2024-06-19 07:09:06 ET
Summary
- KMX is underperforming the industry and continued share loss should drive de-rating going forward.
- The industry is facing supply headwinds and it's not looking good for the company as it doesn't have the flexibility to ramp up older cars.
- KMX is trading at 18.5x FY2 P/E, above the industry mean of 15x, which is too high given the current backdrop. Sell.
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CarMax: Continued Share Loss Should Drive De-Rating