AutoZone Stock Stays in the Zone for Buy-and-Hold Investors

Core Viewpoint - AutoZone is positioned as a high-caliber buy-and-hold stock despite facing headwinds in 2024, with strong growth, margin maintenance, robust cash flow, and a history of increasing stock value [1] Financial Performance - AutoZone reported FQ1 net sales of $4.28 billion, reflecting a 2.1% increase year-over-year, although it missed consensus estimates by 70 basis points [4] - The company executed share repurchases amounting to $505 million in FQ1, reducing the total share count by 4.7% year-over-year, with an additional $1.7 billion available for buybacks [2][3] - The domestic commercial business showed strength, while the DIY auto-repair market is showing signs of improvement, with international sales growing by 13.7% on an FX-neutral basis [6] Margin and Cash Flow - Operating profit saw a minimal decline of 0.9% due to increased expenses, but cash flow remains sufficient to support the balance sheet and capital return outlook [7] - The balance sheet shows increased cash, inventory, and total assets, although there is a shareholder deficit that is being offset by share repurchases [3] Market Sentiment and Analyst Ratings - The stock is currently rated as a "Moderate Buy" with a price target of $3,339.25, reflecting a slight downside of 0.2% [5] - Analysts from Evercore ISI have raised their price target to $3,400, indicating confidence in the stock's valuation and potential for further price increases [9] Stock Price Action - AutoZone's stock price is in a bullish trend, with recent price action suggesting a continuation of this upward trajectory, potentially gaining another $2,450 [11]