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.
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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 |
Feeling jittery about AZO stock? Consider portfolio approach.
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