Stockchase Insights
Autozone Inc.
AZO-N
BUY
Feb 12, 2024
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
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. Unlock Premium - Try 5i Free
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.
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.
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.
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?
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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.
Unlock Premium - Try 5i Free