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

We recently published a list of Jim Cramer’s Thoughts on These 10 Stocks. In this article, we are going to take a look at where AutoZone, Inc. (NYSE:AZO) stands against other stocks that Jim Cramer discusses.

When a caller expressed that they are thinking of buying AutoZone, Inc. (NYSE:AZO) shares, Cramer stated:

“No, you’re not thinking of buying, you’re going to buy. This has the single best buyback. The quarter was very good. I am actually surprised that the stock isn’t up even more. It sells at only 24 times earnings. It’s consistent. They bought back half the float. You have a winner in AutoZone.”

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 (NYSE:AZO) offers various automotive replacement parts and accessories. The company’s products cover hard parts, maintenance items, and non-automotive goods. Artisan Partners stated the following regarding AutoZone, Inc. (NYSE:AZO) in its Q1 2025 investor letter:

“Among our top Q1 contributors were Spotify, Ascendis and AutoZone, Inc. (NYSE:AZO). AutoZone is a leading aftermarket auto parts retailer serving both the retail (“do-it-yourself”) and commercial (“do-it-for-me”) markets. This industry has historically grown steadily due to an aging fleet of cars and increased miles driven. These businesses generate attractive financials based on their logistics architecture and distribution scale. We believe AutoZone’s business has the potential to accelerate, driven by opening more “megahub” locations (stores that can carry a large assortment of products and are close to commercial locations), shorter delivery times and international expansion. In the recent quarter, we started to see evidence that commercial sales growth has been accelerating. In addition, we think the stock is poised to outperform in the current macro environment based on the non discretionary nature of used car auto parts and the company’s likely ability to pass through price increases related to tariffs.”

Overall, AZO ranks 3rd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of AZO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AZO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.