Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, auto parts retailer AutoZone (NYSE:AZO) has received the dreaded one-star ranking. Our data has shown that one-star stocks woefully lag the market average; conversely, five-star stocks outperform the S&P by a significant margin.

With that in mind, let's take a closer look at AutoZone's business, and see what CAPS investors are saying about the stock right now.

AutoZone facts

Headquarters (founded)

Memphis, Tenn. (1979)

Market Cap

$7.4 billion


Automotive Retail

TTM Revenue

$6.55 billion


Chairman/CEO William Rhodes III

CFO William Giles

Net Income Growth (average, last eight quarters and most recent quarter)

4.9% and (0.9%)


Advance Auto Parts (NYSE:AAP),

Genuine Parts (NYSE:GPC)

CAPS members bearish on AZO also bearish on:


General Electric (NYSE:GE)

CAPS members bullish on AZO also bullish on:

General Motors (NYSE:GM),

Goldman Sachs (NYSE:GS)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 44% of the 125 All-Star members who have rated AutoZone believe the stock will underperform the S&P 500 going forward. These Fools include OtherOracleOfOMA and DemonDoug, both of whom are ranked in the top 4% of our community.

Late last month, OtherOracleOfOMA used a single simple reason to steer clear of AutoZone: "Way too much debt."

In a pitch from a month earlier, DemonDoug shares that same bearishness, using a classic Jeopardy! format:

Answer: One with lots of debt.
Question: What kind of company is likely to be hit very hard in the current economic downturn, even with a strong brand name and strong sales?

What do you think about AutoZone, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started. 

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a Motley Fool Rule Breakers pick. Genuine Parts is a selection of Income Investor. The Fool's disclosure policy always gets a perfect score.