CRMT - America's Car-Mart: Hit By Rising Credit Losses
2024-02-05 16:53:03 ET
Summary
- America's Car-Mart, Inc. stock has been cut in half in recent months due to worsening credit conditions of its core subprime customer.
- The company posted a large loss in its recent quarterly results, primarily due to a significant deterioration of consumer credit.
- America's Car-Mart did see improved gross margins and is taking measures to improve its cost structure further.
- Time to buy the dip or avoid a potential "falling knife." An analysis follows in the paragraphs below.
America's Car-Mart: Hit By Rising Credit LossesI’ve always been asked, ‘What is my favorite car?’ and I’ve always said ‘The next one .’” ~ Carroll Shelby.