ALTSTATION.IO

AutoZone, Inc. (AZO) Stock Analysis

By Nova Skye | AltStation.io | Updated October 21, 2026

Price

$3151.32

Change

+1.72%

Market Cap

$50.97B

Avg Volume

269.8K

Company Overview

AutoZone is a retail giant in the consumer cyclical sector, specifically the auto parts industry, headquartered in Memphis, Tennessee. Founded in 1979, the company sells replacement hard parts, maintenance items, accessories, and repair diagnostic software under brands like ALLDATA and Duralast. Its customer base splits between everyday do-it-yourself drivers and commercial repair shops needing fast commercial credit and delivery. Today, it distributes these automotive products across three primary geographic markets: the United States, Mexico, and Brazil.

AutoZone is the undisputed market leader in the retail do-it-yourself auto parts space, outpacing rivals like O’Reilly Automotive and Advance Auto Parts on retail store traffic. Its primary edge is supply chain density, backed by over 6,700 domestic locations and high-inventory Mega Hubs that deliver hard parts rapidly. The clear threat is that modern vehicles are becoming more complex, which naturally pushes drivers away from DIY driveways and into professional repair bays. That dynamic forces AutoZone to battle entrenched commercial competitors for commercial fleet and mechanic accounts.

The business continues to grow, pulling in $18.94 billion in fiscal 2025 revenue and posting an 8.4% year-over-year sales increase to $4.8 billion in the third quarter of fiscal 2026. The key strategic shift is an aggressive push into the commercial market, where domestic commercial sales jumped 10.4% to account for 33.8% of total domestic sales. With its total global footprint now exceeding 7,800 stores across North and South America, AutoZone is using raw distribution scale to capture commercial market share.

Key Financials

Market Cap

$50.97B

Revenue

$20.34B

EBITDA

$4.34B

Gross Margin

52.3%

Profit Margin

12.7%

Revenue Growth

5.6%

Total Cash

$326.12M

Total Debt

$12.86B

Free Cash Flow

N/A

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

20.66

Forward P/E

16.34

Beta

0.40

52-Week High

$4040.00

52-Week Low

$2730.65

EPS

$152.55

50-Day Avg

$2939.40

200-Day Avg

$3270.52

Price/Book

-20.37

Technical Analysis

AZO trades at $3,151.32, just 33% of the way from its 52-week low of $2,730.65 to its $4,040.00 high. The stock remains 21.78% below that high but has climbed 15.73% from the low. Price is 8.31% above the 20-day moving average of $2,917.63, backed by gains of 9.22% over five trading days and 9.17% over 20 trading days. Near-term support is $2,792.03, while resistance sits just above the current price at $3,160.18. Momentum is strong, but AZO needs to clear that resistance to extend the move.

Recent News and Developments

Guggenheim reiterates Buy rating on AutoZone

Guggenheim analyst Steven Forbes reiterated a Buy rating on October 20 and set a $3,750 price target. That target represented 18.66% upside from the price tracked by the source. Source: Stock Analysis

Bernstein maintains Buy rating with $3,698 target

Bernstein analyst Zhihan Ma maintained a Buy rating on AutoZone on October 14. The firm’s $3,698 price target represented 17.02% upside from the price tracked by the source. Source: Stock Analysis

AutoZone shares climb sharply over four sessions

AZO gained 5.06% on October 15, 1.85% on October 16 and 1.91% on October 20, with only a 0.54% decline on October 19. The stock closed October 20 at $3,159.08, up from $2,912.52 at the October 14 close. Source: MarketBeat

Market Sentiment and Analyst Recommendations

Bull Case

AutoZone generates $20.34 billion in revenue and is still growing, with revenue up 5.6%. The stock has strong momentum, gaining 9.22% over five trading days and trading 8.31% above its 20-day moving average. Analysts are firmly bullish: 23 analysts give AZO a strong-buy recommendation with an average target of $3,719.96. Guggenheim reiterated its Buy rating on October 20 with a $3,750 target, representing 18.66% upside from the price tracked by the source. Bernstein maintained a Buy rating on October 14 with a $3,698 target, representing 17.02% upside from the source’s tracked price. With AZO still 21.78% below its 52-week high, the bull case is straightforward: growth remains positive, momentum has returned, and analysts see room above the current price.

Bear Case

AZO is not cheap at 20.66 times earnings, especially with revenue growing 5.6%. The balance sheet is the clearest concern: total debt stands at $12.86 billion against only $326.12 million in cash. The stock also remains 21.78% below its $4,040.00 high, showing that the recent rebound has not repaired the larger decline. Near-term resistance at $3,160.18 is only slightly above the current $3,151.32 price, so the rally faces an immediate test. Analyst targets also span a wide range from $3,000.00 to $4,800.00, and the low end sits below the current price. If momentum fades and AZO falls back toward its $2,917.63 moving average or $2,792.03 support, the current setup becomes much less attractive.

What to Watch

The first test is whether AZO can break and hold above its 30-day resistance at $3,160.18. Failure there would put the 20-day moving average of $2,917.63 back in focus, followed by support at $2,792.03. Investors should track whether five-day momentum of 9.22% and 20-day momentum of 9.17% remain positive after the recent surge. Revenue growth must hold near or above the reported 5.6% rate to support a 20.66 P/E. The $12.86 billion debt load and $326.12 million cash balance deserve close attention because the gap is substantial. Guggenheim’s October 20 target of $3,750 and Bernstein’s October 14 target of $3,698 provide clear bullish benchmarks, while the broader analyst range of $3,000.00 to $4,800.00 shows how far expectations can diverge.

Analyst Consensus

STRONG BUY

Based on 23 analyst opinions

Low Target

$3000.00

Mean Target

$3719.96

High Target

$4800.00

Earnings and Financial Data

Sector

Consumer Cyclical

Industry

Auto Parts

Employees

N/A

Earnings & Dividends

Next Earnings

Dec 08, 2026

EPS (Trailing)

$152.55

Dividend Yield

None

Payout Ratio

Frequently Asked Questions

Is AZO a good stock to buy?

AZO carries a strong-buy recommendation from 23 analysts, while revenue is growing 5.6%. The clear takeaway is that analyst sentiment is bullish, but investors still have to accept a 20.66 P/E and substantial debt.

What is AZO’s price target?

The average analyst target is $3,719.96, with estimates ranging from $3,000.00 to $4,800.00. The takeaway is that the average target sits above the current $3,151.32 price, but the lowest target does not.

Is AZO stock overvalued?

AZO trades at a P/E of 20.66 while revenue growth is 5.6%. The takeaway is that the valuation requires continued growth and does not leave much room for weak execution.

What are AZO’s support and resistance levels?

Near-term support is the 30-day low of $2,792.03, and near-term resistance is the 30-day high of $3,160.18. The takeaway is that AZO is currently much closer to resistance than support.

How far is AZO from its 52-week high?

AZO is 21.78% below its $4,040.00 high and 15.73% above its $2,730.65 low. The takeaway is that the stock has recovered from its low but remains well below its peak.

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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 October 21, 2026.