AutoZone's Earnings Miss Expectations, Stock Volatility Follows
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 53 minutes ago
0mins
Source: Fool
- Sales Report: AutoZone reported $4.84 billion in sales for Q3 2026, slightly missing analyst expectations of $4.87 billion, which initially triggered a 9% stock drop, although this reaction may be exaggerated.
- Same-Store Sales Growth: Despite the sales miss, same-store sales increased by 5.5% year-over-year, indicating stability in the core business and bolstering confidence among long-term investors.
- Ongoing Expansion Plans: AutoZone plans to open 355 to 365 new stores this fiscal year, signaling confidence in future growth despite a slowdown in international expansion, which is expected to enhance market share.
- Valuation Appeal: With shares priced over $3,000, a forward P/E ratio of around 17, and a PEG ratio of 1.42, alongside an average analyst price target near $4,100, AutoZone presents an attractive long-term investment opportunity.
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Analyst Views on AZO
Wall Street analysts forecast AZO stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 3100.110
Low
3550
Averages
4225
High
4800
Current: 3100.110
Low
3550
Averages
4225
High
4800
About AZO
AutoZone, Inc. is a retailer and distributor of automotive replacement parts and accessories in the Americas. Its Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through its approximately 7,353 stores in the United States, Mexico and Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. The Company also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com, and its commercial customers can make purchases through www.autozonepro.com. In addition, the Company sells the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.alldata.com. It also provides product information on its Duralast branded products through www.duralastparts.com.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AutoZone Reports 8.4% Sales Growth in Q3
- Sales Growth Overview: AutoZone reported net sales of $4.84 billion for Q3, reflecting an 8.4% year-over-year increase, although slightly below analyst expectations of $4.87 billion, which initially caused a 9% drop in stock price, indicating a potential overreaction from the market.
- Same-Store Sales Performance: Same-store sales rose by 5.5% year-over-year, with earnings per share hitting $38.07, showcasing the company's strong cash flow generation capabilities, and despite a slowdown in international growth, it plans to open between 355 to 365 new stores this fiscal year.
- Expansion Plans: AutoZone currently operates 7,856 locations, having added 340 stores in the past year, which demonstrates its competitive strength and growth potential in the market as it continues to expand steadily.
- Investment Value Analysis: While AutoZone's shares are priced over $3,000, its forward P/E ratio is around 17 and PEG ratio is 1.42, indicating reasonable valuation; analysts have set an average price target of nearly $4,100, highlighting the stock's long-term investment appeal.
See More
AutoZone's Earnings Miss Expectations, Stock Volatility Follows
- Sales Report: AutoZone reported $4.84 billion in sales for Q3 2026, slightly missing analyst expectations of $4.87 billion, which initially triggered a 9% stock drop, although this reaction may be exaggerated.
- Same-Store Sales Growth: Despite the sales miss, same-store sales increased by 5.5% year-over-year, indicating stability in the core business and bolstering confidence among long-term investors.
- Ongoing Expansion Plans: AutoZone plans to open 355 to 365 new stores this fiscal year, signaling confidence in future growth despite a slowdown in international expansion, which is expected to enhance market share.
- Valuation Appeal: With shares priced over $3,000, a forward P/E ratio of around 17, and a PEG ratio of 1.42, alongside an average analyst price target near $4,100, AutoZone presents an attractive long-term investment opportunity.
See More
Active Options Trading for AutoZone and Robinhood
- AutoZone Options Volume: Today, AutoZone's options trading volume reached 1,751 contracts, equivalent to approximately 175,100 shares, representing 57.7% of its average daily trading volume of 303,300 shares over the past month, indicating significant market interest in the stock.
- High Volatility Options: Notably, the $2700 strike put option expiring on July 17, 2026, has seen 534 contracts traded today, representing about 53,400 shares, reflecting investor expectations for future price fluctuations.
- Robinhood Options Activity: Robinhood's options trading volume stood at 122,936 contracts, equivalent to approximately 12.3 million shares, or 48.5% of its average daily trading volume of 25.4 million shares over the past month, showcasing the stock's market activity.
- Key Strike Options: For Robinhood, the $74 strike put option expiring on May 29, 2026, has traded 14,987 contracts today, representing approximately 1.5 million shares, indicating a divergence in investor sentiment regarding the stock's future trajectory.
See More
Analysis of Three Stocks Hitting New 52-Week Lows
- AutoZone Performance Decline: AutoZone reported an 8% year-over-year revenue increase to $4.8 billion, yet its stock fell nearly 3% due to concerns over slowing growth and international market challenges, indicating market apprehension about its future prospects.
- Intuit Stock Crash: Intuit's shares have plummeted over 50% this year, despite a recent 10% revenue growth report; investor fears regarding AI disruption of its software business have led to a continued decline, with a current P/E ratio of just 11, suggesting significant undervaluation potential.
- PDD Holdings Financial Challenges: PDD Holdings reported $15.4 billion in revenue for the latest quarter, an 11% year-over-year increase, but its net income fell 15% to $1.8 billion, causing a more than 10% stock drop as the company embarks on a “deep transformation” and invests heavily in its supply chain to navigate market uncertainties.
- Investment Opportunity Assessment: Despite facing various challenges, AutoZone and PDD's low P/E ratios of 17 and 8 respectively indicate they could be solid picks for long-term investors, especially in a bearish market, presenting potential rebound opportunities.
See More
Wall Street Rises with Strong Tech Stock Performance
- Strong Market Rally: Futures indicate an up day for Wall Street as the S&P 500 and Nasdaq hit record highs, driven by AI-related stocks like Micron, which surged 19% and surpassed a $1 trillion market cap, reflecting robust demand for AI chips.
- Micron's Continued Ascent: Micron's stock rose another 7% in premarket trading, achieving a remarkable increase from $500 billion to $1 trillion in just 48 days, the fastest on record, highlighting the ongoing shortage and insatiable demand for memory chips, suggesting significant future growth potential.
- SK Hynix Joins the $1 Trillion Club: South Korean memory giant SK Hynix also crossed the $1 trillion market cap threshold in today's trading, underscoring the strong growth in the global memory market and the increasing demand driven by the AI era.
- Upgrades for FedEx and Danaher: JPMorgan upgraded FedEx from hold to buy with a price target raised to $460, citing attractive risk/reward ahead of its freight unit separation; meanwhile, Citi reinstated Danaher with a buy rating and a $230 price target, reflecting optimism in the bioprocessing sector.
See More
Micron's Market Cap Surpasses $1 Trillion as S&P 500 and Nasdaq Hit New Records
- Micron Milestone: Micron Technology's stock surged over 19% on Tuesday, pushing its market capitalization past $1 trillion for the first time, which has drawn significant investor attention and catalyzed a broader rally in technology stocks, indicating strong confidence in the semiconductor sector.
- Tech Indices Surge: The S&P 500 and Nasdaq Composite both reached new highs, marking their longest winning streak in over a month, reflecting optimistic market sentiment and heightened investment enthusiasm in technology stocks driven by Micron's performance.
- SK Hynix Joins Ranks: South Korean chipmaker SK Hynix also entered the $1 trillion market cap club on the same day, highlighting the influx of investment into AI-linked semiconductor companies and further enhancing the growth potential of the global semiconductor market.
- Auto Sector Volatility: Despite AutoZone reporting better-than-expected earnings, its stock experienced its worst day since 2022, illustrating market concerns regarding the automotive sector amid rising inflation and energy prices, which could impact consumer spending and overall economic stability.
See More
AutoZone Reports 8.4% Sales Growth in Q3
- Sales Growth Overview: AutoZone reported net sales of $4.84 billion for Q3, reflecting an 8.4% year-over-year increase, although slightly below analyst expectations of $4.87 billion, which initially caused a 9% drop in stock price, indicating a potential overreaction from the market.
- Same-Store Sales Performance: Same-store sales rose by 5.5% year-over-year, with earnings per share hitting $38.07, showcasing the company's strong cash flow generation capabilities, and despite a slowdown in international growth, it plans to open between 355 to 365 new stores this fiscal year.
- Expansion Plans: AutoZone currently operates 7,856 locations, having added 340 stores in the past year, which demonstrates its competitive strength and growth potential in the market as it continues to expand steadily.
- Investment Value Analysis: While AutoZone's shares are priced over $3,000, its forward P/E ratio is around 17 and PEG ratio is 1.42, indicating reasonable valuation; analysts have set an average price target of nearly $4,100, highlighting the stock's long-term investment appeal.
See More
AutoZone's Earnings Miss Expectations, Stock Volatility Follows
- Sales Report: AutoZone reported $4.84 billion in sales for Q3 2026, slightly missing analyst expectations of $4.87 billion, which initially triggered a 9% stock drop, although this reaction may be exaggerated.
- Same-Store Sales Growth: Despite the sales miss, same-store sales increased by 5.5% year-over-year, indicating stability in the core business and bolstering confidence among long-term investors.
- Ongoing Expansion Plans: AutoZone plans to open 355 to 365 new stores this fiscal year, signaling confidence in future growth despite a slowdown in international expansion, which is expected to enhance market share.
- Valuation Appeal: With shares priced over $3,000, a forward P/E ratio of around 17, and a PEG ratio of 1.42, alongside an average analyst price target near $4,100, AutoZone presents an attractive long-term investment opportunity.
See More
Active Options Trading for AutoZone and Robinhood
- AutoZone Options Volume: Today, AutoZone's options trading volume reached 1,751 contracts, equivalent to approximately 175,100 shares, representing 57.7% of its average daily trading volume of 303,300 shares over the past month, indicating significant market interest in the stock.
- High Volatility Options: Notably, the $2700 strike put option expiring on July 17, 2026, has seen 534 contracts traded today, representing about 53,400 shares, reflecting investor expectations for future price fluctuations.
- Robinhood Options Activity: Robinhood's options trading volume stood at 122,936 contracts, equivalent to approximately 12.3 million shares, or 48.5% of its average daily trading volume of 25.4 million shares over the past month, showcasing the stock's market activity.
- Key Strike Options: For Robinhood, the $74 strike put option expiring on May 29, 2026, has traded 14,987 contracts today, representing approximately 1.5 million shares, indicating a divergence in investor sentiment regarding the stock's future trajectory.
See More
Analysis of Three Stocks Hitting New 52-Week Lows
- AutoZone Performance Decline: AutoZone reported an 8% year-over-year revenue increase to $4.8 billion, yet its stock fell nearly 3% due to concerns over slowing growth and international market challenges, indicating market apprehension about its future prospects.
- Intuit Stock Crash: Intuit's shares have plummeted over 50% this year, despite a recent 10% revenue growth report; investor fears regarding AI disruption of its software business have led to a continued decline, with a current P/E ratio of just 11, suggesting significant undervaluation potential.
- PDD Holdings Financial Challenges: PDD Holdings reported $15.4 billion in revenue for the latest quarter, an 11% year-over-year increase, but its net income fell 15% to $1.8 billion, causing a more than 10% stock drop as the company embarks on a “deep transformation” and invests heavily in its supply chain to navigate market uncertainties.
- Investment Opportunity Assessment: Despite facing various challenges, AutoZone and PDD's low P/E ratios of 17 and 8 respectively indicate they could be solid picks for long-term investors, especially in a bearish market, presenting potential rebound opportunities.
See More
Wall Street Rises with Strong Tech Stock Performance
- Strong Market Rally: Futures indicate an up day for Wall Street as the S&P 500 and Nasdaq hit record highs, driven by AI-related stocks like Micron, which surged 19% and surpassed a $1 trillion market cap, reflecting robust demand for AI chips.
- Micron's Continued Ascent: Micron's stock rose another 7% in premarket trading, achieving a remarkable increase from $500 billion to $1 trillion in just 48 days, the fastest on record, highlighting the ongoing shortage and insatiable demand for memory chips, suggesting significant future growth potential.
- SK Hynix Joins the $1 Trillion Club: South Korean memory giant SK Hynix also crossed the $1 trillion market cap threshold in today's trading, underscoring the strong growth in the global memory market and the increasing demand driven by the AI era.
- Upgrades for FedEx and Danaher: JPMorgan upgraded FedEx from hold to buy with a price target raised to $460, citing attractive risk/reward ahead of its freight unit separation; meanwhile, Citi reinstated Danaher with a buy rating and a $230 price target, reflecting optimism in the bioprocessing sector.
See More
Micron's Market Cap Surpasses $1 Trillion as S&P 500 and Nasdaq Hit New Records
- Micron Milestone: Micron Technology's stock surged over 19% on Tuesday, pushing its market capitalization past $1 trillion for the first time, which has drawn significant investor attention and catalyzed a broader rally in technology stocks, indicating strong confidence in the semiconductor sector.
- Tech Indices Surge: The S&P 500 and Nasdaq Composite both reached new highs, marking their longest winning streak in over a month, reflecting optimistic market sentiment and heightened investment enthusiasm in technology stocks driven by Micron's performance.
- SK Hynix Joins Ranks: South Korean chipmaker SK Hynix also entered the $1 trillion market cap club on the same day, highlighting the influx of investment into AI-linked semiconductor companies and further enhancing the growth potential of the global semiconductor market.
- Auto Sector Volatility: Despite AutoZone reporting better-than-expected earnings, its stock experienced its worst day since 2022, illustrating market concerns regarding the automotive sector amid rising inflation and energy prices, which could impact consumer spending and overall economic stability.
See More
