We recently published a list of Jim Cramer’s Latest Stock Moves: Top 10 Calls. In this article, we are going to take a look at where Autozone Inc (NYSE:AZO) stands against other stocks that Jim Cramer discusses.
Jim Cramer in a recent program on CNBC expressed his frustration over the recent market selloff following tariff uncertainties. Cramer said non-US markets are performing well and had something to say to President Donald Trump.
“Remember, this whole situation is manufactured by the Walmart White House because almost every other market around the globe is crushing ours. They’re all doing better than we are. I don’t know who’s advising the president. I know what he is doing is important work, and I am no free trader. I am not even a fair trader. I’m a tariff guy. But I think you can kill more flies with honey right now, and certainly more than nuclear weapons.
Now, the president can roll him back if he wants to, but he generally believes his tariffs are the right thing to do, which is why they’ll probably keep coming with no finesse whatsoever — just brute force. Which I have to tell you, and including you, Mr. President, there are other ways and better ways to get things done.”
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For this article, we picked 10 stocks Cramer recently discussed during his program on CNBC. With each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Autozone Inc (NYSE:AZO)
Number of Hedge Funds Investors: 47
Jim Cramer was recently asked about Autozone Inc (NYSE:AZO) on CNBC. Here is what he said:
“In this type of economy, I love it that they buy back with so much stock. It’s really incredible. I think those guys are fantastic.”
Brown Advisors Global Leaders Strategy stated the following regarding AutoZone, Inc. (NYSE:AZO) in its Q4 2024 investor letter:
“AutoZone, Inc. (NYSE:AZO) is the leading replacement automotive parts retailer and distributor in the US, servicing both the Do-it-Yourself (DIY) and Do-it-for-Me (DIFM) segments of the used car market, a market that is structurally growing as the fleet expands, with a high degree of visibility into future demand of the 6+ year used car cohort, which is AutoZone’s core target market. AutoZone is expanding into the faster growing DIFM market, as well as into Brazil and Mexico. The company’s superior customer outcome is immediate parts availability and the meaningful de-risking of the balance sheets of smaller garages which do not need to hold inventory themselves. It offers a differentiated service for customers based on local availability of parts (“in stock, in market”), quick turnaround speed and advice (including free specialty tool loans so DIY customers can complete necessary maintenance at lower cost but generating enduring loyalty). All this has historically proven difficult to replicate in an e-commerce setting. While there are a small number of large companies operating in this growing market, further consolidation of smaller competitors is expected as leading retailers’ scale (depth and breadth of inventory) and network effects (proximity to customers in immediate need of repair) constitute strong moats. One of the impressive characteristics of the company’s capital allocation is that it has delivered exceptional capital discipline and deployed its cash flow into share buybacks which has reduced the company’s share count by about 85% since 2000.”
Overall, AZO ranks 8th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AZO, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AZO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
