Jim Cramer Reacts to the Surprise Market Surge and Highlights 8 Key Stocks

5. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 57

In a brief segment on recent earnings results, Jim Cramer called out the disappointing performance of CarMax, Inc. (NYSE:KMX). He criticized the company’s inability to meet expectations and suggested that even the CEO’s commentary failed to inspire confidence:

“This stock is down a lot. Net revenues were $6 billion. They were up 6.7%. They pulled their guidance, and they didn’t do the number. They missed bad. They didn’t have anything. [Talking about the CEO’s commentary] Bill’s usually better than that.”

In recent weeks, Jim Cramer talked about CarMax, Inc. (NYSE:KMX) again, advising his viewers not to invest in autos in case of a recession:

“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.”