CarMax, Inc. Research Report Update: Store Expansion and Financial Performance

Are you considering investing in CarMax, Inc. (KMX)? If so, you’ll want to read our updated research report on this specialty retailer of used and new vehicles. CarMax, based in Richmond, VA, is known for its aggressive store expansion strategy and focus on the used-car market.

In the third quarter of fiscal 2019, CarMax saw a significant increase in earnings per share, up 34.6% from the previous year. While revenues slightly missed estimates, they still showed improvement year over year. However, the company is facing challenges with high selling, general, and administrative expenses, particularly due to store openings and investments in technology.

Despite these challenges, CarMax remains a competitive player in the used vehicle retailing industry, with a strong customer satisfaction rating thanks to low prices and a customer-friendly sales process. The company is also investing in its digital platform to drive more traffic.

If you’re looking for other investment opportunities in the auto space, consider Allison Transmission Holdings, Inc. (ALSN), Fox Factory Holding Corp. (FOXF), and CarGurus, Inc. (CARG). These companies have strong growth potential and may be worth adding to your portfolio.

Overall, CarMax currently holds a Zacks Rank #3 (Hold). While the stock has underperformed the industry in recent months, it’s important to consider the long-term growth potential of the company and its position in the market.

For more insights and analysis on CarMax and other investment opportunities, be sure to check out the full research report on Zacks.com. And remember, always do your own research and consult with a financial advisor before making any investment decisions.