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AutoZone, Nomura Research Are Real Bargains Says Loomis Fund Manager

Shares of AutoZone (AZO) are rolling in 2015, up 25% due to an auto-parts market in high gear.

Shares of AutoZone (AZO) are rolling in 2015, up 25% due to an auto-parts market in high gear. Lee Rosenbaum, portfolio manager for the Loomis Sayles Global Equity and Income Fund (LSWWX), does not see the company or its stock slowing down in the coming year. 'The car market that they are servicing in North America still has a lot of aftermarket and parts that need servicing and replacement,' said Rosenbaum. 'The company still has the ability to grow their square footage we believe in the low to mid-single digit range for many years to come.' Rosenbaum added that AutoZone has historically done a good job of using its free cash flow to repurchase stock. He is also bullish on Assa Abloy (ASAZY), which has seen its shares jump 14% year-to-date. He said the Swedish door and lock maker is benefiting from increased demand from airports, universities and commercial buildings seeking better security systems.

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