For anyone long in Autozone (AZO) stock or other automotive retail companies, I feel for you. The bullish case for this group began to fall apart before the start of the 2017 calendar year, . Since then, it has been one bumpy ride down. Today AZO fell nearly 10%. If you’re looking for value or a bargain, I would not run out to greet this stock or any other similar automotive retail stock. Let the dust settle.
If we use the past as a general guide, you will see that after another large one day drop in prices (May, 2017), AZO was able to rebound some in the days following. Yet, this short term gain quickly collapsed. Here we are today with another plunge to the downside.
My advice would be to wait until you see positive movement with strong volume. Don’t try to catch a falling knife.