16 Stocks on Jim Cramer’s Radar Recently

4. CarMax, Inc. (NYSE:KMX)

Number of Hedge Fund Holders: 54

CarMax, Inc. (NYSE:KMX) is one of the stocks on Jim Cramer’s radar recently. Cramer called the company’s earning results “awful,” as he commented:

“This morning, we got results from CarMax, oh my, the country’s largest used car dealer. They were awful, causing the stock to plunge 20%. Sales were 6% below Wall Street expectations. There was an incredibly weak… profit per car was below expectations. Big loan losses, too. Every line was suboptimal. What could help CarMax make the numbers? Well, you know exactly what, a bunch of great cuts. Their customers need lower rates as auto loans are priced off the shorter end of the yield curve, mainly two and three-year rates, ones that would come down if the Fed keeps cutting interest rates.

CarMax is a very good operator, by the way. But unless rates come down substantially, I think things will only get worse for this company. People think it’s a dog, it’s not… One thing’s for certain without rate cuts… We know the CarMax used car weakness doesn’t just, isn’t just going to stay with used cars. It’ll be new cars too.”

CarMax, Inc. (NYSE:KMX) sells a wide selection of used vehicles, including domestic, imported, luxury, hybrid, and electric models, while also offering auctions, protection plans, and repair services.