Is AutoZone Stock Outperforming the S&P 500?

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]