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Autozone (NYSE:AZO) is a high priced stock at almost $400 a share, but it serves a very frugal need. Mainly, the desire among Americans to maintain older cars longer instead of buying new automobiles.According to reports, the average age of a vehicle on U.S. roadways is 11 years. That means more brake pads, more oil changes and more replacement parts from companies like Autozone.
Shares of AZO are up almost 150% from January 2010, but this stock hasn’t peaked yet. It’s up almost 30% in the last year and over 18% year-to-date as earnings and revenue continue to improve. It’s revenue has increased year-over-year every quarter for the last four fiscal years (that’s 16 quarters), as has its earnings per share. You can’t argue with growth like that.
Still, the company has a fairly reasonable forward P/E ratio of 14.2 based on 2013 numbers. AZO just reported its fiscal Q3 numbers in May so don’t expect another report until September.
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