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

Core Viewpoint - There is a significant disparity between market perception and the actual fundamental performance of AutoZone as it approaches FY26, with positive trends in commercial momentum, DIY sales, and international performance [1]. Group 1: Market Perception vs. Fundamentals - The market perception of AutoZone does not align with its underlying fundamentals, indicating potential mispricing or misunderstanding by investors [1]. - Commercial momentum is reportedly gaining traction, suggesting a positive outlook for AutoZone's business operations [1]. - DIY sales continue to perform well, contributing to the overall strength of AutoZone's market position [1]. Group 2: International Performance - International operations are showing improvement, which may enhance AutoZone's growth prospects and diversification [1].