Will AutoZone Shares Rise to $3,235?

Last Updated: 18. Dezember 2023By

AutoZone distributes automotive parts, maintenance products, and accessories from major brands and its own brands such as Duralast and Valucraft through its own store chains. The company’s customers mainly come from the do-it-yourself sector. The company operates more than 5,300 AutoZone stores in 50 US states and others in Colombia, Puerto Rico, Mexico and Brazil.

Auto Stock Continues on the Fast Lane For the 1st quarter (broken financial year) the company reported revenues of $4.19 billion, compared to $3.98 billion in the previous year. Net income was $593.46 million compared to $539.32 million a year ago. Earnings per share increased 18% to $33.51. There is not much sign of crisis here.

17 new stores opened During the quarter, AutoZone opened 17 new branches and closed one branch in the United States, five new branches in Mexico and four branches in Brazil. At the end of the quarter, there were 6,316 branches in the USA, 745 in Mexico and 104 in Brazil. The total number of stores is currently 7,165.

AutoZone buys back shares What further secures the stock price: The company purchased 580,000 shares of common stock for $1.5 billion during the quarter at an average price of $2,590 per share.

AutoZone: Not too expensive even at a stock price of $2,600 Conclusion: Unbelievable, a stock that costs more than $2,600. Isn’t that too expensive? And does this stock still have potential? I can reassure you. First of all: The stock is in an upward trend over the past 1 year despite high fluctuations. What is the sentiment among analysts? A look at the analyst expectations shows a positive trend. 21 of 27 analysts recommend buying, 6 want to hold and only one analyst thinks it makes sense to sell. The average analyst target price is $2,941, the highest is even $3,235. However, this says nothing about the valuation. Because the auto parts stock is by no means expensive. Based on the 2024 earnings per share estimate, it is only 17.