Memphis, Tennessee-based AutoZone, Inc. (AZO) specializes in the retail and distribution of automotive replacement parts and accessories. Valued at $53.9 billion by market cap, the company provides a comprehensive range of products for cars, SUVs, vans, and light trucks, including both new and remanufactured hard parts, maintenance supplies, accessories, and non-automotive items. 

Shares of the specialty retailer have underperformed the broader market over the past year. Over the past 52 weeks, AutoZone’s stock has rallied 22.1%, lagging behind the S&P 500 Index’s ($SPX) 32.6% returns. In 2024, AZO gained 15.7% compared to SPX’s 26.5% gains on a YTD basis.

Narrowing the focus, AZO has also underperformed the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 32.6% returns over the past 52 weeks and 26.5% gains on a YTD basis.

AutoZone released its Q4 earnings on Sept. 24, prompting a 2.1% increase in its stock price during the next trading session. The company reported adjusted earnings of $48.11 per share, below Wall Street's expectation of $53.31 per share. However, its revenue of $6.2 billion surpassed the market's forecast of $6.18 billion.

For the current fiscal year, ending in August 2025, analysts expect AZO to report an EPS of $158.09, up 8.2% annually. However, the company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters, while missing on another occasion.

Among the 25 analysts covering the AZO stock, the consensus rating is a “Strong Buy.” That’s based on 19 “Strong Buy” ratings, one “Moderate Buy,” four “Holds,” and one “Strong Sell.”

This configuration is more bullish than two months ago, with 18 analysts suggesting a “Strong Buy” for the stock.

On Oct. 16, Roth MKM analyst Scott Stember resumed coverage of AutoZone with a “Buy” rating and a price target of $3,634, which is also the Street-high target. The analyst highlighted AutoZone's position as an industry leader in the recession-resistant auto parts retail sector. The firm believes that with a rapidly growing "do-it-for-me" and professional offering, AutoZone can sustain sales and earnings growth through fiscal 2026. Additionally, the analyst sees a significant opportunity in the more stable professional repair segment for the company.

AZO’s mean price target of $3,294.83 represents a premium of 4% from current price levels.