New Lifetime High Reached By 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 $174.9 million.
  • AZO has traded 9,763 shares today.
  • AZO is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AZO with the Ticky from Trade-Ideas. See the FREE profile for AZO NOW at Trade-Ideas

More details on AZO:

AutoZone, Inc. retails and distributes automotive replacement parts and accessories in the United States. AZO has a PE ratio of 18.6. Currently there are 4 analysts that rate AutoZone a buy, 1 analyst rates it a sell, and 14 rate it a hold.

The average volume for AutoZone has been 283,800 shares per day over the past 30 days. AutoZone has a market cap of $18.8 billion and is part of the services sector and retail industry. The stock has a beta of 0.79 and a short float of 7.3% with 7.05 days to cover. Shares are up 23% year-to-date as of the close of trading on Friday.

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 solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.95% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AZO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • AUTOZONE INC has improved earnings per share by 8.3% 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 $31.66 versus $27.88 in the prior year. This year, the market expects an improvement in earnings ($35.35 versus $31.66).
  • The gross profit margin for AUTOZONE INC is rather high; currently it is at 54.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.25% is above that of the industry average.
  • AZO, with its decline in revenue, underperformed when compared the industry average of 8.9%. Since the same quarter one year prior, revenues slightly dropped by 1.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Specialty Retail industry average. The net income increased by 0.7% when compared to the same quarter one year prior, going from $371.20 million to $373.67 million.

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

null

More from Markets

Stocks Rise, Nasdaq Jumps as Facebook Rallies

Stocks Rise, Nasdaq Jumps as Facebook Rallies

AMD Shares Explode After Solid Q1, Robust Outlook That Defies Chip Sector Gloom

AMD Shares Explode After Solid Q1, Robust Outlook That Defies Chip Sector Gloom

Facebook Stock Set for Biggest Gain in Two Years After Q1 Earnings Top Forecasts

Facebook Stock Set for Biggest Gain in Two Years After Q1 Earnings Top Forecasts

Earnings, Earnings and More Earnings - Your Midweek Update From Facebook to Ford

Earnings, Earnings and More Earnings - Your Midweek Update From Facebook to Ford

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk