Carmax had its Relative Strength (RS) Rating upgraded from 67 to 75 Thursday -- a welcome improvement, but still shy of the 80 or better score you look for.

When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.

IBD's unique RS Rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks stacks up against all the other stocks in our database.

Decades of market research reveals that the best-performing stocks often have an 80 or better RS Rating as they launch their biggest runs. See if Carmax can continue to rebound and hit that benchmark.

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Carmax is trying to complete a flat base with a 140.05 entry. See if it can clear the breakout price in volume at least 40% above average.

Earnings grew 1,043% last quarter, up from -2% in the prior report. Revenue also increased, from 4% to 138%. The next quarterly results are expected on or around Sep. 24.

The company earns the No. 7 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Lazydays Holdings and Penske Automotive Group are also among the group's highest-rated stocks.