Here's Brown Advisory Global Leaders Strategy's Comment on AutoZone (AZO)

Brown Advisory, an investment management company, released its “Brown Advisory Global Leaders Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy focused on delivering strong long-term performance by investing in a focused portfolio of companies that solve customer problems and provide good returns for shareholders. The strategy outperformed its benchmark during the quarter, driven by investment selection within Information Technology and Industrials. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Global Leaders Strategy highlighted stocks such as AutoZone, Inc. (NYSE:AZO). AutoZone, Inc. (NYSE:AZO) is a retailer of automotive replacement parts and accessories. The one-month return of AutoZone, Inc. (NYSE:AZO) was -1.42%, and its shares gained 35.38% of their value over the last 52 weeks. On September 22, 2025, AutoZone, Inc. (NYSE:AZO) stock closed at $4,121 per share, with a market capitalization of $68.939 billion.

Brown Advisory Global Leaders Strategy stated the following regarding AutoZone, Inc. (NYSE:AZO) in its second quarter 2025 investor letter:

"AutoZone, Inc. (NYSE:AZO) is benefitting from an industry recovery with strong sales growth across both its DIY (Do-It-Yourself) retail and DIFM (Do-It-For-Me) professional customer segments. AutoZone is driving market share growth initiatives though investments in the expansion of its larger inventory “megahub” locations expansion and investment in distribution centers and IT to drive delivery speed and customer experience and supporting long-term market share gains."

AutoZone, Inc. (NYSE:AZO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 65 hedge fund portfolios held AutoZone, Inc. (NYSE:AZO) at the end of the second quarter, down from 67 in the previous quarter. While we acknowledge the potential of AutoZone, Inc. (NYSE:AZO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered AutoZone, Inc. (NYSE:AZO) and shared Macquarie Core Equity Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.