Why CarMax Is Poised to Keep Zooming

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, used vehicle retailer CarMax (NYSE: KMX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at CarMax, and see what CAPS investors are saying about the stock right now.

CarMax facts

 

 

Headquarters (founded)

Richmond, Va. (1993)

Market Cap

$10.3 billion

Industry

Automotive retail

Trailing-12-Month Revenue

$11.3 billion

Management

CEO Thomas Folliard (since 2006)

CFO Thomas Reedy (since 2010)

Return on Equity (average, past 3 years)

16.7%

Cash/Debt

$449.4 million / $6.2 billion

Competitors

AutoNation

Penske Automotive Group 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 954 members who have rated CarMax believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, fellow Fool Jason Moser (TMFJMo), succinctly summed up the CarMax outperform case for our community: "I gave this one the thumbs up on Investor Beat. ... Given the continued rise in the average price of a new car along with the fact that consumers are stringing out loans for 8 years and longer, I think this plays right into CarMax's advantage."

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, CarMax may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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