Understand The Sentiment But Pressure Feels Overdone

研报英文原文证据摘录

Understand The Sentiment But Pressure Feels Overdone

Retailing/Specialty Stores: Hardlines

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TD SECURITIES (USA) LLC EARNINGS UPDATE

May 26, 2026

Price: $3,100.11 (05/26/2026) Understand The Sentiment But Pressure Feels

Price Target: $3,700.00 (Prior $4,250.00) Overdone

BUY (1)

ESG SCORE: 52/100

Max Rakhlenko, CFA THE TD COWEN INSIGHT

646 562 1423

We think today's (9%) stock move was overdone but shares may remain range-bound in the N-

max.rakhlenko@tdsecurities.com

T as investors assess solid but softer than expected +4.1% comps which overshadowed an EPS

Amanuel Seife beat. We think stacks can hold despite easing inflation tailwinds on better transactions but

646 562 1406 acknowledge AZO now becomes a show me story in the N-T as tailwinds normalize & mgmt.

amanuel.seife@tdsecurities.com

needs to accelerate market share growth.

Lauren Leatham

646 562 1462 3Q Domestic Comps Below Bogeys But Still Solid: Domestic comps at +4.1% were solid

lauren.leatham@tdsecurities.com and saw the Y/2Y and Y/3Y improve sequentially by +390bps/+360bps and overall were

Key Data strongest in years and outpaced the tailwind from Q/Q same-SKU inflation growth. That said:

Symbol NYSE: AZO (1) expectations were elevated with buy side bogeys well ahead (bogeys came down modestly

Beta: 0.44 into EPS but were still too high): (2) hedge fund positioning was crowded on the long side;

52-Week Range: $4,354.54-$3,100.11 (3) whereas ORLY and AAP's comps were in-line or beat elevated expectations, AZO came in

below which raised market share and competitive dynamic questions.Market Cap: $51.1B

Net Debt (MM): $8,751.2 While AZO's comps missed, we think DIFM at +8.1% was strong and saw the Y/2Y improve to

Cash/Share: $94.28 +18.4%, up +420bps Q/Q and overall best in years.