Tuesday, July 5, 2011

Today's Major Market Move - Carmax (KMX) Up 21% in Last 30 Days

In today's Major Market Move feature, we're going to discuss US company Carmax (Ticker symbol: KMX), which is up 21% in the past 30 days. That makes KMX the best performing equity in the S&P 500 over that time frame.

Carmax dipped into negative earnings territory back in 2008 during the financial crisis, but has rebounded nicely and has posted positive earnings every quarter since then. In their last earnings announcement back on June 22, they beat estimates by 4 cents (.55 vs .51 expected). As their earnings have trended up, so has their stock price:

The stock has had strong gains in both the short and long term. As can also be seen from the chart above, it is up 138% since the beginning of 2009. The company is well poised to withstand overall macro economic weakness because of its used car arm, which performs well when consumers are feeling uncertain about future economic prospects.

(Click on the images for a larger view.
Click here for the current performance of equities in the S&P 500.
Click here for a % change comparison of eps, eps estimates and share price.)

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