U.S. markets open in 1 hour 59 minutes
  • S&P Futures

    4,160.50
    -4.25 (-0.10%)
     
  • Dow Futures

    33,999.00
    -17.00 (-0.05%)
     
  • Nasdaq Futures

    13,902.00
    -17.25 (-0.12%)
     
  • Russell 2000 Futures

    2,229.00
    -9.40 (-0.42%)
     
  • Crude Oil

    61.00
    -0.35 (-0.57%)
     
  • Gold

    1,788.10
    -5.00 (-0.28%)
     
  • Silver

    26.45
    -0.11 (-0.43%)
     
  • EUR/USD

    1.2061
    +0.0022 (+0.18%)
     
  • 10-Yr Bond

    1.5640
    0.0000 (0.00%)
     
  • Vix

    17.29
    -1.39 (-7.44%)
     
  • GBP/USD

    1.3914
    -0.0018 (-0.13%)
     
  • USD/JPY

    107.9890
    -0.0540 (-0.05%)
     
  • BTC-USD

    55,004.32
    -246.06 (-0.45%)
     
  • CMC Crypto 200

    1,275.90
    +12.93 (+1.02%)
     
  • FTSE 100

    6,905.58
    +10.29 (+0.15%)
     
  • Nikkei 225

    29,188.17
    +679.62 (+2.38%)
     

Should You Buy AutoZone (AZO) Stock Before It’s Too Late?

  • Oops!
    Something went wrong.
    Please try again later.
Alex Smith
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Bretton Fund recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 11.52% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 12.15% in the same quarter. You should check out Brown Capital Management's top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Autozone Inc (NYSE:AZO) is one of them. Autozone Inc (NYSE:AZO) is a specialty retailer of automotive replacement parts and accessories. In the last three months, Autozone Inc (NYSE:AZO) stock gained 1.7% and on March 4th it had a closing price of $1,168.44. Here is what the fund said:

"Like all retailers, AutoZone saw its sales drop sharply at the beginning of the lockdown, but since most of AutoZone’s sales are nondiscretionary (think spark plugs and brake pads), sales rebounded quite quickly. Earnings per share increased 13%, while the stock returned -0.5%."

Ferrari RACE
Ferrari RACE

On March 4, we published an article revealing that Autozone Inc (NYSE:AZO) beats analysts expectations for the second quarter. It reported earnings of $14.93 per share for the three months ended February 13, up 20.5 percent from $12.39 per share in the comparable period of 2020.

In Q3 2020, the number of bullish hedge fund positions on Autozone Inc (NYSE:AZO) stock decreased by about 4% from the previous quarter (see the chart here), so a number of other hedge fund managers don't believe in Autozone's growth potential. Our calculations showed that Autozone Inc (NYSE:AZO) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.