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Is CarMax (KMX) Outperforming Other Retail-Wholesale Stocks This Year?

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Investors focused on the Retail-Wholesale space have likely heard of CarMax (KMX - Free Report) , but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.

CarMax is one of 214 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. KMX is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for KMX's full-year earnings has moved 4.68% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, KMX has returned 19.35% so far this year. In comparison, Retail-Wholesale companies have returned an average of 13.03%. This means that CarMax is outperforming the sector as a whole this year.

To break things down more, KMX belongs to the Automotive - Retail and Wholesale - Parts industry, a group that includes 5 individual companies and currently sits at #192 in the Zacks Industry Rank. Stocks in this group have gained about 14.34% so far this year, so KMX is performing better this group in terms of year-to-date returns.

Investors in the Retail-Wholesale sector will want to keep a close eye on KMX as it attempts to continue its solid performance.


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