Last Updated: 13 Sep 2024
Executive Summary
AutoZone Inc. (AZO) is a leading retailer of automotive aftermarket parts and accessories in the United States. With a market capitalization of $53.04 billion, the company has a strong financial position and is well-positioned for continued growth. The latest stock price of $3104.76 is near the 52-week high of $3256.37, indicating positive market sentiment.
Company Overview
AutoZone was founded in 1979 and is headquartered in Memphis, Tennessee. The company operates over 6,000 stores in the United States, Mexico, and Puerto Rico. AutoZone offers a wide range of automotive parts and accessories, including batteries, brakes, filters, and tools. The company also provides services such as battery testing, oil changes, and brake repairs.
Fundamental Analysis
AutoZone's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 4.6% over the past five years. In the latest quarter, the company reported revenue of $17.98 billion, a 3.5% increase year-over-year. AutoZone's net income has also grown steadily in recent years, with a CAGR of 6.4% over the past five years. In the latest quarter, the company reported net income of $424.7 million, a 7.5% increase year-over-year.
AutoZone's financial ratios are also healthy. The company has a profit margin of 14.6%, an operating margin of 21.2%, and a return on assets of 14.2%. These ratios indicate that AutoZone is efficiently using its assets and generating a healthy level of profitability.
Technical Analysis
AutoZone's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend. The relative strength index (RSI) is also above 50, indicating that the stock is not overbought. The technical indicators suggest that AutoZone's stock price is likely to continue to trend higher in the near term.
Short Term Outlook
In the short term, AutoZone's stock price is likely to continue to be driven by the company's strong financial performance and the positive market sentiment. The stock is currently trading near its 52-week high, and there is potential for further upside in the coming months. However, investors should be aware of the risks associated with investing in any stock, including the risk of a market downturn.
Long Term Outlook
In the long term, AutoZone is well-positioned for continued growth. The company has a strong brand, a loyal customer base, and a large network of stores. The company is also benefiting from the growing demand for automotive parts and accessories as the number of vehicles on the road increases. AutoZone is a solid investment for investors looking for a long-term growth stock.
Analyst Recommendations
Analysts are generally positive on AutoZone's stock. The consensus analyst rating is "buy," and the average analyst target price is $3258.63. Eight analysts have a "strong buy" rating on the stock, 14 have a "buy" rating, six have a "hold" rating, and none have a "sell" or "strong sell" rating.
