From the start of the calendar year, shares have been -20.30%. Zooming in closer, company stock has been 21.63% for the quarter, 5.74% over the past month, and 5.25% over the past week.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. AutoZone, Inc. (NYSE:AZO) current has a Beta score of 0.65.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  AutoZone, Inc.’s EPS is 44.26.  Their EPS should be compared to other companies in the Services sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  AutoZone, Inc.’s  P/E ratio is 14.22. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  AutoZone, Inc.’s  PEG is 1.41.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of -74.60%.  Calculated by dividing AutoZone, Inc.’s annual earnings by its total assets, investors will note a return on assets of 14.30%.  Finally, AutoZone, Inc.’s return on investment stands at 38.80% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 2.40 for AutoZone, Inc. (NYSE:AZO).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.