9 Stocks on Jim Cramer’s Radar

4. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 57

A caller asked if they should hold or sell CarMax, Inc. (NYSE:KMX). Here’s what Cramer had to say:

“Well, you know I am a Carvana guy. I don’t want you to, this stock, whoa man, this stock has come down so much. No, I can’t, no, I don’t want you to sell it down here. That’s a remarkable decline, down 24%, for a very high-quality company, but that’s what’s happening. That’s endemic of what’s happening in this country right now. We are losing a lot of money, and I don’t need to tell you every single time why.”

CarMax (NYSE:KMX) focuses on selling used cars and related products and offers various models that include electric, hybrid, and luxury vehicles. It also offers financing plans and repair services for customers. In early April, Cramer commented:

“Now anyway, we just profiled a company called CarMax the other night that reports Thursday and when new cars get tariffed, used cars become a lot cheaper by comparison, which should spur sales for CarMax. The stock’s no longer cheap, selling at 23 times this year’s earnings, but I think this might be a real investment given the fact that the president seems unwilling to back down. Then again, if we get a recession, it doesn’t really matter. You don’t want to own anything connected to autos in a recession.”