AZO

Five Below (FIVE) came out with quarterly earnings of $1.68 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.37%. A quarter ago, it was expected that this discount retailer would post earnings of $1.7 per share when it actually produced earnings of $2.22, delivering a surprise of +30.59%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Five Below, which belongs to the Zacks Retail - Miscellaneous industry, posted revenues of $1.26 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 3.79%. This compares to year-ago revenues of $1.03 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Five Below shares have added about 30.1% since the beginning of the year versus the S&P 500's gain of 11.5%. While Five Below has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Five Below was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.86 on $1.13 billion in revenues for the coming quarter and $9.19 on $5.5 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Miscellaneous is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Retail-Wholesale sector, AutoZone (AZO), has yet to report results for the quarter ended August 2026. The results are expected to be released on September 22. This auto parts retailer is expected to post quarterly earnings of $54.97 per share in its upcoming report, which represents a year-over-year change of +12.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. AutoZone's revenues are expected to be $6.71 billion, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Five Below, Inc. (FIVE) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AAP's earnings beat included a one-time $26M tariff refund worth $0.31 per share, while revenue of $2B missed estimates and comp sales fell 0.5%. AutoZone fell 3% and O'Reilly slipped 2% as softening DIY demand spooked the broader auto parts sector despite no issues with their own results. AAP entered the print up 45% year to date, amplifying the 21% drop as tighter household budgets hit DIY shoppers harder than management anticipated. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and O'Reilly Automotive didn't make the cut. Grab the names FREE today. Shares of Advance Auto Parts (NYSE:AAP) stock are down 21% to $44.33 Thursday morning after the company posted Q2 2026 results that paired a headline earnings beat with a revenue miss and negative comparable sales. The move is the sharpest single-day slide in the aftermarket group and comes despite a raised full-year adjusted EPS outlook. The read-through is hitting peers as well. AutoZone (NYSE:AZO) stock is down 4% to $2,961, O'Reilly Automotive (NASDAQ:ORLY) stock is down 2% to $89.57, and Genuine Parts (NYSE:GPC) stock is down 3% to $131.05. The peer moves reflect a group-level reaction to softening do-it-yourself demand rather than a proportional hit tied to their own results. Advance Auto Parts reported adjusted diluted EPS of $1.03, topping the $0.81 consensus by 27.9%, while revenue of $2 billion missed the $2.04 billion estimate and slipped 0.5% year over year. Comparable store sales at the retailer declined 0.5%, with the DIY channel weakening sharply in the final four weeks of the quarter and the Pro channel delivering low-single-digit growth. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and O'Reilly Automotive didn't make the cut. Grab the names FREE today. The composition of the beat matters. Advance Auto Parts' management booked $26 million in tariff refunds that contributed $0.31 to adjusted EPS, meaning a significant share of the outperformance is non-recurring. On an underlying basis, adjusted operating margin still expanded more than 250 basis points year over year to 5.6%, and year-to-date free cash flow swung to a positive $120 million from an outflow a year earlier. Guidance also disappointed on the sales side. The company reaffirmed fiscal 2026 net sales of $8.485 billion to $8.575 billion, a midpoint of $8.53 billion that sits below the $8.58 billion consensus, and trimmed store openings to 30 to 35 from 40 to 45. Furthermore, Advance Auto Parts' full-year adjusted EPS guidance was raised to $2.60 to $3.30 from $2.40 to $3.10, but that lift leans on the same one-time refund. Advance Auto Parts CEO Shane O'Kelly accentuated the positive points: Our second quarter comparable sales results reflected low-single-digit growth in the Pro channel, which performed in line with expectations. However, total enterprise sales performance was impacted by the DIY channel as tighter household budgets constrained spending more than we anticipated, especially during the last four weeks of the quarter. Positioning explains why the pain is concentrated on Advance Auto Parts. Through Wednesday's close, Advance Auto Parts stock was up 45% year to date while AutoZone stock was down 9%, so the two entered the print with very different setups and a mixed quarter lands harder on the name that had already run. O'Reilly Automotive stock and Genuine Parts stock entered the day roughly flat and up double digits respectively, cushioning the sympathy moves. Operational proof points at Advance Auto Parts remain constructive under the hood. Adjusted gross margin expanded roughly 240 basis points to 46.2%. Distribution-center consolidation finished with 15 DCs down from nearly 40. Net-debt leverage improved to 2.1 times from 2.4 times last quarter. The market is discounting those wins today in favor of the softer demand signal. The macro backdrop reinforces management's caution about lower- and mid-tier consumers. University of Michigan consumer sentiment sat at 49.5 in June, well below the 60 level flagged as recessionary in the source guide, and U.S. regular gasoline averaged $4.05 per gallon on August 17, up 5% from a month earlier. Both squeeze the exact customer group Advance Auto Parts calls out as most stressed. The Advance Auto Parts conference call at 8:00 a.m. ET has already opened, so commentary on Q3 DIY trends and the durability of Pro-channel growth will shape intraday price discovery. Management said Q3 trends during the first four weeks were tracking slightly ahead of the final weeks of Q2, a claim the sell side will test in follow-up notes. Traders may want to keep an eye on whether AAP stock stabilizes near the $44 area or takes another leg lower. On position sizing, the composition of the beat should shape any fresh exposure to Advance Auto Parts stock. About $0.31 of the $1.03 adjusted EPS came from a tariff refund that won't repeat, so underlying earnings power is meaningfully below the headline. A cautious, smaller position is the more defensible stance while the DIY demand picture clarifies over the second half. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and O'Reilly Automotive didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

A month has gone by since the last earnings report for AutoZone (AZO). Shares have added about 2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is AutoZone due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for AutoZone, Inc. before we dive into how investors and analysts have reacted as of late. AutoZone posted third-quarter fiscal 2026 (ended May 9, 2026) earnings per share of $38.07, topping the Zacks Consensus Estimate of $36.18 by 5.2%. Earnings per share rose 7.7% from $35.36 a year ago. The company’s net sales increased 8.4% year over year to $4.84 billion, but fell short of the consensus mark of $4.86 billion by about 0.5%. Domestic same-store sales increased 4.1% in the quarter, led by strong commercial momentum. In the reported quarter, domestic commercial sales totaled $1.4 billion, up from $1.27 billion in the year-ago period. Total sales represented the company’s largest year-over-year growth in more than three years, reflecting faster top-line momentum versus the first half of fiscal 2026. Total company same-store sales rose 3.9% on a constant-currency basis, supported by a 4.1% domestic comp and a 1.6% international comp on the same basis.The mix of growth also leaned favorably. Domestic do-it-yourself sales rose 2.2% in the quarter, while domestic commercial sales increased 10.4%. The commercial outperformance was driven by better inventory availability at satellite stores, broader Hub and Mega-Hub coverage, and continued gains tied to service speed and delivery improvements. Gross profit rose to $2.52 billion from $2.35 billion in the prior-year quarter. Gross profit margin was 52.2%, down 57 basis points from the year-ago period. A $20 million non-cash LIFO charge in the quarter, which contrasted with a $16 million LIFO credit in the prior-year quarter, weighed on the year-over-year margin comparison.Operating profit increased 6.6% to $923.8 million. Operating expenses were 33.1% of sales versus 33.3% last year, indicating modest leverage despite the faster store growth cadence. Net income rose to $641.5 million from $608.4 million a year ago. AutoZone continued to add stores at a faster pace. During the quarter, it opened 82 new stores globally, including 57 in the United States, 20 in Mexico and five in Brazil. Total store count ended at 7,856, consisting of 6,766 in the United States, 933 in Mexico and 157 in Brazil. The company continues to expand its commercial footprint. Mega-Hubs acted as a key driver of improved parts availability, as these locations typically carry a significantly broader SKU count and can lift both commercial and retail demand by shortening delivery times in local markets. Share repurchases stayed sizable in the quarter. AutoZone bought back 164,000 shares for $586.3 million at an average price of $3,582 per share, ending the period with $0.8 billion remaining under its current authorization. Liquidity remained solid alongside a leveraged balance sheet structure typical of the company’s capital strategy. Cash and cash equivalents were $253.7 million as of May 9, 2026, while total debt stood at $9.02 billion, down from $8.8 billion as of May 10, 2025. The company reported a leverage ratio of 2.5x EBITDAR. Inventory continued to build as the company invests to support growth initiatives and new stores. Merchandise inventories rose 10.8% year over year to $7.56 billion. Inventory per store increased to $962,000 from $908,000 in the year-ago quarter. Net inventory, defined as merchandise inventory less accounts payable, remained negative on a per-store basis. Net inventory per store was negative $107,000 compared with negative $142,000 last year, while accounts payable as a percentage of inventory was 111.1% compared with 115.6% a year ago. The company expects inflation and ticket growth to moderate in the fourth quarter versus the third quarter, with commentary pointing to a mid-4% range for ticket trends as the company laps higher inflation from the prior year. It also expects a planned non-cash LIFO charge of approximately $30 million for the fourth quarter, which would pressure gross margin and earnings per share versus a more favorable prior-year LIFO comparison. The company expects weather-related softness late in the quarter, affecting certain heat-driven categories, while reiterating confidence in summer performance given ongoing execution initiatives. Internationally, the company expects a softer macro environment in Mexico and Brazil, with expectations for constant-currency same-store sales in a range similar to the third quarter. It turns out, estimates review have trended upward during the past month. Currently, AutoZone has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, AutoZone has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoZone, Inc. (AZO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AutoZone, Inc. AZO used its third-quarter fiscal 2026 earnings call to make a forward-looking case centered on share gains, faster store growth and a bigger commercial business. Management acknowledged softer sales late in the quarter, but tied that slowdown to weather rather than a broader shift in demand. The company’s message to investors was that new stores, Mega-Hubs and commercial penetration matter more than near-term noise. That stance shaped both the prepared remarks and the analyst Q&A. President and CEO Philip Daniele said total sales rose 8.4% in the quarter, the strongest increase in more than three years, while domestic same-store sales climbed 4.1% and domestic commercial sales advanced 10.4%. He attributed the growth to AutoZone’s expanding store base and increasing market share. Daniele put the emphasis on commercial, where inventory availability, Hub and Mega-Hub coverage, delivery improvements and the Duralast brand were all cited as contributors. CFO Jamere Jackson added that commercial represented just under 34% of domestic auto parts sales, leaving meaningful room for further penetration. Management’s argument was that the mix shift is strategic, not incidental. Jackson said the company remains underpenetrated with both national accounts and smaller repair shops, and that both customer groups posted double-digit growth. A major point of scrutiny was the slowdown in the last two weeks of the quarter. Daniele said those weeks produced a 1.3% domestic comp after a much stronger earlier cadence, and he blamed unseasonably cool weather that hurt heat-related categories, such as air conditioning and starting and charging. He told analysts from Citi, Oppenheimer and others that category-level performance and regional trends supported that explanation. The company highlighted better results in the West, Midwest and Northeast and said the soft patch aligned with cooler and wetter conditions in markets that are typically warmer at this time of the year. Just as important, management did not retreat from its summer outlook. Daniele said AutoZone still expects normal seasonal demand, while Jackson argued that market-share gains and the contribution from newer stores should help offset moderating inflation. Management repeatedly returned to capital deployment as a central theme. Daniele said AutoZone expects to invest nearly $1.6 billion in capital expenditures this year and a similar amount next year, with the bulk directed toward store growth, Hubs and Mega-Hubs, and technology. The company opened 82 stores globally in the quarter and said it remains on track for roughly 365 openings for the full year, up from 305 last year. Jackson said 14 Mega-Hubs were added in the quarter, bringing the total to 156, with about 15 more expected in the fourth quarter. Both executives said returns are arriving faster than originally modeled. That point came up more than once in Q&A, where management said new stores are outperforming on both DIY and commercial sales and helping support the company’s case for faster long-term top-line growth. The quarter’s reported figures still carried some pressure points. Gross margin fell 57 basis points to 52.2%, caused largely by a $20 million noncash LIFO charge, while Jackson said a mix shift toward faster-growing commercial sales also weighed on the margin rate. Even so, management’s tone on profitability was constructive. Jackson told Citi that underlying merchandise margins, shrink improvement and supply chain productivity were helping offset commercial mix pressure, and he said similar dynamics should continue into the fourth quarter. That confidence extended to expenses. Jackson said SG&A growth has normalized after earlier pressure from store load-ins, and he told Barclays and UBS that the company still has room to manage costs in line with sales while maintaining investment in customer service and new stores. Analysts pressed management on whether lower inflation would drag comps as the company laps last year’s price increases. Jackson rejected a direct read-through, saying commercial transactions, DIY share gains and new-store contribution should remain meaningful drivers. Questions also focused on whether share gains could continue now that competitors are pursuing similar distribution strategies. Daniele and Jackson argued that AutoZone is only about halfway through its Hub and Mega-Hub expansion and still has a small share in commercial relative to the opportunity. Rather than signaling any update to guidance, the Q&A highlighted management’s consistent tone. Inflation, competition, and demand were all framed around the same core levers: execution improvements, denser stocking and commercial upside. The closing tone from management was confident but disciplined. Daniele said the company remains on track to meet its fiscal 2026 objectives and kept the focus on customer service, capital efficiency and market-share gains across DIY and commercial. He also acknowledged that international markets remain pressured, though AutoZone said it continues to gain share in Mexico and Brazil and expects those businesses to improve when local economies strengthen. AZO currently carries a Zacks Rank #3 (Hold), alongside a Value Score of D, Growth Score of D, Momentum Score of A and VGM Score of C. Reported quarterly EPS of $38.07 topped the Zacks Consensus Estimate of $36.18, while revenues of $4.84 billion came in below the Zacks Consensus Estimate of $4.86 billion. The earnings surprise was 5.22%, and the revenue surprise was -0.45%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. AutoZone, Inc. price-consensus-eps-surprise-chart | AutoZone, Inc. Quote Based on Zacks’ framework, the strongest combinations tend to be Zacks Rank #1 or #2 (Buy) stocks paired with Style Scores of A or B, while a Zacks Rank #3 can be held more neutrally and evaluated through the lens of the underlying style mix. The current profile gives AZO a favorable momentum signal, but a more balanced overall setup. As always, the Zacks Rank can change as earnings estimate revisions move after the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoZone, Inc. (AZO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. AutoZone (AZO) just released third quarter results that combined higher sales and earnings per share with a revenue figure that missed Wall Street estimates, triggering a double digit share price drop. See our latest analysis for AutoZone. That revenue miss and the international softness investors focused on have come on top of a share price that is already down 17.28% over the past 90 days and 8.36% year to date, while the 1 year total shareholder return has declined 19.15% but remains well ahead over 3 and 5 years with total shareholder returns of 26.84% and 115.53% respectively. This suggests long term holders have still seen meaningful gains even as recent momentum has cooled. If AutoZone’s recent volatility has you thinking about where else to put fresh capital to work, it could be a good moment to look at 20 top founder-led companies With earnings per share coming in ahead of expectations, revenue under the spotlight, and the stock down sharply yet trading below both analyst targets and some intrinsic estimates, investors now face a key question: is AutoZone on sale, or is the market already discounting future growth? AutoZone’s most followed narrative pegs fair value at $4,204.74 per share, well above the last close at $3,027.48. This puts a clear spotlight on the gap between price and modelled value. Investments in new distribution centers featuring advanced technology and automation in California and Virginia are expected to create supply chain efficiencies, which should help to improve net margins. Read the complete narrative. Want to see what kind of revenue growth, margin lift, and future earnings multiple are baked into that fair value? The narrative spells out a tight set of assumptions, including how fast profits are expected to compound and what valuation the stock might command if those numbers arrive on time. Result: Fair Value of $4,204.74 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you also need to weigh FX headwinds and tariff related cost pressures that could keep margins under strain if sales performance does not offset those factors. Find out about the key risks to this AutoZone narrative. With sentiment split between concerns and optimism, do not wait for consensus to form. Weigh the issues and potential upside for yourself with 4 key rewards and 2 important warning signs If you are serious about putting cash to work, do not stop at one stock. Use the Simply Wall St Screener to surface fresh ideas before everyone else. Target potential upside by scanning for companies that look attractively priced on quality and fundamentals with the 46 high quality undervalued stocks Prioritise strength by focusing on businesses with robust finances and resilient balance sheets using the solid balance sheet and fundamentals stocks screener (46 results) Get ahead of the crowd by uncovering quality companies that many investors may be overlooking through the screener containing 22 high quality undiscovered gems This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AZO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

AutoZone (AZO) shares are under immense pressure on May 27 as investors punish the company for coming in shy of Street estimates in its fiscal third quarter. The post-earnings selloff saw AZO break below its 20-day moving average (MA), indicating the bearish momentum may sustain in the near term. Dear Intel Stock Fans, Mark Your Calendars for June 2 Why Micron Stock Might Have a Math Problem Billionaire Stanley Druckenmiller Just Sold 2 Key AI Stocks. He Bought Broadcom Instead. Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Versus its year-to-date high in early March, AutoZone stock is now down more than 20%. Investors bailed on AZO shares mostly because of a noticeable deceleration in Q3 domestic same-store sales and mounting margin pressures. While overall revenue went up 8.4% versus the same quarter last year, U.S. comparable sales grew a weaker-than-expected 4.1%, indicating demand is normalizing faster than expected. On the earnings call, management also revealed that growth slowed aggressively to just 2.9% in the final weeks of Q3 due to adverse weather conditions. Additionally, AutoZone’s gross margin contracted by 57 basis points to 52.2% because of a non-cash $0 million LIFO (last-in, first-out) inventory charge. This combination of slowing domestic traction and shrinking margins sparked a massive wave of institutional profit-taking in Memphis-headquartered AutoZone. TD Cowen analyst Max Rakhlenko trimmed his price target on AutoZone shares sharply to $3,700 after the company’s third-quarter financial results. In his research note, Rakhlenko dubbed the company a “show me” story in the near term, adding that management must now grow market share organically, through pure transaction volume, not price hikes. Meanwhile, the derivatives market is even more cautious on AZO. The put-to-call ratio on contract expiring mid-July sits at 12.15x currently, indicating a strongly bearish skew. And the lower price on those contracts set at roughly $2,890 suggests AutoZone could sink another 4%-plus over the next two months. Heading into Wednesday, Wall Street analysts had a consensus “Strong Buy” rating on AZO stock, with a mean price target of about $4,283. However, it’s reasonable to assume that negative revisions, like TD Cowen’s, will follow now that the company has posted a muted Q3, raising concerns of a domestic slowdown and continued pressure on margins. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

AutoZone, Inc. AZO posted third-quarter fiscal 2026 (ended May 9, 2026) earnings per share of $38.07, topping the Zacks Consensus Estimate of $36.18 by 5.2%. Earnings per share rose 7.7% from $35.36 a year ago. The company’s net sales increased 8.4% year over year to $4.84 billion, but fell short of the consensus mark of $4.86 billion by about 0.5%. Domestic same-store sales increased 4.1% in the quarter, led by strong commercial momentum. AutoZone, Inc. price-consensus-eps-surprise-chart | AutoZone, Inc. Quote In the reported quarter, domestic commercial sales totaled $1.4 billion, up from $1.27 billion in the year-ago period. Total sales represented the company’s largest year-over-year growth in more than three years, reflecting faster top-line momentum versus the first half of fiscal 2026. Total company same-store sales rose 3.9% on a constant-currency basis, supported by a 4.1% domestic comp and a 1.6% international comp on the same basis.The mix of growth also leaned favorably. Domestic do-it-yourself sales rose 2.2% in the quarter, while domestic commercial sales increased 10.4%. The commercial outperformance was driven by better inventory availability at satellite stores, broader Hub and Mega-Hub coverage, and continued gains tied to service speed and delivery improvements. Gross profit rose to $2.52 billion from $2.35 billion in the prior-year quarter. Gross profit margin was 52.2%, down 57 basis points from the year-ago period. A $20 million non-cash LIFO charge in the quarter, which contrasted with a $16 million LIFO credit in the prior-year quarter, weighed on the year-over-year margin comparison.Operating profit increased 6.6% to $923.8 million. Operating expenses were 33.1% of sales versus 33.3% last year, indicating modest leverage despite the faster store growth cadence. Net income rose to $641.5 million from $608.4 million a year ago. AutoZone continued to add stores at a faster pace. During the quarter, it opened 82 new stores globally, including 57 in the United States, 20 in Mexico and five in Brazil. Total store count ended at 7,856, consisting of 6,766 in the United States, 933 in Mexico and 157 in Brazil. The company continues to expand its commercial footprint. Mega-Hubs acted as a key driver of improved parts availability, as these locations typically carry a significantly broader SKU count and can lift both commercial and retail demand by shortening delivery times in local markets. Share repurchases stayed sizable in the quarter. AutoZone bought back 164,000 shares for $586.3 million at an average price of $3,582 per share, ending the period with $0.8 billion remaining under its current authorization. Liquidity remained solid alongside a leveraged balance sheet structure typical of the company’s capital strategy. Cash and cash equivalents were $253.7 million as of May 9, 2026, while total debt stood at $9.02 billion, down from $8.8 billion as of May 10, 2025. The company reported a leverage ratio of 2.5x EBITDAR. Inventory continued to build as the company invests to support growth initiatives and new stores. Merchandise inventories rose 10.8% year over year to $7.56 billion. Inventory per store increased to $962,000 from $908,000 in the year-ago quarter. Net inventory, defined as merchandise inventory less accounts payable, remained negative on a per-store basis. Net inventory per store was negative $107,000 compared with negative $142,000 last year, while accounts payable as a percentage of inventory was 111.1% compared with 115.6% a year ago. The company expects inflation and ticket growth to moderate in the fourth quarter versus the third quarter, with commentary pointing to a mid-4% range for ticket trends as the company laps higher inflation from the prior year. It also expects a planned non-cash LIFO charge of approximately $30 million for the fourth quarter, which would pressure gross margin and earnings per share versus a more favorable prior-year LIFO comparison. The company expects weather-related softness late in the quarter, affecting certain heat-driven categories, while reiterating confidence in summer performance given ongoing execution initiatives. Internationally, the company expects a softer macro environment in Mexico and Brazil, with expectations for constant-currency same-store sales in a range similar to the third quarter.AZO currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Advance Auto Parts, Inc. AAP reported first-quarter 2026 results on May 21. It delivered adjusted earnings of 77 cents per share in the first quarter of 2026, beating the Zacks Consensus Estimate of 39 cents by 95.2%. The company had incurred an adjusted loss of 22 cents in the year-ago quarter. Net sales were $2.61 billion, which increased 1.2% year over year and came ahead of the Zacks Consensus Estimate of $2.56 billion by 2.1%. Comparable store sales increased 3.5% in the quarter, marking the strongest quarterly comp in five years.As of April 25, 2026, AAP had $2.96 billion in cash and cash equivalents, down from $3.12 billion as of Jan. 3, 2026. Inventories rose to $3.82 billion from $3.65 billion as of Jan, 3, 2026, reflecting higher investment in availability. Long-term debt stood at $3.41 billion.O'Reilly Automotive, Inc. ORLY reported first-quarter 2026 results on April 29. It reported adjusted EPS of 72 cents, which beat the Zacks Consensus Estimate of 69 cents by 4.18%. The bottom line increased from 62 cents in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $4.56 billion, which surpassed the Zacks Consensus Estimate of $4.47 billion by 2.1%. The top line also rose 10.2% year over year.The quarter was driven by strong demand, with comparable store sales rising 8.1%. Growth in both the professional and DIY segments, along with careful cost control, supported the overall performance. The company opened 59 stores in the United States, Mexico and Canada in the first quarter. The total store count was 6,644 as of March 31, 2026.Genuine Parts Company GPC reported first-quarter 2026 results on April 21. It posted adjusted earnings of $1.77 per share, which missed the Zacks Consensus Estimate of $1.81 by 1.94%. The bottom line improved 1.1% from the year-ago quarter’s adjusted earnings of $1.75 per share.The company posted revenues of $6.27 billion, which beat the Zacks Consensus Estimate of $6.17 billion by 1.5% and increased 6.8% year over year. The performance was driven by solid sales growth across business segments and a 20-basis-point improvement in gross margin to 37.3%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genuine Parts Company (GPC) : Free Stock Analysis Report O'Reilly Automotive, Inc. (ORLY) : Free Stock Analysis Report Advance Auto Parts, Inc. (AAP) : Free Stock Analysis Report AutoZone, Inc. (AZO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research