It is rare that any stock attracts the attention of seven different Alpha Algorithm strategies. But this week’s Alpha Algorithm recommendation fits just that bill.
Memphis-based AutoZone, Inc. (AZO) sells and distributes automotive replacement parts and accessories. AutoZone’s earnings per share (EPS) have grown by double-digit percentages for 38 consecutive quarters. EPS has been driven by rising revenues and higher gross margins from both the retail and commercial businesses, together with increasing store count and regular share buybacks.
Seven Top Investment Strategies Betting on AutoZone, Inc. (AZO).
1. Insider Buying
AZO is among the U.S. stocks that corporate officers, directors and shareholders who own more than 5% of each company’s shares are accumulating.
2. Insider and Analyst Sentiment
One of 100 top stocks out of 5,000 U.S stocks of which a corporate insider (a director or senior officer of a company, or any person or entity that owns more than 10% of the company’s stock) is buying the shares and Wall Street analysts recently have increased earnings estimates.
3. Share Buybacks
The company has reduced its number of shares outstanding by at least 5% in the previous year through share re-purchases.
4. Float Shrink
The company is shrinking its float while growing free cash flow and not increasing its leverage.
5. Momentum Model
The stock is among the top approximately 100 U.S.-listed companies to demonstrate powerful relative strength characteristics relative to the 3,000 largest U.S.-listed companies.
6. Value Line Model
The stock is among the 100 stocks, from a universe of 1,700, to which Value Line gives a #1 ranking in its Timeliness Ranking System.
7. Large Cap Growth
The stock is among the top 50 large-capitalization U.S. growth stocks generated through a rigorous 10-factor fundamental screening process.
Buy AutoZone, Inc. (AZO) at market today. Place your initial stop at $690.
Options: With the stock technically overbought on the short term, I am holding off on recommending options this week.