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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 down 1.2%. By the end of trading, CarMax rose $1.16 (2.3%) to $51.51 on average volume. Throughout the day, 1,730,949 shares of CarMax exchanged hands as compared to its average daily volume of 1,293,100 shares. The stock ranged in a price between $50.10-$52.09 after having opened the day at $50.39 as compared to the previous trading day's close of $50.35. Other companies within the Specialty Retail industry that increased today were: Container Store Group ( TCS), up 5.9%, Cabela's ( CAB), up 5.1%, Hollywood Media Corporation ( HOLL), up 2.0% and Sothebys ( BID), up 1.9%.

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 $11.3 billion and is part of the services sector. The company has a P/E ratio of 23.7, above the S&P 500 P/E ratio of 17.7. Shares are up 34.4% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate CarMax a buy, no analysts rate it a sell, and 3 rate it a hold.

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

On the negative front, Mecox Lane ( MCOX), down 8.3%, United Online ( UNTD), down 7.3%, Medifast ( MED), down 4.9% and Brown Shoe Company ( BWS), down 4.2% , were all laggards within the specialty retail industry with Tiffany ( TIF) being today's specialty retail industry laggard.

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

If you liked this article you might like

CarMax Hit the Gas Pedal This Quarter With Earnings Nearly 17% Higher

North Korea, iPhone 8 and Hewlett Packard Enterprise Layoffs Move Markets Friday

It's Decision Time for the Fed in the Week Ahead

Fight Off Complacency: Cramer's 'Mad Money' Recap (Fri 9/15/17)

Shrug Off The Apple-FANG Bite: Cramer's 'Mad Money' Recap (Thur 9/14/17)