Memphis, Tennessee-based AutoZone Inc. (AZO) is a retailer and distributor of automotive replacement parts and accessories. With a market value of $61.6 billion, the company provides a wide range of products for cars, SUVs, vans, and light trucks, specializing in both new and remanufactured hard parts, maintenance products, and non-automotive products.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and AutoZone fits the label perfectly, with its market cap exceeding that threshold, indicating its size, influence and dominance in the auto parts industry. The company’s primary strength is its sophisticated ‘hub and spoke’ distribution network, made up of 140 mega-hubs that ensure industry-leading parts availability for both its traditional DIY customers and its fast-growing commercial segment.
The auto parts maker is down 15.7% from its 52-week high of $4,388.11 on September 11. AZO shares have fallen 3.3% over the past three months, slightly outperforming the Dow Jones Industrial Average ($DOWI) over the same time frame.
Additionally, in the long term, AZO has gained 4% over the past 52 weeks, trailing the DOWI’s 11.4% gain over the same period. However, on a YTD basis, AZO shares are up 9.1%, giving the DOWI a slight boost.
Confirming its recent bullish trend, AZO has been trading above its 50-day moving average since mid-January. However, it has remained below its 200-day moving average since early December, with little change.
On March 3, AZO shares fell 6.3% following the release of its consolidated Q2 earnings. The company’s revenue rose 8.1% year over year to $4.3 billion, but missed analyst estimates by a narrow margin, which may have surprised investors. However, its EPS of $27.63 was down 2.3% from last year’s quarter but topped Wall Street’s estimate of $27.10.
AZO’s competitor, O’Reilly Automotive Inc. ( ORLY ), which has grown 5.5% over the past 52 weeks. However, this is ahead of ORLY’s 3.3% YTD increase.
