AZOAutoZone, Inc.

AutoZone sells parts to car owners and repair shops — a business that gains as the vehicle fleet ages.

Demand here cannot be deferred: a broken car is fixed at once, and the part is needed today and it must be that exact part. What decides the sale is therefore availability rather than price — the chain holds tens of thousands of items across stores and distribution centres so that a rare component arrives within hours. The average age of cars on the road has risen for decades, a steady tailwind.

The company is known for an unusual approach to profit: it has paid no dividend for decades and directs almost all earnings into buying back its own shares, cutting the count several times over. The second line is sales to professional repair shops, growing faster than retail. Risks: a mild winter without breakdowns, and the rising share of electric cars, which need less servicing.