Today brings a growth-and-momentum stock recommendation from Shortex Market
Letter Editor Joseph Parnes.
“CarMax, Inc. (KMX $45 NYSE) — The used-car retailer’s revenue of $2.83 billion
beat the consensus forecast of $2.73 billion in its February quarter. A 4% increase
in selling prices [is] an added plus. Trailing one-year revenue is $11.3 billion, R.O.E.
is 16.7% (three-year average). Cash/debt is 449.4 million/$6.2 billion. [The stock’s]
recent retraction could find primary support 38-40. [It has been] trading above
its 50- and 200-day moving averages since December. Ascent to continue. Buying
Range: 41-44. Near-Term Objective: 54. Intermediate-Term Objective: 63. Stop Loss:
38.”
- Joseph Parnes, Shortex Market Letter, April 24, 2013