DOGZ and JXJT among Consumer Discretionary movers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 11 2024
0mins
Should l Buy KMX?
Source: SeekingAlpha
- Gainers: Rent the Runway (RENT) surged by 150%, JX Luxventure Limited (JXJT) rose by 17%, and ZOOZ Power Ltd (ZOOZ) increased by 6%.
- Losers: Lovesac Company (LOVE) dropped by 14%, CarMax (KMX) decreased by 13%, Dogness (International) Corp (DOGZ) fell by 12%, Meiwu Technology Company Ltd (WNW) declined by 10%, and Energy Focus (EFOI) was down by 8%.
- S&P 500 Consumer Discretionary Sector experienced a slight decrease of 0.19% to 1454.83.
- Automobiles & Components sector saw a decline of 1.16% to 101.52, while Consumer Durables & Apparel increased by 1.22% to 396.21.
- Retailing, contributing 52% to the index, had a minor decrease of 0.23% to 4474.71.
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Analyst Views on KMX
Wall Street analysts forecast KMX stock price to fall
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 45.650
Low
24.00
Averages
33.60
High
37.00
Current: 45.650
Low
24.00
Averages
33.60
High
37.00
About KMX
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- CEO Transition Impact: CarMax's announcement of replacing interim CEO David McCreight with Keith Barr resulted in a 12% drop in stock price during midday trading, reflecting strong investor dissatisfaction with the leadership change.
- Leadership Background: New CEO Barr, coming from the hotel industry, is described by CarMax as a 'proven leader' capable of driving transformational growth and operational excellence; however, his non-automotive background may raise concerns among investors.
- Sales Decline Challenge: With three consecutive years of declining sales, the board seems to believe a transformation is necessary to improve the company's image, yet investors are worried this may signal a poor self-image and could affect future market confidence.
- Market Expectations: Despite CarMax's market capitalization of $5.9 billion and a price-to-earnings ratio below 13, analysts predict only a 7% growth rate over the next five years, indicating a lack of optimism regarding the company's recovery prospects.
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- New CEO Appointment: CarMax has named Keith Barr as its new CEO, effective March 16, tasked with leading the company through its turnaround plan amid declining demand.
- Declining Market Demand: The company struggles to resell cars purchased at higher prices as inflation makes consumers more cash-conscious, prompting layoffs and other initiatives to mitigate lower demand and margin pressures.
- Leadership Changes: Former CEO Bill Nash stepped down in November, and CarMax is undergoing a broader leadership shake-up, with interim CEO David McCreight emphasizing the need for change within the organization.
- Industry Context Challenges: With consumers holding onto their older cars longer, CarMax must adapt its business model to align with this trend, ensuring sustainable growth in a shifting market landscape.
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- New CEO Appointment: CarMax announced that Keith Barr will become president and CEO effective March 16, 2026, bringing over 25 years of executive leadership experience, including his recent role as CEO of InterContinental Hotels Group, which is expected to introduce fresh strategic insights into the company.
- Interim Leadership Transition: Current interim president and CEO David McCreight will return to his role as an independent board member, indicating the company's focus on stability and effective management during this transitional period.
- Board Structure Changes: Tom Folliard will remain interim executive chair until the annual meeting in June 2026, after which he is expected to resume his role as non-executive chair, ensuring continuity in corporate governance during this leadership transition.
- Market Reaction Monitoring: CarMax faces market challenges, including a downgrade to a “Sell” rating, reflecting concerns over its valuation, and Barr's appointment may influence investor confidence and drive future strategic adjustments.
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