Buying a Seven-Strategy Alpha Algorithm All-Star

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

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.

real real ao copy
AutoZone vs. the S&P 500 over 1 year


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.

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

previous article

Mall REITs are going to suffer from the earnings weakness of J.C. Penney, Sears, and other giant retailers. They may not be a good investment in 2016.


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details


Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details


Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details


Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details


Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details


Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details


Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.