Memphis-Based AutoZone Stock Continues Strong Performance

AutoZone, Inc. (AZO), a prominent retailer and distributor of automotive parts headquartered right here in Memphis, Tennessee, has been on an impressive run in the stock market. Despite a recent earnings miss, Wall Street analysts maintain a bullish outlook, signaling continued confidence in our local automotive giant.

AutoZone: A Homegrown Retail Powerhouse

Valued at a substantial $64.1 billion by market cap, AutoZone is a leading player in the automotive aftermarket. The company offers a wide array of new and remanufactured parts, maintenance items, and accessories for various vehicles, from cars to light trucks. Its strong presence extends beyond our city, with significant international operations in Mexico and Brazil.

Outperforming the Market: AZO’s Impressive Run

AZO stock has significantly outperformed broader market indices over the past year. It has seen a 24.3% gain over the last 12 months, handily beating the S&P 500 Index ($SPX) which rallied nearly 11% in the same period. Year-to-date in 2025, AZO is up 20.3%, again surpassing the SPX’s 14% rise. This strong performance also outshines the SPDR S&P Retail ETF (XRT), which saw a marginal dip over the year, while AZO boasted double-digit returns.

Performance Comparison (Past Year)

What’s Fueling AutoZone’s Growth?

AutoZone’s robust performance is attributed to solid execution across both its retail and commercial channels, with commercial sales showing particular strength due to improved inventory and faster delivery. The company has also achieved market share gains, benefited from favorable weather conditions, and expanded its international footprint. While tariff-related costs and a non-cash LIFO charge introduced some margin pressures, management remains optimistic about long-term growth, backing this with investments in stores, inventory, and technology.

Mixed Q4 Earnings, Strong Analyst Confidence

In its Q4 results reported on September 23, AZO’s EPS of $48.71 fell short of Wall Street’s expectations of $50.52. However, the company’s revenue of $6.24 billion surpassed the forecast of $6.22 billion. Despite the EPS miss, analysts largely remain very positive on AZO stock. The consensus among 28 analysts is a “Strong Buy,” with 22 strong buy ratings, two moderate buys, three holds, and just one strong sell recommendation.

Looking ahead, analysts project AZO’s diluted EPS to grow 4.5% to $151.32 for the current fiscal year ending August 2026. While the company has a disappointing history of missing consensus earnings estimates in the last four quarters, the overall sentiment points to continued upside. Evercore ISI analyst Greg Melich recently reiterated a “Buy” rating with a price target of $4,400, suggesting a 14.2% upside. The mean price target among analysts is even higher at $4,537.42, implying an 17.8% premium, with a Street-high target of $4,900 suggesting a notable 27.2% potential upside from current levels.

Frequently Asked Questions

• What is AutoZone’s primary business?
  AutoZone is a leading retailer and distributor of automotive replacement parts and accessories for various vehicles, including cars, SUVs, vans, and light trucks.
• Where is AutoZone headquartered?
  AutoZone is headquartered in Memphis, Tennessee.
• How has AZO stock performed recently?
  AZO stock has outperformed the S&P 500 and SPDR S&P Retail ETF over the past year, with gains of 24.3% over 12 months and 20.3% year-to-date in 2025.
• What is Wall Street’s outlook on AutoZone stock?
  The consensus among analysts is a “Strong Buy,” with most analysts seeing significant upside potential from current price levels.

For Memphis locals, AutoZone’s continued market strength and positive analyst outlook offer an interesting perspective on a company deeply rooted in our community, demonstrating resilience and strategic growth in a competitive retail landscape.

Memphis AutoZone Stock Outperforms Market