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 up 0.1%. By the end of trading, CarMax rose $0.63 (1.4%) to $44.44 on average volume. Throughout the day, 1,554,565 shares of CarMax exchanged hands as compared to its average daily volume of 1,813,300 shares. The stock ranged in a price between $43.76-$44.66 after having opened the day at $43.76 as compared to the previous trading day's close of $43.81. Other companies within the Specialty Retail industry that increased today were: Build-A-Bear Workshop ( BBW), up 4.8%, Netflix ( NFLX), up 4.3%, Sport Chalet ( SPCHA), up 3.6% and Charles & Colvard ( CTHR), up 3.0%.

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 $9.7 billion and is part of the services sector. Shares are down 6.8% 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 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 revenue growth, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Barnes & Noble ( BKS), down 12.0%, Lentuo International ( LAS), down 3.8%, Francescas Holdings ( FRAN), down 3.1% and Ulta Salon Cosmetics & Fragrances ( ULTA), down 2.7% , were all laggards within the specialty retail industry with Vitamin Shoppe ( VSI) 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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