Friday, July 11, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

AutoZone Stock: AZO remains an attractive bet despite high price

by Staff Correspondent
September 21, 2022
in Markets
Reading Time: 3 mins read
A A
0
Home Markets
Share on FacebookShare on Twitter


Over the past few years, there has been a marked increase in self-help auto maintenance activities as people postponed or dropped new purchases in response to the pandemic-induced squeeze on spending power. This trend came as a boon to retailers of aftermarket auto parts like AutoZone, Inc. (NYSE: AZO), which emerged as a clear pandemic winner.  

It is estimated that American households’ propensity to own new vehicles would remain low in the near future due to multiple reasons including the high inflation and rate hikes, which should bring cheer to shareholders of the Memphis-based company. AutoZone is a preferred buying option for long-term investors, but it is also one of the most expensive Wall Street stocks. It is considered a value stock with significant potential to create shareholder value.

Positive View

This week, it traded slightly above the levels seen at the beginning of the year. Going by the recent trend, the shares look poised to gain further and go beyond $2,400, which is up 20% from the long-term average. Interestingly, AZO is among the least affected by the recent selloff. For those who can afford the stock, it is time to buy.


Read management/analysts’ comments on quarterly reports


While operating conditions remain challenging – due to factors ranging from the resurgence of the pandemic and continuing supply chain issues to the high inflation and rising interest rates — the company maintained stable financial performance so far this year. Also, earnings and sales exceeded expectations in every quarter in the past three years.

Finances Intact

Though there is apprehension that the demand for do-itself-yourself auto parts is waning amid market reopening, AutoZone’s recent financial performance has dismissed those concerns. In the final three months of fiscal 2022, domestic same-store sales improved both year-over-year and sequentially, driving up net sales by 9% to $5.3 billion. That translated into a 13% increase in net earnings to $40.51 per share.

AutoZone’s CEO William Rhodes said in a recent statement, “our supply chain strategy is focused on carrying more product closer and closer to the customer, and we believe it has been a significant contributor to our recent success, especially in commercial. Additionally, we plan on continuing to grow our Mexico and Brazilian businesses. At almost 800 stores open internationally, these businesses had impressive performance this past fiscal year and should continue to grow in 2023 and beyond.”

On Track

The company bets on investments in technology and inventory optimization to boost its competitive position. Reflecting those initiatives and the high inflation, the company’s inventory increased 21.5% from last year. AutoZone’s store network keeps expanding and it operated around 6,000 stores in the U.S at the end of the quarter. Meanwhile, sustaining the momentum would depend on trends in the Federal Reserve’s monetary policy to a large extent, since interest rate hikes typically influence the auto finance market.


Advance Auto Parts gears up to beat inflation woes. Is the stock a buy?


AutoZone’s stock dropped following this week’s earnings release but soon regained strength, extending the volatility experienced in recent months. It traded higher throughout Tuesday’s session.



Source link

Tags: attractiveAutoZoneAZObetHighPriceRemainsStock
Previous Post

Democrat & Republican lawmakers’ stock picks look to be capitalized on by two ETFs

Next Post

Cold Chain Logistics Stocks: BioLife vs Cryoport

Related Posts

Why ACA health insurance premiums may see ‘sharp’ increase in 2026

Why ACA health insurance premiums may see ‘sharp’ increase in 2026

by Greg Iacurci
July 11, 2025
0

Me 3645 Studio | Second | Getty PicturesRepublicans gave a roughly $4 trillion tax lower to People within the so-called...

Huntington Ingalls upgraded at TD Cowen on contract momentum, margin upside (HII:NYSE)

Huntington Ingalls upgraded at TD Cowen on contract momentum, margin upside (HII:NYSE)

by Rob Williams
July 10, 2025
0

serengeti130/E+ through Getty PhotosHuntington Ingalls Industries (NYSE:HII), the largest U.S. navy shipbuilder, on Thursday was upgraded to Purchase from a...

Delta Air Lines (DAL) gains on strong Q2 2025 performance

Delta Air Lines (DAL) gains on strong Q2 2025 performance

by Staff Correspondent
July 11, 2025
0

Shares of Delta Air Traces (NYSE: DAL) rose 12% on Thursday after the corporate delivered robust outcomes for the second...

Pentagon to become largest shareholder in rare earth magnet maker MP Materials

Pentagon to become largest shareholder in rare earth magnet maker MP Materials

by Spencer Kimball
July 10, 2025
0

The Protection Division will turn out to be the most important shareholder in uncommon earth miner MP Supplies after agreeing...

Most Fed officials see rate cuts coming, but opinions vary widely on how many, minutes show

Most Fed officials see rate cuts coming, but opinions vary widely on how many, minutes show

by Jeff Cox
July 10, 2025
0

Federal Reserve officers diverged at their June assembly about how aggressively they'd be prepared to chop rates of interest, break...

America’s Achilles’ Heel in the AI Race

America’s Achilles’ Heel in the AI Race

by Ian King
July 10, 2025
0

If you happen to’ve ever watched or performed water polo, you recognize that matches contain two drastically completely different battles....

Next Post
Cold Chain Logistics Stocks: BioLife vs Cryoport

Cold Chain Logistics Stocks: BioLife vs Cryoport

GM wants to help shape the EPA’s next clean car standard

GM wants to help shape the EPA's next clean car standard

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Why ACA health insurance premiums may see ‘sharp’ increase in 2026

Why ACA health insurance premiums may see ‘sharp’ increase in 2026

July 11, 2025
PEP, Supportive Care, and More

PEP, Supportive Care, and More

July 11, 2025
Research Predicts 0,000 Bitcoin By EOY, If Treasury Firms Hold

Research Predicts $160,000 Bitcoin By EOY, If Treasury Firms Hold

July 11, 2025
Russia develops Mi-80 to replace iconic Hip helicopter

Russia develops Mi-80 to replace iconic Hip helicopter

July 11, 2025
Elon Musk’s SpaceX set to launch Israel’s Dror satellite

Elon Musk’s SpaceX set to launch Israel’s Dror satellite

July 11, 2025
Corn Sticking Close to Unchanged at Midday

Corn Sticking Close to Unchanged at Midday

July 11, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Why ACA health insurance premiums may see ‘sharp’ increase in 2026

PEP, Supportive Care, and More

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In