CarMax: Recent Sell-Off And Strategic Moves Make KMX A Buy

CarMax appears undervalued after a sharp sell-off driven by weak earnings and guidance, with much near-term downside likely priced in. KMX's strategic pivot to older, more affordable vehicles targets value-conscious and tier 2 customers, aligning with current consumer trends and economic headwinds. Suspending stock buybacks to prioritize operational turnaround and financial health is prudent given economic uncertainty and thin net income margins.