May
12
Written by:
Steve Patterson
5/12/2010 3:46 PM
Autozone (AZO) Climbs as Earnings Approach
Despite a slight sell off down to the $175 a share range along with
the market swoon Monday this week, the stock of Autozone
(AZO)continues to perform and is close once again to a new 52 week
high. The stock has moved back to $185 over the past three days within
reach of the current year period high of $187.94. With earnings season
approaching, the stock should behave well over the near term.
The earnings expectations have been somewhat flat over the past 90 days with only one recent analyst upgrade. When the company announces on May 25th, analysts will be looking for 3.57 a share. This represents 14% growth when compared to the same quarter last year. Next quarter’s growth is also expected to be around 14%. With a price to earnings (P/E) ratio of 13.28, the stock is a little bit above fair value. But paying a premium for the growth isn’t unheard of. Revenues are also rising between 3 to 4%.
The fundamental story for Autozone remains the increase in oil prices and the credit crunch creating a strong market for the auto parts retailer. With drivers looking to save money on travel they are performing more maintenance themselves and replacing inexpensive items like air filters more often. In addition, the credit crunch has made it more difficult to purchase new automobiles increasing the number of parts required to keep the current automobile inventory operational.
© 2010 FastSwings.com
5 comment(s) so far...
Re: Autozone Climbs as Earnings Approach
True, the market for auto parts and the sectors dealing with the auto-zones are going to have some good times in the current and coming trading scenarios. lets hope for the same improvement in the other financial market as well.
By Forex on
5/13/2010 3:36 AM
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Autozone Climbs as Earnings Approach
Interesting Post About Finanacial Market Position.
Nice post keep going on.
By stationery design on
5/14/2010 5:50 AM
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Re: Autozone Climbs as Earnings Approach
Thanks for the writeup. Autozone seems to be doing well!
By best hard drive backup software on
5/14/2010 1:22 PM
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Re: Autozone Climbs as Earnings Approach
It is doing good. thanks for tips.
By localsingles on
5/18/2010 11:30 PM
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Re: Autozone Climbs as Earnings Approach
True, the market for auto parts and the sectors dealing with the auto-zones are going to have some good times in the current and coming trading scenarios.
I"ll hope for the best!
By Deutschland on
5/29/2010 8:47 PM
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