AutoZone’s recent share price correction of approximately 25% has largely priced in short-term headwinds, making the stock attractive near its 52-week low. In its most recent fiscal quarter, the company delivered 8.2% year-over-year revenue growth despite tariff-related cost pressures. A non-cash LIFO charge tied to import duties resulted in a 4.6% decline in adjusted EPS, but management reiterates its confidence in margin recovery once these charges normalize. With same-store sales up mid-single digits domestically and continued low leverage on the balance sheet, AutoZone appears well positioned to weather temporary margin compression and resume earnings growth.

AutoZone’s international segment continues to outpace domestic growth, with comparable sales in Mexico and Brazil rising 11.2% year-over-year in the first quarter of fiscal 2026, compared to a 4.8% increase in U.S. comp store sales. The company operates 7,710 locations worldwide, including 6,666 in the U.S., 895 in Mexico (up 11.9% from a year earlier) and 149 in Brazil (up 12.9%). Management remains committed to expanding its footprint in Latin America, where higher same-store sales momentum and lower market penetration present an attractive growth runway.

During fiscal 2026’s first quarter, AutoZone opened a net 53 new stores—39 in the U.S., 12 in Mexico and 2 in Brazil—underscoring its aggressive expansion strategy. While the Americas are the current focus, management has highlighted Canada and, potentially, Europe as longer-term opportunities once existing markets mature. Given the success of its rollout in Mexico and Brazil, replication in adjacent regions could drive further revenue upside. Investors should watch quarterly store-opening targets and achievement of operating margins in newer markets as key catalysts for future share-price appreciation.