AZO Trading Analysis - 09/11/2026 03:25 PM — TRU-SENTIMENT

News Headlines & Context:

Recent news headlines for AZO include:

• Autozone (AZO) reported strong quarterly earnings, beating analyst estimates.
• The company announced plans to expand its operations in the European market.
• AZO's stock has been under pressure due to concerns over supply chain disruptions.

These headlines may impact the stock's technical and sentiment analysis, particularly in relation to earnings trends, revenue growth, and market position.

Fundamental Analysis:

Revenue Growth: The provided fundamentals data does not include the revenue growth rate. However, the total revenue is $19,986,403,000.

Profit Margins: The gross margin is 51.75%, the operating margin is 18.02%, and the profit margin is 12.40%.

Earnings Per Share (EPS): The trailing EPS is $145.45.

P/E Ratio: The trailing P/E ratio is 19.81.

Valuation: The PEG ratio is not provided, and the P/E ratio suggests a relatively fair valuation.

Key Fundamental Strengths/Concerns:

• Strengths: Strong revenue, decent profit margins.
• Concerns: High debt-to-equity ratio (-8.51), negative return on equity (-0.89%).

Analyst Consensus: Not provided.

Current Market Position:

Current Price: $2,882.79.

Recent Price Action: The stock has been trading in a range, with a recent high of $2,931.59 and a low of $2,865.13.

Key Support/Resistance Levels:

• Support: $2,870.42 (Bollinger Band lower bound).
• Resistance: $3,081.00 (Bollinger Band upper bound).

Technical Analysis:

SMA Trends:

• 5-day SMA: $2,922.03.
• 20-day SMA: $2,975.71.
• 50-day SMA: $3,014.94.

The stock is currently below its 5, 20, and 50-day SMAs, indicating a downtrend.

RSI: 41.30, indicating neutral momentum.

MACD: -35.21, indicating a bearish signal.

Bollinger Bands: The stock is trading near the lower band, indicating potential oversold conditions.

30-day High/Low: The stock is trading near its 30-day low, indicating potential support.

True Sentiment Analysis:

Options Flow Sentiment: Balanced.

Call vs Put Dollar Volume: Calls: $1,070,430, Puts: $1,202,870.

The sentiment is balanced, indicating no clear directional bias.

Key Price Levels:

25-Day Price Forecast:

AZO is projected for $2,850.00 to $2,950.00.

The projection is based on current technical trends, momentum, and indicators, including the SMA trends, RSI momentum, MACD signals, and recent volatility (ATR).

Defined Risk Strategy Recommendations:

Based on the price forecast, here are three recommended defined risk strategies:

• Bull Call Spread: Buy the $2,900.00 call and sell the $2,950.00 call.
• Bear Put Spread: Buy the $2,850.00 put and sell the $2,800.00 put.
• Iron Condor: Buy the $2,800.00 put, sell the $2,850.00 put, sell the $2,900.00 call, and buy the $2,950.00 call.

Risk Factors:

• Technical warning signs or weaknesses: The stock is trading below its SMAs.
• Sentiment divergences from price action: The sentiment is balanced, while the price is trending down.
• Volatility and ATR considerations: The ATR is 58.32, indicating relatively high volatility.

Summary & Conviction Level:

Overall Bias: Neutral.

Conviction Level: Medium.

One-line Trade Idea: Consider a defined risk strategy, such as a bull call spread or an iron condor, to capitalize on potential price movements.