Jim Cramer Loves These 5 Stocks

2. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 38

Total Value of Hedge Funds’ Holding: $1,525,776,000

AutoZone, Inc. (NYSE:AZO) is a Memphis, Tennessee-based retailer of parts and accessories for automobiles with 6,400 Stores across the US.

Cramer has termed AutoZone, Inc. (NYSE:AZO) as a great stock pick because of its numbers and the strong share repurchase program. The company provides a strong hedge against inflation due to its high gross margin. Furthermore, AutoZone, Inc. (NYSE:AZO) is expected to be only “marginally” impacted by the chip shortage in comparison to other automobile stocks. Instead, it could be a beneficiary if people forego the purchase of new cars and invest more in their current vehicles in terms of repairs and new spare parts.

Altron Capital Management, an investment management firm, mentioned AutoZone, Inc. (NYSE:AZO) in its Q4 2021 investor letter. Here’s what it said:

“AutoZone has been a winner since we built a position in the company last quarter. Given the current supply challenges in the automotive sector, we believe the long-standing trend of America’s aging automotive fleet will continue for the foreseeable future with AutoZone as a primary beneficiary.”

As of Q1 2022, 38 funds held a stake in AutoZone, Inc. (NYSE:AZO).