Carmakers faced parts shortages and constricted marketing channels amid the pandemic. The market has normalized somewhat and companies like auto parts retailer AutoZone are thriving. On Thursday, the Relative Strength (RS) Rating for AutoZone stock headed into a new percentile, as it got a lift from 64 to 72.
AutoZone Stock Found In Rising Number Of Funds
The upgraded 72 RS Rating shows that AutoZone stock tops 72% of all stocks for price performance over the past 12 months. It's a good but not yet great rating. Other ratings for the Memphis-based watchlist candidate are mixed.
For example, it boasts a near-perfect 97 Earnings Per Share Rating, based on strong recent and long-term profit growth. Meanwhile, its D Accumulation/Distribution Rating, on an A+ to E scale, shows that institutional investors are hesitant and selling more shares than buying. However, the number of funds holding AutoZone stock rose from 2,399 in the March-ended quarter to 2,460 in June, a bullish indicator.
Additionally, the 70 Composite Rating shows middling performance overall. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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AutoZone stock rose to a fresh all-time high 2750 on May 9 this year. From there it dropped to 2277.88 on May 31, then started rising again. Thursday afternoon the auto parts retailer traded around 2550, down fractionally for the day. AutoZone is building a consolidation with a 2750 entry. See if the stock can clear the breakout price in heavy trade.
Earnings Growth Accelerates On Mild Sales Growth
Earnings growth accelerated to 22% last quarter to $34.12 per share, its strongest growth in a year. The prior three periods it posted EPS gains of 17%, 9% and 16%. Revenue in its most recent quarter grew a mild 6% to $4.09 billion. Look for the next report on or around Sept. 19.
AutoZone stock earns 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.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength vs. other stocks.
IBD's proprietary Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
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