Investment management company RGA Investment Advisors recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. 2022 was a difficult year for the market and forecasting business trends and opportunities were challenging. The firm focuses on growing companies, at reasonable valuations with demonstrable business quality. The firm also believes that Biotech and life science tools and instruments verticals are the most interesting areas for better future returns. You can check the top 5 holdings of the fund to know its best picks in 2022.
RGA Investment Advisors highlighted stocks AutoZone, Inc. (NYSE:AZO) in the Q4 2022 investor letter. Headquartered in Memphis, Tennessee, AutoZone, Inc. (NYSE:AZO) is an automotive replacement parts and accessories retailer. On February 3, 2023, AutoZone, Inc. (NYSE:AZO) stock closed at $2,398.51 per share. One-month return of AutoZone, Inc. (NYSE:AZO) was -1.77%, and its shares gained 20.14% of their value over the last 52 weeks. AutoZone, Inc. (NYSE:AZO) has a market capitalization of $45.01 billion.
RGA Investment Advisors made the following comment about AutoZone, Inc. (NYSE:AZO) in its Q4 2022 investor letter:
“Below is a chart of Alphabet’s (NASDAQ:GOOG) P/E ratio plotted against AutoZone, Inc. (NYSE:AZO). Any number of examples between large cap tech companies and more mature companies could illustrate this very same point, but we find this specific case most interesting because of its history.
Note that in late 2014/early 2015 these multiples crossed one another. The relative harmony between Alphabet and Autozone lasted for just shy of a year at that time, before Alphabet’s shares surged and Autozone’s shares slumped. This relationship need not matter for markets, though we think there is some signal for investors. Autozone today trades at the highest multiples of its recent history, while Alphabet trades at its lowest. Meanwhile, despite growth estimates dropping considerably at Alphabet and appreciating modestly at Autozone, Alphabet will outgrow Autozone by a wide margin over the next five years…” (Click here to read the full text)
Copyright: urfingus / 123RF Stock Photo
AutoZone, Inc. (NYSE:AZO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held AutoZone, Inc. (NYSE:AZO) at the end of the third quarter, which was 42 in the previous quarter.
We discussed AutoZone, Inc. (NYSE:AZO) in another article and shared the list of most valuable retail companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
