2024-03-06 12:29:53 ET
Summary
- CarMax's earnings have been pressured by falling sales and low gross margins after the Covid pandemic's peak used vehicle prices have melted.
- The company's earnings should eventually recover as the economic pressures subside with CarMax still gaining market share in the industry.
- The current valuation doesn't provide significant upside with the earnings recovery that I anticipate.
CarMax ( KMX ) retails used vehicles in the United States. In addition, the company offers financing services for customers’ purchases through CarMax Auto Finance for high credit customers, and financing for other customers through several financing partners. The company has been able to drive a growing store footprint in the United States through constant new location openings over the long-term history....
Read the full article on Seeking Alpha
For further details see:
CarMax: The Anticipated Earnings Recovery Is Reflected In Valuation