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    AutoZone (AZO) Opens Its 8,000th Store On An Undervalued Growth Narrative

    Simply Wall St·09/15/2026 06:22:46
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    Why AutoZone’s 8,000th Store Matters For Investors

    AutoZone (AZO) hit a fresh expansion milestone with the opening of its 8,000th store in Murfreesboro, Tennessee, giving investors a concrete marker of the retailer’s long running growth ambitions.

    The 8,000th store opening comes at a time when AutoZone’s share price has pulled back. A 1-day share price return of 3.09% contrasts with a year-to-date share price decline of 10.24% and a 1-year total shareholder return that is down 29.95%. Over the longer term, 3-year and 5-year total shareholder returns of 17.58% and 87.08% indicate a stronger past journey for patient holders than recent trading suggests.

    Scan how AutoZone compares with other retail and consumer-facing businesses under renewed pressure and potential recovery by reviewing the hand picked 35 high quality undervalued stocks.

    AutoZone’s 8,000th store and a share price that has retreated over the past year pull investors in opposite directions. Do the current numbers support the bull case or the bears as you weigh valuation next?

    Most Popular Narrative: 25% Undervalued

    AutoZone’s most followed valuation story points to a fair value of $3,969 per share, which sits well above the recent close at $2,965.52 and frames the 8,000th store milestone against a stock that many analysts still see as discounted.

    AutoZone's focus on improving availability and speed of delivery in the Domestic Commercial business is expected to drive further sales growth, contributing significantly to revenue growth. The expansion of Mega-Hub locations, with an aim to open at least 19 more in the next two quarters, will enhance inventory availability and support both retail and Commercial growth, potentially improving sales and operating margins.

    See why 29 investors see AutoZone as 25% undervalued.

    Result: Fair Value of $3,969 (UNDERVALUED)

    Still, the AutoZone story can break if foreign exchange headwinds continue to hit reported sales and if higher SG&A from expansion keeps squeezing margins.

    Find out about the key risks to this AutoZone narrative.

    Another View On AutoZone’s Valuation

    AutoZone may look undervalued against a $3,969 fair value tag, yet the market is already paying a P/E of 19.5x versus 16.6x for the US Specialty Retail group, and 22.6x for close peers. The fair ratio sits at 19.7x, which leaves only a narrow margin of error if sentiment turns.

    Investors comparing AutoZone’s earnings multiple to its sector and peers can use this gap to judge whether they see more valuation risk or headroom from here. They can then test that view against our detailed breakdown in the See what the numbers say about this price — find out in our valuation breakdown..

    NYSE:AZO P/E Ratio as at Sep 2026
    NYSE:AZO P/E Ratio as at Sep 2026

    Next Steps

    Mixed messages around AutoZone’s value can pull you in different directions. Move quickly from opinion to evidence and weigh the 3 key rewards and 2 important warning signs.

    Looking For More Investment Ideas Beyond AutoZone?

    Do not stop your research with AutoZone. Broaden your watchlist now so you are not only reacting to headlines but spotting fresh ideas before they move.

    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.