/Autozone%20Inc_%20%20logo%20and%20chart%20by-%20IgorGolovniov%20via%20Shutterstock.jpg)
Memphis, Tennessee-based AutoZone, Inc. (AZO) specializes in the retail and distribution of automotive replacement parts and accessories. Valued at $55.9 billion by market cap, the company provides a comprehensive range of products for cars, SUVs, vans, and light trucks, including both new and remanufactured hard parts, maintenance supplies, accessories, and non-automotive items.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and AutoZone fits this criterion perfectly. With a network of over 7,000 stores spanning the U.S., Mexico, Brazil, and China, AutoZone is recognized for its comprehensive selection of automotive parts and accessories and its innovative integration of in-store retail with advanced digital diagnostic and repair solutions.
The auto parts retailer just touched its 52-week high of $3,313 in the last trading session. AutoZone's shares have surged 7% over the past three months, underperforming the Dow Jones Industrials Average’s ($DOWI) 10.7% gains during the same time frame.
In the long term, AZO stock has gained 28% on a YTD basis, which outpaces $DOWI’s 18.5% rise over the same period. However, AZO has surged 22.1% over the past 52 weeks, lagging behind $DOWI’s 23.8% gains.
Despite fluctuations, AZO has consistently traded above its 200-day moving average since early February year and has also remained mostly above its 50-day moving average since the end of November, indicating a bullish trend.
AutoZone's strong performance in 2024 reflects its ability to navigate industry challenges, capitalize on robust demand from an aging fleet of gasoline vehicles, and sustain revenue growth despite economic uncertainty and rising concerns over electric vehicle market penetration.
AutoZone released its Q4 earnings on Sept. 24, prompting a 2.1% increase in its stock price during the next trading session. The company reported adjusted earnings of $48.11 per share, below Wall Street's expectation of $53.31 per share. However, its revenue of $6.2 billion surpassed the market's forecast of $6.18 billion.
In contrast, rival Advance Auto Parts, Inc. (AAP) is underperforming AZO. AAP shares have declined 18.5% over the past 52 weeks and a 26.3% dip on a YTD basis, highlighting AZO's relative strength in comparison.
Analysts remain highly bullish about its prospects. Among the 25 analysts covering the stock, there is a consensus rating of “Strong Buy,” and it currently trades above the mean price target of $3,300.91. The Street-high target of $3,634 reflects a premium of 9.8% from the current market prices.
