AutoZone: LIFO Drags The Quarter; Commercial Drives The Story (Earnings Preview)

Core Insights - There is a significant divergence between market perception and the actual fundamental performance of AutoZone (AZO) as FY26 approaches [1] - Commercial momentum is increasing, DIY segments are performing well, and international operations are showing improvement [1] Company Performance - AutoZone is experiencing positive trends in commercial momentum and DIY sales, indicating strong operational performance [1] - International operations are outperforming expectations, contributing to the overall growth of the company [1] Market Perception - The market's perception of AutoZone does not align with the underlying fundamentals, suggesting potential mispricing or misunderstanding among investors [1]