CarMax Inc.: A Leader in the Used Vehicle Retail Market
Company Overview
CarMax Inc., founded in 1993, is a dominant player in the U.S. used vehicle retail market, operating 249 stores across the country. The company’s dual-segment business model comprises CarMax Sales Operations and CarMax Auto Finance (CAF).
Business Segments
The Sales Operations segment is responsible for selling and purchasing used vehicles, arranging financing options, and offering related products and services. Meanwhile, the CAF segment provides auto financing to CarMax customers, services the loans it originates, and manages the entire loan lifecycle, including billing, payment collection, and repossession when necessary.
Expert Insights
According to William V. Selesky, Senior Analyst at Argus, CarMax’s unique business model has enabled the company to thrive in the competitive used vehicle market. With over 15 years of experience in the investment industry, Selesky has developed a deep understanding of the consumer cyclical sector, having covered various groups, including consumer staples, consumer discretionary, energy, media, transportation, gaming, and utilities.
Investment Highlights
As of January 6, 2025, CarMax Inc.’s current price stands at $80.42, with a price target and earnings estimate that indicate significant growth potential. With its strong market position and diversified business segments, CarMax is an attractive investment opportunity for those looking to capitalize on the growing demand for used vehicles.
About the Analyst
William V. Selesky, a seasoned investment professional, brings a wealth of experience to his role as Senior Analyst at Argus. His impressive background includes stints at Palisade Capital Management, PaineWebber/Mitchell Hutchins Asset Management, and John Hsu Capital Group, where he provided coverage on various sectors and managed $9 billion in active equity products. Selesky holds an MBA in Investment Finance from Pace University and a BS in Economics from Fordham University.
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