Jim Cramer's Stop Trading -- Buybacks Could Jump-Start AutoZone Stock

NEW YORK (TheStreet) -- TheStreet's Jim Cramer is a big fan of AutoZone (AZO). Tuesday, during CNBC's "Cramer's Stop Trading" segment, Cramer said to watch the auto parts company's shares because they could get a boost from the company's consistent buybacks.

Although AutoZone posted revenue some viewed as "light" when it reported its fiscal third-quarter results before the bell Tuesday, Cramer said the company has been "one of the great performers" in the auto service and parts sector." AutoZone's revenue for the latest quarter was in line with the mean Wall Street estimate, while earnings exceeded views.

Except for Pep Boys (PBY), Cramer said, the entire group has been strong, including O'Reilly Automotive (ORLY) and Asbury Automotive (ABG).

AZO Chart AZO data by YCharts

For the May quarter, AutoZone reported a profit of $309.1 million, or $9.57 a share on revenue of  $2.5 billion. Analysts had expected $9.52 in earnings per share and revenue of $2.5 billion, according to Thomson Reuters.

Shares of AutoZone recently changed hands at $686.88, down $2.29 or 0.33% on lighter than average volume.

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