AutoZone
AZO (NYSE)
AutoZone (AZO) stands out as a recession-resilient auto parts retailer, boasting strong free cash flow and benefiting from an aging vehicle fleet. With a remarkable 174.77% return over the past five years, it presents a compelling buying opportunity, especially given its recent underperformance. Analysts have set a median 12-month price target of $4,400, indicating potential for growth as the company continues to expand strategically.
Pros:
- Recession-resilient business
- Strong free cash flow
Cons:
- High leverage and liquidity risk
- Recent underperformance
AutoZone (AZO) may be a suitable investment for long-term investors seeking exposure to a resilient retail sector with the potential for significant capital appreciation, particularly those comfortable with the absence of dividend income. Given its strong historical performance and strategic growth outlook, it could appeal to those looking for opportunities in a stable market environment.