CarMax, Inc. : In an accumulation phase
Entry price | Target | Stop-loss | Potential |
---|
US$68.86 |
US$75.9 |
US$65.9 |
+10.23% |
---|
There has been very little movement in CarMax, Inc's share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths● The share is getting closer to its long-term support in weekly data, at USD 64.75, which offers good timing for buyers.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The stock, which is currently worth 2018 to 0.81 times its sales, is clearly overvalued in comparison with peers.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 64.75 USD
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