Why AutoZone Stock May Downshift
AutoZone (NYSE: AZO) stock has steadily trended upward over the last two years. The company has benefited from Americans keeping their cars longer and buybacks have helped propel the stock to highs near $1,275 per share in early December.
However, even as the S&P 500 has risen to record highs, AutoZone stock has begun to drop. Moreover, both O'Reilly Automotive (NASDAQ: ORLY) and Advance Auto Parts (NYSE: AAP) trade at higher multiples. Although Genuine Parts Company (NYSE: GPC) trades at a similar valuation, its shareholders receive a dividend that yields 3% at current prices.
The rising stock price and lower valuation may attract investors. However, conditions within both the market and the company itself indicate that AutoZone stock could experience a dramatic reversal.
Source Fool.com
