NEW YORK, January 7, 2026, 20:02 EST — Market closed
- AutoZone closed higher on Wednesday after a week-long slide.
- A Mizuho downgrade this week focused attention on spending and cost pressures.
- Next tests include U.S. data on Thursday and AutoZone’s expected earnings update in early March.
AutoZone Inc shares closed up about 2.3% at $3,318.08 on Wednesday, after trading between $3,246 and $3,351.
The rise snapped an eight-session losing streak and came on heavier-than-usual volume, market data showed. AutoZone outperformed O’Reilly Automotive, while Advance Auto Parts and CarParts.com fell; the stock is still about 24% below its 52-week high of $4,388.11 set on Sept. 11.
The bounce matters because analysts have been pushing back on the idea that AutoZone can keep delivering steady double-digit earnings growth while it steps up spending. Mizuho analyst David Bellinger downgraded the stock to Neutral from Outperform and cut his price target to $3,550, calling consensus forecasts “misaligned and overly optimistic” and warning AutoZone’s cost of doing business is “moving structurally higher.”
AutoZone’s latest quarterly report in early December showed profit fell even as revenue rose, as tariff-related costs and a non-cash LIFO inventory charge hit margins. LIFO is an accounting method for inventory that can lift reported costs when prices are rising; the Wall Street Journal said the charge helped drive a roughly two-percentage-point drop in gross margin to 51%.
The broader tape offered little help on Wednesday. The S&P 500 slipped 0.3% and the Dow fell 0.9% from a record set the day before, while the Nasdaq added 0.2%, according to the Associated Press.
The next company-level marker is the next earnings report, expected on March 3, with an average estimate of about $27.54 a share for the quarter ending Feb. 28, according to AlphaQuery data citing Zacks. That update is likely to re-open the debate on whether margins stabilize as spending stays elevated.
But the risk case remains straightforward: if the investment cycle keeps pushing operating costs higher, Wall Street forecasts can keep drifting down, which limits the room for a sustained rebound in the shares. Mizuho pointed to weaker visibility on the growth trajectory investors have gotten used to after recent results.
Before Thursday’s open, traders will also be navigating U.S. releases that can move rates, including weekly jobless claims and the BLS productivity report scheduled for 8:30 a.m. ET, with the December employment report due Friday.
