AutoZone vs Cummins
AutoZone vs Cummins: this page compares business models, financial performance, and market context to help readers understand how the companies operate within their sectors. The analysis is neutral and accessible, presenting context without opinion or recommendation. Educational content, not financial advice.
AutoZone vs Cummins: this page compares business models, financial performance, and market context to help readers understand how the companies operate within their sectors. The analysis is neutral an...
Why It's Moving
AutoZone Stock Bounces Back Amid Valuation Debate and Expansion Momentum.
- Recent weekly gains reverse some three-month declines, prompting fresh valuation checks on $19.3B annual revenue and $2.5B net income.
- International push into Mexico and Brazil targets 100 new stores this fiscal year, unlocking revenue from untapped markets.
- New high-tech distribution centers in California and Virginia promise supply chain efficiencies to boost margins.
Cummins Hits New 52-Week High as Data Center Power Demand Fuels Momentum Amid Truck Slowdown.
- Stock soared to $584.70 52-week high on January 21, reflecting optimism despite insider sales totaling 19,330 shares last quarter.
- Q3 earnings crushed estimates with EPS of $5.59 beating $4.83 forecasts and revenue of $8.32B topping $7.97B expectations, even as overall sales dipped 1.6% year-over-year.
- Power Systems segment thrives on data center backup demand, balancing softer Engine and Components sales hit by lower U.S. and Mexico truck volumes; Raymond James upgraded to Outperform with $585 target.
AutoZone Stock Bounces Back Amid Valuation Debate and Expansion Momentum.
- Recent weekly gains reverse some three-month declines, prompting fresh valuation checks on $19.3B annual revenue and $2.5B net income.
- International push into Mexico and Brazil targets 100 new stores this fiscal year, unlocking revenue from untapped markets.
- New high-tech distribution centers in California and Virginia promise supply chain efficiencies to boost margins.
Cummins Hits New 52-Week High as Data Center Power Demand Fuels Momentum Amid Truck Slowdown.
- Stock soared to $584.70 52-week high on January 21, reflecting optimism despite insider sales totaling 19,330 shares last quarter.
- Q3 earnings crushed estimates with EPS of $5.59 beating $4.83 forecasts and revenue of $8.32B topping $7.97B expectations, even as overall sales dipped 1.6% year-over-year.
- Power Systems segment thrives on data center backup demand, balancing softer Engine and Components sales hit by lower U.S. and Mexico truck volumes; Raymond James upgraded to Outperform with $585 target.
Investment Analysis
AutoZone
AZO
Pros
- AutoZone maintains a dominant market position with over 6,800 stores across the US, Mexico, and Brazil, supporting strong brand recognition and customer reach.
- The company has demonstrated consistent revenue growth, with fiscal 2025 revenues rising 2.4% year-on-year, reflecting resilience in both DIY and DIFM segments.
- AutoZone's robust share repurchase programme signals management confidence and provides potential for increased shareholder value despite market volatility.
Considerations
- AutoZone's net margin remains relatively low, suggesting ongoing challenges in converting revenue growth into sustainable profitability.
- The company's balance sheet is stretched, with a debt-to-capital ratio significantly above industry average, increasing financial risk in a rising rate environment.
- Negative return on equity and recent earnings misses raise concerns about the company's ability to generate returns from shareholder capital.
Cummins
CMI
Pros
- Cummins holds a leading global position in engine and power solutions, benefiting from diversified end markets and strong brand reputation.
- The company has made significant investments in alternative fuel and electrification technologies, positioning it for long-term growth in a shifting energy landscape.
- Cummins maintains a solid balance sheet with healthy liquidity, enabling it to weather cyclical downturns and fund strategic initiatives.
Considerations
- Cummins' earnings are highly sensitive to global economic cycles and commodity prices, exposing it to volatility in demand for heavy-duty equipment.
- Regulatory pressures and the transition to zero-emission technologies present execution risks and could require substantial capital investment.
- The company faces increasing competition from new entrants in the electrification space, which may erode margins and market share over time.
Related Market Insights
America's Auto Shield: Why Tariffs Are Creating Domestic Winners
Discover how US tariffs on imported vehicles are boosting domestic automakers & suppliers. Explore the 'US Auto Tariff Shield' Neme on Nemo for investment opportunities.
Aimee Silverwood | Financial Analyst
July 20, 2025
Related Market Insights
America's Auto Shield: Why Tariffs Are Creating Domestic Winners
Discover how US tariffs on imported vehicles are boosting domestic automakers & suppliers. Explore the 'US Auto Tariff Shield' Neme on Nemo for investment opportunities.
Aimee Silverwood | Financial Analyst
July 20, 2025
AutoZone (AZO) Next Earnings Date
AutoZone's next earnings report is scheduled for March 3, 2026, when the company will announce results for the second quarter of fiscal 2026. The earnings call will provide management's discussion of financial performance and forward guidance for the period. Based on current consensus estimates, analysts expect AutoZone to report earnings per share of approximately $27.21 for this quarter. This timing aligns with the company's typical quarterly reporting schedule.
Cummins (CMI) Next Earnings Date
Cummins Inc. (CMI) is scheduled to report earnings on Thursday, February 5, 2026, as confirmed by the company's investor relations calendar for the Q4 and full-year 2025 results. This date aligns with analyst estimates and historical patterns, with the earnings conference call set for 10:00 am EST. The report will cover the quarter ending December 2025.
AutoZone (AZO) Next Earnings Date
AutoZone's next earnings report is scheduled for March 3, 2026, when the company will announce results for the second quarter of fiscal 2026. The earnings call will provide management's discussion of financial performance and forward guidance for the period. Based on current consensus estimates, analysts expect AutoZone to report earnings per share of approximately $27.21 for this quarter. This timing aligns with the company's typical quarterly reporting schedule.
Cummins (CMI) Next Earnings Date
Cummins Inc. (CMI) is scheduled to report earnings on Thursday, February 5, 2026, as confirmed by the company's investor relations calendar for the Q4 and full-year 2025 results. This date aligns with analyst estimates and historical patterns, with the earnings conference call set for 10:00 am EST. The report will cover the quarter ending December 2025.
Which Baskets Do They Appear In?
U.S. Auto Tariff Shield: Domestic Winners
This carefully selected group of stocks represents American automotive companies positioned to benefit from U.S. tariffs on imported vehicles. These domestic manufacturers and suppliers have a competitive pricing advantage that could lead to increased market share and profits.
Published: July 20, 2025
Explore BasketWhich Baskets Do They Appear In?
U.S. Auto Tariff Shield: Domestic Winners
This carefully selected group of stocks represents American automotive companies positioned to benefit from U.S. tariffs on imported vehicles. These domestic manufacturers and suppliers have a competitive pricing advantage that could lead to increased market share and profits.
Published: July 20, 2025
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