Despite the Financial Crisis, This Stock Thrived in This Volatile Market and Economy

A new stock has been added to CNBC’s All-Weather stock list: AutoZone (AZO), a company known for its steady performance and potential to benefit from rising tariffs. The All-Weather list aims to identify resilient companies that can thrive under any market conditions—bullish or bearish. This strategy uses resources from CNBC Pro, including research from leading Wall Street analysts and advanced screening tools, to spot stocks with long-term durability.

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This latest addition comes at a time when investors are once again grappling with market uncertainty. Former President Donald Trump recently reignited volatility, reminding investors of the value in holding strong, dependable stocks that can withstand economic shocks. These types of investments are exactly what the All-Weather list was created to capture, especially as concerns over the ongoing bull market persist.

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Let’s take a quick look at how the list has performed so far in 2025. Some picks are showing solid gains, while others have struggled in the wake of a recent market rebound. For example, Netflix (NFLX) has been the top performer, climbing nearly 13% since its addition in April. The streaming giant has maintained its place as a go-to source for affordable entertainment, especially as consumers tighten budgets. Meanwhile, Waste Management (WM) has also posted a gain of nearly 4%, showing the strength of its stable, recurring revenue. The company recently received an upgrade from JPMorgan, adding to investor confidence.

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Berkshire Hathaway (BRK.B), another All-Weather pick, is modestly in the green, up 1.6%. Its massive cash reserves and disciplined investment strategy continue to offer a layer of safety in unpredictable markets. Other names like S&P Global (SPGI) and Amdocs (DOX) have shown smaller gains or minimal movement.

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On the downside, the VanEck Durable High Dividend ETF (DURA) has dropped over 5%. While typically such high-dividend funds perform well in volatile markets, rising interest rates have made them less appealing. Why hold a dividend stock when U.S. Treasurys are yielding 4.5%? In more typical downturns, rates tend to fall and dividend-paying stocks serve as a safe haven—but this year’s dynamics have been different.

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That’s the backdrop for the latest addition, AutoZone, which appears well positioned for this unique environment. Bank of America just upgraded the stock from hold to buy, increasing its price target to $4,800 from $3,900—a potential upside of about 25% from current levels.

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AutoZone has been a strong performer year after year, maintaining a consistent upward trajectory since the pandemic. Even in the face of consumer financial strain, a slowing economy, and new tariffs that raise the cost of auto parts, Bank of America sees opportunities for the company.

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Interestingly, the firm sees tariffs not as a headwind, but as a possible boost for AutoZone’s business. In a recent research note, analyst Robert Ohmes explained that with new vehicle prices rising due to tariffs—about $3,285 more on average for U.S.-assembled vehicles and even higher for imported ones—many consumers are likely to keep and repair their existing cars rather than buy new ones. This dynamic stands to benefit companies like AutoZone that serve the aftermarket segment.

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“The auto aftermarket could benefit from lower new car sales and higher used car pricing, as consumers may hold onto and repair existing vehicles,” Ohmes wrote.

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Even more compelling is the historical performance of AutoZone and its peer O’Reilly Automotive during past downturns. From 2008 to 2009, both stocks outperformed the broader market by over 100%. As Ohmes noted, if unemployment rises and car sales slow, consumers are likely to shift behavior, including more DIY auto repairs. AutoZone is well suited to benefit from this trend, given its wide product range and strong retail network.

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Moreover, AutoZone enjoys solid backing from Wall Street analysts. According to CNBC Pro’s analyst tool, the company currently holds 23 buy ratings and not a single sell call—an impressive endorsement of its future prospects.

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In short, while some of the All-Weather stocks have underperformed in the recent market rebound, the list’s purpose remains the same: identifying companies that are built to weather storms. AutoZone’s consistent track record, its resilience during economic stress, and a possible tailwind from tariff-induced behavior changes make it a timely and strategic addition to this defensive portfolio.

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