5 Best Auto-Parts Stocks to Buy for 2021

2. AutoZone, Inc. (NYSE: AZO)

Ken Griffin’s Citadel Investment Group is one of the 53 hedge funds in Insider Monkey’s database that own AutoZone shares as of the end of the third quarter. The hedge fund owns 182,633 shares of the company, worth $215.1 million. In December, AutoZone reported a 12.9% increase in its fiscal first-quarter domestic same store sales, above the growth estimates of 10.9%. The stock was upgraded by Jefferies to Buy from Hold.  The firm sees long-term growth potential for AutoZone in the do-it-for-me market while the DIY market, which brings in 78% sales for AutoZone, also looks promising.

Jefferies said that AutoZone’s aggressive stock buyback programs could also help the company’s EPS grow in the future. On Dec. 15, AutoZone authorized to buy back an additional $1.5 billion of common stock.

AutoZone shares have gained 4.47% over the last 6 months.