The $1,000 Stock Club – Eyeing Autozone (AZO)

Danielle Shay discusses her favorite stock over $1,000, Autozone (AZO). Click on the image above to watch the full video.

Looking at five, high flying stocks, Amazon (AMZN), Google (GOOGL), (BKNG), (NVR) and Autozone (AZO) that are above $1,000 a piece, investors may wonder if any of them are worth the investment with such a high price.

It’s especially tricky right now, because the market is again, at new, all-time highs – which is typically the worst time to invest. I always like to wait for a bit of a pullback before entering the market, but that is what makes Autozone so interesting. While the big tech stocks, Google and Amazon, are leading the way higher, Autozone has pulled back into oversold support. This, in addition to the overall macro story, make it a good candidate for a buy. Out of this bunch, it’s definitely my favorite.

If you look at AZO over the course of the past 20 years, it has shown consistent earnings and growth, even during times of an economic downturn in 2007 and 2008. This will likely make it a solid stock candidate even if and when the economy stagnates again, which eventually it will. During strong, economic times, it makes sense to have high flying tech names in my portfolio, but I also want to make sure to have some stocks that will likely remain strong in different economic conditions. This is what makes a balanced portfolio.

Why do I like AZO in this instance? It is because in times of economic downturn, consumers are less likely to buy a new vehicle, but instead repair a vehicle they currently own, and buy parts from a strong company like AZO. It has thrived during both strong and weak times, and is a leader in it’s industry group. I expect it to continue along this path it has demonstrated over the course of the last twenty years.

While I like it for an oversold buy in the stock market, and I am looking at it for a possible bounce into earnings. I typically trade this either with bullish put credit spreads, or a call butterfly.

Want more trading education? Follow me here by signing up for my free newsletter, at, or in my Mastery program which you can find at You can also follow me on Instagram, Twitter @traderdanielle, or on Facebook. 




Up Next...

Intraday to Swing Trading Indicator

 Since Danielle is out this week for spring break, Allison Ostrander, Director of Risk Tolerance, will cover how she’s used her Divergent Bar indicator for short-term earnings trades. This tool has allowed Allison to take low-risk trades prior to an earnings announcement with a good probability of following through with a higher high. She’ll also … Read more

Read More

The Monday Kickoff

Hey Traders! It’s only Tuesday, yet so much has already occurred in the market. Bank news rattled the markets last week and continued rattling them over the weekend. CPI data hit this morning, and it was in line with expectations. I view that as a positive because anything other than an inline reading could have … Read more

Read More

The Relative Strength Winners

The indexes have been sloppy, in addition to being relatively weak. The choppiness has some benefits, though, as this choppiness has meant that squeezes are consolidating everywhere. I can’t say I recall a time in which I have seen so many squeezes across so many different indexes and sectors simultaneously. What does that mean? It … Read more

Read More

Subscribe Today!

Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses.

Sign Up Now