5 Best Car Repair Stocks to Buy Now

2. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 44

AutoZone, Inc. (NYSE:AZO) is a retail and distribution company that operates in the United States, Mexico, and Brazil. The company specializes in providing automotive replacement parts and accessories for cars, SUVs, vans, and light trucks. AutoZone’s product offerings include new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It is one of the top automotive stocks to invest in. 

On December 20, 2023, AutoZone, Inc. (NYSE:AZO) announced that its board has approved the repurchase of an extra $2 billion worth of its common stock as part of its existing share buyback initiative.

According to Insider Monkey’s third quarter database, 44 hedge funds were bullish on AutoZone, Inc. (NYSE:AZO), compared to 52 funds in the prior quarter. Israel Englander’s Millennium Management is a prominent stakeholder of the company, with a position worth $138.2 million. 

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)