Stock Pulse
AutoZone (AZO) demonstrated strong financial performance with a significantly increased return on capital employed (ROCE) and growing capital employed, suggesting potential for continued growth [1]. However, high current liabilities pose some risk [1]. Despite recent stock price fluctuations and underperforming the S&P 500 [2], [7], [10], the company is projected to have year-over-year growth in EPS and revenue [2]. AutoZone chose not to challenge Trump-era tariffs [3], but analysts believe the company is resilient to their impact due to pricing power and potential increased demand [5], [6], a view supported by Goldman Sachs' upgrade of AZO to "Neutral" [6]. AutoZone is issuing senior notes to raise capital for general business needs [11], [12]. Downward revisions of EPS estimates and a Zacks Rank of #4 (Sell) tempers the otherwise positive outlook [9], [10].