Should You Avoid AutoZone Stock, Even Near a 52-Week Low?

AutoZone stock has declined 26.9% over the past year and trades near 52-week lows, but the article argues this represents a valuation reset rather than fundamental business deterioration. Despite headwinds from soft DIY foot traffic and challenging comparisons, the company posted strong 8.4% sales growth in Q3 FY2026. The commercial segment shows promise with 10.4% growth, and the MegaHub expansion strategy (156 stores, targeting ~300) positions the company for future growth. Trading at a forward P/E of 17.3 versus competitor O'Reilly's 24.7, AutoZone appears undervalued.