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What Analysts Recommend for AutoZone Stock ahead of 4Q17 Results

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Sep. 15 2017, Updated 10:39 a.m. ET

Analysts on AutoZone stock

According to the latest consensus data from Reuters, 44% of analysts covering AutoZone (AZO) gave its stock “buy” recommendations, while another 52% have recommended a “hold.” Only one out of these total 27 analysts, or about 4%, gave a “sell” recommendation.

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12-month consensus price target

The consensus data suggests that AutoZone stock has the potential to reach $660.95 in the next 12 months, an upside potential of about 16.1% from the market price of $569.34 as of September 13, 2017.

Expectations of a recovery in the company’s sales and profitability could be the primary reasons why many analysts are maintaining a positive view on AutoZone stock. Also, AZO’s business model is such that it doesn’t require huge investments to drive growth.

Investors must pay attention to analysts’ recommendations as they could impact a company’s stock price. If popular Wall Street analysts change their views, a significant short-term movement in the stock price could occur.

Recommendations on peers

By comparison, analysts’ consensus “buy” recommendations for other auto companies and auto parts sellers (XLY) and their expected 12-month upside potential are as follows:

  • About 52% of analysts gave Advance Auto Parts (AAP) a “buy” with ~7.3% upside potential.
  • About 62% of analysts gave O’Reilly Automotive (ORLY) a “buy” with about 10.1% upside potential.
  • Only 24% of analysts gave Ford (F) a “buy” with about 4.4% upside potential.
  • 44% of analysts gave Fiat Chrysler (FCAU) a “buy” with an impressive 25.3% upside potential.

Read on to the next part where we’ll take a look at AutoZone’s valuation multiples ahead of its upcoming quarterly results.

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