3 Must-Know Facts About AutoZone Before You Buy the Stock
Investors don't have to just focus on the dominant tech firms, such as the "Magnificent Seven" businesses, to find lucrative stock ideas. AutoZone (NYSE: AZO) proves this, as its shares are up 230% in the last five years (as of Feb. 29). That gain beats the S&P 500 by a wide margin.
You might want to scoop up this auto parts retail stock in the hopes of riding the strong momentum to impressive portfolio returns. But before doing that, here are three things you need to know about AutoZone's business.
AutoZone's stock performance can be credited to fundamental strength. The company's revenue and net income have increased at annualized rates of 6.8% and 10.3%, respectively, in the last 10 years. Even during unusual times in the last few years, a period that includes the coronavirus pandemic, supply chain bottlenecks, inflationary pressures, higher interest rates, and economic uncertainty, AutoZone continues to grow its sales and earnings.
Source Fool.com
