ALTSTATION.IO

AutoZone, Inc. (AZO) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$3622.90

Change

+0.50%

Market Cap

$60.26B

Avg Volume

164.2K

Company Overview

AutoZone, Inc. is a retailer and distributor of automotive replacement parts and accessories, primarily serving the DIY and professional mechanic markets. Based in Memphis, Tennessee, the company offers a wide range of products for cars, SUVs, and light trucks, including both new and remanufactured automotive parts. Their catalog includes everything from batteries and air conditioning compressors to brake components and maintenance chemicals. Additionally, AutoZone sells non-automotive products like cell phone accessories and snacks, ensuring a convenient stop for customers.

In terms of competitive position, AutoZone is a market leader in the automotive parts sector, holding a significant share of the U.S. market alongside competitors like O’Reilly Automotive and Advance Auto Parts. Their expansive store network of over 6,800 locations gives them an edge in customer accessibility. However, the rise of online marketplaces like Amazon poses a growing threat, as consumers increasingly seek convenient and cost-effective purchasing options. AutoZone’s robust supply chain and strong brand loyalty help mitigate these risks for now.

Currently, AutoZone is experiencing solid growth, with quarterly same-store sales increasing by 4.3% year-over-year as of their latest earnings report. The company has strategically focused on enhancing its online shopping experience and expanding distribution capabilities. Major milestones include the launch of an improved e-commerce platform and an initiative to increase the number of delivery hubs, enabling quicker fulfillment that aligns with changing consumer behavior. This balance between physical and digital presence positions AutoZone for continued success in a competitive landscape.

Key Financials

Market Cap

$60.26B

Revenue

$19.29B

EBITDA

$4.18B

Gross Margin

52.1%

Profit Margin

12.8%

Revenue Growth

8.2%

Total Cash

$309.35M

Total Debt

$12.42B

Free Cash Flow

$1.15B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

25.25

Forward P/E

20.65

Beta

0.41

52-Week High

$4388.11

52-Week Low

$3210.72

EPS

$143.48

50-Day Avg

$3583.75

200-Day Avg

$3807.91

Price/Book

-18.61

Technical Analysis

The overall trend for AutoZone, Inc. (AZO) over the past 52 weeks has shown a moderate upward trajectory, with the stock price increasing from around $3,400 to the current price of $3,622.90—a change of approximately 7.4%. Notable key support is established at $3,400 and resistance around $4,200, where the stock faced significant selling pressure. The chart displays a series of higher lows, indicating a bullish pattern, particularly visible from February through August, followed by corrective moves toward the end of the year. In recent weeks, momentum appears to be stabilizing as the price attempts to rally after touching support levels, reflecting a potential bounce back. Currently, the price sits close to the middle of the 52-week range, suggesting that while the stock is not at historical highs, it remains above key support, which could indicate a consolidation phase before another move upward or downward.

Recent News and Developments

Here’s a summary of the latest news and developments for AutoZone, Inc

(AZO) stock over the past week, from February 1 to February 7, 2026:

1. Analyst Price Target Adjustment and Continued “Buy” Rating

On February 4, 2026, Goldman Sachs adjusted its price target for AutoZone to $4,274, a slight increase from its previous target of $4,234. The firm maintained its “Buy” rating on the stock. This update reflects ongoing analyst confidence in the company’s performance, contributing to an overall “Moderate Buy” consensus rating among analysts, with an average price target of $4,296.25.

2. Institutional Investor Activity Amidst Recent Earnings Context

AGF Management Ltd. significantly reduced its stake in AutoZone by 55.0% during the third quarter, selling 3,478 shares, as reported on February 3, 2026. This institutional selling follows AutoZone’s reported Q1 2026 earnings on December 9, 2025, where the company missed consensus estimates with an EPS of $31.04 versus $32.69 expected and revenue of $4.63 billion against analysts’ expectations of $4.64 billion.

Market Sentiment and Analyst Recommendations

Bull Case

AutoZone is executing a clear growth strategy with 350+ new store openings planned for fiscal 2026 and $1.6 billion in capital deployment, which should drive revenue expansion beyond the current 8.2% growth rate. The stock has momentum–up 14% in the past month and 10.83% year-to-date–and sits in the middle of its 52-week range at $3,622.90, suggesting room to run toward the $4,200 resistance level where analysts see $4,221 average upside. Goldman Sachs just raised its target to $4,274, and 24 out of 29 analysts maintain buy ratings, indicating institutional conviction. The company’s $60.26 billion market cap and dominant aftermarket auto parts position create durable competitive moats–DIY and professional customers have limited alternatives. At a P/E of 25.25, the valuation is elevated but justified if management executes on store expansion and the company maintains pricing power in a resilient auto repair market.

Bear Case

AutoZone missed earnings badly in Q1 2026: EPS came in at $31.04 versus $32.69 expected, and revenue hit $4.63 billion versus $4.64 billion forecast. That’s not a rounding error–it’s execution slipping exactly when the company is ramping $1.6 billion in capex. The debt load is concerning at $12.42 billion against only $309.35 million in cash, leaving minimal financial flexibility if store openings underperform or consumer spending weakens. AGF Management’s 55% stake reduction in Q3 is a red flag–institutional insiders are selling into strength. The P/E of 25.25 leaves zero room for error; a single missed quarter could trigger a sharp pullback given how crowded the bull thesis has become. Rising labor costs and inventory pressures in retail are structural headwinds that aggressive store expansion won’t solve.

What to Watch

Monitor Q2 2026 earnings (likely April/May) for same-store sales growth and whether the 350-store expansion is actually gaining traction or getting delayed. Watch the debt-to-EBITDA ratio closely–if capital expenditures strain cash flow and leverage creeps above 4.5x, the stock will reprice lower. Track whether the stock can hold above $3,400 support; a break below that level signals the consolidation phase is over and a deeper correction is underway. Look for any analyst downgrades in the coming weeks, particularly from Goldman Sachs or other major firms, as that would indicate cracks in the bull consensus. Finally, monitor comparable auto parts retailers like O’Reilly and NAPA for relative performance–if their same-store sales accelerate while AutoZone’s flatline, it suggests market share loss and execution problems.

Analyst Consensus

BUY

Based on 24 analyst opinions

Low Target

$3000.00

Mean Target

$4221.38

High Target

$4800.00

Earnings and Financial Data

Sector

Consumer Cyclical

Industry

Auto Parts

Employees

78,000

Earnings & Dividends

Next Earnings

Mar 03, 2026

EPS (Trailing)

$143.48

Dividend Yield

None

Payout Ratio

Frequently Asked Questions

Is AZO a good stock to buy?

Yes, analysts currently recommend a BUY for AutoZone (AZO), with a target price of $4221.38. Given its strong market cap of $60.26B and a P/E of 25.25, the stock shows growth potential in the auto parts industry.

What is AZO’s price target?

The price target for AutoZone is set at $4221.38. This represents a potential upside from its current price of $3622.90, which offers attractive appreciation opportunities for investors.

Does AZO pay a dividend?

No, AutoZone does not offer a dividend. This is common for growth-focused companies that reinvest profits back into the business.

How does AZO’s P/E ratio compare to the industry?

AutoZone has a P/E ratio of 25.25, which is reasonable for its sector but higher than some competitors in the auto parts industry. The forward P/E of 20.65 suggests expectations for growth, making it a potentially appealing option.

What is AZO’s 52-week price range?

AutoZone’s stock has fluctuated between $3210.72 and $4388.11 over the last year. This broad range indicates volatility but also opportunities for traders seeking entry or exit points.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.