#8 - CarMax (NYSE:KMX)
CarMax (NYSE: KMX) – If you're looking for a short-term play, CarMax is an ideal choice. As the tariffs set in, automakers are going to be passing on higher manufacturing costs to their customers. This may incent consumers who were thinking of buying a new car to shop for a used one instead. Enter CarMax, the largest retailer of used cars. And an interesting phenomenon is that the company’s biggest growth came in units sold wholesale to other dealers. This means consumers are trading in their cars at a CarMax store which then sells that car wholesale to other dealers. In their June earnings report, the company showed increased earnings of 18 percent that calculates to $1.33 a share. Revenue also surprised, coming in at $4.79 billion as opposed to estimates of $4.63 billion. The stellar report boosted their stock 12.9 percent. Going forward, the company has aggressive plans to open 15 new superstores in what the company is defining as small markets.
About CarMax
CarMax, Inc, through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services.
Read More - Current Price
- $81.55
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 4 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $79.73 (2.2% Downside)
