AutoZone, Inc.  (Public, NYSE:AZO)

March 3, 2009 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE:AZO) today reported net sales of $1.4 billion for its second quarter (12 weeks) ended February 14, 2009, an increase of 8.1% from fiscal second quarter 2008 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 6.0% for the quarter.

I heard a great one the other day, “In the kingdom of the blind, the one-eyed dwarf if king.”

Yes, AutoZone had a great Rally, and it looks like it won’t stop for a while.  I’ll bet it’s good for a few more points.  Then like history tells, it will retract a bit.  It won’t give back more than 20%. 

That’s a rally.

But it’s not because everyone decided to fix up their old jalopies and go back to work. 

AutoZone has historically had good numbers in the spring.  Giving 25% to 30% profits during the season.

This specific turn started in 2006! 

If you wanted in on this rally, you needed to be in AZO, September 2008. 

If you’re looking to score on AZO, let it retract back under $100.  Yes, it will get there.

Personally, I think this is over bought.

AutoZone, Inc. is a specialty retailer and a distributor of automotive replacement parts and accessories.

As of August 30, 2008, the Company operated 4,092 stores in the United States and Puerto Rico, and 148 in Mexico. Each of its stores carries a product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products.

The Company also sells the ALLDATA brand automotive diagnostic and repair software. On the Web, AutoZone, Inc. sells diagnostic and repair information and automotive hard parts, maintenance items, accessories and non-automotive products through www.autozone.com .

The Company does not derive revenue from automotive repair or installation services.