3Q Preview: Tweak Est. Higher As Expect A Solid Quarter, But See A Mixed Set Up

Research evidence excerpt

3Q Preview: Tweak Est. Higher As Expect A Solid Quarter, But See A Mixed Set Up

Retailing/Specialty Stores: Hardlines

AutoZone

TD SECURITIES (USA) LLC ESTIMATE CHANGES

May 19, 2026

Price: $3,365.74 (05/18/2026) 3Q Preview: Tweak Est. Higher As Expect A

Price Target: $4,250.00 Solid Quarter, But See A Mixed Set Up

BUY (1)

ESG SCORE: 52/100

Max Rakhlenko, CFA THE TD COWEN INSIGHT

646 562 1423

We raise 3Q EPS est. and expect a solid beat vs. Street and view valuation at 19x as attractive

max.rakhlenko@tdsecurities.com

for a leading defensive retailer with robust share growth that is poised to re-accelerate in the

Amanuel Seife coming quarters. That said, we see a mixed set-up as shares are well owned and expectations

646 562 1406 remain somewhat elevated and shares could see another mixed print.

amanuel.seife@tdsecurities.com

Lauren Leatham Set Up: We are constructive on AZO but see a mixed set-up into EPS. We expect a domestic

646 562 1462 comps and EPS beat vs Street, SG&A should be better controlled, macro is stable (demand &

lauren.leatham@tdsecurities.com supply) & there should be an upward bias to M-T same-SKU inflation, along with an attractive

Key Data 19x P/E. That said, shares are well owned and buy-side bogeys remain somewhat elevated

Symbol NYSE: AZO (although we think have come down), a good but not spectacular quarter relative to ORLY's

Beta: 0.44 very strong 1Q will remain an overhang, and AZO will soon face tough compares. We side with

52-Week Range: $4,354.54-$3,244.92 the bulls and are bullish on AZO's medium-term set up as we see a path for stronger share

growth as DIFM execution continues to improve.Market Cap: $55.5B

Net Debt (MM): $12,097.3 Est Update: We raise our 3Q26 EPS est to $37.00 and are above Street's $36.29. We raise our