10 Stocks To Buy Before They Split Next

8. Autozone Inc. (NYSE:AZO)

Share Price as of October 18: $3,141.19

Surge in Share Price in 5 Years: 182.99%

Stock Split Confirmed: no

Number of Hedge Fund Holders: 45

Autozone Inc. (NYSE:AZO) is a leading retailer and distributor of automotive replacement parts and accessories. It operates a network of stores, serving both professional mechanics and do-it-yourself customers. Products include engine parts, brakes, batteries, and other automotive components.

In FQ4 2024, the company made $6.21 billion in revenue, up 9.05% year-over-year. Total company same-store sales grew by 1.3%, with domestic same-store sales up 0.2% and international same-store sales up 9.9%. Domestic commercial sales accelerated sequentially, finishing up 4.5% compared to the previous year’s FQ4 of 3.9%.

At the same time, sales for home improvement (DIY) products were sequentially flat, with a slight decrease of 1%. Sales in optional categories like tools and appliances dropped by 5% due to economic problems. Prices for DIY items rose a little, but are expected to go back to normal industry growth rates. The number of DIY transactions decreased by 2%, but the company gained more market share.

Autozone Inc. (NYSE:AZO) has demonstrated a strong commitment to customer service, which it now refers to as “WOW! Customer Service.” This focus, combined with improvements in inventory availability, hub and mega hub coverage, the Duralast brand’s focus on quality, and technology advancements, is driving significant growth in commercial sales, making it a promising investment opportunity.

RGA Investment Advisors made the following comment about AutoZone, Inc. (NYSE:AZO) in its Q4 2022 investor letter:

“Below is a chart of Alphabet’s (NASDAQ:GOOG) P/E ratio plotted against AutoZone, Inc. (NYSE:AZO). Any number of examples between large cap tech companies and more mature companies could illustrate this very same point, but we find this specific case most interesting because of its history.

Note that in late 2014/early 2015 these multiples crossed one another. The relative harmony between Alphabet and Autozone lasted for just shy of a year at that time, before Alphabet’s shares surged and Autozone’s shares slumped. This relationship need not matter for markets, though we think there is some signal for investors. Autozone today trades at the highest multiples of its recent history, while Alphabet trades at its lowest. Meanwhile, despite growth estimates dropping considerably at Alphabet and appreciating modestly at Autozone, Alphabet will outgrow Autozone by a wide margin over the next five years…” (Click here to read the full text)