Watchlist: Autozone (AZO) 

February 27, 2024, 10:40 am EST

Autozone (AZO

Autozone (AZOQ2 2024 Report was out today. The highlights are:

  • Net Sales +4.6%  
  • Total Company SSS +1.5%; Domestic SSS +0.3%; International SSS +10.’Reilly 6% (Constant Currency(1))  
  • Diluted weighted average shares outstanding decreased 7.8% vs Q2 FY23  
  • During Q2 FY24, we returned $224MM to our shareholders through share repurchases

It is difficult to find anything exciting about this report or the slow-growth industry on auto parts. However, Investors gave it a two-thumb up by boosting its stock price to the new high with a +5% gap-up opening today. 

It is the future expectation of a frugal economy that people may tend to fix cars rather than buy a new one when income is not stable and rising inflation threatens. 

We can see the other peers like O’Reilly Automotive Inc (ORLY) already kept its new high journeys including today. 

Trying to save money will increase sales and earnings for these companies in 2024. Similarly, we can see Dollar General Corp (DG) and Dollar Tree Inc (DLTR) are ready to climb up from base.

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