AutoZone, Inc. (AZO): As People Fix Up Clunkers, Fix Up Your Portfolio

Last year, the company announced its share buyback program of $500 million. However, the company repurchased shares worth only $59 million in the first quarter of 2013, and the majority of the total buyback is still remaining. However, it is estimated that the company will buy$300 million in shares in the third quarter of 2013. Net income of the company is expected to surge from $388 million last year to $405 million in this year, year-over-year. Growth in net income will support the share buyback program. The share buyback program will give upside to the stock price in the near future.

Conclusion:

AutoZone, Inc. (NYSE:AZO)’s same-store sales are expected to increase in the next quarter, and its expansion plan will drive profits in the future. With the acquisition of VIP, O’Reilly Automotive Inc (NASDAQ:ORLY) will increase its footprint in the north-eastern states of the U.S. Moreover, the share buyback program will appreciate shareholders’ stock value. Advance Auto Parts, Inc. (NYSE:AAP) will gain benefits from its acquisition of BWP, through increased stores in the U.S. Additionally, the share buyback program of will boost confidence among investors.

All of these stocks are a buy.

The article As People Fix Up Clunkers, Fix Up Your Portfolio originally appeared on Fool.com.

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