Tempe Collision Reviews AutoZone’s BBB Credit Rating (AZO)
It’s not too often that you will see stock-related news coming from our Tempe collision center. While, frankly, talking about stocks is not our strongest talent, having some knowledge about other businesses in the auto repair industry gives us and our consumers an idea of what to anticipate from the industry. It also gives us some insight about the state of the economy and where certain industries may be headed in the future.
In today’s article, we are going to take a look at the stock prices for the auto parts and repair retail giant, AutoZone. With more than 5,200 stores and 80,000 employees spread across four countries, AutoZone handles a majority of the repair industry’s sales for DIY auto repair. Since the company is large and maintains a household name, it could give some insight in how the auto repair industry is performing in the economy.
TEMPE COLLISION SHOP REVIEWS AUTOZONE’S CREDIT RATING
In September, the Dakota Financial News reported on the credit rating the repair retailer earned as well as some of the stock news for AutoZone. The news source stated that AutoZone received a “BBB” credit rating from Morningstar, an investment research firm. This rating means that the retail giant currently stands at an above average business credit rating and has adequate financial protection in the long term. It does, however, show that the company’s financial status could be vulnerable to a slow economy and holds a moderate risk for loan default.
TEMPE COLLISION CENTER EXAMINES STOCK NEWS FOR AUTOZONE
The Dakota Financial News also reported that Morningstar gave AutoZone a three-star rating on their stocks as opposed to the more desired, yet difficult to earn, four or five-star rating. Even so, the investment research firm notes that a three-star stock rating is one that will still demonstrate some level of quality return for investors. The star rating is calculated by comparing the stock’s going price on the market with the estimated value of its fair market price.
Our Tempe collision shop, however, noticed that AutoZone’s star rating fell recently to two-stars, which notes a decrease in anticipated investment returns. Since the start of September, the auto repair retailer saw a slow increase in their stock prices with the occasional drop that is to be expected. In fact, some financial analysts listed the company as a “buy” option as early as August and today it is still a recommended as such.
HOW AUTOZONE COMPARES TO INDUSTRY PEERS
So, how is AutoZone performing in relation to its industry peers, like O’Reilly Automotive and Advance Auto Parts? Our Tempe collision shop found that as of today, the company is selling at a significantly higher price; the price is at least $500 above the others but also shows a higher probability for loss. However, plenty of financial analysts suggest that the price for AutoZone may continue to rise, even as large shareholders have sold portions of their stocks. The possibility of this turning into greater returns for shareholders is enough to lure plenty into purchasing more stock, driving the price up by the week.