AutoZone dips as investors eye margins, commercial business growth
AZO•Expectations and recent performance
Auto parts retailer expected to post a 7% year-over-year rise in fiscal fourth-quarter revenue to $6.70 billion and adjusted EPS of $53.86, up from $48.71 a year ago, per LSEG data.
In the prior quarter, the Memphis, Tennessee-based company saw strong demand from an aging U.S. vehicle fleet but faced margin pressure from higher costs and inventory investments.
Shares slip ahead of quarterly results
AutoZone's AZO.N shares dip 1.2% to $2,821.72 ahead of quarterly results due before the bell on Tuesday, with focus on margins and performance of its commercial business.
Valuation, stock performance and analyst views
AZO stock recently traded at 16x forward earnings, below its five-year average of 19x, suggesting it may be undervalued.
The stock is down about 17% year to date, lagging a roughly 13% gain for the S&P 500 .SPX; it is about 35% below its 52-week intraday high of $4,332.68 reached on Sept. 30, 2025.
Of 28 analysts, the recommendation breakdown is 23 "buy" and 5 "hold" ratings; median price target $3,784.56.
