I doubt is there is anyone reading this that doesn't know what CarMax -- KMX does. Personally, I've bought all my cars from them during the last 15 years. You get a great car for an average price, no lemons and always at or below Bule Book, no hassle. I'm adding this stock to my Marketocracy S&P 400 fund for mainly technical reasons.
BarChart rates it as a 100% BUY with all 13 technical indicators saying BUY. The stock has hit 8 new highs in the last 20 trading sessions and is recently 5 new highs in the last 5 days.
There are 11 analyst following this stock and I think they are under rating what is happening here. No analyst ratings have changed since mid-June and I think that used car sales is where it's at right now.
Recommendation: BUY at around 23 with a stop loss at 19
Jim Van Meerten is an investor and blogs about financial matters on Financial Tides. Please make comments below or email to FinancialTides@gmail.com
Disclosure: I hold no physical position in KMX at the publication of this blog.
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