AZO Shifts Higher After Earnings

The shares of AutoZone, Inc. (NYSE:AZO) are up 4.6% at $1,174.70 at last check, after reporting a fiscal third-quarter earnings beat as well as higher-than-expected revenue. After a quarter of extreme ups and downs, sales sped ahead in the last four weeks of the quarter as stimulus checks began to arrive. The company did add, however, that due to the extreme fluctuations the economy has seen of late they could not "forecast short-term results with any degree of confidence."

AZO has seen a gradual climb out of its mid-March trough with recent assistance from the 20-day moving average. Earlier today, the stock grabbed a four-month high but wound up running out of steam at the $1,150 level, which also thwarted a breakout attempt in early March. 

Analysts are on the bullish side today, with nine out of 14 sporting a “buy” or better rating, and the remaining five at a halfhearted “hold.” Meanwhile, the equity has risen above its 12-month consensus target price of $1,117.07 -- a 4.3% premium to last night’s close.

Though options volume has been relatively low, calls are favored in the options pits, as AZO sports a 10-day call/put volume ratio of 1.31 at the International Securites Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 84% of readings from the past year, meaning calls are being picked up at a faster-than-usual pace.