Is Autozone a Buy After Its Latest Earnings Report?

AutoZone (NYSE:AZO) doesn't get a lot of fanfare on the stock market, but it's quietly been one of the best-performing stocks for decades.

Its hub-and-spoke business model, in which larger central stores can resupply satellite ones, consistent expansion, and steadily growing demand for aftermarket auto parts have made the company a winner over its history. The stock is up nearly 300% over the last decade.

However, over the last year, the company's winning ways have changed as the stock has fallen nearly 40% from its peak due to a stretched valuation and sluggish growth in the DIY sector as inflation has pinched consumers' wallets.

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