Here's Why You Should Add CarMax Stock to Your Portfolio Now

CarMax, Inc. KMX, a leading used car retailer in the United States, has an extensive nationwide footprint and logistics network that offer it a competitive advantage. Also, strategic buyouts and collaborations are benefiting the company by enhancing digital capabilities and technology expertise and reinforcing its leadership in the used EV sales sector.Let’s see why you should consider including this Zacks Rank #2 (Buy) stock in your portfolio.Extensive Footprint & Strategic Buyout Aid KMXCarmax’s extensive nationwide footprint and logistics network offer it a competitive advantage. In fiscal 2025, KMX plans to open five new stores, including smaller cross-functional ones. It will also launch its second reconditioning facility in Mississippi and an offsite auction in Los Angeles. In fiscal 2026, it plans to open multiple offsite reconditioning and auction locations, further expanding its footprint and enhancing operational capabilities.CarMax is riding high on strategic buyouts and collaborations. The acquisition of Edmunds has bolstered its position in the used auto market, enhancing digital capabilities and technology expertise. The collaboration with Recurrent provides unique insights into used EV batteries, reinforcing KMX’s leadership in the used EV sales sector.Continued focus on omnichannel initiatives is set to fuel the company’s long-term efficiencies. CarMax's online appraisal tool, a key component of its omnichannel capabilities, is driving vehicle purchases and wholesale sales, contributing to a double-digit growth in web traffic. MaxOffer, featuring fully digital instant offers, is expected to drive higher volumes over time. Efforts to leverage data science, automation and AI to improve efficiency and effectiveness within customer experience centers are likely to contribute to positive results.Investor-friendly moves spark optimism. CarMax repurchased $114.8 million shares in the third quarter of fiscal 2025. In the first three quarters of fiscal 2025, KMX bought back 4.3 million shares. At the end of the fiscal third quarter of 2025, CarMax had $2.04 billion remaining in repurchase authorization.Other Stocks to ConsiderSome other top-ranked stocks in the auto space are Dorman Products, Inc. DORM, Geely Automobile Holdings Limited GELYY and Blue Bird Corporation BLBD, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for DORM’s 2024 sales and earnings suggests year-over-year growth of 3.66% and 51.98%, respectively. EPS estimates for 2024 and 2025 have improved 75 cents and 88 cents, respectively, in the past 60 days.The Zacks Consensus Estimate for GELYY’s 2024 sales and earnings suggests year-over-year growth of 51.88% and 216.67%, respectively. EPS estimates for 2024 and have improved by a penny and 12 cents, respectively, in the past 30 days. The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 30 days.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CarMax, Inc. (KMX): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis Report Dorman Products, Inc. (DORM): Free Stock Analysis Report Blue Bird Corporation (BLBD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks