This stock has tripled in the last five years.
Shares of auto-parts retail chain AutoZone (AZO -0.02%) hit new all-time highs on Tuesday after the company reported financial results for its fiscal second quarter of 2024. As of 1:45 p.m. ET, AutoZone stock was up almost 6%.
Another good quarter for shareholders
In Q2 (which ended on Feb. 10), AutoZone generated net sales of $3.9 billion, which was up almost 5% from the same quarter of last year. The growth came from opening new stores and a modest 3% increase in same-store sales.
AutoZone's sales were basically what the market was expecting, but its profits outperformed. In Q2, the company had an operating-profit margin of 19.3%. That's up from an operating margin of 18.2% in the prior-year period.
Higher margins led to higher profits for AutoZone. And with its profits, the company did what it does best -- buy back stock. It used $224 million to repurchase shares in Q2. This continues its long-term trend of share-count reduction, which has consistently boosted its earnings per share (EPS), as the chart below shows.
Chart doesn't reflect Q2 2024 financial results. AZO Average Diluted Shares Outstanding (Quarterly) data by YCharts.
What's next for AutoZone stock?
There's nothing complicated about AutoZone's approach to market-beating stock performance. It runs a tight ship, earns a strong profit, and buys back stock. As long as the company keeps this simple formula in place, it will be hard to bet against AutoZone stock -- it's up over 200% in just the last five years.
Indeed, it plans to keep the formula in place. As of the end of Q2, AutoZone still had $2.1 billion remaining in its share repurchase authorization. That's good for about 4% of outstanding shares at today's price, which can keep boosting its earnings per share in the coming year.
Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
FAQs
This stock has tripled in the last five years. Shares of auto-parts retail chain AutoZone (AZO 0.30%) hit new all-time highs on Tuesday after the company reported financial results for its fiscal second quarter of 2024. As of 1:45 p.m. ET, AutoZone stock was up almost 6%.
Why is AutoZone stock so high? ›
1. Strong fundamental performance. AutoZone's stock performance can be credited to fundamental strength. The company's revenue and net income have increased at annualized rates of 6.8% and 10.3%, respectively, in the last 10 years.
How high will AutoZone stock go? ›
Average Price Target
Based on 18 Wall Street analysts offering 12 month price targets for AutoZone in the last 3 months. The average price target is $3,316.44 with a high forecast of $3,600.00 and a low forecast of $3,025.00. The average price target represents a 12.34% change from the last price of $2,952.20.
Is AutoZone a buy or sell? ›
Is AutoZone stock a Buy, Sell or Hold? AutoZone stock has received a consensus rating of buy. The average rating score is and is based on 51 buy ratings, 11 hold ratings, and 1 sell ratings.
Who owns majority of AutoZone stock? ›
Autozone Stock Ownership FAQ
Autozone (NYSE: AZO) is owned by 92.77% institutional shareholders, 336.01% Autozone insiders, and 0.00% retail investors. Edward S. Lampert is the largest individual Autozone shareholder, owning 48.87M shares representing 282.42% of the company.
Why is O'Reilly auto parts stock so high? ›
O'Reilly Automotive certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. The P/E is probably high because investors think the company will continue to navigate the broader market headwinds better than most.
What is the controversy with AutoZone? ›
In June 2019 AutoZone entered into an $11 million settlement against with the State of California to resolve allegations that the company had violated state laws governing hazardous waste, hazardous materials, and confidential consumer information.
Is AutoZone in debt? ›
AutoZone long term debt for 2022 was $6.122B, a 16.17% increase from 2021. AutoZone long term debt for 2021 was $5.27B, a 4.42% decline from 2020.
Did AutoZone do a stock split? ›
AutoZone stock (symbol: AZO) underwent a total of 2 stock splits.
How much debt is AutoZone in? ›
Total debt on the balance sheet as of February 2024 : $11.82 B. According to AutoZone's latest financial reports the company's total debt is $11.82 B. A company's total debt is the sum of all current and non-current debts.
AutoZone has steadily compounded revenue and earnings over the years, and there's no reason to believe this won't continue. A key part of management's capital-allocation strategy is to aggressively repurchase shares. The economic climate has minimal impact on AutoZone's demand trends.
Is AutoZone stock overvalued? ›
The stock's valuation, when compared to the GuruFocus Value (GF Value) of $2,822.01, indicates that AutoZone Inc is currently trading at a price-to-GF-Value ratio of 1.13, suggesting that the stock is modestly overvalued.
What is the stock price prediction for AutoZone in 2025? ›
On average, Wall Street analysts predict that Autozone's share price could reach $3,263.25 by May 7, 2025. The average Autozone stock price prediction forecasts a potential upside of 9.53% from the current AZO share price of $2,979.32.
How much does AutoZone CEO make a year? ›
AutoZone's CEO is Phil Daniele, appointed in Jan 2024, has a tenure of less than a year. total yearly compensation is $5.29M, comprised of 9.8% salary and 90.2% bonuses, including company stock and options. directly owns 0.005% of the company's shares, worth $2.72M.
Why is AutoZone a good stock to buy? ›
The financial health and growth prospects of AZO, demonstrate its potential to outperform the market. It currently has a Growth Score of D. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A.
Does BlackRock own AutoZone? ›
Fintel reports that BlackRock has filed a 13G/A form with the SEC disclosing ownership of 1.54MM shares of AutoZone, Inc. (AZO). This represents 8.2% of the company.
Has AutoZone stock ever split? ›
AutoZone stock (symbol: AZO) underwent a total of 2 stock splits. The most recent stock split occured on April 21st, 1994.
Who is bigger Advance or AutoZone? ›
AutoZone has 5,384 North American company-owned stores, including 402 company-owned stores in Mexico. Advance Auto Parts, which does not have any company owned stores in Mexico, has 5,261 in North America.
