Is AutoZone (AZO) a Tariff Beneficiary?

Appalaches Capital, an investment management firm, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Appalaches Core LO ended the quarter with a loss of 0.5% after all fees and expenses compared to the S&P 500’s decline of 4.3%, the equal-weighted S&P 500’s loss of 0.6%, and the SOFR Index return of 1.1% in the 1st quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Appalaches Capital highlighted stocks such as AutoZone, Inc. (NYSE:AZO). AutoZone, Inc. (NYSE:AZO) is a retailer of automotive replacement parts and accessories. The one-month return of AutoZone, Inc. (NYSE:AZO) was 1.99%, and its shares gained 35.00% of their value over the last 52 weeks. On June 3, 2025, AutoZone, Inc. (NYSE:AZO) stock closed at $3,748.00 per share, with a market capitalization of $62.682 billion.

Appalaches Capital stated the following regarding AutoZone, Inc. (NYSE:AZO) in its Q1 2025 investor letter:

“We have generally seen positive developments in the rest of the portfolio, with AutoZone, Inc. (NYSE:AZO) and CME Group being tariff beneficiaries. AutoZone benefits from a lengthened replacement cycle and higher ASPs on aftermarket parts. AutoZone’s pricing power and the non-discretionary nature of its business combine to make it highly resilient in various environments.”

Jim Cramer Notes “You Have a Winner in AutoZone (AZO)”

A technician in a mechanic’s uniform replacing an A/C compressor, signifying the company’s automotive replacement parts business.

AutoZone, Inc. (NYSE:AZO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held AutoZone, Inc. (NYSE:AZO) at the end of the first quarter, which was 56 in the previous quarter. AutoZone, Inc.’s (NYSE:AZO) total sales were $4.5 billion in the third quarter of fiscal 2025, reflecting a year-over-year increase of 5.4%. While we acknowledge the potential of AutoZone, Inc. (NYSE:AZO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered AutoZone, Inc. (NYSE:AZO) and discussed why JPMorgan increased AutoZone’s price target ahead of Q3 earnings. In addition, please check out our hedge fund investor letters Q1 2025 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.