CarMax, In A Buy Zone, Flashes Improved Technical Strength

CarMax (KMX) had its Relative Strength (RS) Rating upgraded from 68 to 74 Tuesday — a welcome improvement, but still below the 80 or higher score you prefer to see.


When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

IBD’s proprietary rating tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock’s price behavior over the last 52 weeks holds up against all the other stocks in our database.

Over 100 years of market history reveals that the top-performing stocks often have an RS Rating north of 80 in the early stages of their moves. See if CarMax can continue to rebound and clear that threshold.

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CarMax is still inside a buy zone after breaking past a 128.68 entry in a flat base. The proper buying range is up to 5% above the initial entry. Once a stock moves above that range, it’s best to wait for it to set up another buying opportunity.

CarMax current numbers led to it being IBD’s Stock of the Day on March 9 It is also featured in IBD’s featured companies making new highs.


Taking a look at revenue and profit performance, CarMax has posted two quarters of increasing earnings growth. Revenue gains have also moved higher during the same period. CarMax is expected to report its next quarterly numbers on or around Apr. 2.

CarMax holds the No. 10 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Lithia Motors (LAD) and Asbury Automotive (ABG) are also among the group’s highest-rated stocks.


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