Carmax had its Relative Strength (RS) Rating upgraded from 70 to 73 Wednesday -- a welcome improvement, but still below the 80 or higher score you look for.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary rating identifies market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
History reveals that the market's biggest winners often have an RS Rating of over 80 as they launch their biggest price moves. See if Carmax can continue to rebound and clear that threshold.
See How IBD Helps You Make More Money In Stocks
While the stock is not near an ideal buy zone right now, see if it manages to form and break out from a proper chart pattern.
Carmax reported -4% EPS growth in its most recent report, while sales growth came in at 49%.
The company earns the No. 9 rank among its peers in the Retail/Wholesale-Auto Parts industry group. Autonation and Sonic Automotive are also among the group's highest-rated stocks.
