Jim Cramer’s Game Plan This Week: 10 Stocks to Watch

6. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 47

Cramer mentioned that there are concerns about high tariffs that could affect AutoZone, Inc. (NYSE:AZO), as the company imports products from China.

“Tuesday morning, we get results from AutoZone, AZO. Here we have a company that imports aftermarket auto parts, including some from China, and any company that imports anything from China is viewed with tremendous skepticism right now, right here. AutoZone, though, has a gigantic buyback that kicks in on any weakness, so can it sidestep tariff worries? I can tell you from the disappointing portion of my Charitable Trust that you simply can’t own stocks with China exposure here. That’s been the case ever since the election. I don’t think anything has changed, so I don’t know. I used to love it, I can’t load the boat up here.”

AutoZone (NYSE:AZO) sells and distributes automotive replacement parts and accessories, offering a wide range of products for vehicles, including hard parts, maintenance items, and non-automotive products. It used part of its capital to repurchase $711 million of its stock during the fourth quarter of fiscal 2024.

At the end of the period, the company had nearly $2.2 billion remaining on its share buyback authorization. Management noted that since the initiation of the stock buyback program in 1998, the company has repurchased more than 100% of the shares that were outstanding at the time, all while continuing to invest in its existing assets and expand its operations. Since the beginning of the fiscal year, the company repurchased 6% of its outstanding shares.

On the matter of potential tariffs, Philip Daniele, AutoZone (NYSE:AZO) CEO, addressed concerns on the earnings call, stating that consumers would ultimately bear the cost if tariffs were imposed. He mentioned that, in anticipation of the impact these policies could have on the company’s margins, the company expects to raise prices even before the tariffs come into effect.