Analyst: AutoZone Stock "Defensively Positioned"

AZO recently reclaimed its year-to-date breakeven level

Deputy Editor
Jun 27, 2022 at 9:57 AM
facebook twitter linkedin


AutoZone, Inc. (NYSE:AZO) stock is up 1% to trade at $2,180.54 at last check, rising after an upgrade to "buy" from "neutral" from Goldman Sachs. The brokerage firm called AZO a "defensively positioned" equity that could brave inflation, thanks to relatively inelastic demand and non-discretionary sales in regard to auto parts.

Coming into today, the majority of analysts were already bullish on the AutoZone stock, with 10 of 14 rating it a "buy" or better; however, three "hold" recommendations and one "sell" rating means AZO stock could see a few more bull notes come down the line in the near future. Meanwhile, the 12-month consensus price target of $2,216.22 is a slime 2.7% premium to Friday's close.

Today's bounce is helping AZO extending its rebound from its May 20, eight-month low of $1,703.32 -- a pullback that was kept in check by the equity's 320-day moving average. Year-over-year, AutoZone stock is up 48.7%, and has recently reclaimed its year-to-date breakeven level.  

The good news for options traders is the security's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 88 out of 100. This indicates the equity exceeded option traders' volatility expectations during the past year -- a boon thing for premium buyers.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners