AutoZone posts record Q3 sales but faces margin pressure; seen as a buying opportunity amid stock pullback.

AutoZone, Inc. reported record Q3 sales of $4.84 billion, up 8.5% year-over-year, with positive comparable store sales and EPS of $38.07. However, the company experienced a slight decline in gross margin by 57 basis points to 52.2%, contributing to recent margin pressure and slower EPS growth. Despite these challenges and a stock price pullback to around $3,000, Quad 7 Capital views AutoZone as a strong long-term investment due to ongoing share buybacks and store expansion plans. They expect fiscal year EPS between $145 and $152, recommending investors consider buying the dip as a "hold your nose and buy" opportunity.