Jason Snipe, CIO, Odyssey Capital Advisors Autozone Inc. AZO-N BUY Jun 23, 2023

Few know that AZO is doing so well, like buying a ton of shares back. AZO is doing much better than AAP. Buy partially before earnings, then more if the stock goes down.

It sat out the rally this year, but continues to execute. Has owned this a long time.

Likes it; they keep buying back shares.

Auto supplies are very hit-or-mess, which is why he likes AZO, because they buy back a lot of shares, which gives him the assurance he needs.

International sales are growing nicely, such as Brazil where they just started doing business. The main thing is that equipment costs have fallen, so gross margins have expanded. Also, the average age of a car is 12.5 years which benefits AZO.

We do not see any significant news driving AZO's price lower other than institutional transactions. Barclays did slightly lower its target price recently. We continue to like AZO and at current levels it remains an attractive buy. AZO is also known to aggressively buy back shares. 
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They're growing their commercial business in Mexico, people are holding onto their cars longer and they manage their margin expansion well. Still likes it.

He likes it for their commercial business and Latin American operations. People are holding onto their cars longer. He'd buy here.

It's a trade-down necessity thesis in cars. Buying a new car is expensive, so people will stick with their cars longer.

They report Tuesday. Will include results in China; any company reporting about China should be regarded skeptically. It is buying back a ton of shares, though. Can it sidestep tariff worries?