CarMax: Mixed Signs Of Stabilization

Sep. 05, 2024 9:47 AM ETCarMax, Inc. (KMX) StockAN, CVNA, KMX1 Comment
Caffital Research
1.42K Followers
(9min)

Summary

  • CarMax, Inc.'s sales continue to be pressured by a weak automotive sales industry, but the company's focus on gross profit has already started stabilizing the gross margin.
  • The industry outlook remains cloudy regarding used car prices, the consumer sentiment, and interest rates.
  • A fair midterm earnings recovery is still priced into CarMax's stock price.

That wasn"t the garage was it?

KarenMower/E+ via Getty Images

CarMax, Inc. (NYSE:KMX) has continued to report shrinking revenues as used car prices continue declining and as sales are pressured by a weak consumer. The company is now focusing on protecting the margin level, and although

This article was written by

1.42K Followers
I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a stock's prospects to determine the risk-to-reward.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About KMX Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on KMX

Related Stocks

SymbolLast Price% Chg
KMX
--