CarMax (KMX)

They reported an earnings beat with good comp sales. Is still down 10%, but is a fantastic buy now. Retail sales were +9% as gross profit +13%. Will benefit when tariffs kick in and raise prices on new cars. Trades at 16x PE and expects 14-18% growth over the next 3 years.

Has plunged 1.6% in three months, come down too much to sell now. But is a quality company.

They report Thursday. When new cars get tariffed, it usually means more demand for used ones. But this stock is no longer cheap at 23x 2025 PE.  It may be worth owning if Trump stubbornly keeps his tariffs, but you don't want to own anything cars in a recession.

The chart has been choppy and rough, but the last quarter finally showed sales picking up. They've invested a lot on their online platform to the best in the industry. The worst is behind it.

They can beat earnings when they report tomorrow. The industry has been hurt because the price of used cars was getting so high, but has been coming down the last two quarters. The industry will start to accelerate in volumes.