02:49 PM EDT, 09/24/2025 (MT Newswires) -- AutoZone ( AZO ) reported slightly softer-than-expected fiscal Q4 results, but underlying trends remain strong, and recent stock weakness seems inconsistent with the company's improving fundamentals, Oppenheimer said in a note Wednesday.

The firm highlights that commercial sales from mega-hubs are outpacing the broader business, with 25 to 30 new mega-hub locations planned for 2026.

AutoZone ( AZO ) anticipates at least 3% ticket inflation for the rest of the year but expects to manage costs through pricing and vendor strategies, Oppenheimer said.

Oppenheimer sees AutoZone ( AZO ) shares as undervalued compared to O'Reilly Automotive (ORLY), given its strong fundamentals and commercial growth.

Oppenheimer maintained its outperform rating on the stock.

Shares of AutoZone ( AZO ) were up 1.9% in recent Wednesday trading.

Price: 4198.47, Change: +78.47, Percent Change: +1.90