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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.”

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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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