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What do you think of AutoZone as a short opportunity right now?
Answers
825 points
Dragonsbane answered 9 months ago …
AZO just broke out to new highs, so on a technical basis, I'd wait for 2 closes below $140 to confirm that the momentum is out of this thing. On a fundamental basis, I don't know much about AZO (other than what they do). Fundamentally, I think Autonation (AN) is a much better short if you can find the shares (I own puts on AN). It also has just broken out, but I intend to fade the move. As a side note, you may want to look into buying puts instead of shorting so your shares don't get recalled before your ready.
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265 points
fuzball answered 9 months ago …
On a fundamental basis, could it be Autozone is selling more parst, thus the stock rise? New cars aren't selling much and used cars selling more as people put off their high flying lifestyles. New cars won't need parts replacement. Older cars much more so with folks more willing to abide the financial storm with less frivolity they exhibited in the high flying days. More older cars = more parts sold.
So, what the charts are showing you, I don't know. But fundamentally, the stock appears good IMHO.
