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 was unchanged today. By the end of trading, CarMax rose $0.70 (1.6%) to $44.48 on average volume. Throughout the day, 1,721,140 shares of CarMax exchanged hands as compared to its average daily volume of 1,694,200 shares. The stock ranged in a price between $43.81-$44.58 after having opened the day at $43.87 as compared to the previous trading day's close of $43.78. Other companies within the Specialty Retail industry that increased today were: Build-A-Bear Workshop ( BBW), up 21.5%, Sport Chalet ( SPCHA), up 6.5%, Netflix ( NFLX), up 4.5% and Office Depot ( ODP), up 3.7%.

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 $9.6 billion and is part of the services sector. The company has a P/E ratio of 21.9, above the S&P 500 P/E ratio of 17.7. Shares are down 6.9% 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 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 lackluster performance in the stock itself.

On the negative front, Charles & Colvard ( CTHR), down 8.8%, HSN ( HSNI), down 6.3%, Blue Nile ( NILE), down 5.7% and Odyssey Marine Exploration ( OMEX), down 5.0% , were all laggards within the specialty retail industry with Sally Beauty Holdings ( SBH) 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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