NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Increase earnings per share to at least $151.11 in FY26: FY26 EPS guidance 31.04 vs 151.11 target.
AutoZone keeps growing sales about 8% a year. It opened 82 new stores in 2026-Q2. The company is buying back shares with $1.5 billion authorized recently. Profit margins and earnings remain solid despite market challenges.
Competition is rising as O'Reilly eyes a deal with Genuine Parts. Earnings growth is behind management's goal. Recent sharp stock selloff shows investor concerns. Profit growth may slow if competition intensifies.
The price is about 9% above our fair value near $2826. Analysts expect about 9% revenue growth. Our fair value is 25% below the Street median, reflecting a more cautious outlook.
Breaks if: EPS falls below $140 in FY26
Focus on disciplined financial management to drive shareholder value.
Stated in 6 of last 6 quarters. Net income for 2026-Q2 was $468.9 million, reflecting a focus on increasing earnings. The consistent emphasis on disciplined financial management aligns with the stated priority, showing limited progress in net income growth.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth through store expansion. The current thesis state is intact, supported by recent financial performance that is above many industry peers.
The market seems to have priced in a justified valuation with a slight expectations gap. AZO trades at a premium compared to peers, suggesting that investors expect steady performance.
Management is on track with aggressive store openings, but progress on increasing earnings and cash flows has been limited. The near-term risk of missing earnings is low, but recent trends among industry peers could pose challenges.
The thesis hinges on management's ability to maintain guidance and the broader Consumer Discretionary sector's performance. Key factors include inflation trends and the performance of sector leaders like AMZN and BABA.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. One analyst lowered the current quarter earnings estimate. This suggests analysts expect slightly lower earnings per share than previously thought. However, the company plans to aggressively open new stores, which could support growth.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“CEO: 'We remain committed to a disciplined approach of increasing earnings and cash flows.'”
“CEO: 'We will remain committed to our disciplined approach of increasing earnings and cash flow.'”
“CEO: 'Our disciplined approach of increasing earnings and cash flow will deliver strong shareholder value.'”
“CEO: 'We remain committed to our disciplined approach of increasing earnings and cash flow.'”
“CEO: 'We remain committed to our disciplined approach of increasing earnings and cash flow.'”
“CEO: 'We remain committed to our disciplined approach of increasing earnings and cash flow.'”
Breaks if: YoY revenue growth falls below 6% next year
Continue expanding store count globally to increase market share.
Stated in 6 of last 6 quarters. Opened 82 new stores globally in 2026-Q2, aligning with the aggressive expansion strategy. The consistent increase in store count indicates delivering on this growth priority.
“CEO: 'We were pleased to have opened 82 new stores globally in the quarter.'”
“CEO: 'We plan to aggressively open stores over the remainder of the fiscal year.'”
“CEO: 'We expect to aggressively open stores in the new year.'”
“CEO: 'We were especially pleased to have opened 141 net new stores globally.'”
“CEO: 'We continue to focus on opening more stores in these markets.'”
“CEO: 'We plan to aggressively open stores over the remainder of the fiscal year.'”
Breaks if: No buyback authorization or suspension of program within next 12 months
Breaks if: New store openings fall below 60 in 2026-Q2
Continue expanding store count globally to increase market share.
Stated in 6 of last 6 quarters. Opened 82 new stores globally in 2026-Q2, aligning with the aggressive expansion strategy. The consistent increase in store count indicates delivering on this growth priority.
“CEO: 'We were pleased to have opened 82 new stores globally in the quarter.'”
“CEO: 'We plan to aggressively open stores over the remainder of the fiscal year.'”
“CEO: 'We expect to aggressively open stores in the new year.'”
“CEO: 'We were especially pleased to have opened 141 net new stores globally.'”
“CEO: 'We continue to focus on opening more stores in these markets.'”
“CEO: 'We plan to aggressively open stores over the remainder of the fiscal year.'”
Over the next 1 to 3 years, AZO's performance will depend on execution of its growth strategy and external economic factors. Not investment advice.
