For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. CarMax (KMX - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
CarMax is a member of the Retail-Wholesale sector. This group includes 224 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. KMX is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for KMX's full-year earnings has moved 0.43% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that KMX has returned about 52.11% since the start of the calendar year. At the same time, Retail-Wholesale stocks have gained an average of 21.46%. This means that CarMax is performing better than its sector in terms of year-to-date returns.
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 #29 in the Zacks Industry Rank. This group has gained an average of 30.27% so far this year, so KMX is performing better in this area.
KMX will likely be looking to continue its solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to the company.