Carmax Stock Shows Rising Relative Strength, Outstanding Recent Growth; Near Breakout?

Highly rated CarMax stock seems close to completing a cup-shape base, one of the most common patterns preceding a stock’s breakout. On Tuesday, the Relative Strength (RS) Rating for CarMax (KMX) rose to 74, up from 70 the prior trading day.


The 74 RS Rating shows that the national auto sales company has outperformed 74% of all stocks over the past year, regardless of industry group. The biggest winners often have an RS Rating of at least 80 in the early stages of their moves. See if CarMax can continue to rebound and clear that threshold.

Other Key CarMax Stock Ratings

Among other key ratings, Richmond, Va.-based CarMax has an 86 EPS Rating, of a possible 99. Likewise it holds an 86 Composite Rating.

IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

CarMax saw both earnings and sales growth rise last quarter. Earnings soared  more than 1,000% year over year to $2.63 per share. Revenue jumped 138% to $7.7 billion.

CarMax earns the No. 5 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Lithia Motors (LAD) and Asbury Automotive (ABG) are also among the group’s highest-rated stocks.

Looking For Winning Stocks? Try This Simple Routine

CarMax is trying to complete a cup without handle with a 138.87 entry. See if it can break out in volume at least 40% higher than normal.

When you’re researching the best stocks to buy and watch, keep a close on eye on relative price strength.

IBD’s proprietary RS Rating identifies market leadership by showing how a stock’s price action over the last 52 weeks measures up against that of the other stocks in our database.


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