AutoZone (AZO): Stock crushed but looks good for a snapback trade

AutoZone (NYSE:AZO) is in my sweet spot right now for a day trade. I like to buy quality companies that are being irrationally beaten down perhaps too much after a mediocre earnings report. The company has been hurt by the one-two punch of the recession plus the bankruptcies of the major automakers. The company posted a 3.1% year-over-year decline in earnings, and a 1% increase in sales (quarter-over-quarter). They also didn't raise guidance. The market was in an unforgiving mood today and the stock is down 11 points, or about 7.4%.

However, Merrill just came out with a report defending the company. In the report Merrill states:

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AutoZone (AZO): Stock crushed but looks good for a snapback trade originally appeared on BloggingStocks on Wed, 23 Sep 2009 17:20:00 EST. Please see our terms for use of feeds.

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