
Investors interested in Automotive - Retail and Wholesale - Parts stocks are likely familiar with CarMax (KMX) and Genuine Parts (GPC). But which of these two companies is the best option for those looking for undervalued stocks?
CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.
| Revenue (TTM) | $29.46B |
| Gross Profit (TTM) | $3.44B |
| EBITDA | $1.13B |
| Operating Margin | 2.83% |
| Return on Equity | 4.68% |
| Return on Assets | 1.78% |
| Revenue/Share (TTM) | $206.22 |
| Book Value | $44.42 |
| Price-to-Book | 1.32 |
| Price-to-Sales (TTM) | 0.26 |
| EV/Revenue | 1.012 |
| EV/EBITDA | 16.76 |
| Quarterly Earnings Growth (YoY) | 81.60% |
| Quarterly Revenue Growth (YoY) | 17.70% |
| Shares Outstanding | $141.94M |
| Float | $141.09M |
| % Insiders | 0.47% |
| % Institutions | 105.16% |
Volatility is currently expanding

Investors interested in Automotive - Retail and Wholesale - Parts stocks are likely familiar with CarMax (KMX) and Genuine Parts (GPC). But which of these two companies is the best option for those looking for undervalued stocks?

Here is how CarMax (KMX) and Abercrombie & Fitch (ANF) have performed compared to their sector so far this year.

Bank of America has upgraded CarMax Inc (NYSE:KMX), the US used-car retailer, to 'buy' from 'underperform' and raised its price target to $65 from $50 as improving price competitiveness drives market share gains. The bank expects enforcement of the Federal Trade Commission's (FTC) price-transparency rules, alongside CarMax's own pricing changes, to support sales growth beyond the initial regulatory boost.

CarMax (KMX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

CarMax (KMX) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.

KMX, ACIC, ONC, ODD and WES have been added to the Zacks Rank #1 (Strong Buy) List on October 15, 2026.

KMX, ACIC and ZIM made it to the Zacks Rank #1 (Strong Buy) value stocks list on October 15, 2026.

KMX's shares fell 5.8% since Q2 results as higher vehicle sales, cost discipline and CAF growth were accompanied by margin pressures and rising credit exposure.

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CarMax reported earnings yesterday, causing the stock price to jump. However, the stock slipped today, to below its pre-earnings price.
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