AutoZone: Our Favourite Large-Cap Stock
Phaethon Capital • 38 Comments
Phaethon Capital • 38 Comments
Tue, Jun. 7, 3:56 PM
- The Manheim Used Vehicle Value Index rose 0.6% Y/Y and 1.4% M/M in May to help give a boost today to auto retailer stocks.
- The index rose for the first time on a year-over-year comparison since last December (per Bloomberg).
- Sandler O'Neill analyst Crispin Love calls the used car price reading "surprisingly strong" and says the firm will look for confirmation in other data.
- Related stocks: AutoNation (AN +2.5%), CarMax (KMX +2%), Group 1 Automotive (GPI +1%), Penske Automotive (PAG +1.6%), AutoZone (AZO +0.6%), O'Reilly Automotive (ORLY +0.6%), Monro Muffler Brake (MNRO +0.8%).
Tue, May 24, 7:19 AM
- AutoZone (NYSE:AZO) reports domestic same-store sales rose 2% in FQ3.
- Total auto parts sales expanded 4.1% to $2.5B.
- Total domestic commercial sales increased 6.5% to $481.44M.
- Gross profit rate improved 50 bps to 52.8% due to higher merchandise margins.
- Operating expense rate expanded 60 bps to 32.2% due to higher legal expense and store payroll.
- Inventory +3.7% Y/Y to $3.6B.
- Domestic store count +157 Y/Y to 5,226.
- Store count +205 Y/Y to 5,717.
Tue, May 24, 7:02 AM
Mon, May 23, 5:30 PM
Sat, May 21, 12:49 PM
- Laslzo Birinyi still sees underlying strength in the stock market, despite the myriad of economic, technical, and political fears holding back investor enthusiasm.
- In particular, the well-known investor has his eyes on AutoZone (NYSE:AZO) and builder NVR (NYSE:NVR) as "special situations" stocks.
- Kraft Heinz (NASDAQ:KHC) also makes the list due to its lack of volatility amid a volatile market which could indicate upside down the road. On that point, a quick screen of other consumer goods stocks like Kraft that have weathered the uneven read on U.S. consumer spending and global demand over the last month may tip off some other value picks.
- Here's ten consumer good stocks with a low recent volatility measurement, below average forward P/E ratio, and +2% dividend yield: DEO, UN, UL, CAJ, RMCF, KO, PEP, BUD, PM, PG, TM.
- Related ETFs: IYK, UGE, SZK.
Mon, May 16, 12:10 PM
- Leon Cooperman's Omega Advisors sold its roughly 3M share stake in Citigroup (NYSE:C) in Q1, which had accounted for about 3.4% of the fund's holdings.
- He took new stakes in PayPal Holdings (NASDAQ:PYPL), UnitedHealth (NYSE:UNH), Coach (NYSE:COH), Lowe's (NYSE:LOW), Autozone (NYSE:AZO), and Electronic Arts (NASDAQ:EA).
- Cooperman also cut his FANG exposure, selling more than 50% of his Facebook (NASDAQ:FB), and about one-third of his Google (GOOG, GOOGL).
- While the 13F also shows a new 227K share stake in Apple (representing 0.7% of the total portfolio), CNBC reports that holding has since been sold.
Fri, Apr. 29, 3:03 PM
- Low volatility stocks are besting the broader averages this year, with the SPLV up 3% and the USMV up 4% vs. the 0.7% advance for the S&P 500.
- While the consumer staples that make up much of the low vol names are expected to do well in the rocky times seen in 2016, at 21x earnings, they're getting pricey.
- Picking through individual names though, Barclays' Jonathan Glionna has come up with a list of low volatility names which can still be deemed not expensive.
- In consumer staples: AutoZone (NYSE:AZO), Darden (NYSE:DRI), Time Warner Cable (NYSE:TWC), Clorox (NYSE:CLX), Coca-Cola (NYSE:KO), CVS, Hormel (NYSE:HRL), J.M. Smucker (NYSE:SJM).
- In utilities: Entergy (NYSE:ETR), PG&E (NYSE:PCG), PPL.
Thu, Mar. 31, 12:26 PM
- Barclays is extremely active in the retail sector today. Earlier the investment firm issued negative notes on Target and Willams-Sonoma which helped send both stocks lower, but the new round of ratings actions are mostly less bearish.
- Home Depot (HD +0.5%), Best Buy (BBY +4.1%), AutoZone (AZO -0.6%), and O'Reilly Automotive (ORLY -0.6%) are both initiated with Overweight ratings.
- Party City (PRTY -0.9%), Restoration Hardware (RH +4.8%), and The Container Store (TCS -3.6%) are all started at Equalweight.
- Advance Auto Parts (AAP -0.9%) is assigned an Underweight rating and $130 price target.
- While Barclays picks and chooses between retailers on differentiation with valuation, F/X exposure, and demand trends - on a broader scale the question of when the U.S. consumer will step it up remains unanswered.
- Now read U.S. Consumer Spending And Income Growth Slow In February
Tue, Mar. 22, 4:16 PM
- The company adds $750M to its ongoing buyback program, good for about 3% of the float at today's close of $786.06.
- Source: Press Release
Mon, Mar. 14, 11:40 AM
- Credit Suisse can't shake off a deja vu feeling with the rally in some beat-up retail names.
- The investment firm notes that last year Dick's Sporting Goods (DKS +0.1%), GameStop (GME +2.5%), and Michaels (MIK -0.2%) staged a similar early rally before ending the year with below-par returns.
- Retailer with strong financials look more attractive to CS than comeback stores. Home Depot (HD +0.3%), Lowe's (LOW +0.3%), O'Reilly Automotive (ORLY -0.3%), and AutoZone (AZO -0.1%) are cited as examples.
Wed, Mar. 9, 2:51 PM
- AutoZone (AZO +1.5%) plans to hire 10K more retail workers in the U.S. to help it staff stores during its busiest selling season.
- The new hires will be both of the full-time and part-time variety. AutoZone has about 47K total employees and over 5.6K stores.
- Previously: U.S. market keeps churning for AutoZone (March 1)
Tue, Mar. 1, 7:16 AM
- AutoZone (NYSE:AZO) reports domestic same-store sales increased 3.6% in FQ2.
- Total sales were up 5.3% to $2.3B.
- The company's gross profit rate improved 50 bps to 52.7% off of higher merchandise margins. Operating expenses as a percentage of sales were up 40 bps to 35.8%.
- Accounts payable as a percentage of inventory increased 150 bps to 109%.
- Domestic store count +151 Y/Y to 5,193. Total store count +194 to 5,652.
- Previously: AutoZone beats by $0.15, revenue in-line (Mar. 01 2016)
Tue, Mar. 1, 7:00 AM
Mon, Feb. 29, 5:30 PM
Tue, Feb. 16, 8:06 AM
- Wedbush Securities upgrades AutoZone (NYSE:AZO) to an Outperform rating after having shares stuck in Neutral.
- The investment firm lifts its price target to $800 from $775.
- Last week, SA contributor Aristofanis Papadatos gave AZO the nod as a stock that can outperform in any market.
- Shares of AutoZone are down 2% YTD, closing at $729.62 last Friday.
Tue, Feb. 9, 11:32 AM
- Credit Suisse sees the weakness in the auto parts retail sector as a buying opportunity.
- "We remain constructive on the auto parts retail segment, particularly in light of the current macro uncertainty,"reads the CS note.
- Analyst Seth Sigman points to O'Reilly Automotive (ORLY +1.3%) and AutoZone (AZO +0.8%) as top picks in the group, while shying away from Advance Auto Parts (AAP +0.4%) due to near-term risk.
- All three auto parts stocks are down roughly 6% for the year.
AutoZone, Inc. engages in the provision of retail and a distribution of automotive replacement parts and accessories. It operates in the following segments: Auto Parts Stores, ALLDATA, E-commerce and AutoAnything. The Auto Parts Stores segment provides automotive parts and accessories through... More
Industry: Auto Parts Stores
Country: United States
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