Because the stock market is dominated today by disruptive, tech-focused enterprises, people might think that the key to investing success centers on only investing in these types of companies. But that's just not true.

There's one boring retail stock that has absolutely crushed the S&P 500 since its initial public offering in 1991. From the date when shares started trading to today, the business has generated a monster 40,520% return. That would have turned a $10,000 initial investment into more than $4 million over 34 years.

After you learn more about this company's positive qualities, you just might want to buy some shares in 2024.

Investors should learn about this stellar business

If you're not familiar with AutoZone (AZO 0.77%), you should be. This company owns 7,191 stores, of which 6,332 are in the U.S., that sell aftermarket auto parts. Think about anything you'd need for your car to keep it running smoothly, particularly after the original manufacturer's warranty expires.

Despite sporting a $52 billion market cap, this business flies under the radar, mainly because it doesn't operate in high-powered growth sectors like streaming entertainment or digital advertising. Moreover, it has nothing to do with artificial intelligence (AI).

However, AutoZone is a fantastic business. Strong fundamentals have been key to its remarkable stock performance. The company has been able to consistently grow its revenue historically. Between fiscal 2013 and fiscal 2023 (which ended August last year), AutoZone saw sales climb at an annualized pace of 6.8%. Even during the pandemic years, the business posted strong growth.

The gains come from both opening new stores and reporting increasing same-store sales. That's the most effective blueprint for any retail-based operation. In the last five full fiscal years, AutoZone registered an average yearly domestic same-store sales growth of 7.2%.

I think it's important to take a step back and figure out why the business has been so successful for such a long period of time. This type of long-term track record is unique. It all goes to the healthy demand AutoZone benefits from. People always need functioning vehicles, whether we're in a robust economic scenario or in a recession.

Looking ahead, I think it's probable that the company will continue to post solid growth. The average age of cars on the road continues ticking higher over time. Plus, the U.S. population drives more miles each year, resulting in greater wear and tear on their vehicles.

Ready to keep on winning

As of this writing, AutoZone shares trade at a price-to-earnings ratio of 21.1. That represents a slight premium to their trailing-10-year average of 18. But I don't think it's excessive by any means.

What are investors getting by paying that valuation? Besides the durable growth trends I touched on earlier, AutoZone is a ridiculously profitable enterprise. In the past decade, its operating margin has averaged a superb 19%. Thanks to the expanding top line, operating profits have risen as well.

This business generates a ton of free cash flow, too, which totaled $2.1 billion (12% of revenue) last fiscal year. This is the mark of a superior company because it demonstrates that the business model has proven to be lucrative from a financial perspective. And it means that AutoZone won't need to raise capital to fuel its growth.

Management uses the cash to repurchase shares, a favorable capital allocation policy that boosts earnings per share. Just in the past eight quarters, the outstanding share count has been reduced by a whopping 16%

Hopefully, by now, you've come to appreciate AutoZone. While its future returns likely won't resemble the past, this stock should definitely be on every investor's radar.