$AZO with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NYSE:AZO after a negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 100%.
AZO trade ideas
AutoZone (NYSE: $AZO) Set for Q3 Earnings Report Before the BellAutoZone, Inc. (NYSE: NYSE:AZO ), the leading auto parts and accessories retailer, is set to report its third-quarter results today, Tuesday, September 24th, 2024, before the market opens. Investors and analysts alike are closely watching for key insights into the company’s performance, as the automotive retail sector braces for a pivotal earnings season.
Earnings Expectations and Revenue Outlook
Last quarter, AutoZone (NYSE: NYSE:AZO ) reported revenues of $4.24 billion, a 3.5% year-on-year increase but still falling 1.3% short of analysts' expectations. The company’s gross margins slightly beat forecasts, but weaker-than-expected same-store sales led to a revenue miss. Despite these mixed results, AutoZone (NYSE: NYSE:AZO ) has managed to retain investor confidence, with many analysts reaffirming their projections over the past month. This quarter, analysts expect AutoZone (NYSE: NYSE:AZO ) to generate revenue of $6.22 billion, representing a 9.3% growth year-on-year. Adjusted earnings are anticipated to come in at $53.55 per share, a significant improvement over last year’s $46.46.
AutoZone (NYSE: NYSE:AZO ) has had a history of occasionally missing revenue estimates, with three misses over the last two years, keeping analysts and investors cautious as they await today’s results. Nonetheless, AutoZone's stock has only fallen 4.3% over the past month, indicating that shareholders remain steady in the face of uncertainty.
Key Drivers: Share Repurchases and Growth Projection
In addition to its core earnings, AutoZone's recent financial maneuvers have bolstered investor confidence. The company’s board of directors approved an additional $1.5 billion share repurchase on June 19, further enhancing shareholder value. AutoZone’s consistent buyback program indicates confidence in its long-term outlook, a signal many investors have taken to heart.
As the first automotive retail company to report earnings this season, AutoZone is in the spotlight. The industry has faced numerous challenges this year, from supply chain disruptions to fluctuating consumer demand. However, the anticipated rise in revenue, driven by steady demand for automotive parts and accessories, positions AutoZone to stand out.
Moreover, in light of advancements in artificial intelligence, AutoZone (NYSE: NYSE:AZO ), like many other corporations, is expected to integrate technology to streamline its operations. Although companies like Nvidia and AMD are reaping the rewards of AI’s rise, AutoZone’s use of generative AI to optimize its business could be a game-changer in the near future.
Technical Analysis:
On the technical front, AutoZone’s stock performance is also showing positive signs. As of this morning’s premarket trading, NYSE:AZO is up 0.98%, positioning the stock for a potential upward breakout. The daily price chart shows a bullish symmetrical triangle pattern, which is often considered a continuation pattern in technical analysis. This suggests that a positive earnings beat could propel the stock higher, confirming the bullish formation.
Adding to the bullish sentiment, AutoZone’s Relative Strength Index (RSI) currently stands at 41.67. While not in overbought territory, this level signals room for growth as the stock attempts to recover from its recent dip. Given the RSI’s position and the formation of the symmetrical triangle, many technical analysts believe that the stock could see further gains, particularly if today’s earnings report meets or exceeds expectations.
Price Targets and Market Sentiment
AutoZone (NYSE: NYSE:AZO ) is currently trading around $3,048, with an average analyst price target of $3,229. If the company manages to surpass analysts’ expectations with a solid earnings beat, the stock could see a resurgence toward this target and beyond. Analysts are projecting quarterly earnings of $53.69 per share, up from $46.46 in the same quarter last year. Revenue is expected to reach $6.23 billion, significantly higher than last year’s $5.69 billion.
Conclusion: A Crucial Moment for AutoZone
AutoZone’s Q3 earnings report will set the tone not only for the company but for the broader automotive retail sector. With the stock forming a bullish technical pattern and earnings expected to grow, AutoZone (NYSE: NYSE:AZO ) could be on the cusp of a positive turnaround. The combination of strong fundamentals—such as the company’s share repurchase program and increasing revenues—and technical indicators suggests that the stock has the potential to rally in the near future.
However, with the company missing revenue estimates in the past, investors remain cautious. A beat on earnings today could signal a turning point for the stock, propelling it toward new highs, while a miss may prolong the sideways trading seen over the past month. Either way, all eyes are on AutoZone (NYSE: NYSE:AZO ) as it reports earnings before the bell today.
AutoZone in the ZoneFundamentals aside, NYSE:AZO price chart is showing the 2,740 2,800 zone as a respected support. Stock price has been around the 200 EMA D (55 EMA W) zone for 20 days while it went into an increasing negative momentum. Now the strength of the down trend started to fall as it looses negative momentum, this is a known pattern with a high probability for the price to rebound to its 55 EMA D.
Extra points that takes the probability even higher for the pattern to play out in my favor and for the continuation of the main trend.
Classic bullish price/momentum divergence on the daily
Confluence of the 55 EMA D and the next liquidity zone in the VRVP
AZO potential Buy setupReasons for bullish bias:
- Price bounce from channel support
- Weekly hammer candle at support
- Price bounced from horizontal support
- No divergence
- Positive Earnings
Here are the recommended trading levels:
Entry Level(CMP): 2817.00
Stop Loss Level: 2702.50
Take Profit Level 1: 2985.48
Take Profit Level 2: 3177.38
Take Profit Level 3: Open
AZO in a long-term uptrendhi traders,
AZO has been in a long-term uptrend. The price retests the upsloping support again. It may be a great opportunity to buy AZO and play the trend continuation.
The trend is up and the trend is your friend until the end.
The target for longs: the upsloping resistance of the channel.
Good luck
AZO - it may not come back to the support levelFirst thing first, just because someone introduced you a stock, it does not mean you have to BUY. WHY must you follow others' portfolio to a T? Everyone's financial objectives are different, with different time frame, expectations, risks tolerance, etc.
DYODD - are you familiar with the business ? Is it undervalued? How is it's financial performance ? Don't just blindly jump into the wagon even if the person is well known and has millions in their portfolio. Good for them but not necessarily it means you can be like them. It is good to follow certain principles but understand your own circumstances first, especially do not be greedy to borrow money from banks to go LONG or SHORT in the market. You may get lucky once , twice , thrice but how long will this game last? Your greed will consume you and you will start to fantasise not needing to work, staying home to trade 1-2 hours a day and make couple of hundreds or thousands easily. Very very few people do in this world and many online are truly promoting their products/services , so know their intention clearly.
Now, from the chart, this is just one possibility that I have drawn, anything can change. It can jolly well went below the support level at 2742 and hit the 2500 mark before we see a rebound. Anything is possible.
And if that happens , can you tolerate the risk and sleep well at night ? If not, then perhaps you want to choose safer investment like REITS, ETFs (not all) that has lesser volatility and fits your investment horizon.
In short, know thyself !
AZO: My Technical ViewAutozone has been in a clear uptrend since March 2021 and I'd see this uptrend continue after possible pullbacks. Areas plotted to look out for, duplicated trend lines expected to work as S/R zones, combined with daily and weekly MAs to be used as S/R confluences.
Buy AZO at 2642Car manufactures are backing down on the EV push.
So ICE base cars will be around longer than expected.
AZO solid earnings, profits, and extensive share buy back approach.
PE around 19.
Earnings tomorrow.
15 % Net Income Ration
AZO AutoZone Options Ahead of EarningsAnalyzing the options chain and the chart patterns of AZO AutoZone prior to the earnings report this week,
I would consider purchasing the 2500usd strike price Puts with
an expiration date of 2023-10-20,
for a premium of approximately $60.35.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
1.5:1 head and shoulders autozonereasonable clean 15 minute pattern
1.5:1 head and shoulders autozone
AZO swing trade setup I like this break for a swing trade back to current highs. I like the EMAs back to 10 20 50's over each other for the swing trade. Let it break and then get in. One to put on your watch list.
AZO - Hourly ViewZO is within an up channel on this hourly timeframe
Another up trend is present within this channel, showing possible support for price nearing.
Im bullish.
AZO/ORLY Are they in huge distribution ?Dear Traders,
I'm not expert in Wyckoff methodology, for which i need a second confirmation on my findings.
For a while i was watching Auto retails parts and repair, the financials are looking very bad, more specifically with current liabilities, raising interest rates and declining demand for new cars.
every analyst i watched in the last two months, are pushing AZO, ORLY, AAP ... to new highs as with higher interest rates, less new car sales, people will buy used cars, and they will need more parts and repairs. looks raisonable. what is not raisonable is that all these companies financials should go bankrupt with higher interest rates as loans are getting expensive for them, they do not have enough cash to cover quarterly expenses and issues with raising wages ...
the below attached screenshots are showing a decline in Institutional ownership for the last 6 months, in the last 3 months, $1.44 billion of shares was sold by institutions, still they own 96% of he whole float (Graph from Finviz)
the second graph showing stady decline for the last 7 months (graph from fintel.io)
then we have the above may be distribution or re-accumulation (if re-accumulation, do institutions wants more then 96% of all shares ??? ).
Let me know what you think about it, i'm considering 60 days puts on it, still not sure where to open my short position.
Thanks,
Sam
$AZO with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $AZO after a Negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 100%.
$AZO with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $AZO after a Positive over reaction following its earnings release placing the stock in drift B with an expected accuracy of 85.71%.
SHORT AUTOZONECompany completly expensive by multiples EV/EBIT - P/E and revenues will fall so do EPS.
In my opinion must drop 40% next three months
$AZO long ideaHello dear Traders,
Here is my idea for #AZO
Daily close above the yellow trigger line (previous month high) to enter trade.
We try to anticipate a 2-2 bullish reversal in the weekly chart - price found support at monthly pivot Line
Momentum: Weekly UP, Monthly UP
Targets marked in the chart (black lines)
Invalidation level marked with red line
Please feel free to ask any question in comments. I will try to answer all! Thank you
AZOPrice retrace back to 61% where previous support is set to make a confluence point!
BUY AROUND -2113/2110
TP1 : 2164
TP2: 2216
Entry area for the strong AZO?I angled the support line a little lower since price action was dropping a little lower compared to the two strong bounces on the left of the chart. I don't expect much good news this week especially with the white house redefining what the word "recession" means; sheesh. But in any case, cars still need parts and I'm hoping investors know this (just look at the chart based on all we've been through so far).
I can see a dip below my lowered support line and then rely on the strength of the name brand to bring money back in to continue the long standing incline that we're accustomed to.
I'll watch $1950.
I don't do advice.
VCP in action on AZOI have a position in AZO already.
Session from Thursday looks like a shakeout. Moved to new local high on Friday. I am missing a bit a clear confirmation on volume.
Next decisive level will be 2267. After that we have blue ocean ....
Time will tell :)
Trade safely!
$AZO Are we done with the insider selling?Are we ready to bounce with this solid company? Cars are more reliable but they do keep breaking. Did the insider sales help the selloff? If it breaks the trend line significantly I'll look at it for deep dip buy opportunities.
I don't do advice.
Would u go long here? The answer is no!Back at all time highs, again... If the put options on this weren't so high for leaps I would throw my ENTIRE port in them and just retire a year later, haha! Time for this garbage to come down in the weeks to come. SHORT AT WILL!
Played this before, price target 1.7k and we'll see where we at from there. Thinking we hit it in about a month and half at max.
$AZO #Stock Breakout in 1h Chart #fintwit#AZO Breakout 🚀 in 1h Chart on above average volume
All Entry Criteria have been met:
1. Price above 10, 20 & 50 EMA ✅
2. Consolidation Phase in Uptrend ✅
3. Breakout on above average Volume✅
