AutoZone Stock Surges Despite Mixed Earnings, Analysts Predict Strong Growth
AutoZone, the leading automotive parts retailer and distributor, has seen a significant surge in its stock price over the past year. Despite mixed earnings results, analysts maintain a strong buy rating, predicting robust growth in the coming years.
AutoZone serves both DIY customers and professional repair shops through its extensive network of stores and distribution centers. Looking ahead, analysts expect the company to report a profit of $153.38 per share in fiscal 2026, a 5.9% increase from the previous year. However, they anticipate a slight dip in earnings per share to $32.27 in Q1 2026 compared to the year-ago quarter.
The company's shares have outperformed the S&P 500 Index and the Consumer Discretionary Select Sector SPDR Fund, surging by 21.8% over the past 52 weeks. This strong performance can be attributed to the company's overall same-store sales increase of 5.1% year-over-year, with domestic sales rising by 4.8% and international sales growing by 7.2%.
Despite these positive indicators, AutoZone has missed Wall Street's bottom-line estimates in the last four quarters. In its most recent quarter, adjusted EPS grew by 1.2% but missed consensus estimates, while adjusted net sales rose by 6.9% and topped analyst expectations. Nevertheless, shares of AZO remained stable post-earnings.
AutoZone, valued at a market cap of $64 billion, continues to be favored by Wall Street analysts, who maintain a strong buy rating and a mean price target of $4,539.75, indicating a 19% potential upside from current levels. As the company looks towards fiscal 2026, investors will closely monitor its earnings performance and overall market trends.
