Autozone Stock Story

AZO -  USA Stock  

USD 1,968  65.92  3.24%

It seems Autozone will continue to recover much faster as its share price surged up 0.91% today. Autozone current daily volatility is 1.27 percent, with a beta of 0.68 and an alpha of 0.31 over DOW. While some baby boomers are getting worried about elevated trading volume, it is reasonable to outline Autozone. We will analyze why it could be a much better year for Autozone shareholders.
Published over a month ago
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Should you acquire Autozone after the latest volatility slide?
Autozone has roughly 1.22 B in cash with 3.52 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 58.06.
On a scale of 0 to 100, Autozone holds a performance score of 18. The firm shows a Beta (market volatility) of 0.6848, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Autozone's beta means in this case. As returns on the market increase, Autozone returns are expected to increase less than the market. However, during the bear market, the loss on holding Autozone will be expected to be smaller as well. Although it is vital to follow Autozone historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Autozone technical indicators, you can presently evaluate if the expected return of 0.33% will be sustainable into the future. Please makes use of Autozone value at risk, as well as the relationship between the skewness and day median price to make a quick decision on whether Autozone price patterns will revert.
Investing in Autozone, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Autozone along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Autozone's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Autozone in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Autozone. Your research has to be compared to or analyzed against Autozone's peers to derive any actionable benefits. When done correctly, Autozone's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Autozone.

How important is Autozone's Liquidity

Autozone financial leverage refers to using borrowed capital as a funding source to finance Autozone ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Autozone financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Autozone's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Autozone, but it might be worth checking our own buy vs. sell analysis

Autozone Correlation with Peers

Investors in Autozone can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Autozone. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Autozone and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Autozone is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Autozone for more details

Exercise or conversion by Murphy John Scott of 2250 shares of Autozone subject to Rule 16b-3

Legal trades by Autozone insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Autozone insider trading alert for exercise of non-qualified stock option (right to buy) by Murphy John Scott, Vice President Controller, on 4th of January 2022. This event was filed by Autozone Inc with SEC on 2022-01-04. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Autozone Indicators

Autozone appears to be very steady, given 3 months investment horizon. Autozone secures Sharpe Ratio (or Efficiency) of 0.26, which signifies that the company had 0.26% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Autozone, which you can use to evaluate the future volatility of the firm. Please makes use of Autozone's Mean Deviation of 0.9385, risk adjusted performance of 0.196, and Downside Deviation of 1.1 to double-check if our risk estimates are consistent with your expectations.

Will Autozone pull back in January 2022?

Risk adjusted performance is down to 0.2. It may entail a possible volatility slide.
As of the 6th of December, Autozone shows the Risk Adjusted Performance of 0.196, downside deviation of 1.1, and Mean Deviation of 0.9385. Autozone technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Autozone, which can be compared to its rivals. Please confirm Autozone variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Autozone is priced correctly, providing market reflects its regular price of 1879.99 per share. Given that Autozone has jensen alpha of 0.313, we suggest you to validate Autozone's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas some companies within the specialty retail industry are still a little expensive, even after the recent corrections, Autozone may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view, we believe it may be a good time to increase your existing holdings in Autozone as the risk-reward trade off is appealing enough to hold a position. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Autozone.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Autozone. Please refer to our Terms of Use for any information regarding our disclosure principles.

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