Jim Cramer on AutoZone: “At This Point, I Just Don’t See a Lot of Downside”

AutoZone, Inc. (NYSE:AZO) is one of the stocks Jim Cramer discussed, along with market shortages. A club member inquired whether the stock is a buy, sell, or hold, and here’s what Cramer had to say in response:

Alright, this one mystifies me. I have been a believer in this stock for some time. They have the best buyback. Take a look. They’ve shrunk the float by 50% just in the last few years. There’s nothing, I thought, at first, I thought it was tariffed parts that could be a problem, tariffed parts. But at this point, I just don’t see a lot of downside. Yeah, I mean, we just had this nice pick up, but I think this is where you can get back in. It has been a mystery because I’ve been recommending the stock for more than 10 years.

Photo by Joshua Mayo on Unsplash

AutoZone, Inc. (NYSE:AZO) sells and distributes automotive replacement parts, maintenance items, and accessories for cars, SUVs, vans, and light trucks. Cramer was asked about the stock during the January 14 episode, and he replied:

Yeah, people didn’t like that last quarter… And the reason why the stock is going down is this company is so darn consistent that when it reported an inconsistent number, I can’t believe the jailbreak. I think they’re fine. I think the next quarter is going to be better. This company always pivots and always pivots well. I’d be a buyer.

While we acknowledge the risk and potential of AZO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AZO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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