AutoZone and Amazon are the S&P 500’s futures. Recently, both of them surpassed the $1000 value per share along with three other S&P 500 stocks. While the experts think that some of these shares are overpriced, they recommend Amazon and AutoZone as a good buy, despite their high price.
Amazon has definitely good prospects. The market’s giant has broken out to a new all-time high in January and February. Matt Maley, the chief market strategist at Miller Tabak, advises this stock.
According to him, the breakout has been significant enough it could have a lot more upside to play catch-up with some of the other high-flying names. Still, the stock is overbought near term and may have to pull back a little bit to work off that condition.
AutoZone also seems a personal favorite for some analysts. It fell insignificantly during 2008 and 2009. Nevertheless, this stock has been very consistent over the last 20 years.
Danielle Shay, director of options at Simpler Trading, stated its earnings grew consistently over the past several quarters. The next report is due in March. Analysts think it will show 3% earnings growth over its last quarter.
What is the Autozone’s advantage against other stocks?
AutoZone sells auto parts, which is a huge advantage. During the slow economic period, when people can’t afford new cars and settle to fixing old ones, AutoZone manages to stay afloat. Danielle Shay thinks this company will remain strong despite the economy’s ups and downs.
However, Matt Maley thinks AutoZone is approaching a critical level, which could dictate whether it falls even further or skyrockets. If the stock falls another 2%, it will reach $1,030. And AutoZone has not traded below that level since last June.
On the other hand, the shares are oversold presently, so the stock may still rise. However, next week will be crucial to see which way it will go.