When CAN SLIM investors go stock hunting, they look for stocks with an 80 or higher Relative Strength Rating, like AutoZone. That's because research shows that stocks that go on to make the biggest gains often have an RS Rating over 80 as they launch their climbs. On Monday, AutoZone stock joined that exclusive club, with an RS Rating jump to 82, up from 79 last week.
AutoZone Stock Up More Than 400% In 6 Years
AutoZone operates 6,168 retail auto parts and service stores across the U.S. It's the biggest pure-play auto parts and services retailer by revenue. Additionally, its stock has been a steady Eddie grower over the years. It's risen 52% from a 1,703.32 low on May 20, 2022, and is up a whopping 428% from a 491.13 low six years ago, near the end of July 2017.
Among its other key ratings, AutoZone stock has a decent but not great 78 Composite Rating, according to MarketSmith chart analysis. However, it boasts a near-perfect 97 Earnings Per Share Rating, a reflection of its accelerating profit growth.
Earnings Growth Last Quarter Strongest In A Year
Both earnings and revenue were in the black every quarter the past year four quarters despite the 2022 bear market. Earnings grew 22% last quarter to $34.12 per share, its strongest quarterly growth in at least a year. Revenue grew a mild 6% to $4.09 billion for the quarter. AutoZone says on its website it plans to announce fiscal fourth quarter earnings results on Sept. 19 before the market opens.
One yellow flag is its D+ Accumulation/Distribution Rating. That shows that big funds such as insurance company funds and ETFs are selling more shares than buying. That could be funds looking to lock in profits. Look for that to improve to a C or better. On the positive side, there is rising interest in AutoZone stock. The number of funds holding its stock rose from 2,391 in the December-ended quarter to 2,402 in March and 2,472 in June.
Looking For Winning Stocks? Try This Simple Routine
AutoZone stock rose to an all-time high 2,750 a share on May 19. It briefly consolidated, dipping to a 2,278.88 intraday low on May 31, and began rising again. On Monday, AutoZone traded at about 2,595, down fractionally for the day. See if the stock can break out from the 2,750 buy point in heavy trading.
Among The Top 5
AutoZone stock earns the No. 4 rank among its peers in the Retail/Wholesale-Auto industry group. O'Reilly Automotive and Copart are also among the group's highest-rated stocks.
When researching the best stocks to buy and watch, relative price strength is a telling indicator.
The exclusive RS Rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the trailing 52 weeks holds up against all the other stocks in our database.
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