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

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 lower today making it today's featured Specialty Retail laggard. The industry as a whole closed the day down 0.6%. By the end of trading, CarMax fell $0.50 (-1.1%) to $47.02 on light volume. Throughout the day, 957,630 shares of CarMax exchanged hands as compared to its average daily volume of 1,934,600 shares. The stock ranged in price between $46.90-$47.72 after having opened the day at $47.52 as compared to the previous trading day's close of $47.52. Other companies within the Specialty Retail industry that declined today were: Hollywood Media Corporation ( HOLL), down 7.2%, Container Store Group ( TCS), down 4.3%, DGSE Companies ( DGSE), down 4.1% and Trans World Entertainment ( TWMC), down 4.1%.

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 $10.5 billion and is part of the services sector. Shares are up 1.1% year to date as of the close of trading on Tuesday. 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, 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 positive front, China Auto Logistics ( CALI), up 5.5%, United Online ( UNTD), up 4.1%, Blue Nile ( NILE), up 2.9% and Build-A-Bear Workshop ( BBW), up 1.9%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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