AutoZone rose 9% in three days this week. That includes a 6.7% rise Tuesday in volume that was 137% higher than average. The gains came after the auto parts and services giant reported strong earnings growth on Tuesday. On Thursday, the Relative Strength (RS) Rating for AutoZone stock got an upgrade from 78 to 81, lifting it into an elite group of stock.
The Memphis-based company reported a 17% increase in earnings to 28.89 per share on a 5% hike in revenue to $3.86 billion. Not bad for a large company like AutoZone. The resulting stock surge pushed its share price over 3,000 for the first time on Tuesday. The prior three quarters AutoZone recorded EPS gains of 22%, 15% and 19% on 6%, 6% and 5% revenue growth.
AutoZone Stock May Be Setting Up For Big Gains
The upgraded 81 Relative Strength Rating shows that AutoZone stock outperformed 81% of stocks for price performance over the past 52 weeks. It's a prestigious rating because market research shows the market's biggest winners often have an 80 or higher RS Rating as they launch their biggest climbs.
Among its other ratings AutoZone stock has a respectable 81 Composite Rating and an outstanding 96 EPS Rating out of 99. Additionally, it boasts a B+ Accumulation/Distribution Rating on an A+ to E scale with A+ dazzling and E depressing. The B+ A/D Rating cements its position among the top stocks to watch and buy.
AutoZone stock has been a real steady Eddie equity grower. It traded at 511.46 in mid-2017 and rose to 1,235.32 in mid-December 2019, just ahead of the pandemic. Thursday afternoon it traded at about 3004, having given back a fraction of its gains earlier in the week.
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Among Top 5 In Industry Group
AutoZone stock has risen more than 5% past a 2,750.00 entry in a first-stage consolidation, meaning it's now out of a proper buy range. Look for the stock to create a new chance to get in like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Meanwhile, AutoZone stock earns the No. 4 rank among its peers in the Retail/Wholesale-Auto industry group. Copart and O'Reilly Automotive are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, a stock's price strength. vs. other stocks is a good indicator. IBD's proprietary Relative Strength Rating identifies price action with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.
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