Autozone Stock Story

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AZO
 Stock
  

USD 2,219  23.48  1.07%   

By Ellen Johnson
Macroaxis Story
It seems Autozone may not have a good chance to recover from the latest slide as its shares fell again. Autozone current daily volatility is 2.54 percent, with a beta of 1.08 and an alpha of 0.08 over DOW. As many millenniums are trying to avoid the latest volatility, we are going to outline Autozone a little further to understand its historical price patterns. We will analyze why Autozone investors may still consider a stake in the business.
Published over two months ago
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Is Autozone (NYSE:AZO) stock way too aggressive for baby boomers?

Autozone has roughly 280.28 M in cash with 3.62 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 14.12.
Macroaxis provides advice on Autozone to complement and cross-verify current analyst consensus on Autozone. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
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.
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Naive
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15 Analysts
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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

Sale by William Rhodes of 152 shares of Autozone

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 sale of common stock by William Rhodes, Chairman President & CEO, on 21st of July 2022. This event was filed by Autozone Inc with SEC on 2022-07-18. Statement of changes in beneficial ownership - SEC Form 4. William Rhodes currently serves as chairman of the board, president, chief executive officer of Autozone [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 secures Sharpe Ratio (or Efficiency) of -0.0024, which signifies that the company had -0.0024% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Autozone exposes twenty-six different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Autozone risk adjusted performance of (0.045082), and Mean Deviation of 1.85 to double-check the risk estimate we provide.
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Autozone latest price slide can leaving institutional investors with little time to react

Latest Information Ratio is up to 0.03. Price may slide again.
As of the 23rd of May, Autozone shows the risk adjusted performance of (0.045082), and Mean Deviation of 1.85. 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 1771.68 per share. Given that Autozone has jensen alpha of 0.0773, we suggest you to validate Autozone's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Autozone

Whereas some firms in the specialty retail industry are either recovering or due for a correction, Autozone may not be performing as strong as the other in terms of long-term growth potentials. On the whole, as of the 23rd of May 2022, our analysis shows that Autozone almost mirrors the market. The company is undervalued and projects low odds of financial turmoil for the next 2 years. Our latest 90 days 'Buy-Sell' recommendation on the company is Strong Hold.

Editorial Staff

Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
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 Ellen Johnson do not own shares of Autozone. Please refer to our Terms of Use for any information regarding our disclosure principles.

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