10 Best Car Stocks To Invest In Now

5. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 44

CarMax, Inc. (NYSE:KMX) is a used car retailer in the United States. It operates through two segments. The first is CarMax Sales Operations, which deals with auto merchandising and service operations, like selling and purchasing used vehicles and related products and services. The second segment is CarMax Auto Finance, which focuses on financing customers buying cars from the company.

On December 19, the company announced financial results for the third quarter of fiscal 2025. KMX achieved over 50% in earnings growth, fueled by gains across the business. Retail used unit sales increased 5.4% from last year during the quarter, while comparable store used unit sales were up by 4.3%. Wholesale unit sales also grew by 6.3%.

Total revenue was posted at $6.2 billion, 1.2% higher than the prior year’s third quarter. Gross profit for the quarter was $677.6 billion, increasing 10.6%, due to strong unit margin performance and unit volumes. Net earnings per diluted share were logged at 81 cents, up 56% versus a year ago.

CarMax, Inc. (NYSE:KMX)’s robust financial performance has been luring hedge funds into investing in the company. According to Insider Monkey’s database for Q3 2024, 44 hedge funds held a stake in KMX, up from 35 at the end of the second quarter. This includes Holocene Advisors LP, which lifted its stake in CarMax, Inc. by 740% during the third quarter, acquiring an additional 834,232 shares.

Wall Street analysts are also bullish on the stock, with a consensus Buy rating. It is among the best car stocks to invest in now.