BUZZ-Preview: AutoZone shares decline as investors focus on margins and commercial business growth

September 21 - ** Ahead of AutoZone (AZO.N) releasing its quarterly results before the market opens on Tuesday, its share price fell 1.2% to $2,821.72, with market attention focused on its profit margins and the performance of its commercial segment.

** According to data from London Stock Exchange Group (LSEG), the auto parts retailer is expected to post a 7% year-on-year increase in fiscal fourth quarter revenue to $6.70 billion, with adjusted earnings per share of $53.86, up from $48.71 a year earlier.

** In the previous quarter, the Memphis, Tennessee-based company benefited from robust demand driven by the aging U.S. vehicle fleet (link), but faced pressure on profit margins from rising costs and inventory investments.

** AZO shares currently trade at a price-to-earnings ratio of 16, below their five-year average of 19, suggesting the stock may be undervalued.

** The stock is down about 17% year-to-date, underperforming the S&P 500's gain of about 13% .SPX; it is about 35% lower than its 52-week intraday high of $4,332.68 set on September 30, 2025.

** Of the 28 analysts, 23 rate the stock as “buy” and 5 as “hold”; the median target price is $3,784.56.

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