AutoZone Stock Slides on Wedbush Downgrade

Analysts were mostly optimistic ahead of today's note

Managing Editor
Jan 6, 2020 at 10:26 AM
facebook X logo linkedin

Shares of car parts retailer AutoZone, Inc. (NYSE:AZO) are down 2.7% at $1,155.79 this morning, after being on the receiving end of a downgrade at Wedbush. The brokerage firm lowered its rating to "neutral" from "outperform" and cut its price target to $1,225 from $1,375, citing AutoZone stock's reach to near peak valuation from its 2019's rise of more than 40%. In fact, Wedbush noted a preference for AZO rival, Advance Auto Parts (AAP).

Despite today's bear note, the equity has climbed the charts long-term, up 39% over the past 12 months, and early last month touched a record high of $1,274.40. Supporting the equity has been the 180-day moving average, which captured a sharp pullback as recently as early October. 

Circling back to analyst attention, coming into today 11 of 17 covering firms sport a "buy" or better rating. This is optimistic outlook is echoed within the stock's average 12-month price target of $1,335.59 coming in 14% above Friday night's close.

Now looks to be an attractive time to bet on the equity's next move with options. This is per its Schaeffer's Volatility Index (SVI) of 20%, which sits in the 14th percentile of its annual range. In simpler terms, options players are pricing in relatively low volatility expectations right now.



Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI