Autozone Stock Buy Hold or Sell Recommendation

AZO -  USA Stock  

USD 1,772  117.71  6.23%

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Autozone is 'Strong Buy'. Macroaxis provides Autozone buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Autozone positions. The advice algorithm takes into account all of Autozone's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Autozone's buy-and-hold perspective. Please continue to Autozone Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Autozone and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Autozone.

Execute Autozone Buy or Sell Advice

The Autozone recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Autozone. Macroaxis does not own or have any residual interests in Autozone or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Autozone's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AutozoneBuy Autozone
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

Fairly ValuedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Autozone has a Risk Adjusted Performance of (0.045082), Jensen Alpha of 0.0773, Total Risk Alpha of 0.2167 and Treynor Ratio of (0.1)
Macroaxis provides advice on Autozone to complement and cross-verify current analyst consensus on Autozone. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Autozone is not overpriced, please confirm all Autozone fundamentals, including its revenue, cash flow from operations, current asset, as well as the relationship between the cash per share and beta . Given that Autozone has a number of shares shorted of 422.12 K, we suggest you to validate Autozone market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Autozone Trading Alerts and Improvement Suggestions

Autozone generated a negative expected return over the last 90 days
The company has 8.75 B in debt. Autozone has a current ratio of 0.75, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Autozone until it has trouble settling it off, either with new capital or with free cash flow. So, Autozone's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Autozone sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Autozone to invest in growth at high rates of return. When we think about Autozone's use of debt, we should always consider it together with cash and equity.
Over 95.0% of the company shares are held by institutions such as insurance companies
Latest headline from www.marketscreener.com: WEX Customers Can Now Save on AutoZone Parts - Marketscreener.com

Autozone current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Autozone analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Autozone analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price2,185.71
Target Median Price2,195.00
Target High Price2,500.00
Recommendation Mean2.20
Number Of Analyst Opinions17
Target Low Price1,620.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Autozone Returns Distribution Density

The distribution of Autozone's historical returns is an attempt to chart the future uncertainty of Autozone's future price movements. The chart of the probability distribution of Autozone stock daily returns describes the distribution of returns around its average expected value. We use Autozone price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Autozone returns is essential to provide solid investment advice for Autozone stock.
Mean Return-0.09Value At Risk-3.97
Potential Upside3.40Standard Deviation2.56
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Autozone historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Autozone Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Autozone or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Autozone stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Autozone stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.08
β
Beta against DOW1.08
σ
Overall volatility
2.54
Ir
Information ratio 0.0252

Autozone Volatility Alert

Autozone exhibits very low volatility with skewness of -1.23 and kurtosis of 2.64. However, we advise investors to further study Autozone technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Autozone's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Autozone's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Autozone Implied Volatility

Autozone's implied volatility exposes the market's sentiment of Autozone stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Autozone's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Autozone stock will not fluctuate a lot when Autozone's options are near their expiration.

Autozone Fundamentals Vs Peers

Comparing Autozone's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Autozone's direct or indirect competition across all of the common fundamentals between Autozone and the related equities. This way, we can detect undervalued stocks with similar characteristics as Autozone or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Autozone's fundamental indicators could also be used in its relative valuation, which is a method of valuing Autozone by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Autozone to competition
FundamentalsAutozonePeer Average
Return On Equity(1.22) %(0.31) %
Return On Asset14.28 %(0.14) %
Profit Margin15.44 %(1.27) %
Operating Margin20.68 %(5.51) %
Current Valuation47.28 B16.62 B
Shares Outstanding20.63 M571.82 M
Shares Owned by Insiders0.39 %10.09 %
Shares Owned by Institutions95.10 %39.21 %
Number of Shares Shorted422.12 K4.71 M
Price to Earning18.42 X28.72 X
Price to Book(12.32) X9.51 X
Price to Sales2.50 X11.42 X
Revenue15.6 B9.43 B
Gross Profit7.72 B27.38 B
EBITDA3.65 B3.9 B
Net Income2.41 B570.98 M
Cash and Equivalents280.28 M2.7 B
Cash per Share14.12 X5.01 X
Total Debt8.75 B5.32 B
Debt to Equity(5.81) %48.70 %
Current Ratio0.77 X2.16 X
Book Value Per Share(102.77) X1.93 K
Cash Flow from Operations3.62 B971.22 M
Short Ratio2.33 X4.00 X
Earnings Per Share102.57 X3.12 X
Price to Earnings To Growth1.23 X4.89 X
Number of Employees65.1 K18.84 K
Beta0.92-0.15
Market Capitalization38.99 B19.03 B
Total Asset8.6 B29.47 B
Retained Earnings(1.27 B)9.33 B
Working Capital(450.75 M)1.48 B
Current Asset4.24 B9.34 B
   Exercise or conversion by Preston Frazer of 1500 shares of Autozone subject to Rule 16b-3 [view details]

About Autozone Buy or Sell Advice

When is the right time to buy or sell Autozone? Buying financial instruments such as Autozone Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Autozone investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2012 2018 2021 2022 (projected)
Receivables258.14 M378.39 M309 M265.33 M
Inventories3.94 B4.64 B4.32 B3.74 B

Use Investing Ideas to Build Portfolios

In addition to having Autozone in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Food Products
Food Products Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Food Products theme has 61 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Food Products Theme or any other thematic opportunities.
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Please continue to Autozone Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Autozone information on this page should be used as a complementary analysis to other Autozone's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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Is Autozone's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Autozone. If investors know Autozone will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Autozone listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Autozone is measured differently than its book value, which is the value of Autozone that is recorded on the company's balance sheet. Investors also form their own opinion of Autozone's value that differs from its market value or its book value, called intrinsic value, which is Autozone's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Autozone's market value can be influenced by many factors that don't directly affect Autozone's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Autozone's value and its price as these two are different measures arrived at by different means. Investors typically determine Autozone value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Autozone's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.