Is AutoZone Stock Built to Withstand More Downside?
AutoZone (AZO) stock is down 15.5% in 21 trading days. AutoZone’s recent slide reflects concerns from its Q1 earnings miss, analyst downgrades, and margin pressures, but sharp drops like this often raise a tougher question: is the weakness temporary or a sign of deeper cracks in the story?
Before judging its downturn resilience, let’s look at where AutoZone stands today.
- Size: AutoZone is a $54 Bil company with $19 Bil in revenue currently trading at $3,244.92.
- Fundamentals: Last 12 month revenue growth of 3.8% and operating margin of 18.4%.
- Liquidity: Has Debt to Equity ratio of 0.22 and Cash to Assets ratio of 0.01
- Valuation: AutoZone stock is currently trading at P/E multiple of 21.9 and P/EBIT multiple of 15.2
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 84.2% within a year. See AZO Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Moderate valuation – making the stock Fairly Priced. For details, see Buy or Sell AZO Stock
That brings us to the key consideration for investors worried about this fall: how resilient is AZO stock if markets turn south? This is where our downturn resilience framework comes in. Suppose AZO stock falls another 20-30% to $2271 – can investors comfortably hold on? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- AZO stock fell 21.4% from a high of $2,254.03 on 20 April 2022 to $1,771.68 on 20 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 12 August 2022
- Since then, the stock increased to a high of $4,354.54 on 11 September 2025 , and currently trades at $3,244.92
| AZO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -21.4% | -25.4% |
| Time to Full Recovery | 84 days | 464 days |
2020 Covid Pandemic
- AZO stock fell 39.3% from a high of $1,191.31 on 1 January 2020 to $723.22 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 30 July 2020
| AZO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -39.3% | -33.9% |
| Time to Full Recovery | 129 days | 148 days |
2018 Correction
- AZO stock fell 37.9% from a high of $793.68 on 10 January 2017 to $493.15 on 12 July 2017 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 19 January 2018
| AZO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -37.9% | -19.8% |
| Time to Full Recovery | 191 days | 120 days |
2008 Global Financial Crisis
- AZO stock fell 36.9% from a high of $141.13 on 3 September 2008 to $89.09 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-crisis peak by 6 February 2009
| AZO | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -36.9% | -56.8% |
| Time to Full Recovery | 78 days | 1,480 days |
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