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P Pitch Archive Stock pitches across investing competitions
← Fall 2018

AutoZone, Inc.

AZO pitch long Tweedy, Browne Company

Thesis

AutoZone's stock price fell significantly due to concerns about competition from Amazon, but the company's fundamentals remain strong. With the stock trading in the low $500s, it was undervalued at 9.5x EBIT and 12x earnings, especially compared to M&A deals in the industry that were done at 13x EBIT. Applying a 12x EBIT multiple suggests the stock is worth at least $750, making it a compelling buy.

Did it work?

worked confidence: high

The long thesis decisively played out: from the low $500s, AutoZone returned +492.4% over ~115 months, implying a price near $3,000 — roughly 4x the stated $750 fair value target. The market ultimately dismissed the Amazon competition fears, validating the view that fundamentals were strong and the stock was undervalued at 9.5x EBIT. With nearly a decade elapsed and the target far exceeded, this is a clear win.