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Is AutoZone Stock Underperforming the Nasdaq?
Yahoo Finance· 2025-12-03 09:23
Company Overview - AutoZone, Inc. is headquartered in Memphis, Tennessee, operating approximately 7,353 stores and is a leading retailer and distributor of automotive parts for various vehicle types. The company has a market capitalization of around $65.7 billion, indicating its large-cap status and extensive customer base supported by a robust digital and commercial distribution network [1]. Business Ecosystem - The company's ecosystem includes autozone.com for retail customers, autozonepro.com for commercial buyers, ALLDATA repair and shop-management software, and detailed product resources available through duralastparts.com [2]. Stock Performance - AZO shares are currently trading 12.8% below their September high of $4,388.11, reflecting near-term pressure, with a decline of 8.5% over the past three months, contrasting with the Nasdaq Composite's 10% gain [3]. - Despite recent pressures, AZO's long-term trend remains strong, with a 20.4% increase over the past 52 weeks, closely aligning with the Nasdaq's 20.7% advance. Year-to-date, AZO is up 19.5%, nearly matching the Nasdaq's 21.3% rise, showcasing the company's competitive momentum [4]. Moving Averages - The stock has remained below its 50-day moving average of $3,935.71 since mid-October, with a brief lift at the end of November. It dipped below the 200-day moving average of $3,818.27 during this period but regained it by the end of November, indicating strengthening buying interest and early signs of trend stabilization [5]. Margin Pressures - On December 2, AZO shares declined nearly 3.1% after Morgan Stanley highlighted margin pressures due to tariffs and rising operating expenses. The firm noted that increased costs from imported goods and higher SG&A spending could challenge near-term profitability, although long-term industry trends remain favorable for AutoZone [6]. Growth Segments - In Q4 fiscal 2025, AutoZone's commercial segment outperformed retail growth, driven by better inventory availability and faster delivery. Market share gains, favorable weather, and ongoing expansion in Mexico and Brazil helped mitigate tariff-driven costs and a non-cash LIFO charge. These factors have bolstered management's confidence, prompting continued investment in stores, inventory, and technology to sustain long-term momentum [7].