America’s largest used car retailer is Carmax. The company offers 24-hour test drives and sold more than 750,000 cars in FY2021. The auto stock making the biggest impact recently was Tesla. However, things have changed in the last few days for Elon Musk. Carmax, by contrast, has been steadily growing over the past decade to attain a leadership position in its industry. It is counted among the best auto and truck dealership stocks right now. Carmax has built up its physical presence with over 200 stores across the US. It has also built a strong digital presence and got 27 million average monthly web visits in FY2021. Some investors may not be aware of Carmax being the brainchild of Circuit City. Yes, the consumer electronics retailer that went bankrupt created Carmax and then spun it off in the early 2000s.
Carmax Announces Q42021 Earnings Results
On 1st April 2021, Carmax announced its fourth-quarter 2021 earnings results. Total revenue increased 4.1% year-on-year from $4.96 billion in Q42020 to $5.16 billion. However, the number of vehicles sold went down marginally. The average selling price, especially for wholesale vehicles, went up significantly by 25%. Net income was down 2.3%, and so were diluted earnings per share. They came in at $1.27 as compared to $1.3 in Q42021.
Carmax CEO Bill Nash said, “As markets reopened and our omnichannel experience was launched nationwide, we began gaining market share again. During the last five months of 2020, we saw market share gains, and we expect those gains to accelerate in 2021.” If you are looking for top auto stocks to buy, then Carmax is one name you may want to analyze.
Best Auto And Truck Dealership Stocks Right Now
Carmax Inc’s stock has risen by a stellar 130% over the past five years. It was trading at a P/E of 25 on 10th June 2021. The 52-week high is $138.77, whereas the last traded price was $115.