AZO
🚗 AutoZone benefits during economic downturns as people repair older cars instead of buying new ones.
📈 The stock rose during the 2008 crisis and has provided exceptional returns, averaging over 20% annually.
✅ Currently, AutoZone’s valuation is around its historical average, making it potentially undervalued compared to the broader market.
@Artedeinvertir:
“One of the most interesting stocks on this list is AutoZone, which trades on the stock market under the ticker AZO at a price of $3,000 per share. It is a stock that I happen to have in my investment funds for more than 8 years and that has had an exceptional return. It may seem impossible that there are this kind of companies, companies that even in some of the most difficult crises rise in value and that later, in addition, when things have been good, have given returns of more than 20% annually on average. AutoZone is dedicated to selling spare parts and maintenance for automobiles. It might seem like a business that is not very glamorous, but think about the following: in the face of an economic recession, people do not buy new automobiles; they try to use the older ones they have, which will break more often, will give greater maintenance and repair tasks, and that is precisely the product and service that AutoZone offers, with which it usually sees how its business accelerates during these difficult economic periods, which causes that good performance in the stock market during crises. Currently, AutoZone is trading around its historical average, which is 19 times its annual earnings. Curiously, despite being a well-known stock, this valuation is even cheaper than the current average stock market valuation, which is at 25 times earnings for the Standard & Poor’s 500.”
Watch the exact part of the video where Artedeinvertir talks about AutoZone here:
Watch the video on YouTube.
Read more articles featuring the most recent analysis of AutoZone (AZO) at this link: AZO stock.
