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 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


Automotive retail

Trailing-12-Month Revenue

$11.3 billion


CEO Thomas Folliard (since 2006)

CFO Thomas Reedy (since 2010)

Return on Equity (average, past 3 years)



$449.4 million / $6.2 billion



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.

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The article Why CarMax Is Poised to Keep Zooming originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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