Medtronic, Inc. (MDT), Merck & Co., Inc. (MRK), AutoZone, Inc. (AZO): Today’s Three Best Stocks

Finally, auto-parts retailer AutoZone, Inc. (NYSE:AZO) put the pedal to the metal and advanced 4.6% following the release of its third-quarter results. For the quarter, net sales increased 4.5% to $2.2 billion as EPS rose at a much faster 16% clip. AutoZone, Inc. (NYSE:AZO) attributed the better results to a rougher winter, which helped its replacement-parts business. However, I remain decidedly pessimistic on AutoZone, Inc. (NYSE:AZO) at these levels. Comparable-store sales actually saw a 0.1% decline, and the company has been fueling EPS growth primarily through share buybacks instead of actual growth. AutoZone, Inc. (NYSE:AZO) is carrying an insane amount of debt on its books that seems to rise with each passing quarter and could threaten to put the company in a bind if it ever falls into a rough growth patch.

The article Today’s 3 Best Stocks originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Medtronic and recommends Home Depot.

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