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CarMax Inc. has recently released its fiscal report for the second quarter last Friday with a profit value of $181.4 million. The results have surpassed market estimates despite Hurricane Harvey’s impact on its Texas stores.

As mentioned above, CarMax has indeed beaten the market estimates. The Richmond, Virginia-based car retail company added that it had profit of 98 cents per share. Analysts’ expectation for the said data was 95 cents per share.

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CarMax In Indianapolis, Indiana

The used-car retail company announced a revenue data of $4.39 billion in the second quarter period. The data also was beyond the estimated value of just$4.27 billion.

As for the Total Unit Sales, the data surged by 11.1% while the comparable store unite sales improved by 5.3%. Due to Hurricane Harvey, six stores in Houston Texas had to close which resulted to a “modest” impact on its sales.

In further details, average selling prices for used vehicles surged to $19,667 which is generally a 0.7%. Gross profit per used vehicle climbed by $2,178 to 11% respectively.

Trading Performance

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Since its earnings release, the shares of CarMax experienced a huge leap by having a lot of bulls in its trades. Believe it or not, it has been two years since it has reached this level and on that time, it was also its earnings release. CarMax current position is at 74.29 in where it had its recent close – a 13% rise from a 7.8% increase last Friday.

Shares of CarMax have soared since the beginning of the year by at least 7%. As for the Standard & Poor's 500 index, the index increased by 12% for the said period.  To compare in a 12 month basis, it had 26% upsurge respectively.

The Relative Strength Index soared beyond the 70’s region. Nearly touching the 80’s region, CarMax right now is considered to be overbought as it is now at 79.58. If to compare from the previous performance, it seemed like it stayed flat on the region. However, it is possible that it may remain on that region while the possibility of going downwards is also high.  

At 10.80, the Coppock curve’s indication for CarMax is reasonably high. Since it is a positive region, a buy would be advised and no sign of potential downtrend is discovered for now.

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