Home/News Feed/AutoZone remains a Buy as valuation improves despite slower margin recovery and 31% stock drop.

AZO

$3,217.10

-$53.60 -1.64%

AutoZone remains a Buy as valuation improves despite slower margin recovery and 31% stock drop.

Analyst Insights

12 Sep 2026

Seeking Alpha

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Neutral

AutoZone remains a Buy as valuation improves despite slower margin recovery and 31% stock drop.

AutoZone is still rated a Buy due to its attractive valuation and moderate earnings growth, despite a 31% stock decline over the past year. Revenue growth exceeded expectations with commercial sales up 10% and store count surpassing 8,000, but margin normalization and return on invested capital lagged earlier assumptions. The normalization of LIFO expenses has improved earnings per share visibility, and upcoming Q4 results will depend on merchandise margin, SG&A leverage, commercial growth, and DIY traffic trends. At its current price, AutoZone trades at 16 times its FY2027 earnings per share, offering a better risk/reward profile than last year.

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AutoZone remains a strong buy with growth in commercial and international markets despite consumer challenges.

AutoZone is recommended as a buy due to its strong commercial growth and international expansion, which offset weaknesses in the DIY segment and consumer challenges. The company’s strategy includes expanding Mega Hubs and dominating private-label pro...

Analyst Insights

Bullish

2 days ago

AutoZone remains a Buy as valuation improves despite slower margin recovery and 31% stock drop.

More News (AZO)

AutoZone remains a strong buy with growth in commercial and international markets despite consumer challenges.

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