CarMax Soars as Wedbush Declares it Auto Sector's Top Performer
CarMax's stock rose after Wedbush Securities upgraded the auto retailer to an Outperform rating, citing an inflection in growth and improving profitability. Wedbush expects CarMax's comparable sales to turn positive in the next quarter due to easing comparisons and improving industry growth trends. The firm believes CarMax is well positioned to take market share with its inventory mix of affordable older vehicles. Additionally, industry pricing has remained favorable, leading to minimal deterioration in gross profit per unit. Wedbush assigned a 12-month target price of $90 for CarMax.