Pitch: Excellent business at a depressed price due to temporary headwinds. At the current valuation of 13x TTM earnings downside is well protected. The largest used car retailer in the US and the third-largest wholesaler. Expected to continue gaining share in a fragmented market. Long track record of revenue/earnings growth and buybacks.
Valuation: KMX currently sits at 13x trailing earnings. $150 target based on $10+ earnings in FY2026. The stock has often traded at 20x+ multiple.
Exp. gain: +50% to $150/share.
Full KMX write-up (free guest account required):