Group 1 - AutoZone is set to release its fourth-quarter earnings on September 23, with expected earnings of $50.95 per share, a decrease from $51.58 per share in the same period last year [1] - The company projects quarterly revenue of $6.25 billion, slightly up from $6.21 billion a year earlier [1] - In the third quarter, AutoZone reported earnings per share of $35.36, missing the analyst consensus estimate of $37.17, while quarterly sales reached $4.46 billion, reflecting a 5.4% year-over-year increase [2] Group 2 - AutoZone's same-store sales grew by 3.2%, driven by strength in the domestic segment [2] - Analysts have provided positive ratings for AutoZone, with several raising their price targets significantly [5] - Raymond James analyst raised the price target from $4,200 to $4,900, while JP Morgan increased it from $4,200 to $4,850, indicating strong confidence in the stock [5]

Group 1 - AutoZone is set to release its fourth-quarter earnings on September 23, with expected earnings of $50.95 per share, a decrease from $51.58 per share in the same period last year [1] - The company projects quarterly revenue of $6.25 billion, slightly up from $6.21 billion a year earlier [1] - In the third quarter, AutoZone reported earnings per share of $35.36, missing the analyst consensus estimate of $37.17, while quarterly sales reached $4.46 billion, reflecting a 5.4% year-over-year increase [2] Group 2 - AutoZone's same-store sales grew by 3.2%, driven by strength in the domestic segment [2] - Analysts have provided various ratings and price target adjustments for AutoZone, with Raymond James raising the price target to $4,900 and maintaining a Strong Buy rating [5] - Other analysts, including those from JP Morgan, Wells Fargo, Barclays, and UBS, have also raised their price targets, indicating a generally positive outlook for the stock [5]

Core Viewpoint - Wall Street anticipates a year-over-year increase in AutoZone's earnings driven by higher revenues, with a focus on how actual results will compare to estimates to influence stock price [1][2]. Earnings Expectations - AutoZone is expected to report quarterly earnings of $51.10 per share, reflecting a year-over-year increase of 6.2% [3]. - Revenue projections stand at $6.23 billion, indicating a 0.4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst expectations [4]. - The Most Accurate Estimate for AutoZone is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.89%, indicating a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [9][10]. - AutoZone's current Zacks Rank is 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, AutoZone was expected to post earnings of $36.78 per share but delivered only $35.36, resulting in a surprise of -3.86% [13]. - The company has not beaten consensus EPS estimates in any of the last four quarters [14]. Conclusion - While AutoZone does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions [17].

Core Insights - AutoZone Inc. is highlighted as a stock to consider investing in prior to its anticipated stock split, with Barclays raising its price target to $4,510 from $3,916, maintaining an Overweight rating [1] - The company reported total sales of $4.5 billion in FQ3 2025, reflecting a 5.4% year-over-year increase, with domestic same-store sales growing by 5% and international same-store sales increasing by 8.1% [2][3] - Domestic commercial sales for AutoZone saw a significant growth of 10.7% year-over-year, marking the first double-digit growth since FQ2 2023 [3] - AutoZone continued its expansion strategy by opening 54 net new domestic stores and 30 new international stores, bringing the total number of international locations to 979 [3]

Group 1 - AutoZone, Inc. is recognized for its significant stock buyback program, which has reduced its share count from approximately 31 million to less than 17 million over the past decade, reflecting a repurchase rate of about 6% annually [1] - The company is well-positioned during economic slowdowns as consumers tend to repair older vehicles instead of purchasing new ones, which drives demand for AutoZone's products [1] - AutoZone's stock is currently trading at 24 times earnings, and it has repurchased half of its float, indicating strong financial performance and shareholder value creation [2] Group 2 - Since the positive commentary from Jim Cramer, AutoZone's stock has appreciated by around 16% [2]

Group 1: Market Sentiment and Trading Activity - Financial giants have shown a bearish sentiment towards AutoZone, with 62% of traders exhibiting bearish tendencies and only 25% being bullish [1] - The analysis of options trading revealed 16 unusual trades, with a total value of $178,690 for puts and $579,001 for calls [1] - Significant investors are targeting a price range for AutoZone between $2600.0 and $5000.0 over the past three months [2] Group 2: Options Volume and Open Interest - Insights into volume and open interest are crucial for understanding liquidity and interest levels in AutoZone's options [3] - A snapshot of trends in volume and open interest for calls and puts indicates varying levels of activity across significant trades [4] Group 3: Company Overview - AutoZone is a leading retailer of aftermarket automotive parts in the U.S., operating over 6,500 stores and serving both DIY and commercial markets [9] - The company also has a presence in international markets, with more than 800 stores in Mexico and over 100 in Brazil [9] Group 4: Analyst Ratings and Price Targets - A consensus target price for AutoZone is set at $4646.25, with various analysts maintaining positive ratings and target prices ranging from $4250 to $4925 [11][12] Group 5: Current Stock Performance - The current price of AutoZone (AZO) is $4354.54, with a trading volume of 44,404 and an indication that the stock may be overbought according to RSI indicators [14]

Company Overview - AutoZone, Inc. (AZO) has a market capitalization of $71.2 billion and is the leading retailer and distributor of automotive replacement parts and accessories in the U.S., Puerto Rico, Mexico, and Brazil, with sourcing offices in Shanghai [1] - The company operates in both the Do-It-Yourself (DIY) and Do-It-for-Me (DIFM) markets, offering a wide range of automotive hard parts, maintenance products, accessories, and non-automotive items through various sales channels [2] Stock Performance - AutoZone's shares have experienced a marginal decline from its 52-week high of $4,259.21, but have increased by 14.2% over the past three months, outperforming the S&P 500 Index's gain of 8.2% during the same period [3] - Year-to-date, AZO stock is up 31.8%, significantly outpacing the S&P 500's 10.5% rise, and has surged 35.3% over the past 52 weeks compared to the S&P 500's 18.8% return [4] Financial Performance - In Q3 2025, AutoZone reported revenue of $4.46 billion, which was better than expected; however, shares fell by 3.4% due to net income declining by 6.6% to $608.4 million, or $35.36 per share, missing Wall Street expectations [5] - The decline in net income was attributed to weaker margins from softening demand, currency fluctuations, and higher supply chain costs, despite a positive 5% growth in domestic same-store sales [5] Competitive Position - Rival Genuine Parts Company (GPC) has underperformed compared to AutoZone, with GPC stock gaining only 18.6% year-to-date and 1.4% over the past 52 weeks [6] - Analysts remain bullish on AutoZone, with a consensus rating of "Strong Buy" from 27 analysts, and the stock is trading above the mean price target of $4,180.46 [6]

Company Overview - AutoZone, Inc. is the leading retailer and distributor of automotive replacement parts and accessories in the Americas [3] - As of May 10, 2025, the company operates a total of 7,516 stores, with 6,537 in the U.S., 838 in Mexico, and 141 in Brazil [2] Financial Information - AutoZone will release its fourth quarter results for the period ending August 30, 2025, before market open on September 23, 2025 [1] - A conference call to discuss the quarterly results will take place on September 23, 2025, at 10:00 a.m. (ET) [1] Product and Service Offerings - Each AutoZone store carries a wide range of products for cars, SUVs, vans, and light-duty trucks, including new and remanufactured automotive hard parts, maintenance items, and accessories [3] - The company has a commercial sales program that provides credit and delivery services to various automotive businesses [3] - AutoZone also sells products online through its websites, including automotive diagnostic and repair software under the ALLDATA brand [3]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AutoZone (AZO), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank for making informed investment decisions [1][5][10]. Brokerage Recommendations for AutoZone - AutoZone has an average brokerage recommendation (ABR) of 1.35, indicating a consensus between Strong Buy and Buy, based on recommendations from 27 brokerage firms [2]. - Out of the 27 recommendations, 21 are Strong Buy and 2 are Buy, which represent 77.8% and 7.4% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - The article highlights that brokerage recommendations may not be reliable indicators of stock performance due to analysts' biases stemming from their firms' vested interests, leading to an overrepresentation of positive ratings [6][10]. - Research indicates that brokerage firms issue five "Strong Buy" recommendations for every "Strong Sell," suggesting a lack of alignment with retail investors' interests [6][7]. Zacks Rank as an Alternative - The Zacks Rank is presented as a more effective tool for predicting stock price movements, based on earnings estimate revisions rather than brokerage recommendations [8][11]. - The Zacks Rank categorizes stocks into five groups, with a strong correlation between near-term stock price movements and trends in earnings estimate revisions [11]. Current Earnings Estimates for AutoZone - The Zacks Consensus Estimate for AutoZone's current year earnings remains unchanged at $147.67, indicating steady analyst views on the company's earnings prospects [13]. - Due to the unchanged consensus estimate and other factors, AutoZone currently holds a Zacks Rank of 3 (Hold), suggesting caution despite the positive ABR [14].

Core Insights - The rise of artificial intelligence (AI) and stock splits are significant trends boosting equity valuations on Wall Street [1][2] Company Analysis: O'Reilly Automotive - O'Reilly Automotive announced a 15-for-1 forward stock split in 2025, following a significant stock price increase of approximately 65,000% since its IPO in 1993 [6][7] - The average age of cars and light trucks in the U.S. reached an all-time high of 12.8 years in 2025, driving demand for auto parts as consumers keep their vehicles longer [9] - O'Reilly's refined distribution network includes 31 regional distribution centers and over 6,000 retail locations, allowing for efficient inventory replenishment [10] - The company has executed a substantial share repurchase program, spending about $26.6 billion to buy back nearly 60% of its outstanding shares since 2011, enhancing its earnings per share (EPS) [11] Competitor Analysis: AutoZone - AutoZone's shares have increased by over 14,000% since its IPO in 1991, but it has only completed two forward splits [13] - Similar macroeconomic factors benefiting O'Reilly also support AutoZone, as consumers are retaining their vehicles longer [14] - AutoZone is developing over 200 megahubs to improve inventory management, akin to O'Reilly's hub stores [15] - AutoZone has spent approximately $38.1 billion on share repurchases since 1998, retiring 90.3% of its outstanding shares, positively impacting its EPS [17] - Despite strong fundamentals, AutoZone's low percentage of non-institutional investors (9.4%) suggests a lower likelihood of a stock split in the near future [19]