AZO Stock Analysis — AutoZone
Sector: Retail
AI Verdict
At 19.4x forward earnings and just 3.8% growth expected, you’re paying up for a moat that’s solid but not translating into much near-term earnings momentum.
Competitive Moat
AutoZone dominates the aftermarket auto parts space with a massive store network and a logistics system that enables same-day delivery to mechanics and DIYers. Its scale and distribution muscle make it hard for smaller rivals or new entrants to match its inventory breadth and speed.
Summary
Shares are deeply oversold with an RSI of 18.8 after a -21.37% one-year return, despite steady profitability.
Where It Stands
AutoZone trades at 19.4x next year's earnings with analysts expecting just 3.8% EPS growth, while the stock is down -21.37% over the past year and sits at an oversold RSI of 18.8.
Key Metrics
- RSI: 18.8 — Oversold
- Trailing P/E: 20.2x
- Forward P/E: 19.4x
- PEG Ratio: 5.28
- Earnings Growth: +0.0%
- Revenue Growth: +0.1%
- Market Cap: $49.1B
- 1-Year Return: -21.37%
- 5-Year Return: 1.080440869
- 52-Week High: $4388.11
- 52-Week Low: $2931.65
Analyst Consensus
25 Buy · 7 Hold · 0 Sell (32 analysts)
Bull Case
With a forward P/E of 19.4x and a five-year return of 108%, the market may be undervaluing the durability of AutoZone’s store network and supply chain advantage.
Bear Case
Paying 19.4x forward earnings for just 3.8% expected EPS growth is expensive for retail, and if the P/E reverts to the sector median of 20x or lower, the stock could see further downside.
Catalyst to Watch
Watch for quarterly earnings or guidance updates—any acceleration in EPS growth above the 3.8% consensus could justify the current multiple.