5 Stocks You Can Trust… And 20 You Can’t

Stock #1: AutoZone (AZO)

AutoZone (AZO) operates approximately 4,100 stores in the U.S. and Puerto Rico,
and is clearly the #1 auto parts chain. As auto sales have plummeted dramatically, more people are relying on aging vehicles to
get around. The result is a huge increase in demand for parts and maintenance — and huge sales for AutoZone! In this do-it-yourself
economy, AZO is simply thriving as more and more consumers put off new car purchases and opt to handle a lot of auto repairs themselves.

As major car companies deal with bankruptcy, this trend will only continue. And AutoZone has the numbers to back it up! In its
latest quarter, the company reported earnings of $174 million, or $3.13 a share, compared with $159 million, or $2.49 a share,
in the same period a year ago. Sales also rose during the quarter to $1.66 billion from $1.52 billion. Growing year-over-year
earnings in this dismal environment is a tremendous feat! What’s more, analysts were expecting earnings of $2.89 a share on revenue
of $1.61 billion, so AutoZone posted an 8.3% earnings surprise and a 3% sales surprise.

The best part is that this company is poised to pick up a huge chunk of market share as Chrysler and General Motors head down
the drain. Since the dealer networks and parts businesses of these companies will likely suffer during the process, AZO will quickly
fill the void.

I rate AZO an A or Strong Buy.

NEXT: Stock #2: Best Buy (BBY)