Is KMX a good stock to buy?
We came across a bullish thesis on CarMax, Inc. on Deep Research Global’s Substack
In this article, we will summarize the bulls’ thesis on KMX. CarMax, Inc.’s share was trading at $53.66 as of June 18th. KMX’s trailing and forward P/E were 33.33 and 22.73 respectively according to Yahoo Finance. 25 Most In Demand Cars Heading into 2024 CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States.
KMX reported a mixed but strategically important Q1 FY2027 performance, where accelerating revenue growth was offset by margin compression as the company deliberately prioritized market share over per-unit profitability. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential Net revenues rose 6.2% year over year to $8.01 billion, exceeding expectations, while total units increased 3.3% to 392,357, reflecting improving demand conditions even as comparable store used unit sales dipped 0.8%, indicating modest underlying softness in same-store traffic. EPS declined to $1.31 from $1.38, and gross profit fell 4.4% as retail gross profit per used unit dropped $230 to $2,177, driven by intentional pricing investment to remain highly competitive in a structurally inflationary used-car market. The company increased average selling prices to $27,288, reinforcing its strategy of leaning into volume and inventory turnover rather than margin expansion.