AutoZone, the retailer and distributor of aftermarket automotive parts and accessories, reaches a strategic entry point that might stop the downward trend.
From a fundamental viewpoint, AutoZone has undeniable qualities. Growth is likely to be because the Thomson Reuters consensus counts on sales increase for the current year. The valuation is attractive with an EV/Sales ratio of 1.97.
The support slant should enable the stock to have a new bullish trend. The mid term support at USD 356.10 in this area confirms its relevance. Technically, above this level, 4-traders analysts are optimistic and count on a return toward the short and mid-term resistances.
As a result, active investors can take immediately a long position thanks to the close proximity of the support slant. The target price is USD 384.20 and in case of breakout of this level, the second target price would be in direction of the USD 400. If there is a breakdown of the USD 356.12 support, investors should close their positions.
AutoZone, Inc. specializes in distributing automotive spare parts and accessories. The group offers compressors, batteries, carburetors, clutches, des rotors, des motors, fuel pumps, etc. Net sales break down by activity as follows:
- retail and professional distribution (98.2%): sale of spare parts primarily to garages and service stations;
- other (1.8%): sales of diagnostic and maintenance software (name Alldata), and an e-commerce division.
At the end of August 2023, AutoZone, Inc. had a network of 7,140 stores located in the United States and Puerto Rico (6,300), Mexico (740) and Brazil (100).
AUTOZONE, INC. 
