Investors in AutoZone, Inc. (AZO - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $2100.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for AutoZone shares, but what is the fundamental picture for the company? Currently, AutoZone is a Zacks Rank #3 (Hold) in the Automotive - Retail and Wholesale - Parts industry that ranks in the Top 12% of our Zacks Industry Rank. Over the last 60 days, five analysts have increased their earnings estimates for the current quarter, while three have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $55.21 per share to $55.34 in that period.
Given the way analysts feel about AutoZone right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about AutoZone (AZO - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
AutoZone currently has an average brokerage recommendation (ABR) of 1.45, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.45 approximates between Strong Buy and Buy.
Of the 28 recommendations that derive the current ABR, 21 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 75% and 3.6% of all recommendations.
Brokerage Recommendation Trends for AZO
Check price target & stock forecast for AutoZone here>>>
While the ABR calls for buying AutoZone, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is AZO a Good Investment?In terms of earnings estimate revisions for AutoZone, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $150.51.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AutoZone. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for AutoZone.
ABN Amro Investment Solutions lowered its holdings in AutoZone, Inc. (NYSE:AZO – Free Report) by 7.1% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 15,442 shares of the company’s stock after selling 1,180 shares during the quarter. ABN Amro Investment Solutions owned 0.09% of AutoZone worth $52,160,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Turning Point Benefit Group Inc. bought a new stake in AutoZone in the third quarter valued at $25,000. Torren Management LLC bought a new position in AutoZone during the 4th quarter valued at about $27,000. Transamerica Financial Advisors LLC lifted its holdings in AutoZone by 100.0% during the 4th quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company’s stock valued at $28,000 after purchasing an additional 4 shares during the last quarter. MCF Advisors LLC boosted its position in AutoZone by 50.0% in the fourth quarter. MCF Advisors LLC now owns 9 shares of the company’s stock valued at $31,000 after buying an additional 3 shares in the last quarter. Finally, Bard Associates Inc. acquired a new position in AutoZone in the fourth quarter valued at about $31,000. Institutional investors own 92.74% of the company’s stock.
Analyst Upgrades and Downgrades Several research firms have recently weighed in on AZO. Guggenheim dropped their price objective on shares of AutoZone from $4,400.00 to $4,000.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. DA Davidson decreased their price target on AutoZone from $4,300.00 to $3,750.00 and set a “buy” rating on the stock in a research report on Wednesday, May 27th. Citigroup dropped their price target on AutoZone from $4,300.00 to $3,700.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. Robert W. Baird reduced their price objective on AutoZone from $3,900.00 to $3,600.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 27th. Finally, Truist Financial set a $3,700.00 target price on AutoZone in a report on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $4,040.87.
View Our Latest Stock Report on AZO
AutoZone Price Performance Shares of NYSE:AZO opened at $3,009.58 on Wednesday. The stock has a market cap of $49.13 billion, a price-to-earnings ratio of 20.69, a P/E/G ratio of 1.52 and a beta of 0.33. The company has a 50 day moving average of $3,125.74 and a 200-day moving average of $3,410.91. AutoZone, Inc. has a one year low of $2,928.11 and a one year high of $4,388.11.
AutoZone (NYSE:AZO – Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $36.22 by $1.85. The firm had revenue of $4.84 billion for the quarter, compared to analysts’ expectations of $4.86 billion. AutoZone had a net margin of 12.40% and a negative return on equity of 80.35%. The business’s revenue for the quarter was up 8.4% on a year-over-year basis. During the same period last year, the firm earned $35.36 earnings per share. Equities research analysts anticipate that AutoZone, Inc. will post 150.51 earnings per share for the current year.
AutoZone declared that its Board of Directors has initiated a share buyback plan on Tuesday, June 16th that permits the company to buyback $1.50 billion in shares. This buyback authorization permits the company to reacquire up to 3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.
Insider Buying and Selling In related news, Director Brian Hannasch bought 165 shares of the business’s stock in a transaction on Friday, May 29th. The shares were purchased at an average price of $2,987.00 per share, with a total value of $492,855.00. Following the completion of the purchase, the director owned 1,219 shares of the company’s stock, valued at $3,641,153. This represents a 15.65% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 2.60% of the company’s stock.
About AutoZone (Free Report)
AutoZone, Inc (NYSE: AZO) is a retailer and distributor of automotive replacement parts and accessories. Headquartered in Memphis, Tennessee, the company supplies a wide range of aftermarket components, maintenance items and accessories for passenger cars, light trucks and commercial vehicles. Its product assortment includes engine parts, electrical components, batteries, brakes, filters, fluids and interior and exterior accessories, supported by inventory management and logistics systems to serve retail customers and professional service providers.
AutoZone serves both do‑it‑yourself (DIY) consumers and commercial customers such as independent repair shops and service centers.
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AutoZone (AZO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this auto parts retailer have returned -0.6% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Automotive - Retail and Wholesale - Parts industry, to which AutoZone belongs, has gained 1.4% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
AutoZone is expected to post earnings of $55.34 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $150.51 points to a change of +3.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $175.75 indicates a change of +16.8% from what AutoZone is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AutoZone.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For AutoZone, the consensus sales estimate for the current quarter of $6.71 billion indicates a year-over-year change of +7.5%. For the current and next fiscal years, $20.48 billion and $22.02 billion estimates indicate +8.1% and +7.5% changes, respectively.
Last Reported Results and Surprise HistoryAutoZone reported revenues of $4.84 billion in the last reported quarter, representing a year-over-year change of +8.4%. EPS of $38.07 for the same period compares with $35.36 a year ago.
Compared to the Zacks Consensus Estimate of $4.86 billion, the reported revenues represent a surprise of -0.45%. The EPS surprise was +5.22%.
Over the last four quarters, AutoZone surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AutoZone is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AutoZone. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
On July 16, 2026, AutoZone Inc (AZO) shares rose 3.1% to a current price of $3062.16, reflecting a slight recovery amid a challenging year where the stock has f
MEMPHIS, Tenn., July 10, 2026 (GLOBE NEWSWIRE) -- AutoZone (NYSE: AZO) today announced that Grace Sharpley, Vice President, Merchandising Pricing and Analysis, has been promoted to Senior Vice President, Finance, effective July 10, 2026. Grace will join the Company’s Executive Committee and report to Jamere Jackson, Chief Financial Officer.
Grace is a 12-year AutoZoner who has held several progressive leadership roles during her AutoZone career in Audit, Finance, and as Vice President, Strategy, and Vice President, Merchandising Pricing, and Analysis.
"We are very pleased to announce Grace's promotion and addition to the Executive Committee. Her leadership, expertise, and consistent delivery of strong results position her well to help us drive continued growth at AutoZone," said Phil Daniele, President and Chief Executive Officer.
About AutoZone (NYSE: AZO)
As of May 26, 2026, AutoZone had 6,766 stores in the U.S., 933 in Mexico and 157 in Brazil, for a total store count of 7,856.
AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a Commercial sales program that provides prompt delivery of parts and other products and Commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.AutoZone.com, and our Commercial customers can make purchases through www.AutoZonePro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.ALLDATA.com. We also provide product information on our Duralast-branded products through www.DuralastParts.com. AutoZone does not derive revenue from automotive repair or installation services.
Contact Information:
Financial: Brian Campbell at (901) 495-7005, [email protected]
Media: Jennifer Hughes at (901) 495-6022, [email protected]
AutoZone (AZO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this auto parts retailer have returned -3.8% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Automotive - Retail and Wholesale - Parts industry, to which AutoZone belongs, has lost 1.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
AutoZone is expected to post earnings of $55.34 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.
The consensus earnings estimate of $150.51 for the current fiscal year indicates a year-over-year change of +3.9%. This estimate has changed +0.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $175.75 indicates a change of +16.8% from what AutoZone is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AutoZone is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For AutoZone, the consensus sales estimate for the current quarter of $6.71 billion indicates a year-over-year change of +7.5%. For the current and next fiscal years, $20.48 billion and $22.02 billion estimates indicate +8.1% and +7.5% changes, respectively.
Last Reported Results and Surprise HistoryAutoZone reported revenues of $4.84 billion in the last reported quarter, representing a year-over-year change of +8.4%. EPS of $38.07 for the same period compares with $35.36 a year ago.
Compared to the Zacks Consensus Estimate of $4.86 billion, the reported revenues represent a surprise of -0.45%. The EPS surprise was +5.22%.
Over the last four quarters, AutoZone surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AutoZone is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AutoZone. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
A media report that hit the headlines just before the stock market took a break for Independence Day was weighing on investor sentiment toward AutoZone (AZO 6.38%) shares on Monday. The prominent auto retailer's stock fell by more than 6% after a financial news agency reported that two rivals might soon combine.
A Genuine offer? That report, published in Bloomberg and citing unidentified "people familiar with the matter" as sources, said O'Reilly Automotive made a buyout offer for Genuine Parts' auto parts distribution arm. The deal could be valued at $10 billion or more; those sources were not more specific about the financials. They did say it was an all-cash bid.
Image source: Getty Images.
Neither O'Reilly nor Genuine Parts has officially commented on the story.
Genuine Parts is best known for the brand behind the distribution business, Napa. This unit is considerable, with 10,000 retail locations here and abroad, and over $15 billion in sales in 2025, and would be quite the addition for O'Reilly. Earlier this year, Genuine Parts announced it was working with advisors to separate Napa and its industrial parts businesses.
The article's sources said that a potential deal could be announced as early as the end of this summer. There's no guarantee one will happen, however, and Genuine Parts could decide to keep ownership of the distribution unit.
Today's Change
(
-6.38
%) $
-201.57
Current Price
$
2957.71
Moving parts This story is entirely believable, as Genuine Parts as a whole has seen pronounced downward momentum with its share price at times over the past few years. Also, O'Reilly has not been shy about pursuing acquisitions for growth; Bloomberg noted that it spent roughly $1 billion to acquire CSK Auto in 2008.
I always advise against buying or selling a stock on takeover speculation, and that goes for AutoZone, O'Reilly, and Genuine Parts. While this report feels realistic, even if O'Reilly does strike a deal with Genuine Parts, it might encounter legal speedbumps due to antitrust concerns.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Genuine Parts. The Motley Fool has a disclosure policy.
Americké akciové indexy vykázaly v úvodní seanci po prodlouženém víkendu kladnou bilanci v čele s technologickým Nasdaqem (+1,12 %). Širší index S&P500 přidal 0,72 % a Dow Jones 0,29 %. Mírný zisk registrovaly také dluhopisy vyjma nejdelších maturit. Výnos 10letého vládního bondu se posunul na 4,47 % z pátečních 4,48 %. V červeném uzavřely drahé kovy. Zlato odepsalo 0,3 % na 4162 USD/oz, stříbro končilo slabší o 0,64 % na 62 USD/oz. V energetickém sektoru se dařilo zemnímu plynu, který zpevnil téměř o 1,7 % na 3,25 USD/mmbtu. Ropa končila beze změny na 68,7 USD/barel.
Závěrečné hodnoty:
Index Dow Jones 0,29 % na 53055,91 b.
Index Nasdaq Composite 1,12 % na 26121,16 b.
Index S&P 500 +0,72 % na 7537,43 b.
Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Sektor komunikací +1,6 % Zdravotní péče -1,2 % Informační technologie +1,3 % Utility -1,1 % Nezbytná spotřeba +1 % Reality -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Arista Networks (ANET) +8,3 % O'Reilly Automotive (ORLY) -6,7 % Western Digital (WDC) +7,1 % AutoZone (AZO) -6,4 % Tesla (TSLA) +6,7 % Alexandria Real Estate Equities (ARE) -5,2 % Advanced Micro Devices (AMD) +6,6 % Constellation Brands (STZ) -4,9 % NetApp (NTAP) +6,1 % Tractor Supply (TSCO) -4,8 % Zdroj: Reuters
Americké akciové indexy se po prodlouženém víkendu, kdy ještě doznívají sváteční konfety, pohybují v kladném teritoriu v čele s technologickým Nasdaqem, který přidává bezmála 1,3 %, širší index S&P500 pak posiluje o 0,7 %. Kosmetický zisk 0,05 % si připisuje též tradiční index Dow Jones.
K růstu se po korekci v minulém týdnu vrátily polovodiče. Referenční Philadelphia SE Semiconductor index zpevňuje téměř o 4 % a sektor informačních technologií jednoznačně dominuje dnešnímu odvětvovému růstu v rámci S&P500 se ziskem 2 %. Jim sekundují komunikační služby (+0,9 %). Naopak sektor zbytných statků, zdravotnictví a utilit vykazuje více než 1% ztrátu.
Po sérii nových historických maxim z prvního pololetí přijde již brzy další test robustnosti trhu v podobě výsledkové sezony. Zejména volatilní polovodičový sektor v poslední době ukazuje, že prostor pro zklamání je omezený. Reportovací období pomyslně odstartují příští úterý přední americké banky.
Smíšeným vývojem dnes prochází dluhopisy. Zatímco kratší maturity lehce zpevňují, delší splatnosti naopak mírně ztrácí. Výnos 10letého vládního bondu se drží těsně nad hladinou 4,48 %. Drahé kovy vykazují ztráty. Zlato odepisuje 0,6 % na 4152 USD/oz, stříbro oslabuje o 1 % na 61,8 USD/oz.
V energetickém sektoru se nedaří ropě, která se obchoduje slabší o 0,6 % na 68,3 USD/barel, zemní plyn naopak přidává 0,9 % na 3,23 USD/mmbtu.
Na korporátní úrovni S&P500 konstituentů si nejlepší výsledek připisují akcie výrobce procesorů a AI akcelerátorů, spol. AMD (AMD +7,9 %) po zvýšeném cíli od Goldman Sachs na 640 z předchozích 450 USD při trvajícím poptávkovém momentu v oblasti AI. Nejhorší výsledek pak registruje prodejce náhradních autodílů, spol. O’Reilly (ORLY -7,2 %) po zprávách o akvizičním zájmu převzít konkurenta NAPA Auto Parts, divize spol. Genuine Parts (GPC), při hotovostní nabídce za více než 10 mld. USD. Nedaří se ani dalšímu z prodejců auto komponent, spol. Autozone (AZO -6,1 %).
Z dalších zajímavých korporátních zpráv pak doplňme oznámení Microsoftu (MSFT -1,2 %) o propuštění 4800 zaměstnanců (2,1 % pracovníků). V polovodičovém segmentu potěšil investory Broadcom (AVGO +4,2 %) po prodloužení obchodní spolupráce s Applem (AAPL) do roku 2031.
Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,9 % Zbytná spotřeba -1,5 % Sektor komunikací +1 % Zdravotní péče -1,3 % Nezbytná spotřeba +0,8 % Utility -1,2 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Advanced Micro Devices (AMD) +7,9 % O'Reilly Automotive (ORLY) -7,2 % Arista Networks (ANET) +7,7 % AutoZone (AZO) -6,1 % VERTIV HLD A O (VRT) +6,7 % Constellation Brands (STZ) -5,7 % Tesla (TSLA) +6,3 % Tractor Supply (TSCO) -4,9 % QUALCOMM (QCOM) +6,3 % BUILDR FIRST O (BLDR) -4,4 % Zdroj: Reuters
Index Dow Jones -0,1 % na 52848,66 b. S&P 500 +0,44 % na 7516,13 b. Nasdaq Composite +0,91 % na 26067,65 b.
Obchodní den po prodlouženém víkendu začíná smíšeně. Index Dow Jones kosmeticky ztrácí, povedlo se mu ale po otevření poprvé překonat 53000 b. Tahounem indexu s růstem nad 2 % je Caterpillar (2,55 %) a Goldmman Sachs Group (2,41 %).
Z indexu S&P 500 posilují zejména informační technologie, kterých růst se propisuje i do indexu Nasdaq. Nejslabším sektorem je zdravotnictví. Pfizer ztrácí 2,06 %, Eli Lilly odepisuje 1,16 % a Johnson & Johnson klesá o 1,81 %.
Z technologií dnes opět rostou čipové společnosti. Broadcom a AMD posilují o víc, než 6 %, Nvidia se obchoduje na kladné nule.
Microsoft (-1,65 %) se chystá na další vlnu propouštění, která tentokrát zasáhne divize prodeje a Xbox. Celkem se má společnost zeštíhlit o přibližně 2 % pracovní síly, tedy 4 800 míst. Společnost se snaží o zefektivnění nákladů a tlačí na zvyšování efektivity všech divizí. Microsoft zvažuje i změnu struktury herní divize s možným prodejem několika studií.
OPEC o víkendu oznámil záměr zvýšit těžbu černého zlata. V srpnu by se měl objem navýšit o 188 tis barelů denně. Futures kontrakty na WTI reagují mírným poklesem. Aktuálně se barel obchoduje pod USD 69.
Index S&P 500 +0,44 % na 7516,13 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,6 % Zdravotní péče -1,8 % Průmysl +1,2 % Nezbytná spotřeba -0,8 % Finanční sektor +0,2 % Reality -0,6 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Western Digital Corp (WDC) +9,0 % O'Reilly Automotive (ORLY) -5,2 % Advanced Micro Devices (AMD) +7,5 % AutoZone (AZO) -4,7 % Vertiv Holdings (VRT) +7,4 % Constellation Brands (STZ) -3,8 % Teradyne (TER) +7,1 % SBA Communications Corp (SBAC) -3,7 % GE Vernova (GEV) +6,5 % Genuine Parts (GPC) -3,6 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení
SummaryAutoZone is reiterated as a Buy, supported by resilient performance, aggressive international expansion, and robust investments in hubs and mega-hubs.Q3 FY26 saw solid EPS growth and strong international same-store sales, despite macro headwinds and a minor revenue miss.Elevated CAPEX is driving store growth and inventory proximity, with share buybacks and disciplined capital allocation underpinning EPS growth.Valuation remains attractive, with intrinsic value estimated above current levels, offering a margin of safety for long-term investors. Getty Images
Introduction Back when I first covered AutoZone (AZO), I initiated coverage with a Buy rating, arguing how the “Recent Pullback Creates An Opportunity In A Durable Auto Parts Leader,” highlighting the company’s strong performance and major ongoing expansion
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AZO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
AutoZone (AZO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this auto parts retailer have returned +1.7%, compared to the Zacks S&P 500 composite's -1.4% change. During this period, the Zacks Automotive - Retail and Wholesale - Parts industry, which AutoZone falls in, has lost 3.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AutoZone is expected to post earnings of $55.34 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0%.
For the current fiscal year, the consensus earnings estimate of $150.51 points to a change of +3.9% from the prior year. Over the last 30 days, this estimate has changed +0.7%.
For the next fiscal year, the consensus earnings estimate of $175.75 indicates a change of +16.8% from what AutoZone is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for AutoZone.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AutoZone, the consensus sales estimate of $6.71 billion for the current quarter points to a year-over-year change of +7.5%. The $20.48 billion and $22.02 billion estimates for the current and next fiscal years indicate changes of +8.1% and +7.5%, respectively.
Last Reported Results and Surprise HistoryAutoZone reported revenues of $4.84 billion in the last reported quarter, representing a year-over-year change of +8.4%. EPS of $38.07 for the same period compares with $35.36 a year ago.
Compared to the Zacks Consensus Estimate of $4.86 billion, the reported revenues represent a surprise of -0.45%. The EPS surprise was +5.22%.
Over the last four quarters, AutoZone surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AutoZone is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AutoZone. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Mid-year is when analysts sharpen their pencils. With Q1 2026 earnings season behind us and fresh full-year models in hand, June has produced a cleaner read on where institutional conviction is building. The pattern this month: defensive cash-flow compounders and a property-and-casualty insurer riding a multi-quarter underwriting recovery. Three names stand out where Wall Street ratings are firmly in the Buy camp and recent earnings results validate the upgrade thesis.
AutoZone (NYSE: AZO) AutoZone (NYSE:AZO | AZO Price Prediction) is the rare situation where the stock has cooled while the fundamentals have heated up. Shares trade at $3,115.63 as of June 24, but that price reflects a 10% year-to-date decline against a Wall Street consensus target of $3,969.38. Analyst alignment is unusually tight: 4 Strong Buy, 17 Buy, 5 Hold, and zero Sell ratings.
The catalyst is Q3 fiscal 2026, reported May 26, 2026. EPS came in at $38.07, beating consensus of $36.17. Revenue of $4.84 billion grew 8% year over year, with domestic same-store sales up 4% and the high-margin commercial business expanding 10% to $1.40 billion. CEO Phil Daniele highlighted an “operating margin north of 19%” while the company repurchased $586.3 million of stock during the quarter.
The bull case is simple: an aging US vehicle fleet, double-digit commercial growth, and a forward P/E of 17 on a defensive cash compounder. The risk: international weakness in Mexico and Brazil and a 77 basis point LIFO drag on gross margin. Next catalyst is the Q4 print on August 25, 2026.
CSW Industrials (NYSE: CSW) CSW Industrials (NYSE:CSW) is the smallest name on this list at roughly $4.44 billion market cap, and arguably the highest-conviction acquisition story. Shares last traded at $279.88, with analysts pointing to a consensus target of $324.57. The ratings split: 2 Strong Buy, 1 Buy, 4 Hold, zero Sell.
Q4 fiscal 2026, reported May 26, 2026, was the upgrade trigger. Adjusted EPS of $3.14 crushed the $2.34 consensus. Revenue grew 34% year over year to $308.96 million, and CSW crossed $1 billion in annual revenue for the first time. Adjusted EBITDA margin expanded 90 basis points to 27%.
The growth engine is acquisitions. CEO Joseph B. Armes said the company “enter fiscal year 2027 with a cautiously optimistic outlook” and anticipates “meaningful growth in revenue, adjusted EBITDA, adjusted EPS, and cash flows.” The Aspen Manufacturing, MARS Parts, and Duckt-Strip deals opened HVAC mini-split and electrical cable adjacencies, contributing 31% inorganic revenue growth.
The caveat is leverage. Net leverage sits at 2.55x after the acquisition push, interest expense swung from $1.62 million income to $11.79 million expense, and the forward P/E of 43 demands continued execution. Q1 FY27 reports July 30, 2026.
Allstate (NYSE: ALL) Allstate (NYSE:ALL) is the cleanest macro story of the three: catastrophe loss normalization meeting aggressive capital return. Shares at $234.29 are now 12% higher year to date and 19% higher over the past year. Forward P/E is just 9.
Q1 2026, reported April 29, delivered EPS of $10.65 versus a $7.25 estimate, a 47% beat. Net income reached $2.43 billion. The Property-Liability combined ratio improved 15.4 points to 82.0 as catastrophe losses fell 44% against the prior-year California wildfire quarter. Homeowners insurance swung to $685 million underwriting profit from a $451 million loss. Book value per share jumped to $114 from $74.61.
Capital return is the kicker. Allstate returned $881 million to shareholders in Q1, on top of a freshly authorized $4.0 billion buyback program and a dividend raise to $1.08 per share quarterly. CEO Tom Wilson credited “Transformative Growth” for market share gains across auto and homeowners.
The risk is hurricane season. Catastrophe results are inherently volatile, and Q1 also included $405 million in net investment losses tied to equity market declines. Q2 reports August 3, 2026.
What to Watch Three different theses, one common thread: each name has a Q2 print landing in roughly five to nine weeks that will either validate or break the upgrade cycle. AutoZone needs continued commercial momentum and any sign of international stabilization. CSW needs organic growth to firm up as acquisitions lap. Allstate needs a quiet hurricane season to compound the buyback math. Mid-year repositioning windows close fast, and the August earnings cluster will reset conviction for the second half.
A month has gone by since the last earnings report for AutoZone (AZO - Free Report) . Shares have added about 2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AutoZone due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for AutoZone, Inc. before we dive into how investors and analysts have reacted as of late.
AutoZone Q3 Earnings Beat EstimatesAutoZone posted third-quarter fiscal 2026 (ended May 9, 2026) earnings per share of $38.07, topping the Zacks Consensus Estimate of $36.18 by 5.2%. Earnings per share rose 7.7% from $35.36 a year ago.
The company’s net sales increased 8.4% year over year to $4.84 billion, but fell short of the consensus mark of $4.86 billion by about 0.5%. Domestic same-store sales increased 4.1% in the quarter, led by strong commercial momentum.
Sales Growth Accelerates on Commercial MomentumIn the reported quarter, domestic commercial sales totaled $1.4 billion, up from $1.27 billion in the year-ago period. Total sales represented the company’s largest year-over-year growth in more than three years, reflecting faster top-line momentum versus the first half of fiscal 2026. Total company same-store sales rose 3.9% on a constant-currency basis, supported by a 4.1% domestic comp and a 1.6% international comp on the same basis.
The mix of growth also leaned favorably. Domestic do-it-yourself sales rose 2.2% in the quarter, while domestic commercial sales increased 10.4%. The commercial outperformance was driven by better inventory availability at satellite stores, broader Hub and Mega-Hub coverage, and continued gains tied to service speed and delivery improvements.
Profitability Reflects LIFO and Mix PressureGross profit rose to $2.52 billion from $2.35 billion in the prior-year quarter. Gross profit margin was 52.2%, down 57 basis points from the year-ago period. A $20 million non-cash LIFO charge in the quarter, which contrasted with a $16 million LIFO credit in the prior-year quarter, weighed on the year-over-year margin comparison.
Operating profit increased 6.6% to $923.8 million. Operating expenses were 33.1% of sales versus 33.3% last year, indicating modest leverage despite the faster store growth cadence. Net income rose to $641.5 million from $608.4 million a year ago.
Store Growth Push Builds Scale Across RegionsAutoZone continued to add stores at a faster pace. During the quarter, it opened 82 new stores globally, including 57 in the United States, 20 in Mexico and five in Brazil. Total store count ended at 7,856, consisting of 6,766 in the United States, 933 in Mexico and 157 in Brazil.
The company continues to expand its commercial footprint. Mega-Hubs acted as a key driver of improved parts availability, as these locations typically carry a significantly broader SKU count and can lift both commercial and retail demand by shortening delivery times in local markets.
Capital Returns Remain a Key FeatureShare repurchases stayed sizable in the quarter. AutoZone bought back 164,000 shares for $586.3 million at an average price of $3,582 per share, ending the period with $0.8 billion remaining under its current authorization.
Liquidity remained solid alongside a leveraged balance sheet structure typical of the company’s capital strategy. Cash and cash equivalents were $253.7 million as of May 9, 2026, while total debt stood at $9.02 billion, down from $8.8 billion as of May 10, 2025. The company reported a leverage ratio of 2.5x EBITDAR.
Inventory Position Tracks Growth and InflationInventory continued to build as the company invests to support growth initiatives and new stores. Merchandise inventories rose 10.8% year over year to $7.56 billion. Inventory per store increased to $962,000 from $908,000 in the year-ago quarter.
Net inventory, defined as merchandise inventory less accounts payable, remained negative on a per-store basis. Net inventory per store was negative $107,000 compared with negative $142,000 last year, while accounts payable as a percentage of inventory was 111.1% compared with 115.6% a year ago.
Q4 Commentary Centers on Inflation and LIFOThe company expects inflation and ticket growth to moderate in the fourth quarter versus the third quarter, with commentary pointing to a mid-4% range for ticket trends as the company laps higher inflation from the prior year. It also expects a planned non-cash LIFO charge of approximately $30 million for the fourth quarter, which would pressure gross margin and earnings per share versus a more favorable prior-year LIFO comparison.
The company expects weather-related softness late in the quarter, affecting certain heat-driven categories, while reiterating confidence in summer performance given ongoing execution initiatives. Internationally, the company expects a softer macro environment in Mexico and Brazil, with expectations for constant-currency same-store sales in a range similar to the third quarter.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
VGM ScoresCurrently, AutoZone has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, AutoZone has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
On June 17, 2026, we present a DCF analysis for AutoZone Inc AZO , a company that has experienced a challenging price performance recently, with a year-to-date decline of 7.8% and a one-year drop of 13.2%. Below are key highlights from our analysis:
DCF Earnings-based intrinsic value of $3817.47 per share compared to the current price of $3127.79, indicating a margin of safety of 18.1%. DCF FCF-based intrinsic value of $2184.44 per share suggests a modestly overvalued status with a margin of safety of -43.2%. GF Score™ of 93/100 indicates strong reliability of the DCF inputs, suggesting solid financial health and performance potential. What Is AZO Worth? DCF Earnings-Based Model The DCF earnings-based model for AutoZone Inc AZO utilizes a two-stage approach to estimate the intrinsic value of the stock. The first stage reflects a high growth phase, while the second stage accounts for a more stable growth period.
Parameter Value Current EPS (TTM, excl. non-recurring) $145.45 10-Year Growth Rate 17.4% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we assume that EPS will grow at a rate of 17.4% per year for the next 10 years, discounted at a rate of 11%. The second stage assumes a terminal growth rate of 4% for the following 10 years, also discounted at 11%. Below is a summary of the calculations:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 17.4%, discounted at 11% $2005.52 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $1811.95 Intrinsic Value Growth + Terminal $3817.47 With a current price of $3127.79 and an intrinsic value of $3817.47, AutoZone appears to be modestly undervalued with a margin of safety of 18.1%. It is important to note that GuruFocus uses EPS without non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, you can access the AZO DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for AutoZone is calculated to be $2184.44 per share. When comparing this with the earnings-based intrinsic value of $3817.47, there is a significant discrepancy. The FCF model indicates that AutoZone is modestly overvalued, with a margin of safety of -43.2%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for AutoZone is calculated at $3689.05, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. Comparing all three models, the earnings-based DCF suggests undervaluation, the FCF-based DCF indicates overvaluation, and GF Value™ suggests a slight undervaluation. For more insights, visit the GF Value™ page.
What Does AZO's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns (backtested from 2006-2021).
Metric Rating GF Score™ 93/100 Financial Strength 5/10 Profitability 10/10 Growth 10/10 Valuation 10/10 Momentum 4/10 With a predictability rank of 2/5 stars, it is important to note that higher predictability ratings generally enhance the reliability of the DCF model for this stock. For more information, visit the AZO stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect actual future performance.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the overall verdict for AutoZone Inc AZO is mixed. While the earnings-based DCF suggests the stock is modestly undervalued, the FCF model indicates it is overvalued, and GF Value™ suggests a slight undervaluation. Overall, investors should consider these varying perspectives before making investment decisions. For the full DCF analysis, visit the AZO DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is AZO's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
MEMPHIS, Tenn., June 16, 2026 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO), today, announced its Board of Directors authorized the repurchase of an additional $1.5 billion of the Company’s common stock in connection with its ongoing share repurchase program. Since the inception of the repurchase program in 1998, and including the above amount, AutoZone’s Board of Directors has authorized $42.2 billion in share repurchases.
“Our disciplined capital allocation approach continues to allow us to generate strong free cash flow, invest in growth, and increase our share buyback authorization while maintaining investment grade credit ratings,” said Jamere Jackson, Chief Financial Officer.
About AutoZone:
As of May 26, 2026, AutoZone had 6,766 stores in the U.S., 933 in Mexico and 157 in Brazil, for a total store count of 7,856.
AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a Commercial sales program that provides prompt delivery of parts and other products and Commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.AutoZone.com, and our Commercial customers can make purchases through www.AutoZonePro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.ALLDATA.com. We also provide product information on our Duralast-branded products through www.DuralastParts.com. AutoZone does not derive revenue from automotive repair or installation services.
AutoZone (AZO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this auto parts retailer have returned -6.2% over the past month versus the Zacks S&P 500 composite's +0.5% change. The Zacks Automotive - Retail and Wholesale - Parts industry, to which AutoZone belongs, has lost 1.7% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, AutoZone is expected to post earnings of $55.27 per share, indicating a change of +13.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $150.45 points to a change of +3.9% from the prior year. Over the last 30 days, this estimate has changed +1%.
For the next fiscal year, the consensus earnings estimate of $175.69 indicates a change of +16.8% from what AutoZone is expected to report a year ago. Over the past month, the estimate has changed +0.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AutoZone is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AutoZone, the consensus sales estimate of $6.71 billion for the current quarter points to a year-over-year change of +7.5%. The $20.48 billion and $22.02 billion estimates for the current and next fiscal years indicate changes of +8.1% and +7.5%, respectively.
Last Reported Results and Surprise HistoryAutoZone reported revenues of $4.84 billion in the last reported quarter, representing a year-over-year change of +8.4%. EPS of $38.07 for the same period compares with $35.36 a year ago.
Compared to the Zacks Consensus Estimate of $4.86 billion, the reported revenues represent a surprise of -0.45%. The EPS surprise was +5.22%.
Over the last four quarters, AutoZone surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AutoZone is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AutoZone. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
AutoZone, Inc. remains a long-term compounder despite recent margin pressure, slower EPS growth, and a pullback to $3,000. AZO's Q3 saw record sales of $4.84 billion (+8.5% YoY), positive comps, and EPS of $38.07, but gross margin fell 57 bps to 52.2%. Buybacks remain a key value driver, with 164,000 shares repurchased this quarter and only 16.4 million shares outstanding.
AutoZone NYSE: AZO is a buy-and-hold quality stock nearly beyond compare. The company’s management, strategy, market position, market trends, operational quality, cash flow, and capital returns are a recipe for ever-growing value, as reflected in the long-term price action. AZO’s stock price advanced approximately 500% from the pandemic low to the 2025 peak, and additional highs are still likely in 2026.
AutoZone Today
$3,070.69 -10.93 (-0.35%)
As of 10:26 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$2,928.11▼
$4,388.11P/E Ratio21.13
Price Target$4,040.87
The takeaway in 2026 is that the AZO market is experiencing a much-needed price correction and setting up a buying opportunity of generational proportions. It may take some time for AZO’s market to regain traction and resume its uptrend, but it will, and when it does, the gains could be explosive. Catalysts include international expansion, market share gains, business optimization, and aggressive share buybacks.
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The company is expanding aggressively in Latin America, specifically in Mexico and Brazil, where middle-class expansion is fastest. Meanwhile, the company also focuses on capturing the fragmented commercial auto parts markets and driving supply chain efficiency through digitization. The critical factors are earnings growth, cash flow, and aggressive share buybacks. The company is well regarded as an efficient steward of capital, reducing its share count significantly on both a quarterly and an annual basis. Q1 activity amounted to $586 million, about 92% of operating profits, reducing the count by an average of 2% on a trailing 12-month (TTM) basis.
Mixed Results Favor AutoZone InvestorsAutoZone reported a mixed quarter with revenue for its fiscal Q3 2026 falling short of the consensus estimate. However, the $20 million miss was slim and easily overlooked in light of the 8.5% growth and margin strength. Revenue growth was underpinned by increases in store count in the U.S., Mexico, and Brazil, compounded by a 3.9% systemwide comp. Comps rose by 4.1% domestically and 1.6% internationally, below expectations but still a healthy gain.
Margin news was also mixed, which was central to the stock price decline. However, the gross margin reduction and overall impact are less than feared, leaving operating profit up approximately 6.5% year over year and GAAP earnings per share well ahead of the consensus forecast. At $38.07, GAAP earnings were nearly $2 above expectations and 5.5% better than expectations, sufficient to sustain operations and capital returns while enabling strategy execution.
AutoZone’s balance sheet provides no red flags. The company’s cash balance held relatively steady despite the increased investment and robust capital return. Other highlights include increased inventory and total assets, and a reduction in deficit. Normally a problem, the shareholder deficit results from share buybacks and is likely to persist over time. AutoZone has returned more than $12.5 billion to investors over the past decade, approximately 25% of its late-May market cap.
AutoZone Market Over Reacts to Results: Deepens Value OpportunityAutoZone Stock Forecast Today12-Month Stock Price Forecast:
$4,040.87
30.92% Upside
Moderate Buy
Based on 27 Analyst Ratings
Current Price$3,086.55High Forecast$4,800.00Average Forecast$4,040.87Low Forecast$3,200.00AutoZone Stock Forecast Details
Analyst trends have contributed to AutoZone’s 2026 stock price weakness, as some price targets were reduced early in the year. The caveat is that this market overreacted to the adjustment, compounding the move in late May after the fiscal Q3 release.
Trading near $3,000, AZO stock is 20% below the lowest price target tracked, while analyst consensus forecasts more than 40% upside. The likely result is that AZO reaches bottom sometime in late Q2 or early Q3, and begins to regain traction later in the year.
Institutional trends are among the reasons why the AZO stock price is nearing its bottom. The institutional group owns approximately 93% of the shares and has accumulated on a TTM basis.
Price action in late May has entered the range where institutional buying was strongest, suggesting a robust response from this group is forthcoming. If not, AZO’s stock price could enter a sustained downtrend, but that is not indicated by the results, analysts' trends, or chart price action.
The chart price action reveals a mid-term downtrend, with an increasingly strong chance of a rebound. While price action moves lower, the MACD is diverging, and the stochastic is deeply oversold, suggesting bears have lost control and all the bulls need is a trigger to start buying. That could be as simple as the valuation, which suggests a 50% discount to the five-year outlook, but may require more tangible news, which may not be revealed until the company's fiscal Q4 earnings results are released.
The biggest risk for AutoZone this year is margin compression. While the impacts of aggressive expansion are manageable, produce results, and will slow over time, rising costs are more of a concern and may continue eroding results. The question is whether efficiencies gained from the “Mega Hub” strategy will be enough to support margin recovery over time.
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AutoZone Inc. on Tuesday recorded its worst trading day in more than four years despite the retailer beating Wall Street's estimates for its third-quarter fiscal results.
AutoZone stock closed off 9%, marking its worst decline since a 9.5% fall on May 18, 2022. Shares continued to fall during after-hours trading.
The company reported earnings per share of $38.07 for its latest fiscal quarter compared with $36.28 per share expected, according to average estimates compiled by LSEG. Its $4.84 billion in revenue was in line with LSEG estimates of $4.83 billion. The company's fiscal quarter ended May 9.
Analysts on the company's quarterly call Tuesday were concerned about lackluster growth internationally and margin compression that was more in line with competitors. They also questioned slowing sales year over year, which the company said was due to cooler weather.
"This slowdown in sales was caused by unseasonably cool weather impacting our heat-related categories, which normally begin to ramp this time of year as summer heat begins to take hold," AutoZone CEO Philip Daniele said Tuesday.
Auto parts stocks
Wall Street analysts also questioned executives Tuesday about continued pressures on the business from inflation, energy costs and potential supply chain disruptions caused by the Iran war, specifically possible shortages of motor oil.
AutoZone executives said they expect inflationary pressures to continue but be "slightly muted" due to year-over-year comparisons. They also weren't overly concerned about potential problems with supplies of lubricants such as motor oil that are reportedly impacting dealer operations at Toyota Motor and Nissan Motor.
"The issue around lubricants, I know there's a lot of noise out there. We're going to leave that up to the oil specialists to really say what that means. We think there's probably going to be some constraints, but we don't think that it's going to be that material," Daniele said.
Automotive website The Drive reported both Nissan and Toyota have recently issued service bulletins to dealers with instructions on rationing motor oil stocks due to an impending shortage.
A Toyota spokesman said the company has "nothing more to add on this issue at this time." A spokeswoman for Nissan said the automaker "is navigating supplier constraints affecting lubricant availability."
"Currently, we are maintaining current pricing and have implemented temporary allocation measures to help ensure consistent supply across our dealer network. We're also working with supplier partners to identify additional sourcing. Our priority remains supporting our dealers to ensure an exceptional customer experience," the Nissan spokeswoman said in an emailed statement.
AutoZone (AZO 0.40%) stock is getting hit with a big sell-off in Tuesday's trading. The company's share price was down 9.6% as of 2:45 p.m. ET.
Before the market opened this morning, AutoZone published results for the third quarter of its current fiscal year -- a period that ended May 9. While the company posted a significant earnings beat in the quarter, sales fell short of the average analyst estimate.
Image source: Getty Images.
AutoZone's Q3 earnings beat wasn't enough for investors AutoZone posted earnings per share of $38.07 on revenue of $4.84 billion in fiscal Q3. While the company's per-share profit topped the average analyst forecast by roughly $1.90, sales for the period came in $20 million below the average forecast.
Despite the overall earnings beat, there were some concerning elements when it came to the broader margins picture. AutoZone recorded a gross margin of 52.2% in the quarter -- down 57 basis points from the margin it posted in last year's quarter.
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What's next for AutoZone? AutoZone is guiding for the opening of roughly 160 new stores this quarter -- up from 121 openings in last year's quarter. The performance is projected to bring total new global store openings to roughly 365 for the fiscal year, and expansion momentum continues to look encouraging. On the other hand, the company is facing some near-term earnings pressures that extend beyond location expansion.
In its fiscal Q3 report, AutoZone said it expected last-in, first-out accounting dynamics to create a roughly $30 million headwind to earnings before interest and taxes and a roughly $1.40 headwind to earnings per share. While overall momentum for the business continues to look solid, investors are bristling in response to some margin declines and a softer near-term earnings outlook.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
AutoZone Inc (AZO) Q3 2026 Earnings Call Highlights: Strong Sales Growth Amid Margin Pressures AutoZone Inc (AZO) reports an 8.4% sales increase and robust store expansion, despite challenges in gross margins and DIY sales. Summary
Total Sales Growth: 8.4% increase to $4.8 billion.Earnings Per Share (EPS): Increased by 7.7% to $38.07.Same-Store Sales Growth: Domestic same-store sales up 4.1%; international same-store sales up 1.6% on a constant currency basis.Domestic DIY Sales Growth: Increased by 2.2%.Domestic Commercial Sales Growth: Increased by 10.4%.Gross Margin: 52.2%, down 57 basis points, impacted by a $20 million LIFO charge.Net Income: $641 million, up 5.4%.Free Cash Flow: $455 million for the quarter.Store Openings: 82 new stores globally, totaling 6,766 US stores, 933 Mexico stores, and 157 Brazil stores.Capital Expenditure: Nearly $1.6 billion planned for the year.Share Repurchase: $586 million of stock repurchased in the quarter.
Release Date: May 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points AutoZone Inc AZO reported a strong sales growth of 8.4% for the third quarter, marking the largest increase since Q2 of FY23.The company opened 82 new stores globally in the past quarter, with plans to open approximately 365 stores for the full year, indicating a robust expansion strategy.Domestic commercial sales grew by 10.4%, driven by improved inventory availability and strong execution of growth initiatives.International same-store sales were up 1.6% on a constant currency basis, with a significant positive impact from exchange rates.AutoZone Inc (AZO) continues to invest heavily in growth initiatives, with $1.6 billion in CapEx planned for the year, focusing on store growth and technology enhancements. Negative Points The company's gross margin was negatively impacted by a non-cash $20 million LIFO charge, which also affected operating profit and EPS.Domestic DIY sales growth was modest at 2.2%, with a decline in same-store DIY traffic count by 3.6%.The last two weeks of the quarter experienced a slowdown in sales due to unseasonably cool weather, affecting heat-related categories.International markets, particularly Mexico and Brazil, faced a soft macro environment, impacting same-store sales growth.The company anticipates a LIFO charge of approximately $30 million for the fourth quarter, continuing to pressure gross margins. Q & A Highlights Q: Could you refresh us on how you see same SKU inflation in the second half of '26 and concerns around supply chain and lubricants?
A: Phil Daniele, President and CEO, mentioned that inflation rates and ticket averages will likely be more muted in Q4, around 4%. While there are concerns about lubricants, they don't expect it to be materially impactful.
Q: Are you seeing incremental opportunities in national accounts, and how does the profit spread compare to up and down the street?
A: Phil Daniele stated that AutoZone is under-shared in commercial, including national accounts and up and down the street. Both segments are growing strongly, with opportunities to gain share in both. There is a slight profit spread, but both are valuable businesses.
Q: What are your expectations for fourth-quarter same-store sales, considering the weather impact at the end of Q3?
A: Phil Daniele noted that May has been cooler, but they expect a normal or hotter summer. They anticipate a normal increase in summer sales volume, supported by new store openings and additional Mega-Hubs.
Q: How should we expect gross margins to perform in the fourth quarter?
A: Jamere Jackson, CFO, indicated that they expect solid gross margin performance in Q4, similar to Q3. While commercial growth may create a mix drag, they are working to offset it with other margin improvements.
Q: Are you seeing price pressures from energy prices and resin, and how does this affect your inflation outlook?
A: Phil Daniele acknowledged potential cost increases but noted that tariffs have been in place for some time. Inflation will be slightly muted as they lap higher rates from last year. Jamere Jackson added that they are managing the situation with suppliers and expect an inflationary environment.
Q: How are the latest Mega-Hubs performing compared to historical openings?
A: Jamere Jackson stated that the new Mega-Hubs are performing well, driven by a stronger commercial business and better utilization. The demand for parts and improved service levels are fueling their strategy.
Q: Are you still confident in faster top-line growth despite recent weather disruptions?
A: Phil Daniele emphasized their ability to manage SG&A and noted that investments in new stores are outperforming expectations. They remain confident in achieving faster top-line growth and strong returns.
Q: Can we assume a sustainable level of comp growth around 4% or more in the future?
A: Jamere Jackson confirmed that with new store load-in and accelerating commercial business, they expect to achieve or exceed 4% comp growth, driving higher returns on invested capital.
Q: How do you view the potential for DIY volumes to improve as inflation moderates?
A: Jamere Jackson noted that transaction counts have been down more than usual, but there's potential for improvement in transactions and traffic, which would support comp growth.
Q: What is the impact of national accounts on gross margins and SG&A?
A: Jamere Jackson explained that national accounts are competitive but offer good returns. There is no significant difference in SG&A management between national accounts and up and down the street customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
AutoZone, Inc. reported strong EPS but missed on revenue and experienced gross margin contraction, prompting a cautious Hold rating despite the recent price drop. AZO benefits from the aging U.S. vehicle fleet and ongoing store expansion but faces weak DIY traffic and inflation-driven margin pressures. Commercial sales growth is robust, yet this segment carries lower margins, contributing to recent profitability headwinds and a mixed outlook.
The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Tuesday.
The S&P 500 gained 0.9% last week, notching its eighth consecutive winning week. The Dow surged 2.1%, while the Nasdaq rose 0.5% last week.
In earnings, shares of AutoZone Inc. (NYSE:AZO) fell 9% on Tuesday after reporting third-quarter results.
On the economic data front, the S&P Cotality Case-Shiller Home Price Index increased 0.8% year-over-year in March, following a 0.9% gain in February. The Chicago Fed National Activity Index climbed to +0.14 in April versus a revised reading of –0.15 in March.
Most sectors on the S&P 500 closed on a positive note, with information technology, materials and industrials stocks recording the biggest gains on Tuesday. However, consumer staples and energy stocks bucked the overall market trend, closing the session lower.
The Dow Jones closed lower by around 118 points to 50,461.68 on Tuesday. The S&P 500 rose 0.61% to 7,519.12, while the Nasdaq Composite gained 1.19% at 26,656.18 during Tuesday's session.
What Is CNN Business Fear & Greed Index?At a current reading of 60.7, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 59.
The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.
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AutoZone, Inc. (NYSE:AZO) on Tuesday reported stronger third-quarter revenue growth.
The automotive-parts retailer, which serves both do-it-yourself customers and professional mechanics through its stores and online platforms, reported third-quarter earnings of $38.07 per share, beating analyst estimates of $36.10. Revenue increased 8.4% year over year to $4.84 billion, ahead of Wall Street expectations of $4.83 billion.
AutoZone shares dipped 24.8% to $138.98 in pre-market trading.
These analysts made changes to their price targets on AutoZone following earnings announcement.
Baird analyst Justin Kleber maintained the stock with a Neutral and lowered the price target from $3,900 to $3,600. BMO Capital analyst Tristan Thomas-Martin maintained AutoZone with an Outperform rating and lowered the price target from $4,300 to $4,000. Considering buying AZO stock? Here’s what analysts think:
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When a stock hits a new 52-week low, it can be due to several factors, including a poor business performance or broader macroeconomic conditions weighing on its valuation. A stock that's fallen to a new low isn't always going to recover, but it may not always be destined to go even lower, either. It's important to consider the context and to understand why a stock is performing poorly. Understanding the reason can help you assess whether it's, in fact, a deal and the market may be overreacting, or whether the business is indeed facing concerning headwinds and should be avoided.
Three stocks that recently hit fresh 52-week lows are AutoZone (AZO 0.40%), Intuit (INTU 2.76%), and PDD Holdings (PDD +0.09%). Let's take a look at why they're struggling, and if they could be good bargain buys right now.
Image source: Getty Images.
AutoZone AutoZone shares fell recently after the company reported its latest earnings numbers. Although it technically beat expectations, the auto-parts retailer still fell sharply due to concerns about slowing growth and challenges in international markets.
The company said that "unseasonably cool weather" had been slowing its sales recently. Revenue for the quarter ending May 9 was up 8% year over year, totaling $4.8 billion. But its same-store sales growth rate was 3.9%, with the growth rate in its international segment being fairly low at just 1.6%.
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This year, AutoZone's stock is down around 10%, and with its decline, it is trading at a forward price-to-earnings multiple of 17, which is based on analyst projections for its future profits. I think the stock could be a good buy at its current price, as its valuation is modest, and with AutoZone selling essential auto parts, its business should be fairly resilient over the long haul.
Intuit One stock that can't seem to stop falling is Intuit. Its shares have crashed more than 50% this year. While it recently reported earnings, which didn't help the stock, it has largely fallen this year as investors have grown concerned about software stocks and their ability to do well with artificial intelligence (AI) potentially disrupting their business models.
This is what I'd consider an overreaction in the markets. Intuit's business centers around software that finance and accounting professionals rely on, including QuickBooks and TurboTax. This is not software I believe AI can readily replace, and even if it could, professionals would not readily trust it. Intuit's business remains strong, and the company generated solid 10% revenue growth in its most recent quarter, which ended on April 30.
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At a forward P/E of only 11, I really like the stock and am contemplating buying it because of its fantastic fundamentals and extremely low valuation. This is a tech stock that could have tremendous upside for long-term investors.
PDD Holdings PDD Holdings, the company that owns online marketplace Temu, reported earnings on Wednesday morning, and its shares crashed more than 10% out of the gate. Investors weren't pleased with the numbers, and this struggling e-commerce stock hit new lows. Since the start of the year, it's now down around 25%.
While the company's top line came in at $15.4 billion for the three-month period ending March 31, which was an increase of 11% year over year, its net income fell by 15% to $1.8 billion. The company says it has begun a "deep transformation" in its business this past quarter and is investing heavily in its supply chain.
A decline in profit alongside the word "transformation" can be troubling, but PDD's stock has already been trading at reduced levels, with investors likely concerned about ongoing trade uncertainty between the U.S. and China. However, the company's profit slid mainly due to other income and expense items; its operating profit actually rose by 22% this past quarter.
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At a dirt cheap forward P/E of eight, PDD is another beaten-down stock that could make for a good contrarian pick right now. With the company investing in its supply chain and improving its operations, now may be a good time to buy and simply hang on. It'll require some patience, but investing in PDD stock right now could pay off in the long run.
Key Takeaways AutoZone beat Q3 EPS estimates as sales rose 8.4% and domestic comps increased 4.1%.AZO's commercial sales climbed 10.4%, aided by better inventory and faster delivery execution.AutoZone opened 82 stores globally and repurchased $586.3 million of shares in Q3. AutoZone, Inc. (AZO - Free Report) posted third-quarter fiscal 2026 (ended May 9, 2026) earnings per share of $38.07, topping the Zacks Consensus Estimate of $36.18 by 5.2%. Earnings per share rose 7.7% from $35.36 a year ago.
The company’s net sales increased 8.4% year over year to $4.84 billion, but fell short of the consensus mark of $4.86 billion by about 0.5%. Domestic same-store sales increased 4.1% in the quarter, led by strong commercial momentum.
AZO’s Sales Growth Accelerates on Commercial MomentumIn the reported quarter, domestic commercial sales totaled $1.4 billion, up from $1.27 billion in the year-ago period. Total sales represented the company’s largest year-over-year growth in more than three years, reflecting faster top-line momentum versus the first half of fiscal 2026. Total company same-store sales rose 3.9% on a constant-currency basis, supported by a 4.1% domestic comp and a 1.6% international comp on the same basis.
The mix of growth also leaned favorably. Domestic do-it-yourself sales rose 2.2% in the quarter, while domestic commercial sales increased 10.4%. The commercial outperformance was driven by better inventory availability at satellite stores, broader Hub and Mega-Hub coverage, and continued gains tied to service speed and delivery improvements.
AutoZone’s Profitability Reflects LIFO and Mix PressureGross profit rose to $2.52 billion from $2.35 billion in the prior-year quarter. Gross profit margin was 52.2%, down 57 basis points from the year-ago period. A $20 million non-cash LIFO charge in the quarter, which contrasted with a $16 million LIFO credit in the prior-year quarter, weighed on the year-over-year margin comparison.
Operating profit increased 6.6% to $923.8 million. Operating expenses were 33.1% of sales versus 33.3% last year, indicating modest leverage despite the faster store growth cadence. Net income rose to $641.5 million from $608.4 million a year ago.
AZO’s Store Growth Push Builds Scale Across RegionsAutoZone continued to add stores at a faster pace. During the quarter, it opened 82 new stores globally, including 57 in the United States, 20 in Mexico and five in Brazil. Total store count ended at 7,856, consisting of 6,766 in the United States, 933 in Mexico and 157 in Brazil.
The company continues to expand its commercial footprint. Mega-Hubs acted as a key driver of improved parts availability, as these locations typically carry a significantly broader SKU count and can lift both commercial and retail demand by shortening delivery times in local markets.
AutoZone’s Capital Returns Remain a Key FeatureShare repurchases stayed sizable in the quarter. AutoZone bought back 164,000 shares for $586.3 million at an average price of $3,582 per share, ending the period with $0.8 billion remaining under its current authorization.
Liquidity remained solid alongside a leveraged balance sheet structure typical of the company’s capital strategy. Cash and cash equivalents were $253.7 million as of May 9, 2026, while total debt stood at $9.02 billion, down from $8.8 billion as of May 10, 2025. The company reported a leverage ratio of 2.5x EBITDAR.
AZO’s Inventory Position Tracks Growth and InflationInventory continued to build as the company invests to support growth initiatives and new stores. Merchandise inventories rose 10.8% year over year to $7.56 billion. Inventory per store increased to $962,000 from $908,000 in the year-ago quarter.
Net inventory, defined as merchandise inventory less accounts payable, remained negative on a per-store basis. Net inventory per store was negative $107,000 compared with negative $142,000 last year, while accounts payable as a percentage of inventory was 111.1% compared with 115.6% a year ago.
AutoZone’s Q4 Commentary Centers on Inflation and LIFOThe company expects inflation and ticket growth to moderate in the fourth quarter versus the third quarter, with commentary pointing to a mid-4% range for ticket trends as the company laps higher inflation from the prior year. It also expects a planned non-cash LIFO charge of approximately $30 million for the fourth quarter, which would pressure gross margin and earnings per share versus a more favorable prior-year LIFO comparison.
The company expects weather-related softness late in the quarter, affecting certain heat-driven categories, while reiterating confidence in summer performance given ongoing execution initiatives. Internationally, the company expects a softer macro environment in Mexico and Brazil, with expectations for constant-currency same-store sales in a range similar to the third quarter.
AZO currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer ReleasesAdvance Auto Parts, Inc. (AAP - Free Report) reported first-quarter 2026 results on May 21. It delivered adjusted earnings of 77 cents per share in the first quarter of 2026, beating the Zacks Consensus Estimate of 39 cents by 95.2%. The company had incurred an adjusted loss of 22 cents in the year-ago quarter. Net sales were $2.61 billion, which increased 1.2% year over year and came ahead of the Zacks Consensus Estimate of $2.56 billion by 2.1%. Comparable store sales increased 3.5% in the quarter, marking the strongest quarterly comp in five years.
As of April 25, 2026, AAP had $2.96 billion in cash and cash equivalents, down from $3.12 billion as of Jan. 3, 2026. Inventories rose to $3.82 billion from $3.65 billion as of Jan, 3, 2026, reflecting higher investment in availability. Long-term debt stood at $3.41 billion.
O'Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2026 results on April 29. It reported adjusted EPS of 72 cents, which beat the Zacks Consensus Estimate of 69 cents by 4.18%. The bottom line increased from 62 cents in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4.56 billion, which surpassed the Zacks Consensus Estimate of $4.47 billion by 2.1%. The top line also rose 10.2% year over year.
The quarter was driven by strong demand, with comparable store sales rising 8.1%. Growth in both the professional and DIY segments, along with careful cost control, supported the overall performance. The company opened 59 stores in the United States, Mexico and Canada in the first quarter. The total store count was 6,644 as of March 31, 2026.
Genuine Parts Company (GPC - Free Report) reported first-quarter 2026 results on April 21. It posted adjusted earnings of $1.77 per share, which missed the Zacks Consensus Estimate of $1.81 by 1.94%. The bottom line improved 1.1% from the year-ago quarter’s adjusted earnings of $1.75 per share.
The company posted revenues of $6.27 billion, which beat the Zacks Consensus Estimate of $6.17 billion by 1.5% and increased 6.8% year over year. The performance was driven by solid sales growth across business segments and a 20-basis-point improvement in gross margin to 37.3%.
Wall Street wasn't exactly happy with AutoZone's (AZO 0.40%) latest quarterly earnings. The stock initially dipped 9% on the close miss, but has since rebounded slightly as of this writing. Analysts' disappointment in the quarter really doesn't tell the whole story. So should investors buy this dip? Let's have a look.
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The auto parts retailer reported sales of $4.84 billion in the fiscal third quarter of 2026, slightly lower than analyst estimates of $4.87 billion. This is what triggered the decline in stock price, but it is likely an overreaction.
Same-store sales were up 5.5% year over year, and earnings per share hit $38.07. AutoZone is also generating substantial cash flow. The company is expanding steadily and now has 7,856 locations, adding 340 stores in the past year.
Image source: Getty Images.
International growth slowed in this latest quarter, but AutoZone still plans to open 355 to 365 new stores this fiscal year. That guidance remained intact.
For long-term investors, AutoZone is still a solid buy. While individual shares currently cost more than $3,000, the valuation metrics are attractive. With a forward P/E ratio of just over 17 and a PEG ratio of 1.42, AutoZone is fairly priced. Analysts also have an average price target of nearly $4,100 per share, which the company is currently trading well below.
Investors in AutoZone shouldn't expect massive swings in either direction; the stock's beta is just 0.44. Yet, AutoZone is still a solid long-term investment.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Key Takeaways AutoZone posted 8.4% sales growth, with domestic comps up 4.1% and commercial sales up 10.4%.AZO blamed late-quarter softness on cool weather, saying A/C and starting-and-charging categories lagged.AutoZone plans nearly $1.6B capex this year, targeting ~365 store openings and expanding Mega-Hubs to 156. AutoZone, Inc. (AZO - Free Report) used its third-quarter fiscal 2026 earnings call to make a forward-looking case centered on share gains, faster store growth and a bigger commercial business. Management acknowledged softer sales late in the quarter, but tied that slowdown to weather rather than a broader shift in demand.
The company’s message to investors was that new stores, Mega-Hubs and commercial penetration matter more than near-term noise. That stance shaped both the prepared remarks and the analyst Q&A.
AZO Leans on a Faster-Growing Sales MixPresident and CEO Philip Daniele said total sales rose 8.4% in the quarter, the strongest increase in more than three years, while domestic same-store sales climbed 4.1% and domestic commercial sales advanced 10.4%. He attributed the growth to AutoZone’s expanding store base and increasing market share.
Daniele put the emphasis on commercial, where inventory availability, Hub and Mega-Hub coverage, delivery improvements and the Duralast brand were all cited as contributors. CFO Jamere Jackson added that commercial represented just under 34% of domestic auto parts sales, leaving meaningful room for further penetration.
Management’s argument was that the mix shift is strategic, not incidental. Jackson said the company remains underpenetrated with both national accounts and smaller repair shops, and that both customer groups posted double-digit growth.
AutoZone Ties Late-Quarter Softness to WeatherA major point of scrutiny was the slowdown in the last two weeks of the quarter. Daniele said those weeks produced a 1.3% domestic comp after a much stronger earlier cadence, and he blamed unseasonably cool weather that hurt heat-related categories, such as air conditioning and starting and charging.
He told analysts from Citi, Oppenheimer and others that category-level performance and regional trends supported that explanation. The company highlighted better results in the West, Midwest and Northeast and said the soft patch aligned with cooler and wetter conditions in markets that are typically warmer at this time of the year.
Just as important, management did not retreat from its summer outlook. Daniele said AutoZone still expects normal seasonal demand, while Jackson argued that market-share gains and the contribution from newer stores should help offset moderating inflation.
AZO Says Investment Cycle Is Producing ReturnsManagement repeatedly returned to capital deployment as a central theme. Daniele said AutoZone expects to invest nearly $1.6 billion in capital expenditures this year and a similar amount next year, with the bulk directed toward store growth, Hubs and Mega-Hubs, and technology.
The company opened 82 stores globally in the quarter and said it remains on track for roughly 365 openings for the full year, up from 305 last year. Jackson said 14 Mega-Hubs were added in the quarter, bringing the total to 156, with about 15 more expected in the fourth quarter.
Both executives said returns are arriving faster than originally modeled. That point came up more than once in Q&A, where management said new stores are outperforming on both DIY and commercial sales and helping support the company’s case for faster long-term top-line growth.
AutoZone Balances Margin Pressure With ProductivityThe quarter’s reported figures still carried some pressure points. Gross margin fell 57 basis points to 52.2%, caused largely by a $20 million noncash LIFO charge, while Jackson said a mix shift toward faster-growing commercial sales also weighed on the margin rate.
Even so, management’s tone on profitability was constructive. Jackson told Citi that underlying merchandise margins, shrink improvement and supply chain productivity were helping offset commercial mix pressure, and he said similar dynamics should continue into the fourth quarter.
That confidence extended to expenses. Jackson said SG&A growth has normalized after earlier pressure from store load-ins, and he told Barclays and UBS that the company still has room to manage costs in line with sales while maintaining investment in customer service and new stores.
AZO Uses Q&A to Defend the Growth SetupAnalysts pressed management on whether lower inflation would drag comps as the company laps last year’s price increases. Jackson rejected a direct read-through, saying commercial transactions, DIY share gains and new-store contribution should remain meaningful drivers.
Questions also focused on whether share gains could continue now that competitors are pursuing similar distribution strategies. Daniele and Jackson argued that AutoZone is only about halfway through its Hub and Mega-Hub expansion and still has a small share in commercial relative to the opportunity.
Rather than signaling any update to guidance, the Q&A highlighted management’s consistent tone. Inflation, competition, and demand were all framed around the same core levers: execution improvements, denser stocking and commercial upside.
AutoZone Leaves Investors With an Expansion ThesisThe closing tone from management was confident but disciplined. Daniele said the company remains on track to meet its fiscal 2026 objectives and kept the focus on customer service, capital efficiency and market-share gains across DIY and commercial.
He also acknowledged that international markets remain pressured, though AutoZone said it continues to gain share in Mexico and Brazil and expects those businesses to improve when local economies strengthen.
Zacks Signals Point to a Mixed SetupAZO currently carries a Zacks Rank #3 (Hold), alongside a Value Score of D, Growth Score of D, Momentum Score of A and VGM Score of C. Reported quarterly EPS of $38.07 topped the Zacks Consensus Estimate of $36.18, while revenues of $4.84 billion came in below the Zacks Consensus Estimate of $4.86 billion. The earnings surprise was 5.22%, and the revenue surprise was -0.45%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Based on Zacks’ framework, the strongest combinations tend to be Zacks Rank #1 or #2 (Buy) stocks paired with Style Scores of A or B, while a Zacks Rank #3 can be held more neutrally and evaluated through the lens of the underlying style mix. The current profile gives AZO a favorable momentum signal, but a more balanced overall setup. As always, the Zacks Rank can change as earnings estimate revisions move after the quarter.
Shares of AutoZone (AZO 0.40%) sank 13% this week, according to data from S&P Global Market Intelligence. The auto parts retailer was a massive winner over the past five years, only to fall back to earth in recent quarters due to slowing same-store sales growth.
AutoZone's stock is now down 32% from its highs, bringing its valuation much closer to its long-term average. Does that mean you should buy the stock?
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Slow sales and weather headwinds As a mature business in the United States, AutoZone's revenue will be driven by per-store productivity, also known as same-store sales growth. Last quarter, same-store sales growth at its domestic locations was 4.1%, below Wall Street expectations. Gross margins also compressed, though that was due to a change in its accounting practices and had nothing to do with the underlying business.
The other piece of AutoZone's business is an expansion into Mexico and Brazil. These are the two largest economies in Latin America and have strong potential if AutoZone's brand can succeed in the regions. However, international same-store sales growth was just 1.6% last quarter, which also disappointed investors.
Image source: Getty Images.
Time to buy AutoZone stock? After this fall, AutoZone's price-to-earnings ratio (P/E) has fallen back closer to its long-term average of 20. With 6,766 locations in the United States, it does not have a huge runway left to grow in the market, but it should see steady same-store sales growth in the years ahead.
Combined with the expansion internationally, and AutoZone stock may look appetizing after falling 32% from recent highs.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
MEMPHIS, Tenn., June 03, 2026 (GLOBE NEWSWIRE) -- AutoZone (NYSE: AZO) recognized 15 of its top suppliers at its annual Vendor Summit. The awards celebrate companies that achieved exceptional results while maintaining a strong focus on customer satisfaction over the past year.
AutoZone awarded Sylvania the 2026 Vendor of the Year, the company's highest vendor honor. Sylvania delivers an exceptional partnership through long-term investment, cost reductions, innovation and supply chain excellence, driving millions in incremental sales and profits. They consistently stepped up as a true 1TEAM partner supporting international markets during disruption, enabling strategic inventory transitions, and delivering results across every facet of the business.
In addition, eight vendors were selected for the AutoZone Extra Miler award: Bearing Technologies, Robert Bosch, LLC, Gates Corporation, GSP North America, Highline Warren, Premium Guard, PLZ Corp and Value Cycle Corporation. The Extra Miler Award recognizes vendors who rise above challenges, exceed expectations, and demonstrate a consistent commitment to exceptional customer satisfaction through a strong partnership.
Six vendors received AutoZone WITTDTJR® awards (“What It Takes to Do the Job Right”): Blue Streak, CJ Global, The Coca-Cola Company, Energizer Holdings, Inc., AXALTA (U-POL) and XGM. These vendors enhance customer experience both in stores and online through product innovation, improved catalog and packaging, and targeted training investments.
“Our 2026 Vendor Summit award recipients truly embody the Pledge and Values of AutoZone. Through collaboration, accountability, and innovation, they delivered meaningful results for our business while consistently putting our customers first,” stated Luke Rauch, Senior Vice President, Merchandising and Global Sourcing, Customer Satisfaction.
About AutoZone (NYSE: AZO)
As of May 26, 2026, AutoZone had 6,766 stores in the U.S., 933 in Mexico and 157 in Brazil, for a total store count of 7,856.
AutoZone is a leading retailer and distributor of automotive replacement parts and accessories in the Americas. Each store carries an extensive product line for cars, sport utility vehicles, vans and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The majority of stores have a Commercial sales program that provides prompt delivery of parts and other products and Commercial credit to local, regional and national repair garages, dealers, service stations, fleet owners and other accounts. AutoZone also sells automotive hard parts, maintenance items, accessories and non-automotive products through www.AutoZone.com, and our Commercial customers can make purchases through www.AutoZonePro.com. Additionally, we sell the ALLDATA brand of automotive diagnostic, repair, collision and shop management software through www.ALLDATA.com. We also provide product information on our Duralast-branded products through www.DuralastParts.com. AutoZone does not derive revenue from automotive repair or installation services.
Contact Information:
Financial: Brian Campbell at (901) 495-7005, [email protected]
Media: Jennifer Hughes at (901) 495-6022, [email protected]
AutoZone (AZO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this auto parts retailer have returned -14.5% over the past month versus the Zacks S&P 500 composite's +5.4% change. The Zacks Automotive - Retail and Wholesale - Parts industry, to which AutoZone belongs, has lost 11% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AutoZone is expected to post earnings of $55.67 per share for the current quarter, representing a year-over-year change of +14.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The consensus earnings estimate of $150.46 for the current fiscal year indicates a year-over-year change of +3.9%. This estimate has changed +1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $175.86 indicates a change of +16.9% from what AutoZone is expected to report a year ago. Over the past month, the estimate has changed +0.4%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AutoZone is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For AutoZone, the consensus sales estimate for the current quarter of $6.75 billion indicates a year-over-year change of +8.2%. For the current and next fiscal years, $20.48 billion and $22.02 billion estimates indicate +8.1% and +7.5% changes, respectively.
Last Reported Results and Surprise HistoryAutoZone reported revenues of $4.84 billion in the last reported quarter, representing a year-over-year change of +8.4%. EPS of $38.07 for the same period compares with $35.36 a year ago.
Compared to the Zacks Consensus Estimate of $4.86 billion, the reported revenues represent a surprise of -0.45%. The EPS surprise was +5.22%.
Over the last four quarters, AutoZone surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AutoZone is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AutoZone. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
While the market obsesses over every NVIDIA earnings whisper, an unglamorous parts retailer in Memphis has quietly become one of the most interesting contrarian setups of 2026. On a recent Barron’s Streetwise episode, host Jack Hough and D.A. Davidson analyst Michael Baker laid out a thesis that cuts against the current AI mania: AutoZone is “the opposite of what the market is fixated on right now,” and the price tag has finally come down to meet the opportunity.
The “Consult to Sell” Moat Wall Street Keeps Underestimating The easy short pitch on auto parts retailers was simple: Amazon will eat them. Baker’s response is that the experiment already ran. Amazon pushed aggressively into auto parts back in 2017, and the incumbents kept compounding right through it.
The most damning evidence for the Amazon bear case comes from the retailers’ own pricing. AutoZone (NYSE:AZO | AZO Price Prediction) and its peers offer steep online discounts, typically $20 off a $100 order shipped to your door, yet only 1% to 2% of sales actually happen that way. As Baker put it on the podcast, “Customers are actually paying an extra $20 to go into the store because they need to talk to the associates.”
That is the moat. Baker calls it “consult to sell.” Even experienced DIY mechanics want a human to confirm they are buying the right caliper for a 2014 Silverado. Add in the professional mechanic who needs the part in 30 minutes, and the e-commerce delivery model breaks down. “If they were going to be impacted by Amazon, we would’ve seen it already,” Baker said.
A Five-Year Valuation Discount AZO is down 16% over the past year and down 8% year to date, while the SPY is up 24% over the same one-year stretch. The forward P/E sits at 18 with a trailing P/E of 21, against an analyst target of $3,937. AutoZone’s forward P/E has fallen to 18, below its five-year average of more than 19, and that compression is happening while earnings estimates have been moving up. Wall Street projects double-digit earnings gains in the fiscal years ahead.
The Business Is Actually Working In Q3 FY2026, reported May 26, AutoZone delivered diluted EPS of $38.07 against a $36.17 consensus, with revenue of $4.84 billion, up 8.4% year over year. The commercial business serving professional mechanics is the crown jewel: domestic commercial sales hit $1.40 billion, up 10.4%, with average weekly sales per program climbing to $18,500 from $17,700.
CEO Phil Daniele said the company “returned to an operating margin north of 19% for the quarter” while opening 82 new stores globally. The buyback machine kept humming, with $586.3 million repurchased at an average price of $3,582. Cumulative repurchases since 1998 now sit at $38.9 billion, against a current market cap of roughly $51 billion.
Insiders Are Reading the Same Signal I have been watching AutoZone for years as a textbook example of a financially engineered compounder, and the insider activity got my attention. Director Brian Hannasch bought 165 shares on May 29, 2026 at $2,987, near the 52-week low of $2,928. On March 31, a coordinated group including CEO Phil Daniele, CFO Jamere Jackson, and four other senior executives all acquired shares at $3,377.78.
What to Watch From Here O’Reilly Automotive (NASDAQ:ORLY) just posted 8.1% comparable store sales growth in Q1 2026 at a $74 billion market cap, so the industry tailwinds are real and AutoZone is trading at a discount to its closest comp.
The Baker and Hough thesis comes down to this: if you believe physical store associates and same-day parts delivery remain irreplaceable for both weekend wrenchers and professional shops, AutoZone is currently being priced as if Amazon will finally win a fight it has been losing for nine years. As Hough said, the hope is “there’s a path where stocks like these can bounce back without chip stocks tumbling.” You do not need an AI thesis to own a parts counter that prints cash.
