Should You Revisit AutoZone Shares After Record Quarterly Earnings and a 5% Pullback?

Simply Wall St.

Oct 10

Thinking about what to do with your AutoZone shares, or wondering if now’s the right time to jump in? You’re not alone. Whether you’ve had your eye on the stock for years or are just starting to ...

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You’re not alone. Whether you’ve had your eye on the stock for years or are just starting to ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-azo/autozone/news/should-you-revisit-autozone-shares-after-record-quarterly-ea\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should You Revisit AutoZone Shares After Record Quarterly Earnings and a 5% Pullback?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould You Revisit AutoZone Shares After Record Quarterly Earnings and a 5% Pullback?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-10-10 02:22 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/retail/nyse-azo/autozone/news/should-you-revisit-autozone-shares-after-record-quarterly-ea><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Thinking about what to do with your AutoZone shares, or wondering if now’s the right time to jump in? You’re not alone. Whether you’ve had your eye on the stock for years or are just starting to ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/retail/nyse-azo/autozone/news/should-you-revisit-autozone-shares-after-record-quarterly-ea\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"AZO","symbol_name":"汽车地带","start_time":0,"source_url":"https://simplywall.st/stocks/us/retail/nyse-azo/autozone/news/should-you-revisit-autozone-shares-after-record-quarterly-ea","article_id":"2574319578","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/25307-main-header/1756252731911"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/retail/nyse-azo/autozone/news/should-you-revisit-autozone-shares-after-record-quarterly-ea","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2574319578","pubTimestamp":1760034142,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Thinking about what to do with your AutoZone shares, or wondering if now’s the right time to jump in? You’re not alone. Whether you’ve had your eye on the stock for years or are just starting to consider it, AutoZone has been anything but boring. The past five years have delivered an impressive 244.5% return, and even with a slight slide of about 5% over the last month, the stock is still up nearly 24% year-to-date. That level of growth deserves a closer look, especially in an industry that...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"AZO":"汽车地带"},"translate_title":"在创纪录的季度收益和5%的回调之后，您是否应该重新审视AutoZone股票？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AZO":1.5},"content_text":"Thinking about what to do with your AutoZone shares, or wondering if now’s the right time to jump in? You’re not alone. Whether you’ve had your eye on the stock for years or are just starting to consider it, AutoZone has been anything but boring. The past five years have delivered an impressive 244.5% return, and even with a slight slide of about 5% over the last month, the stock is still up nearly 24% year-to-date. That level of growth deserves a closer look, especially in an industry that often flies under the radar. Recent moves in the broader auto parts sector and shifts in macroeconomic conditions have certainly played a role in price swings. While some investors may be rattled by a short-term dip, others see it as a possible opportunity, especially given AutoZone’s track record of strong long-term performance. Still, those who like to dig into valuation might pause when they see the company scores a 1 out of 6 on standard undervaluation checks, hinting that true bargains aren’t easy to find here. Let’s take a closer look at what drives that valuation score and how well it actually captures the full picture. After all, standard metrics are important, but there might just be a better and more insightful way to determine if AutoZone is worth your investment, so keep reading as we break down the different approaches. AutoZone scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: AutoZone Discounted Cash Flow (DCF) Analysis The Discounted Cash Flow (DCF) model estimates a company’s value by projecting its future cash flows and discounting them back to today’s dollars. This approach is particularly useful for assessing businesses like AutoZone, where long-term profitability matters and steady cash generation is key. Currently, AutoZone generates Free Cash Flow of about $2.18 billion. Analysts forecast continued growth, with cash flows expected to reach $2.97 billion by 2028. Projections beyond this period, extrapolated by Simply Wall St, suggest annual Free Cash Flow could climb to around $4.5 billion by 2035, with estimates backed by both analyst consensus and reasonable growth assumptions. Using all these projections and discounting them appropriately, the DCF model calculates a fair value of $3,519.71 per share. Compared to the current market price, this implies the stock is trading at a 14.4% premium. In other words, the market price is about 14% higher than what the underlying cash flows justify according to this model. While the numbers confirm AutoZone’s impressive growth potential, the stock may be a bit rich for bargain hunters purely on a DCF basis. Result: OVERVALUED Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for AutoZone. AZO Discounted Cash Flow as at Oct 2025 Our Discounted Cash Flow (DCF) analysis suggests AutoZone may be overvalued by 14.4%. Find undervalued stocks or create your own screener to find better value opportunities. Approach 2: AutoZone Price vs Earnings (PE) Ratio The Price-to-Earnings (PE) ratio is often the go-to metric for valuing profitable companies like AutoZone. It helps investors gauge how much they are paying for each dollar of a company’s earnings, making it a solid choice for businesses with steady profits. When a company is consistently earning money, the PE ratio quickly reveals whether the stock is cheap or expensive versus others in the same space. Of course, what counts as a “normal” or “fair” PE isn’t a fixed number. Investors usually expect higher PE ratios for companies with strong growth prospects and lower risk, while companies facing more uncertainty or lackluster growth get a lower multiple. That means comparisons can be tricky, and context is key. Currently, AutoZone trades at a PE ratio of 26.9x. For perspective, the specialty retail industry averages a PE of about 16.7x, while AutoZone’s peer average sits even higher at 37.1x. Simply Wall St introduces what it calls the “Fair Ratio,” which in AutoZone’s case is 19.3x. The Fair Ratio takes into account more than just simple averages, considering factors like expected earnings growth, profit margins, industry dynamics, company size, and even unique risks. That is why it is often a more dependable benchmark than pure comparisons to peers or industry averages. Comparing the Fair Ratio of 19.3x to AutoZone’s actual 26.9x, the stock currently appears overvalued by this metric. While AutoZone’s performance and growth outlook help explain a higher PE, its price is still well above the “fair” level suggested by a holistic view of the company and sector. Result: OVERVALUED NYSE:AZO PE Ratio as at Oct 2025 PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your AutoZone Narrative Earlier we mentioned there is an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is your personalized story about a company, one that links your perspective—how you see AutoZone’s business, future prospects, and risks—to your own financial forecast and a calculated fair value. Instead of looking only at static numbers, Narratives allow you to combine what you know or believe about AutoZone (like international expansion, margin trends, or sales growth) with your estimates of how revenue, earnings, and profit margins could change over time. This approach makes valuation easy and accessible, and it is already in use by millions of investors on Simply Wall St’s Community page. Narratives clearly show whether AutoZone might be considered a buy, sell, or hold by comparing your calculated Fair Value to the latest market Price. This ensures you always see investment decisions through your own lens. Best of all, Narratives update dynamically when important news or fresh earnings are released, helping you keep your view relevant and data-driven. For example, some AutoZone investors set their Narrative with a bullish outlook, forecasting aggressive international expansion and margin recovery, and end up with a Fair Value above $4,900 per share. Others remain cautious about margin pressures and set a value as low as $2,900. This reflects how the right Narrative is always shaped by your story and your assumptions, not just the averages. Do you think there's more to the story for AutoZone? Create your own Narrative to let the Community know! NYSE:AZO Community Fair Values as at Oct 2025  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"dataReport","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}