On Wednesday, AutoZone cleared an important performance benchmark, with its Relative Strength (RS) Rating moving into the 80-plus percentile. It climbed to 83, up from 80 the day before. AutoZone stock hit an all-time high in May and has hovered near that level since then.
The upgraded 83 RS Rating shows that AutoZone stock is in the top 17% of all stocks, regardless of industry, for price performance this past year. Market research shows that the market's biggest winners typically have an 80 or better RS Rating in the early stages of their moves.
AutoZone Stock: One For Boom Or Bear Market
Some analysts say the prospect of a recession has receded, which bodes well for retailers including AutoZone. However, AutoZone is somewhat recession-resistant anyway because car owners must take care of their cars in bad times as well as good.
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Memphis, Tenn.-based AutoZone is trying to complete a consolidation with a 2,750 buy point. See if it can break out in volume at least 40% higher than normal. Despite its relatively high price, shares of the auto parts and services retailer are growing at a fast clip. From a 684.91 low in late March 2020 amid the Covid market crash, it's climbed about 287% in the intervening 3-1/2 years to trade at about 2,630 Wednesday afternoon. It was down fractionally for the day in sync with the market retreat.
Earnings, Sales Steady Sailing
AutoZone reported 15% earning growth in its most recent report, to a hefty 46.46 per share. The prior three stanzas its EPS rose 9%, 16% and 22%. Sales growth, while milder, has also been steady. It rose 6% last quarter to $5.69 billion. The three prior periods it rose 9%, 10% and 6%.
AutoZone stock holds the No. 4 rank among its peers in the Retail/Wholesale-Auto industry group. O'Reilly Automotive and Valvoline are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price movement over the last 52 weeks holds up against all the other stocks in our database.
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