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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

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 0.6%. By the end of trading, CarMax rose $1.00 (2.2%) to $46.53 on average volume. Throughout the day, 1,314,485 shares of CarMax exchanged hands as compared to its average daily volume of 1,629,400 shares. The stock ranged in a price between $45.37-$46.55 after having opened the day at $45.53 as compared to the previous trading day's close of $45.53. Other companies within the Specialty Retail industry that increased today were: Zale Corporation ( ZLC), up 6.8%, Ferrellgas Partners ( FGP), up 5.5%, MarineMax ( HZO), up 4.5% and DGSE Companies ( DGSE), up 3.5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. It operates in two segments, CarMax Sales Operations and CarMax Auto Finance. CarMax has a market cap of $10.4 billion and is part of the services sector. The company has a P/E ratio of 24.7, above the S&P 500 P/E ratio of 17.7. Shares are up 21.3% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate CarMax a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates CarMax as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Francescas Holdings ( FRAN), down 9.0%, Dover Saddlery ( DOVR), down 8.0%, Lentuo International ( LAS), down 5.3% and Sport Chalet ( SPCHA), down 4.1%.

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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home