PREVIEW: AutoZone dips as investors eye margins, commercial business growth

** AutoZone's AZO.N shares dip 1.2% to $2,821.72 ahead of qtrly results due before the bell on Tues, with focus on margins and performance of its commercial business

** Auto parts retailer expected to post a 7% yr/yr rise in fiscal Q4 rev to $6.70 bln and adj EPS of $53.86, up from $48.71 a yr-ago, per LSEG data

** In prior qtr, Memphis, Tennessee-based co saw strong demand from an aging US vehicle fleet but faced margin pressure from higher costs and inventory investments

** AZO stock recently traded at 16x fwd earnings, below its five-year avg of 19x, suggesting it may be undervalued

** Stock down ~17% YTD, lagging ~13% gain for S&P 500 .SPX; it's about 35% below its 52-week intra-day high of $4,332.68 reached on Sept 30, 2025

** Of 28 analysts, recommendation breakdown is 23 "buy" and 5 "hold" ratings; median PT $3,784.56