CarMax proposes option strategy amid used car market stagnation
KMX Carmax Inc
$52.61 -2.19%
View chart & analysis → - 1CarMax is trading at a P/E ratio of 17 times its fiscal year expected earnings per share of $3.16.
- 2According to St. Louis Fed data, the average used car loan APR is 15.9% with an average loan term of 68 months.
- 3An option strategy was proposed to earn a net credit of approximately $2.30 per share over 6 weeks (42 days).
So what's the key point?
With the used car market stagnant, CarMax's stock price is being measured at 17 times its earnings. An investment method to earn $2.30 per share has been proposed.
Source CNBC · View original ↗
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