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AutoZone

AZO Consumer Cyclical Unknown Updated July 31, 2026
$3,019.77
52W $2902.20 – $4388.11
49/100
$49.24B
20.2
0.34
AI Committee Verdict
Watch
Conviction: Moderate · 71% agreement · 7 analysts
+1.0%
-1.2%
0.86:1
Moderate

Is AZO Bullish or Bearish?

Mixed. Innellis AI committee rates AutoZone (AZO) Watch with a composite score of 49/100 , based on 7 analysts with 71% agreement. Last updated July 31, 2026.

What Would Change This View

Upgrade to Buy
Requires a committee score of 60.0 — +11.10 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Reduce
Requires the score to fall below 40.0 — -8.90 from today. The band boundary is 45.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. News Analyst sees a compelling case. Risk Analyst remains cautious — high leverage (debt-to-equity 9.80) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • ROE of 249.3% shows genuine earnings power backing the valuation — Value
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • MACD histogram positive -- bullish momentum — Technical
  • Market regime is bullish (Bull market -- normal position sizing) — Macro
Bear Case
  • Price-to-book of 38.1x prices in significant intangible value — Value
  • Debt-to-equity of 9.80 adds balance-sheet risk to the value case — Value
  • EPS declining -1.7% YoY despite any revenue growth — Growth
  • Price structure making lower highs and lower lows — Technical
  • Price structure (HH_HL) contradicts the downtrend -- mixed signals — Technical
  • High leverage (debt-to-equity 9.80) amplifies downside in a stress scenario — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of July 31, 2026
Overall Committee Score
49/100
Agreement
71%
Analysts
7
Conviction
Moderate
Sector Rank
Top 83%
of 124 Consumer Cyclical peers
Value Analyst neutral
50 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ ROE of 249.3% shows genuine earnings power backing the valuation
− Price-to-book of 38.1x prices in significant intangible value
Growth Analyst neutral
48 / 100 · High confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− EPS declining -1.7% YoY despite any revenue growth
Technical Analyst neutral
49 / 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst bearish
32 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 9.80) amplifies downside in a stress scenario
Macro Analyst neutral
58 / 100 · Moderate confidence
Macro backdrop is mixed or neutral -- not a strong tailwind or headwind either way
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst bullish
60 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 2744.14)
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Investment Thesis Evolution

Committee score moved marginally from 50.0 to 48.9.

Analyst-level changes:
  • Macro Analyst: stance bullish->neutral; score 65->58 (-8); +1 bullish signal(s).
  • Portfolio Manager: +2 bearish signal(s).

Comparing 2026-07-30 to 2026-07-31 (1 day apart).

Technical Analysis

RSI (14)
47.1
Neutral
MACD Histogram
9.372
Bullish Momentum
Trend Direction
Downtrend
Weekly: Sideways
Market Structure
Hh Hl
Support
$2984.02
Resistance
$3050.50
Bollinger %B
0.46
Inside Bands
Price vs Moving Averages
EMA 9
$3,039.59 Below
EMA 21
$3,047.66 Below
EMA 50
$3,120.12 Below
EMA 200
$3,403.61 Below

Fundamental Analysis

Valuation
93
Growth
74
Profitability
0
Financial Health
54
Cash Flow
36
Valuation
P/E Ratio 20.2×
P/B Ratio -17.84×
PEG Ratio -11.67
Dividend Yield 0.00%
52W High $4388.11
52W Low $2902.20
Quality & Growth
ROE -73.2%
ROA 12.9%
Gross Margin 51.7%
Operating Margin 18.0%
Revenue Growth YoY
Debt / Equity -4.54
AI Fundamental Assessment
P/E ratio of 20.2 (inexpensive relative to a 15-40x range); Price-to-book of -17.8x; PEG ratio of -11.7 (under 1.0 suggests growth is undervalued relative to price); Return on equity of -0.7%; Return on assets of 0.1%; Net margin of 0.1%; Gross margin of 0.5%; Current ratio of 0.89 (tight short-term liquidity); Debt-to-equity of -4.54; Free cash flow margin of 0.5% (thin cash generation); Free cash flow per share is positive (99.18); Most recent quarter beat estimates by 3.9%; 2 consecutive earnings beats; EPS growth accelerating (-11.0% -> +37.8% QoQ); Analyst estimates rising over recent quarters
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Explore AZO Further

📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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