Memphis-based AutoZone, Inc. (AZO), the leading U.S. retailer and distributor of automotive replacement parts, has spent over four decades mastering the aftermarket. Operating in a countercyclical industry, it thrives as consumers repair aging vehicles during economic slowdowns.

With over 7,000 stores across the U.S., Mexico, and Brazil, AutoZone’s robust tiered distribution supports up to 100,000 stock-keeping units (SKUs). Boasting a market cap of $64.2 billion, it serves both Do-It-Yourself (DIY) and Commercial or Do-It-For-Me (DIFM) or commercial markets through in-store, online, and commercial channels, including AutoZone.com, DuralastParts.com, and ALLDATA.com - cementing its dominance in critical vehicle maintenance.

Shares of the auto parts retailer outperformed and dominated. Surging 37.8% over the past 52 weeks and 19.5% on a YTD basis, AZO stock crushed the S&P 500 Index’s ($SPX) 10.2% climb over the past year and 1.3% 2025 slip.

Zooming in further, AZO outpaced the Consumer Discretionary Select Sector SPDR Fund's (XLY) 21.2% gains over the past 52 weeks and blew past its 6.1% slump this year - straight-up dominance on the scoreboard.

In a market riddled with high rates and tariff tremors, AutoZone has been a quiet beast, outpacing the broader market with a steady, relentless climb. This is fueled not by flash but by grit, serving a nation whose vehicles are aging fast and breaking down faster. With the average U.S. car age approaching 13 years, and new car buyers shrinking under rate pressure, AutoZone became the mechanic’s lifeline and the investor’s edge.

Plus, its Q2 2025 earnings report in March told the tale loud and clear - underscoring disciplined earnings growth amid a tough macro environment. Total sales jumped 2.4% year-over-year to nearly $4 billion, with auto parts and dealer sales spiking as customers rushed to beat anticipated price hikes. AutoZone’s dominance in both DIY and commercial sales solidified its position domestically, while international same-store sales jumped 9.5% in constant currency, defying currency headwinds. The company opened 45 new stores in Q2, reinforcing its growth runway for a strong spring and summer.

But what sets AZO apart is its ruthless capital discipline, halving its shares outstanding over the last decade through relentless buybacks, quietly compounding shareholder value.

The company is all set to unveil its Q3 earnings on Tuesday, May 27, before the market opens. Analysts monitoring the company expect a profit of $36.78 per share, up marginally from $36.69 per share in the year-ago quarter.

For the current fiscal year, ending in August, analysts expect AutoZone to report an impressive 2.7% annual growth in EPS to $150.03 before further surging by 13.8% to $170.77 in the next fiscal year. The company has a mixed earnings surprise history. The company has surpassed Wall Street's earnings estimates in one of the last four quarters while missing on three other occasions.

AZO has a consensus “Strong Buy” rating overall. Of the 26 analysts covering the stock, 21 recommend a “Strong Buy,” two suggest a “Moderate Buy,” and the remaining three analysts are on the sidelines, giving AZO a “Hold” rating.

This configuration leans slightly bullish, with 21 “Strong Buy” ratings and zero “Strong Sells,” an improvement from two months ago.

Last week, JPMorgan (JPM) increased AZO’s price target to $4,350 from $3,830, keeping its “Overweight” call intact - just ahead of its Q3 earnings. The firm sees AutoZone as a top-tier play riding self-help moves, market share grabs, and tech upgrades in inventory and delivery.

Despite margins being a Street obsession, JPM sees strength in the numbers and calls any post-earnings dip a buying chance. They now forecast 2.8% U.S. comparable sales in Q3, driven by a stronger DIFM business, rival Advance Auto Parts’ (AAP) store closures, and solid seasonal tailwinds. Megahubs are accelerating, weather on their side, and tariff inflation plays right into their hands. With foreign exchange headwinds fading and a recent debt raise backing EBITDA growth, AutoZone looks built to dominate.

As of writing, AZO stock’s mean price target of $3,934.71 indicates an upside of 2.8% from the current market prices, while the Street-high target of $4,600 suggests the stock could rally as much as 20.2%.