New Lifetime High Today: AutoZone (AZO)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified AutoZone ( AZO) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified AutoZone as such a stock due to the following factors:

  • AZO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $98.7 million.
  • AZO has traded 191,122 shares today.
  • AZO is trading at a new lifetime high.

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More details on AZO:

AutoZone, Inc., together with its subsidiaries, is engaged in retailing and distributing automotive replacement parts and accessories. AZO has a PE ratio of 16.7. Currently there are 8 analysts that rate AutoZone a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for AutoZone has been 254,400 shares per day over the past 30 days. AutoZone has a market cap of $15.8 billion and is part of the services sector and retail industry. The stock has a beta of 0.13 and a short float of 6.9% with 10.96 days to cover. Shares are up 29.7% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates AutoZone as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, increase in stock price during the past year, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • AUTOZONE INC has improved earnings per share by 23.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AUTOZONE INC increased its bottom line by earning $27.88 versus $23.57 in the prior year. This year, the market expects an improvement in earnings ($31.20 versus $27.88).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 19.9%. Since the same quarter one year prior, revenues rose by 12.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has increased to $519.15 million or 22.04% when compared to the same quarter last year. Despite an increase in cash flow, AUTOZONE INC's average is still marginally south of the industry average growth rate of 30.51%.
  • The gross profit margin for AUTOZONE INC is rather high; currently it is at 54.13%. Regardless of AZO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AZO's net profit margin of 11.99% compares favorably to the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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