Vulcan Value Partners on CarMax’s (KMX) Strong Performance

1 month ago 25

Soumya Eswaran

Thu, July 30, 2026 astatine 9:14 AM CDT 3 min read

Investment absorption company Vulcan Value Partners recently released its second-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. Vulcan Value Partners prioritizes semipermanent returns and little hazard implicit short-term performance. In the quarter, the Large Cap Composite (Net) returned 9.5%, the Small Cap Composite (Net) returned 13.3%, the Focus Composite (Net) returned 10.4%, the Focus Plus Composite (Net) returned 10.5%, and the All-Cap Composite (Net) returned 9.0%. The steadfast reported beardown compounding crossed its strategies successful Q2 2026. Management highlighted that their exceptional holdings stay profoundly undervalued comparative to "what is working" successful the market, viewing this arsenic an fantabulous accidental for diligent investors. In addition, delight cheque the Firm's apical 5 holdings to cognize its champion picks successful 2026.

In its Q2 2026 capitalist letter, Vulcan Value Partners highlighted CarMax, Inc. (NYSE:KMX), which it exited during the year. CarMax, Inc. (NYSE:KMX) is simply a utilized conveyance retailer headquartered successful Richmond, Virginia. On July 29, 2026, CarMax, Inc. (NYSE:KMX) closed astatine $59.11 per share, reflecting a marketplace capitalization of $8.39 billion. CarMax, Inc. (NYSE:KMX) posted a one-month instrumentality of 15.95%, portion its shares gained 1.87% implicit the past 52 weeks.

Vulcan Value Partners stated the pursuing regarding CarMax, Inc. (NYSE:KMX) successful its Q2 2026 capitalist update:

"CarMax, Inc.'s (NYSE:KMX) banal performed good during the quarter. Fiscal 1Q 2027 (which ends successful May) results were successful enactment with absorption expectations and volumes continued to respond favorably to targeted investments successful price. We are excited astir the caller CEO, Keith Barr, who was hired earlier this year. Our favorable content of Keith dates backmost to his agelong palmy tenure arsenic CEO of InterContinental Hotels Group, different MVP company. With the banal terms rising and our worth stable, we took the accidental to reallocate superior to much discounted names successful the portfolio."

"Don't Sell It Down Here — That's a Remarkable Decline"

CarMax, Inc. (NYSE:KMX) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge money portfolios held CarMax, Inc. (NYSE:KMX) astatine the extremity of the archetypal quarter, compared to 52 successful the erstwhile quarter. While we admit the imaginable of CarMax, Inc. (NYSE:KMX) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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