AZO

chrosborne

Bought OTM AZO calls at close cause I hate money and love wendys

chrosborne

Just bought AZO calls but I’m poor so just 1

creemeeseason

Yeah, 6x is reserved for coal companies, of course metallurgic coal isn't in decline, just cyclical. However, the same magic works at any level if the stock is cheap. It just takes a little longer. AZO has made a winner off essentially this strategy.

budgetFAQ

This thread belongs in the Reddit Hall of Fame. I’m glad so many of you have tripled your money in five years that $AZO has nothing to teach you.

CataclysmClive

i've been investing in AZO steadily every month the last few years alongside things like Costco. cars and groceries aren't going out of style

Latter_Heron8650

AZO is really good, not sure why not many people are talking about it? Not a resident of the US and dun really follow it closely but does anyone know why this stock has been doing so well ( i mean look at its price chart..)

Plumpitup99

$4,900 bet. I’ve considered doing it. But this stocks options are getting super outrageous on prices now. Maybe 2-4 weeks ago be more affordable. Surely cannot buy AZO options.

thelastsubject123

Thats 100% valid, I just prefer share cannibals like AZO/CROX/MCK Different strokes for different folks

uuddlrlrBAselectstrt

Have you seen AZO?

footlong24seven

With the CMG split I'm hoping some of these other pricier shares start to split. Looking @ you NVDA, LLY, AZO.

Asleep_Swordfish8896

Nascar portfolio: I custom designed this for nascar fan BUD DWAC GM PM AZO 🇺🇸🏎️

Plumpitup99

Put 20-25k away in a savings or low risk investment. Or a growth stock like AZO.

rifleman209

Sure so you should avoid GOOG, BRK and AZO in pursuit of that goal because they don’t pay a dividend? If your goal is income, that is irrational. Your goal should be total return because that captures the full impact of performance (income and appreciation) You want companies with High ROEs, profits, steady growth, low leverage. Those happen to often times be dividend payers, and sometimes they arent. You don’t want companies yielding 12% leveraged to the hilt to keep the dividend afloat. Long story short, if your first screen is pays a dividend, that is irrational

rifleman209

Let me translate your thinking: Pulls up Berkshire No dividend, bad investment Pulls up AZO No dividend, bad investment Pulls up GOOG No dividend, bad investment. No thought of cash flow, earnings, revenue, etc. I’m simply starting that screening for income first is irrational. If any of the above companies have an expected return of 15%, and the one with a dividend has an expected return of 7% and you buy it, you’re irrational. That’s all I’m saying

rifleman209

1 the presence of a dividend may mean the stock is safer. BRK.B and AZO are great counter examples. Not investing and paying a dividend has risk of falling behind. The main point I’m trying to make is screening for dividends and to focus on income only is irrational

creemeeseason

I might have linked to this before, but [here](https://open.substack.com/pub/specialsituationinvesting/p/the-mathematics-of-buybacks-and-dividends?utm_source=share&utm_medium=android&r=23ti9i) is a solid article on the power of share buybacks. When done right, buy backs have enabled some absolutely astounding retirement done consistently and over time. Think of AZO, NVR, AMP, and MUSA....great share carnivores that have outperformed. I'm not sure how LOW stacks up, but I'd imagine it's relatively consistent and reasonably cheap. 5% FCF yield and 5% revenue growth..... it's probably about a market return level stock, if I had to guess. Maybe more if they do buy backs correctly. It looks like they reduce the share count by about 3% annually (988 million share son 2014 to 580 million shares today). Not bad.

miataowner

Oh I'm sorry, what's that? I can't hear you over AZO going +27% over the trailing 52 weeks. And +19% YTD. You'll have to speak up. Way to dig up a year-old thread.

SentenceGold2930

AZO needs to be added to the MAG 7 instead of TSLA

ThinkingOfTheOldDays

the company is buying \~10% of the stock float per year. that's the cause of the run up. like AZO and some other firms with excellent balance sheets & quiet stock interest.

studybreak15

I saw AZO had good earnings so figured AAP would follow.

cold_coors

If you use Midwest logic. I see an AAP I’ll drive a bit farther for that AZO

Braveliltoasterx

So calls on AZO and puts kn AAP, got it!

snugglepimp

Why hasn’t AZO done a stock split? Paying $2700 for a share of an auto parts store seems odd.

PuldakSarang

Eyeing few earning plays for next week actually, not sure what is exciting left about this week.. SNOW, ADSK, EBAY, ZS, HPQ, AZO, CRM

Middle____Earth

Autozone's ($AZO) All time chart is insane. It's literally never-ending returns

zhy-rr

Puts on $AZO

thelastsubject123

Paying a dividend does not make a company good. Not paying a dividend does not make a company bad. Autozone has never paid a dividend. FICO does not. T and VZ do. AZO and FICO have crushed them. People love to say XYZ companies that pay dividends outperform. It's not because of the dividend. You should not want a dividend. It's because XYZ has strong cash flows and excellent operating performance that allows them the flexibility to distribute profits to shareholders. When you invest in a company, it's because you trust their management to take your money and invest it in the business and create more money than you can. Why then would you want them to give their money back to you? Don't you trust them? Only if they believe the best return to shareholders is distributing dividends should you want one

Express_Ad_772

Yes I just looked at it sorry man you have a huge position in AZO ? Hopefully you have shares or at least longer dated calls so you can ride it out looks to me like a sympathy drop cause of O Riley

ChiggaOG

I’m holding for now. Not kicking myself for buying more last year. About the same for not tossing money on QQQ, COST, ORLY, AZO, TQQQ, and others in similar fate after 1 year.

thelastsubject123

How does a dividend make a company bad? LUMN and T paid an amazing dividend. But it turns out when you pay dividends when your business collapses, not the best thing. AZO and Googl never paid a dividend and they've massively outperformed the market. Dividends are just a forced sale of your stock, they're not necessarily good

Frozenflyingfuck

Gotta be in the realm of CMG, AZO or BKNG prices

thelastsubject123

not every company is the same- they should be taken against comparable companies IE: WMT vs TGT, ORLY vs AZO, ZS vs NET low/medium/high margin Debt is also different for every company. If you're a cash light business such as ZS, you shouldn't be overleveraged. But if you're a leasing/franchising company such as Domino's (DPZ), debt makes sense as you need to borrow to expand. TL;DR It all depends

BallsDropped

Does anyone here buy AZO contracts?

aTribeCalledLex

Surprisingly/Not Surprisingly, consumer-oriented auto parts companies do very well during recessions. Recession = repairing existing cars instead of buying new, leasing, buying used, etc. - AZO - autozone - ORLY - orielly - AAP - Advance auto parts - SNA - snap on tools

WaifuWarsVet69H

AZO, look at that fucking chart and tell me it isn't magnificent

Frozenflyingfuck

Don’t you just love the low float high point caps? He’ll add AZO in there too

AggravatingTry1051

AZO trades for $2,670/share.

creemeeseason

I'm not sure it's a gauge on the health of the market. Every company buy ack is different. Personally I treat a company that does buybacks to cancel our SBC very different than one that continually reduces their share count. I give extra credit to companies that can buy back only when certain metrics are met (Medpace, I'm looking at you) but generally consistent buybacks are ideal. Obviously, this benefits low multiple companies more than higher ones. However, TXN has done a great job of buybacks with a 20x multiple. This article clarifies, and I agree, that buy backs in lieu of debt reduction is probably not good. Companies that levered up to buy ack stock during 0% rates might be in trouble going forward if rates stay high. I do think this scenario got carried away in the previous rate environment and is probably is another reason 0% rates shouldn't come back. It's not great for the economy. However, some of the "share vacuum" companies put up great returns. Ones that use free cash instead of debt to do this. Also, limited reinvestment opportunities, etc. looks t MUSA, AMP, AZO, and ULTA are a few examples of companies with well executed buybacks. They've also been great companies to own.

ZarrCon

I don't like looking at (gross) margins in isolation but they can be useful when comparing competitors or companies in the same industry. A good example is AZO at 52%, ORLY at 49%, AAP at 44% gross margins. But if you only look for high margin businesses in general you can end up missing out on some pretty solid companies like distributors or Costco.

East_Faithlessness79

Time to short AZO and ORLY?

PanPirat

Autozone does a shitload of buybacks and no dividends. Look at shares outstanding history for AZO and it will explain.

Sugamaballz69

thanks for the tips. all I can say for the autoparts companies like AZO/ORLY/DORM/AAP is that they all have consistent sale & earnings growth, MUCH better than the actual car companies like F/TM, etc

Sugamaballz69

Spot on, AAP is also a pretty good one. Their financials are in a general uptrend but ORLY & AZO & DORM are a little more consistent. That being said I think theyre also a good one along with the others

Sugamaballz69

I hear you, and I genuinely can’t say I have a favorite, I like some home builders stocks like DHI/LEN/PHM they’re pretty cheap for what they return and autoparts like AZO/ORLY/DORM I fw

Sugamaballz69

What are you going off of for “expensive” cause to me Atleast for AZO & ORLY their PE is around 20 and PEG is around 1, which is fairly priced imo

FILFth

Love AZO though.

Express_Vacation_

AZO!

_hiddenscout

Autozone $AZO Q1 GAAP EPS of $32.55 beats by $0.94. Revenue of $4.2B (+5.1% Y/Y) beats by $10M. Domestic Same Store Sales Increase 1.2% International Same Store Sales Increase 25.1% Total company Same Store Sales Increase 3.4%

isjustme1986

$AZO performed better than a few of these

chickenfriedsteakdin

The best hope is a company in a niche industry that can roll up the competition at a fraction of its valuation. Look what $Pool did. $TSCO did what Walmart did for people but with farmers in ignored markets. $Rick is my safe bet in the years ahead. They can vacuum up the 2200 club universe by skimming off the very best clubs at 3-5x. Pure arbitrage. They buy back stock when cheap following a asset allocation strategy just like $AZO 10x in less than 10 years

WidePeepobiz

Ah ok seems like a decent methods to gain sentiment of management. You should try classifying your test with equities of low and high beta. Seems like for example ADNT has too much noise going on and the markers are a bit off given they have a 2.77 beta but with AZO they have a beta of .64 and your model seems more align with the expected prediction. Just something I noticed which may be worth a deeper dive.

Atriev

That’s not how things work. I suggest you listen to an AZO earnings call where they explain their business model. People WANT to go into an Autozone and speak with an expert. And you have businesses like Best Buy that have transitioned into a distribution model. There’s other ways to do business. That said, AMZN is my second largest holding and if META doesn’t keep growing too quickly, I have been averaging up on AMZN and I’d to make it my #1 position over time.

Newerphone

Last time I double my money on AZO calls when it was at this level before.

creemeeseason

Nice breakdown of AZO (AutoZone) https://open.substack.com/pub/yhamiltonblog/p/agb-20238-autozone-azo?utm_source=share&utm_medium=android&r=23ti9i

HyerStandards

AZO. When do I get my cut?

h_o_l_o_d_a_y

AZO always had regard strength. Look at that chart !

Newerphone

AZO had more than usual call volume on $2700 just fyi. Stock has very little options to begin with.

Newerphone

Doubled my money yesterday with AZO calls. Should I try it again?

Newerphone

Brought my port back with just AZO calls. Should have been doing this the past five years!

Newerphone

Decided to say fuck it and put 3k into a AZO call. Just sold for 6k. Not bad

Newerphone

AZO is unstoppable will always be green every month.

Atriev

MUSA has been killing it. Same with AZO, DG and ULTA. I’ve more than multiplied my money on all of these positions.

moldyfruitbread

AZO and hope it breaks to ATH

dvdmovie1

Not that big of a float, company has delivered year/over/year for decades and generally has held up pretty well in recessions (2008 it ended -8%) So while it's not likely to deliver a home run in a given year, the consistent returns over time have been a grand slam and have likely earned it something increasingly rare: a loyal shareholder base. AZO is similar: has delivered consistently over many years, well-run, fairly recession resistant,

SRD_Grafter

Depends on why the company has negative equity, and if the revenue and earnings CAGR is per share or absolute basis. As there are a number of cannibals (that repurchase stock or have debt financed distributions, such as TDG, AZO, or DPZ) that I would definitely be interested in. But it also comes down to a bit of the business model and what exactly they are doing with the cash flow (okay and ROIC).

robbinhood69

How is it undervalued when their comps r down y/y while ORLY and AZO posting positive comps ? Theyre getting eaten alive by competitors ORLY just posted 9.8% comps or smthng

dvdmovie1

AAP has always been a mediocre "also ran" vs AZO and ORLY. I think AZO/ORLY are good/consistent companies that aren't likely to deliver spectacular returns in a given year but have delivered exceptional returns over time by delivering singles and doubles pretty much year in/year out. They benefit from high cost of car periods and recessions - AZO had a drawdown but ended positive in 2008, ORLY barely negative - as people repair rather than buy new. If times were good and you thought cars were suddenly going to get materially cheaper, maybe that would be short-to-med term a bit problematic but probably not hugely detrimental. So, very good stocks that have delivered singles/doubles year in/year out over time and really don't see anything - we're not all going to be going around in fully autonomous cars for decades - that significantly changes that in the foreseeable future.

MitchBrain14

What are some opinions on Auto Parts stocks? I like AZO but am curious about AAP, ORLY, and GPC.

flatech

ORLY and AZO do lots of stock buy backs and are shareholder friendly.

StockNCryptoGodfathr

Well said. What most people don’t understand is us value investors ignore a stock like PYPL then when it hits these kind of levels we start to slowly buy over time. I like the comparison to AZO because that’s EXACTLY the kind of thing I look for.

MitchBrain14

AZO

_hiddenscout

AZO is so solid.

WickedSensitiveCrew

I think its share price gets in the way for options. A lot of users are traders or want to play short term moves. Nothing wrong with that but not many have $20,000 for the options. AZO and BKNG are probably in similar situations.

chrosborne

AZO 2600 and 2700 strikes

frumpydrangus

Is AZO gonna have like a 100:1 stock split or something someday

WickedSensitiveCrew

There are other sectors in the market besides tech. For gains to be had. AZO, CMG, and LULU are all up over 450% in the last 10 years.

chrosborne

Bought AZO calls today. Inverse me for gains

chrosborne

Just loaded up on AZO calls, inverse me for gains

chrosborne

AZO 2400 strikes at open let’s gooooo

JustFloatingAbout

Well it’s gonna depend on a few factors such as volatility and how long until expiration, but keep in mind 1 option controls 100 shares. Controlling 100 shares of something like AZO which has a price share of over 2k would be pretty expensive. The jun 16 2400 c for azo is $30 per share, so that would be 3k for 1 option contract.

Dumb_Nuts

Them and AZO are cash flow machines. They sell parts 2-3x before they actually have to pay suppliers so they just plow it into share buybacks. They also hate the hedge funds punting them around so they purposely don’t split to reduce liquidity and make it harder for them to get in and out. Idea is this creates a better long term shareholder base, not dudes trading in and out on weather forecasts

Dumb_Nuts

They moved suppliers on core product categories to private label. Margins are better, but they underestimated how much the pro shops actually care about what parts they put in cars. They’re losing market share and having to take down price to compete, but looks like they’re doubling down on the strategy. They tried it before and it failed. There’s a reason ORLY, AZO, and GPC haven’t done the same even when you can squeeze and extra few %. AAP has been a shitshow for years. Grew through too many acquisitions too fast and have had to make long expensive investments in integrating supply chains. At the end of the day, auto parts is about having the part available the fastest at a reasonable price. Shops want to turn bays as fast as possible and don’t want customers coming back when parts fail

solidsneeze

AZO better run company

RexCrimson_

AZO does look a bit tempting. Definitely keeping an eye on it.

Walternotwalter

AZO and ORLY, both excellent companies, were pulled down by AAP. Not a bad buying opportunity for a sector set to benefit from high interest rates and keeping old cars on the road longer.

Sesh_Recs

Never seen aap be pumped. AZO and ORLY for sure but AAP has been an awful investment for at least a decade.

creemeeseason

AZO is usually the big name in that sector.

spacebizzle

See AAP getting absolutely wrecked after already being beat to shit? Why does that stock trade at a $5B market and ORLY/AZO are $52B and $44B? Better margins, more revs sure but ORLY is almost as big as Target but they're all the same f'in store, and usually right down the street from each other.

wormtheology

AZO and AAP were bubbles bound to pop sooner or later. Recession proof my ass, lol. Shame I played AZO for sympathy. Didn’t have the gall to risk it on AAP.

Fox_Technicals

Shoulda gone with AZO or ORLY 

rememberRengoku

Maybe. Companies like NVDA and PLTR and AMD are seeing moves up because of an association with AI. But these are also solid companies. Pltr especially because it's now GAAP profitable and will probably be so from now on unless something very big happens. Best move with tech is to buy and hold. Tech takes a long time to ramp up, which is good because the market's perspective only goes out like 16 months. Holding is how you can get big moves like AZO or AMD. I think AZO was $10 in the 90s and now it's like $2k a share. AMD also used to be a $10 stock. Apple also used to be a little nothing stock as well. Bubble might pop but that doesn't matter for companies that provide value. I'm long on PLTR because people buy their service and stick with them, and they didn't when companies were turning down tech spending.

Frameofglass

AZO

IRunFast24

All new cars are right now. Long $ORLY and $AZO.

RedsInABox

No one can afford new vehicles so people are opting to keep their old ones which, in turn, increases product flow through O'Reilly. Look at AZO same thing.

ThiccThighSurprise

AZO is unstoppable

Difficult_Revenue_67

AZO hit all time high last 04/21 ... holding long shares. Should I hold?

Stoolsamplers

Holy shit. Y'all ever taken a look at Autozone (AZO)? $2,600 per share. Literally 5 year elevator ride up without any drawdown.

ThiccThighSurprise

You crae crae AZO is allergic to red days

Own_Tackle4514

Added AZO 2500p 5/19

ThiccThighSurprise

I’d pay someone to fight AZO