AutoZone: Set Up For Another Good Decade

Sep. 07, 2023 5:22 AM ETAutoZone, Inc. (AZO) StockAZO

Summary

  • AutoZone is the largest retailer of aftermarket automotive parts in the US, operating in a defensive sector that remains stable even during economic downturns.
  • The average age of vehicles in the US is increasing, leading to a higher demand for regular maintenance and replacement parts.
  • While the rise of electric vehicles poses a potential risk, AutoZone's presence in emerging markets and strong financial position may help sustain its growth.
AutoZone Parts Store

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Investment Thesis

AutoZone (NYSE:AZO) is an easy to understand business that is in a completely anti-cyclical sector. In the last 5 years, AZO has beaten indices such as the S&P500 by a great difference, however, the news about the arrival of the electric

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I'm a long-term, fundamentals-focused investor who is interested in quality and growth opportunities mostly, but I like to search for deep value/turnaround situations as well.

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