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CarMax (KMX) operates as a retailer of used vehicles in the United States. It also sells vehicles that do not meet its retail standards to licensed dealers through on-site wholesale auctions, as well as sells new vehicles under franchise agreements.
In addition, the company provides customers financing alternatives through its finance operation, CarMax Auto Finance, as well as through its third-party financing providers.
Further, it offers a range of other related products and services, including the sale of extended service plans, guaranteed asset protection, and accessories; the appraisal and purchase of vehicles directly from consumers; and vehicle repair services.
Shares have formed a bullish "flag" and are expected to head higher out of this formation.
We are now hearing rumors of good news for this company. One of the rumors states that this stock will be named by the leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares.
52-Week Trading Range: $24.83 - $38.32
Entry Point: $38.00
Stop Loss: $35.53
Target Price: $41.80
KMX position was closed today $39.80 for a 4.7% gain. Shares dropped on Friday after a competitor lowered its guidance. Be fore the competitor's warning, shares had gained more than 7% from our entry point. On the positive side, 4.7% is much better than a loss!!!
