On July 27, 2026, AutoZone Inc AZO shares rose 4.0% today, bringing the current price to $3075.26. The stock has experienced a 52-week range between $2902.20 and $4388.11. This upward movement comes amid a challenging year where the stock is down 9.3% year-to-date and 19.5% over the past year.
- GF Valueâ„¢ verdict: Current price of $3075.26 is 18.0% undervalued compared to GF Valueâ„¢ of $3750.53.
- GF Scoreâ„¢ of 84/100 indicates a strong potential for long-term returns.
- Notable signal: Insiders have purchased $0.5M in the last three months, showing confidence in the company.
Is AZO Overvalued or Undervalued?
The current price of AutoZone Inc AZO at $3075.26 is significantly below its GF Valueâ„¢ of $3750.53, indicating that the stock is 18.0% undervalued. This presents an opportunity for investors, as the valuation suggests a margin of safety for potential upside. However, while the stock is considered modestly undervalued according to the GF Valuation label, investors should be cautious of the volatility reflected in its year-to-date and one-year performance. GF Valueâ„¢ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Given the current metrics, AZO’s undervaluation could imply a favorable investment opportunity, but it is essential to consider the broader market conditions and company-specific challenges that may impact future performance.
How Does AZO's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 21.1x | 20.6x |
| Forward P/E | 17.5x | - |
AutoZone's current P/E ratio of 21.1x is slightly above its 5-year median of 20.6x, indicating that the stock is trading at a premium compared to its historical valuation. The forward P/E of 17.5x suggests that there may be expectations for improved earnings, which could align with the GF Valueâ„¢ assessment of modest undervaluation. Thus, the P/E analysis somewhat agrees with the GF Valueâ„¢ verdict, suggesting a cautious but positive outlook.
What Does AZO's GF Scoreâ„¢ Tell Us?
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 84 |
| Financial Strength | 5/10 |
| Profitability | 10/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 1/10 |
The GF Scoreâ„¢ of 84/100 suggests that AutoZone is well-positioned for long-term returns, especially given its perfect scores in Profitability and Growth. However, the Financial Strength rating of 5/10 indicates that there may be some concerns regarding the company's financial stability. The low Momentum rank of 1/10 is a point of caution, suggesting that the stock may face headwinds in the near term.
What Are Insiders Doing with AZO Stock?
Recent insider activity shows that insiders have bought $0.5M worth of AutoZone stock in the last three months, with no selling observed during this period. This buying pattern suggests that insiders have confidence in the company’s future prospects, which can be a positive signal for potential investors. Insider purchases often indicate that those with intimate knowledge of the company believe the stock is undervalued or that the company is on a positive trajectory.
What This Means for Investors
Based on the GF Valueâ„¢ assessment, AutoZone Inc AZO is currently undervalued, presenting a potential opportunity for investors who are willing to navigate the associated risks. The strong GF Scoreâ„¢ and insider buying activity further support this viewpoint, although investors should remain aware of the company's current financial strength and momentum challenges.
For the complete analysis, visit the AutoZone Inc AZO stock page. You can also explore the GF Valueâ„¢ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions
What is AZO's GF Scoreâ„¢?
The GF Scoreâ„¢ for AutoZone Inc is 84/100, indicating a strong potential for long-term returns based on key financial metrics.
Is AZO overvalued or undervalued?
AZO is considered undervalued, with a GF Valueâ„¢ indicating that the current price is 18.0% below its estimated intrinsic value.
What is AZO's P/E ratio?
The current P/E ratio for AutoZone is 21.1x, which is slightly above its 5-year median of 20.6x, indicating a premium valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
