Is CarMax Stock Oversold?
Shares of CarMax (NYSE: KMX) took a significant hit recently, dropping sharply following the company's latest quarterly earnings report. The decline added to an already tough backdrop for the stock. Shares are now down 37% over the last 12 months and 69% over the past five years.
With the stock price taking a beating, investors may be wondering if the used-car retailer is finally trading at a bargain. After all, beneath the headline losses, the company did see sequential improvements in its sales volume.
But a closer look at the company's financial health, management's decision to pause share repurchases, and the stock's valuation suggests investors may want to exercise some caution.
Source Fool.com
