15 Best Cyclical Stocks to Buy Now

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5. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 59

CarMax, Inc. (NYSE:KMX) ranks among the best cyclical stocks to buy now. On June 23, RBC Capital maintained its Outperform rating on CarMax, Inc. (NYSE:KMX), but increased its price target to $81 from $80. The adjustment was made following what RBC called “better than feared results” from CarMax. The firm highlighted “notable upside surprises” in both gross profit and used unit comparable sales measures.

Despite the encouraging trend, RBC voiced some skepticism about the sustainability of current comparable sales patterns, pointing to macroeconomic uncertainty that may have an effect on consumer vehicle spending.

RBC Capital revised its financial forecasts for CarMax, Inc. (NYSE:KMX), lowering its earlier expectations of 2.6% and 5.3% net sales growth for 2025 and 2026 to 1.9% and 3.9%, respectively.

CarMax, Inc. (NYSE:KMX) is a used car retailer with two business segments: CarMax Auto Finance and CarMax Sales Operations. With 220 locations nationwide, it is also one of the largest car auction companies in the country.

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