Should You Buy CarMax While It's Below $45?

It's been a bumpy ride as of late for CarMax (NYSE: KMX). A turnaround could be in store, though. As of March 16, the auto retailer has a new CEO in Keith Barr. The leadership transition marks the end of uncertainty in the company's C-suite. The stock, which is down over 40% in the past 12 months, is trading at a discount and could be a solid buying opportunity now. There are execution risks and rough roads to navigate in the used-car market, but CarMax is charting a new path for itself, and the turnaround has begun. Should investors consider buying CarMax while it's under $45? Let's take a look at how the largest retailer of used cars in U.S. is faring.CarMax is a company in transition. In addition to the new CEO, CarMax is facing pressure from activist investor Starboard Value. Starboard has taken a significant stake in CarMax, valued at roughly $350 million, and recently nominated two new members to the board of directors. Starboard was also behind the push to hire Barr as the permanent CEO. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool