2024-04-11 11:10:58 ET
Summary
- We last suggested a buy of sub-$70 in CarMax, Inc. in late September 2023, and strong trading gains were had for savvy swing traders.
- Q4 earnings were mixed, light on profit notably, and long-term targets were pushed back, crushing shares.
- Repurchases, stabilizing margins, and a return to growth this year suggests paying 20X FWD EPS is compelling.
- Pick your spots, scale in, and dump CarMax, Inc. stock when you have tangible gains.
When we last covered CarMax, Inc. ( KMX ) we suggested a buy sub-$70 in late September 2023. For our many new followers, KMX is a stock that we routinely cover, as it provides some insight into both car demand and the state of the consumer. And of course, it is one we have traded successfully many times....
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For further details see:
CarMax: Buy The Q4 Earnings Dip, Here's Why