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Memphis, Tennessee-based AutoZone, Inc. (AZO) retails and distributes automotive replacement parts and accessories. It provides various products for cars, sport utility vehicles, vans, and light trucks. With a market cap of $57.5 billion, AutoZone’s operations span the United States, Mexico, and Brazil.
The specialty retailer has notably outperformed the broader market over the past year. AutoZone stock has soared 22.5% over the past 52 weeks and nearly 6% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 17.5% gains over the past year and 1.3% uptick in 2025.
Zooming in further, AutoZone has also outperformed the VanEck Retail ETF’s (RTH) 15.5% surge over the past year and 4.8% gains in 2025.
AutoZone’s stock observed a marginal uptick after the release of its lackluster Q1 results on Feb. 10. The company’s domestic same-store sales increased by a marginal 0.3% compared to the year-ago quarter, which led to a modest 2.1% year-over-year growth in net sales to $4.3 billion, missing the Street’s topline expectations. Meanwhile, AutoZone experienced a significant 4.5% year-over-year increase in SG&A expenses to $1.4 billion, which led to an 88 basis point decline in operating income to $841.1 million. Furthermore, its EPS observed a marginal drop to $32.52, which missed the consensus estimates by more than 3%.
For the current fiscal 2025, ending in August, analysts expect AZO to deliver a notable 4.7% year-over-year growth in earnings to $153 per share. However, the company has a mixed earnings surprise history. While it surpassed the Street’s bottom-line estimates twice over the past four quarters, it missed the expectations on two other occasions.
Despite the recent slowdown in topline growth, analysts remain optimistic about the stock’s prospects. Among the 26 analysts covering the AZO stock, the consensus rating is a “Strong Buy.” That’s based on 20 “Strong Buy,” one “Moderate Buy,” four “Hold” and one “Strong Sell” rating.
This configuration is slightly more bullish than three months ago when 19 analysts gave “Strong Buy” recommendations.
On Jan. 2, Argus Research analyst Bill Selesky reiterated a “Buy” rating on AZO, while raising the price target to $3,678.
AZO’s mean price target of $3,676.04 represents an 8.3% premium to current price levels, while its street-high target of $3,950 indicates a 16.4% upside potential.
