AutoZone Surpasses Market Performance Amid Recent Q1 Results

Based in Memphis, Tennessee, AutoZone, Inc. (AZO) specializes in retailing and distributing automotive replacement parts and accessories. The company offers a wide range of products for cars, sport utility vehicles, vans, and light trucks. With a market capitalization of $57.5 billion, AutoZone operates across the United States, Mexico, and Brazil.

Solid Yearly Performance Compared to Market Indices

Over the past year, AutoZone’s stock has significantly outperformed the broader market. It has risen by 22.5% in the last 52 weeks and nearly 6% year-to-date. For comparison, the S&P 500 Index ($SPX) has gained 17.5% over the same period and just 1.3% thus far in 2025.

Additionally, when compared to the VanEck Retail ETF (RTH), which increased by 15.5% over the last year and 4.8% in 2025, AutoZone shows substantial growth.

Q1 Results Reflect Mixed Performance

AutoZone’s stock saw a slight increase following the announcement of its Q1 results on February 10. The company reported a modest 0.3% increase in domestic same-store sales compared to the previous year. Overall net sales reached $4.3 billion, reflecting a 2.1% year-over-year growth, although it fell short of analyst expectations. Operating expenses also rose sharply, with SG&A costs increasing by 4.5% to $1.4 billion. This led to an 88 basis point decline in operating income, now at $841.1 million. The earnings per share (EPS) also dipped to $32.52, missing consensus estimates by more than 3%.

Analysts’ Outlook for Fiscal 2025

Looking ahead to fiscal 2025, which ends in August, analysts forecast a 4.7% increase in earnings per share to $153. However, AutoZone’s earnings surprise history remains mixed. It has outperformed analyst expectations twice in the past four quarters but fell short on two occasions as well.

Despite a slowdown in revenue growth, analysts maintain a positive outlook on the company’s stock. Among the 26 analysts covering AutoZone, the consensus rating is a “Strong Buy,” reflecting 20 “Strong Buy” ratings, one “Moderate Buy,” four “Hold,” and one “Strong Sell” rating.

Analyst Recommendations and Price Targets

This outlook is slightly more optimistic compared to three months ago, when only 19 analysts issued “Strong Buy” ratings. On January 2, Argus Research analyst Bill Selesky confirmed a “Buy” rating on AZO, raising the price target to $3,678. Currently, the average price target for AutoZone stands at $3,676.04, representing an 8.3% premium to current price levels. Furthermore, the highest price target of $3,950 indicates a potential upside of 16.4%.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data are provided solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and may not reflect those of Nasdaq, Inc.