CarMax (KMX), mcap=$15.8bn, price $96.35 vs $94.50

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.

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