CarMax, Inc (KMX): Is This Car Dealer Offering a Good Deal?

Also, America’s largest automotive retailer, AutoNation, Inc. (NYSE:AN), is performing brilliantly these days. In its last quarterly earnings report, the company reported a 12% increase in its revenue. It is very obvious that AutoNation, Inc. (NYSE:AN) will continue beating estimates in the next quarter as well as the company has already reported 10% and 11% rise in its total retail new-vehicle unit sales in April and May respectively, which surely assures its promising future.

What’s next?

For any company, increasing its market presence in the industry assures greater return on its investment. CarMax, Inc (NYSE:KMX) is supposedly on the right track again. The company has opened three stores in the first quarter of fiscal 2014 and has plans to open 10-to-15 superstores in each of the next two fiscal years. By increasing its market presence, the company is expected to add to its top and bottom lines in the next few years.

Foolish takeaway

At present, the entire US auto industry is going through a good phase and CarMax, being a part of it, no doubt has a bright future. The company is constantly focusing on expansion and increasing market presence and with such strong quarterly results this stock is worth keeping an eye on.

The article Is This Car Dealer Offering a Good Deal? originally appeared on Fool.com and is written Satarupa Bose.

Satarupa Bose has no position in any stocks mentioned. The Motley Fool recommends CarMax. Satarupa is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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