#6 - AutoZone (NYSE:AZO)
Used car prices soared during the pandemic as new car production became snarled by supply chain difficulties. But the necessity to get the most out of our existing automobiles caused a spike in auto parts retailers. And AutoZone (NYSE:AZO) is one of the best of its breed.
AZO stock is up 1,700% since the onset of the pandemic and it’s up 45% in the last 12 months. Still, with a P/E ratio of 19.6, the stock may be overvalued compared to its sector but is a bargain compared to the S&P 500 average.
The company does not have a dividend, but it makes heavy use of share buybacks to add shareholder value. The company continues to grow revenue and earnings on a year-to-year basis. Currently AZO stock is trading above consensus estimates. However, in mid-April Raymond James boosted its price target for the stock to $2,400. Which would be an upside of over 10% from the stock’s current price.
About AutoZone
AutoZone, Inc retails and distributes automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company provides various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.
Read More - Current Price
- $3,207.66
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $3,429.84 (6.9% Upside)
