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 0.2%. By the end of trading, CarMax rose $0.53 (1.2%) to $45.19 on heavy volume. Throughout the day, 2,445,497 shares of CarMax exchanged hands as compared to its average daily volume of 1,513,300 shares. The stock ranged in a price between $44.68-$45.31 after having opened the day at $44.78 as compared to the previous trading day's close of $44.66. Other companies within the Specialty Retail industry that increased today were: Sport Chalet ( SPCHB), up 13.3%, Mecox Lane ( MCOX), up 7.5%, Office Depot ( ODP), up 3.4% and Signet Jewelers ( SIG), up 3.2%.

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 $10.0 billion and is part of the services sector. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are down 5.0% year to date as of the close of trading on Thursday. 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 revenue growth, growth in earnings per share, notable return on equity, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Birks Group ( BGI), down 6.9%, Sally Beauty Holdings ( SBH), down 3.8%, EZCorp ( EZPW), down 3.5% and United Online ( UNTD), down 2.6% , were all laggards within the specialty retail industry with Staples ( SPLS) 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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