What Happened: Shares of used automotive vehicle retailer Carmax (NYSE:KMX) fell 9.7% in the morning session after the company reported second quarter revenue that narrowly exceeded Wall Street's expectations. However, earnings per share missed. Management cited persistent widespread pressures across the used car industry. Lastly, Carmax intends to resume share repurchases in the third quarter of the year (Q3'2023), noting that it has $2.45 billion remaining available for repurchase. Overall, it was a weaker quarter for the company.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy CarMax? Find out by reading the original article on StockStory.
What is the market telling us: CarMax (NYSE:KMX)'s shares are not very volatile than the market average and over the last year have had only 20 moves greater than 5%.
CarMax is up 17.1% since the beginning of the year, but at $70.97 per share it is still trading 17.9% below its 52-week high of $86.42 from September 2022. Investors who bought $1,000 worth of CarMax's shares 5 years ago would now be looking at an investment worth $950.98.
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