In a significant development, AutoZone, Inc. (AZO - Free Report) has been awarded a contract as the provider for automotive parts and supplies by Region 4 Education Service Center, Houston, TX. This exclusive, multi-year contract testifies the strength of the Memphis, TN-based company’s automotive products, technology solutions, and team.
The contract is available through the National Intergovernmental Purchasing Alliance (National IPA), the cooperative purchasing organization. The agreement also empowers Elk Grove, CA-based ALLDATA LLC, a subsidiary of AutoZone, to provide its automotive diagnostic and repair solutions for purchase by the National IPA participants. Notably, there are 48,000 public agencies and educational institutions that are participants of National IPA. These participants include states and state agencies such as municipalities, townships and counties, public and private pre-K, primary and higher educational institutions and systems, special districts (e.g. fire, water, sewer, etc.) and charitable organizations. These agencies are allowed to purchase parts, supplies and products of AutoZone and ALLDATA products at a contracted price without furnishing a Request for Proposal (RFP). This eliminates the arduous and time-taking solicitation process.
AutoZone is one of the country’s leading specialty retailers of automotive replacement parts and accessories, operating in the Do-It-Yourself (DIY) retail, Do-It-for-Me (DIFM) commercial and other customer markets. It is indeed an honor for AutoZone to be chosen as the exclusive supplier of automotive parts and accessories to National IPA participants.
AutoZone’s shares have decreased 24% in the last three months, underperforming the 18.3% decline of the industry it belongs to.
AutoZone currently carries a Zacks Rank #4 (Sell).
A few better-ranked automobile stocks are Fox Factory Holding Corp. (FOXF - Free Report) , Cummins Inc. (CMI - Free Report) and Ferrari N.V. (RACE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fox Factory has a long-term growth rate of 16%.
Cummins has an expected long-term earnings growth rate of 12%.
Ferrari has an expected earnings growth rate of 14.1% in the long run.
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