Should You Buy AutoZone (AZO) After Its Recent Buyback Boost?

Core Viewpoint - AutoZone has announced an additional stock repurchase authorization of $1.5 billion, bringing the total authorized share repurchases to$39.2 billion since the program's inception, indicating a strong commitment to returning value to shareholders [1][8]. Financial Performance - In the last reported quarter, AutoZone repurchased shares worth $735 million, with over$1.4 billion remaining under share repurchase authorization [1]. - The company's annualized cash flow growth rate has been 11.8% over the past 3-5 years, significantly higher than the industry average of 2.7% [1]. - AutoZone has a 5-year average return on capital of 71%, showcasing its financial efficiency [1]. Stock Performance - Over the last 10 years, AutoZone's stock price has increased by approximately 450%, and by 3,600% over the last 20 years [3]. - The stock reached an all-time high of $3,256 per share on March 22, 2024, and is currently trading at about a 9$8.50 billion as of May 4, 2024, up from $7.67 billion in August 2023 and$7.34 billion in May 2023 [8]. - The current price/earnings ratio of 18.39X forward earnings is higher than its five-year median, indicating a potentially pricey valuation [10]. Earnings Estimates - For fiscal 2024, the Zacks Consensus Estimate implies a 6% growth in sales and a 14.5% growth in EPS year-over-year [13]. - The consensus for fiscal 2025 indicates another 3% growth in sales and 8% growth in earnings year-over-year [13].