• AutoZone recently surpassed broader market performance even as the overall sector experienced a downturn, with analysts anticipating a slight decline in quarterly EPS but higher revenue year-over-year.

• This pattern signals resilience in AutoZone’s operations and draws attention to the company’s ability to grow sales despite analyst caution on short-term earnings.

• We’ll explore how AutoZone’s projected revenue growth amid sector-wide weakness could influence its investment outlook.

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To be a shareholder of AutoZone, you need to believe in its ability to grow sales even as earnings face short-term pressure, an approach that has supported outperformance versus the broader market recently. The recent report of stronger revenue despite a projected dip in EPS does not materially shift the company’s main catalyst, which remains execution in its Domestic Commercial business, nor does it ease the biggest risk right now: persistent inflation affecting consumer spending and margins.

Of AutoZone’s recent updates, the expanded share buyback plan announced in October stands out. This move reflects ongoing efforts to return value to shareholders at a time when near-term earnings outlook appears pressured by cost and margin concerns, and aligns directly with the company’s long-term growth and earnings per share catalysts.

But on the flip side, investors should be aware that persistent inflation and its impact on transaction counts and margins could…

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AutoZone’s outlook projects $22.5 billion in revenue and $3.1 billion in earnings by 2028. This is based on a 6.0% annual revenue growth rate and a $0.5 billion increase in earnings from the current $2.6 billion.

Uncover how AutoZone’s forecasts yield a $4570 fair value, a 25% upside to its current price.

Fair value estimates from the Simply Wall St Community span US$3,351 to US$4,570 across just two analyses, highlighting wide-ranging views. While investors hold different outlooks, ongoing inflation and cost pressures remain critical factors for AutoZone’s future performance, so it pays to review a broad set of perspectives before making decisions.

Explore 2 other fair value estimates on AutoZone – why the stock might be worth 8% less than the current price!

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