13 Best Car Stocks to Buy in 2025

4. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 57

CarMax, Inc. (NYSE:KMX) operates a chain of about 250 used retail locations where it sells, loans, and services both new and used automobiles. It was founded in 1993 as a Circuit City subsidiary and spun off as an independent firm in late 2002. Used vehicle sales accounted for 83% of fiscal 2025 revenue, with wholesale accounting for 17%, and the remainder comprised of extended service contracts and repairs. The company sold 789,050 used cars at retail and 544,312 used cars at wholesale in fiscal 2025.

CarMax, Inc. (NYSE:KMX) had record-breaking dealer purchases during the Q4 of 2025, acquiring almost 269,000 automobiles, up 15% from the previous year and a remarkable 114% growth with dealers. The business reported strong earnings growth, with net earnings per diluted share increasing 81% to $0.58 for the third consecutive quarter.

CarMax, Inc. (NYSE:KMX)’s higher volumes were the main driver of the 6.2% growth in retail unit sales and the 3.1% increase in wholesale unit sales. The firm’s digital capabilities expanded further, with omnichannel platforms accounting for 67% of retail unit sales, up from 64% last year, and digital tools supporting more than 80% of all sales. Strong results in retail, wholesale, and extended protection plan margins contributed to the total gross profit of $668 million, which was a 14% rise over the fourth quarter of the previous year, making it one of the Best Auto Stocks.