Jim Cramer on AutoZone: “I’d Be a Buyer”

AutoZone, Inc. (NYSE:AZO) is one of the one of the stocks Jim Cramer was bullish on due to share buyback activity. Cramer highlighted that he has recommended the stock “endlessly.” He commented:

“Finally, there’s one that I’ve recommended to you endlessly, and that is AutoZone, the auto parts retailer, which has shrunk its share count by 44.9%, can you believe that, since the end of 2015, 44.9%. If you go back to the summer of 1998, AutoZone’s shrunk its share count by roughly 89%. That’s why the stock’s been a massive long-term outperformer I always recommended. At the same time, I like the fundamentals here. Rates are still high. Getting financing for new cars is expensive, so people need new parts to make their old cars last longer. Plus, AutoZone’s pulled back 22% from its highs. You know what? I’d be a buyer. I bet the company is too.”

Photo by Artem Podrez on Pexels

AutoZone, Inc. (NYSE:AZO) sells and distributes automotive replacement parts, maintenance items, and accessories for cars, SUVs, vans, and light trucks. Cramer mentioned the stock during the September 19 episode and said:

“Tuesday morning, we have AutoZone, AZO, reports, and I’ve been recommending this stock for two decades because no matter what happens, the company takes whatever cash it has on hand that’s spare and uses that money to buy back stock. It’s the most aggressive buyback in the New York Stock Exchange. Plus, the average car on the road in this country is getting real old. New ones cost a lot of money after tariffs, too much money. If you want to repair or maintain your old car yourself, it’s easier than ever because the instructions are all on YouTube. Even I, you know, 5, 10, 17 thumbs, I figure out stuff on YouTube and the parts, you can buy them at AutoZone.”

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.