CarMax had its Relative Strength (RS) Rating upgraded from 69 to 72 Wednesday — a welcome improvement, but still short of the 80 or higher score you look for.
IBD's proprietary rating tracks price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks stacks up against all the other stocks in our database.
Over 100 years of market history reveals that the market's biggest winners tend to have an RS Rating of over 80 in the early stages of their moves. See if CarMax can continue to show renewed price strength and clear that threshold.
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While the stock is not near an ideal entry right now, see if it goes on to form and break out of a proper consolidation.
Regarding top and bottom line numbers, CarMax has posted three quarters of increasing earnings growth. Revenue growth has also risen during the same period.
The company earns the No. 10 rank among its peers in the Retail/Wholesale-Auto Parts industry group. ACV Auctions, Group 1 Automotive and Asbury Automotive are among the top 5 highly rated stocks within the group.
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