See How AutoZone Ranks Among Analysts' Top Picks With Strong Buyback Activity
Investors are often keenly interested in knowing which companies are buying back their own stock, because companies often will only make such a move if they feel their stock is undervalued. AutoZone, Inc. is a company with strong buyback activity that is also considered a compelling buy by analysts; a bullish investor could take this to mean that sharp analyst minds came to the same bullish conclusion as the company itself that the stock is a good value, and therefore the stock should do well in the future.
Analysts studying companies buying back their own stock will also factor into their analysis that future earnings will now be spread over a smaller share count, thereby increasing the per-share earnings the remaining shares will enjoy, versus what that same number would have been absent the stock buyback activity.
According to the ETF Finder at ETF Channel, AZO makes up 2.69% of the Retail ETF (RTH) which is trading higher by about 0.4% on the day Monday.
AZO operates in the Auto Dealerships sector, among companies like O'Reilly Automotive, Inc. (ORLY) which is off about 0.7% today, and Carmax Inc. (KMX) trading relatively unchanged. Below is a three month price history chart comparing the stock performance of AZO, versus ORLY and KMX.