Stock Price & Analysis

Based on the recent analyst upgrades and positive price target adjustments, it is likely a good time to buy AZO stock. The stock has shown resilience with a slight increase in institutional ownership and a positive technical outlook.

The price prediction for AZO stock in 2025 is approximately $3,800 to $4,000. This forecast is supported by recent analyst upgrades, including DA Davidson raising the price target to $4,192, and strong institutional ownership trends. The stock is expected to benefit from its defensive positioning and market share gains.

The S1 support level for AZO Stock is $3584.45 ,The R1 resistant level for AZO Stock is $3809.84.

As of the end of day on 2025-04-01, the price of AZO Stock was $3813.27.

The target price for AZO Stock according to analyst rating is 3,833, with the highest price target at 4,192 and the lowest at 3,585. Analysts have a Strong Buy rating on AZO Stock overall.

The market cap of AZO is $63.8B.

Analysis and Insights

AutoZone (AZO) appears to be overvalued based on its current valuation metrics and market position. Here's a concise analysis:

1. Valuation Metrics:

   • PE Ratio: AZO's forward P/E ratio is 23.23, significantly higher than the industry average, indicating a premium valuation.
   • EV/EBITDA: The EV/EBITDA ratio of 15.46 suggests the stock is pricey relative to its earnings.
   • PS Ratio: The price-to-sales ratio of 3.23 further supports the overvaluation thesis.

2. Analyst Sentiment:

   • Recent upgrades, such as DA Davidson raising the price target to $4,192, reflect confidence in AZO's market position and growth prospects.
   • However, not all analysts are bullish, with some maintaining a Hold or Buy rating, indicating mixed sentiment.

3. Stock Performance:

   • The current stock price of $3,672 is close to the average analyst target of $3,815, suggesting limited upside potential.

4. Fundamental Strengths:

   • AutoZone's leadership in the auto parts industry and defensive market positioning are positives.
   • Growth in the commercial segment is a strong fundamental driver.

5. Dividend Yield:

   • The lack of a dividend yield may deter income-focused investors.

Conclusion:

While AZO is not severely overvalued, its premium pricing reflects high growth expectations. Investors should exercise caution but may still find AZO attractive for its long-term growth potential.

AutoZone, Inc. is a retailer and distributor of automotive replacement parts and accessories in the Americas. Its Auto Parts Stores segment is the retailer and distributor of automotive parts and accessories through the Company's, stores in the United States, Mexico, and Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Its other segments include ALLDATA, which produces, sells, and maintains diagnostic, repair and shop management software used in the automotive repair industry and E-commerce, which includes direct sales to customers through www.autozone.com for sales that are not fulfilled by local stores. It also provides a sales program that offers commercial credit and delivery of parts and other products. The Company has approximately 7,140 stores in the United States, Mexico, and Brazil.

Price Prediction for AZO Stock by 2030

AutoZone (AZO) is expected to reach a price of $4,200 by 2030, driven by its strong commercial segment growth and market share gains. Analysts have raised their price targets, with DA Davidson upgrading to a $4,192 target, citing defensive positioning and inflation benefits. The stock's current momentum and upgrades suggest a bullish outlook.

AZO has a total of 71400 employees.