Wall Street analysts on AutoZone
According to the latest data from Thomson Reuters, 52% of analysts covering AutoZone (AZO) gave the stock a “buy” recommendation. The remaining 48% have recommended a “hold” on the stock. Notably, none of AZO’s 27 analysts have given the stock a “sell” recommendation.
Interestingly, some analysts who had previously given a “buy” recommendation on AutoZone stock have changed their stances to a “hold” over the past couple of months.
Upside potential in AZO stock
The consensus data suggests that AutoZone stock has potential to reach $776.3 over the next 12 months. This target represents an impressive upside potential of 33.52% from its market price of $581.4 as of May 22, 2017.
At the end of calendar 2016, the Wall Street analysts’ consensus suggested a much higher target price of $871. The company’s stagnating sales and lower profitability could be the primary reasons that most analysts are maintaining a cautious view on AutoZone.
Remember, investors pay attention to analysts’ recommendations because such recommendations impact stock price movements. If a popular analyst changes his or her view, a significant short-term movement in the stock could follow.
Peer comparison in May 2017
By comparison, analysts’ consensus “buy” recommendations for other auto parts sellers and automakers (XLY) are as follows:
- About 54% of analysts gave Advance Auto Parts (AAP) a “buy,” with a ~21% upside potential.
- About 74% of analysts gave O’Reilly Automotive (ORLY) a “buy,” with a ~26% upside potential.
- About 33% of analysts gave Ford Motor (F) a “buy,” with a ~16% upside potential.
Recently, Ford, the second-largest US automaker (XLY), named Jim Hackett as its new CEO (chief executive officer) and president in a big move. For more, check out Market Realist’s Could Ford’s New Leadership Boost Investor Confidence?
Continue to the next and final part for a closer look at the key technical support and resistance levels of AutoZone stock.