AZO - 3 Reasons AutoZone Could Top Its Record Rise
Car parts seller AutoZone (NYSE: AZO) reached its all-time high during trading on Friday, July 16, with a stock price above $1,600 at market close. Its performance might look overheated, perhaps driven by inflation and stock market exuberance after the end of lockdowns. While there could be a dip in the near future, there are some solid reasons to think it'll keep its foot on the gas for some time to come. Here are three to consider.
Everything appears to be currently turning up roses for AutoZone, with the market and its operations meshing almost perfectly to drive outstanding results. During its fiscal third quarter of 2021, ending May 8, its revenue jumped 31.4% year over year, while its efficiency improved, with operating expenses as a percentage of sales dropping from Q3 2020's 35.9% to 30.4%. Growth was strongest in the commercial segment at 44%, driven by orders from "local, regional and national repair garages, dealers, service stations and public sector accounts" in the U.S., Mexico, and Brazil.
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3 Reasons AutoZone Could Top Its Record Rise