Company name AutoZone, Inc.
Stock ticker AZO
Live stock price [stckqut]AZO[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Fair
Sales growth Poor
EPS growth Good
P/E growth Fair
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $329.76
Target stock price (averages with growth) $440.89
Target stock price (averages with no growth) $370.78
Target stock price (manual assumptions) $340.2

The following company description is from Google Finance: http://www.google.com/finance?q=azo

AutoZone, Inc. (AutoZone) is a retailer and a distributor of automotive replacement parts and accessories in the United States. As of August 25, 2012, AutoZone operated 4,685 stores in the United States, including Puerto Rico, and 321 in Mexico. The Company operates in two segments: Auto Parts Stores and Other. The Auto Parts Stores segment is a retailer and distributor of automotive parts and accessories through the Company’s 5,006 stores in the United States, Puerto Rico, and Mexico. The Other category reflects business activities that are not separately reportable, including ALLDATA which produces, sells and maintains diagnostic and repair information software used in the automotive repair industry, and e-Commerce, which includes direct sales to customers through www.autozone.com. During the fiscal year ended August 25, 2012 (fiscal 2012), the Company opened 193 stores and relocated 10 stores.

 

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

 

KrantCents had a short article recently discussing the goal of having a savings goal. It was a great article and I suggest that you click over and read it here.

People often ask me how to get started in investing. My first question always is, “Can you afford it?”

The reality is that you need to have at least 3 months of income saved in a very safe and accessible account before you invest any money. All of your investment money needs to be above and beyond that savings level. In tough times where your job may be at risk then you may actually want to increase this amount to 6 months.

Obviously, 3 months of your income is 25% of your annual take home pay. This means it will take 2.5 years to set aside this level of savings if you save 10% of every paycheck. Your interest during this time is negligible since your account will be very conservative and therefore not giving a great yield (it is unfortunate that savings accounts approach 0% in this economy).

So click over to KrantCents to learn how to set a savings goal and set that goal for 25% of your annual pay so that you can start investing in your future.