Jim Cramer’s Thoughts on These 10 Stocks

3. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 67

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.”

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.”