CarMax Inc. (KMX): Today's Featured Specialty Retail Winner

CarMax ( KMX) pushed the Specialty Retail industry higher today making it today's featured specialty retail winner. The industry as a whole closed the day up 0.7%. By the end of trading, CarMax rose 50 cents (1.9%) to $26.75 on average volume. Throughout the day, 2.4 million shares of CarMax exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $26.11-$27.01 after having opened the day at $26.18 as compared to the previous trading day's close of $26.25. Other companies within the Specialty Retail industry that increased today were: Sport Chalet ( SPCHA), up 9.8%, Birks & Mayors ( BMJ), up 7.3%, Mecox Lane ( MCOX), up 6%, and Francescas Holdings ( FRAN), up 4.7%.

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. It also sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions, as well as sells new vehicles under franchise agreements. CarMax has a market cap of $6.01 billion and is part of the services sector. The company has a P/E ratio of 14.9, equal to the average specialty retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 13.7% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate CarMax a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates CarMax as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

On the negative front, Books-A-Million ( BAMM), down 21.1%, Winmark Corporation ( WINA), down 8.9%, Blue Nile ( NILE), down 4.8%, and Perfumania Holdings ( PERF), down 4.5%, were all losers within the specialty retail industry with Sally Beauty Holdings ( SBH) being today's specialty retail industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the specialty retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the specialty retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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