KMX Stock Summary and Trading Ideas (Carmax | NYSE:KMX)

CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.

Carmax trades on the NYSE stock market under the symbol KMX.

As of September 27, 2024, KMX stock price declined to $77.32 with 2,347,120 million shares trading.

KMX has a beta of 1.73, meaning it tends to be more sensitive to market movements. KMX has a correlation of 0.38 to the broad based SPY ETF.

KMX has a market cap of $12.01 billion. This is considered a Large Cap stock.

Last quarter Carmax reported $7 billion in Revenue and $.85 earnings per share. This beat revenue expectation by $224 million and missed earnings estimates by -$.01.

In the last 3 years, KMX traded as high as $155.98 and as low as $52.10.

The top ETF exchange traded funds that KMX belongs to (by Net Assets): VTI, VOO, VB, VBR, SPY.

KMX has underperformed the market in the last year with a price return of -3.0% while the SPY ETF gained +35.8%. However, in the short term, KMX had mixed performance relative to the market. It has outperformed in the last 3 months, returning +5.4% vs +4.9% return in SPY. But in the last 2 weeks, KMX shares have been beat by the market, returning -1.9% compared to an SPY return of +2.0%.

KMX support price is $76.49 and resistance is $79.93 (based on 1 day standard deviation move). This means that using the most recent 20 day stock volatility and applying a one standard deviation move around the stock's closing price, stastically there is a 67% probability that KMX shares will trade within this expected range on the day.