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 0.1%. By the end of trading, CarMax rose $0.53 (1.0%) to $53.05 on average volume. Throughout the day, 1,627,463 shares of CarMax exchanged hands as compared to its average daily volume of 1,269,200 shares. The stock ranged in a price between $52.21-$53.08 after having opened the day at $52.50 as compared to the previous trading day's close of $52.52. Other companies within the Specialty Retail industry that increased today were: Perfumania Holdings ( PERF), up 6.0%, Birks Group ( BGI), up 5.6%, Sport Chalet ( SPCHA), up 5.1% and Dover Saddlery ( DOVR), up 4.6%.

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 $11.6 billion and is part of the services sector. The company has a P/E ratio of 24.3, above the S&P 500 P/E ratio of 17.7. Shares are up 39.9% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate CarMax a buy, no analysts rate it a sell, and 2 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, Container Store Group ( TCS), down 8.1%, China Auto Logistics ( CALI), down 5.5%, Francescas Holdings ( FRAN), down 3.5% and DGSE Companies ( DGSE), down 3.5% , 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).

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