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Why CarMax Is Poised to Keep Zooming

By Brian D. Pacampara, CFA - Apr 12, 2013 at 5:11PM

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Market-trouncing returns could be written in this 4-Star.

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 (KMX -0.11%) 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."

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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Stocks Mentioned

CarMax Inc. Stock Quote
CarMax Inc.
KMX
$90.79 (-0.11%) $0.10

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