AutoZone (NYSE: AZO) reported strong Q4 earnings, leading to profit-taking in the market. The company’s buyback activity continues to drive stock gains, reducing shares outstanding by nearly 2% year-over-year. Despite a slight cash flow miss, AutoZone’s store expansion and increased inventory support growth. Revenue grew by 6.9% adjusted for the extra week. Margin pressures resulted in a net income decline, but analysts remain bullish on AZO stock, with a consensus $4,450 price target predicting new highs. The company’s accelerated store count growth signals long-term upside, and while no forward guidance was issued, analysts forecast mid-single-digit revenue growth in 2026.

Read more at Nasdaq: AutoZone Pulls Into a Buy-the-Dip Opportunity