AutoZone's Recent 3% Pullback: A Setup for Investors Watching Valuations

AutoZone (AZO) has pulled back 3% in the past week, despite a year-to-date gain of 18%. The stock's valuation is being reevaluated, with a 20% one-year total shareholder return and a share price of $3,826.77. The expansion of Mega Hub locations could enhance inventory availability and support sales growth, but persistent margin pressures from tariffs and inflation could challenge the bullish narrative. The stock trades at 25.5 times earnings, above the US Specialty Retail average and its own fair ratio.