Why CarMax Stock Jumped in June
CarMax (NYSE: KMX) shareholders had a great June, with shares rising 16% in the month, according to data provided by S&P Global Market Intelligence. That's compared to a 6.5% rally in the wider S&P 500. The increase added to a good year so far for investors in the automotive retailing stock, which is up over 30% so far in 2023.
The market's rally, which occurred as investors gained more confidence in economic growth trends, played a big role in CarMax's June gains. But shareholders also celebrated some encouraging operating trends.
CarMax announced in late June that sales fell 17% in the Q1 period as selling conditions remain stressed in the used car market. Interest rates are still elevated, adding to the cost of most purchases, and consumers continued to pull back on spending in the automotive industry after several years of higher demand. Prices of new cars have come down in some cases, too, adding pressure on the used car niche.
Source Fool.com
