Autozone, Inc. (AZO): Bull Case Theory
We met A strong paper Autozone, Inc. (AZO): Ingredients for turtle preparation. This article summarizes Bulls’ paper on Azo. Autozone, Inc. (AZO)’s share was trading at $3,658.59 at 11amth June. According to Yahoo Finance, Azo’s subsequent P/Es were 24.79 and 21.64, respectively.
Workbench engineer surrounded by automotive parts, tools and microchips.
Autozone today reported its results for the third quarter 2025, showing significant rebounds in sales growth for the same store in both the commercial (DIFM) and DIY segments. Despite this topline momentum, revenues have been pressured by discretionary SG&A costs, rising, and ongoing FX headwinds, leading to a decline in EBIT and EPS.
The market responded with a 4.5% decline in stocks, but the stock has grown 14% since the start of the year, reflecting the performance of Piazza O’Reilly Automotive. This time last year, both names traded near the bare market level, and a paradoxical valuation-focused approach has provided an aggressive addition to both positions. The move paid off, and stocks have since raised 34-41%. However, as feelings for O’Reilly had turned euphoria by late January, the position was trimmed near the 30X FY24 Nopat. The results from the next quarter confirmed that O’Reilly’s recent to medium-term growth can be weighed.
In contrast, Autozone offers a more attractive relative opportunity, even with a heavier DIY exposure, with just 18.7x FY25 Nopat vs. O’Reilly trading at 27.0X – even heavier DIY exposures. However, the growth gap between the two has narrowed meaningfully, and Autozone’s future rollout of 19 new Mega hubs is expected to further support the Comp, far beyond 2026.
Additionally, there is room for Autozone’s momentum to continue as FX pressure is expected to ease. Setup could only be the beginning of a 5% outperformance with O’Reilly since March, as it clearly supports the Autozone as a key play in the aftermarket sector of the car.
Previously, I covered a A strong paper In April 2025, the company was assembled at Francesco Ferrari’s Sub-Sazon (AZO) as a low-volatile comparer with best-in-class financial discipline, including ROICs, stable revenue growth and robust margins. Since then, the stock has been valued at around 1.5%. The combined turtle paper is built on this by contrasting the evaluation of AZO with the competitive momentum and is manipulated with rival O’Reilly Automotive. This suggests that Autozone retains its advantages in FX headwinds, normalized costs and strategic megahub expansion. Despite recent revenue pressures, the setup points to AZO as more attractive aftermarket car play advances.