3 Used Car Stocks to Buy as More Consumers Skip Buying New

Core Insights - The article discusses the volatility of used car stocks in 2024 and highlights three companies as potential investment opportunities as consumers increasingly opt for used vehicles over new ones [3][14]. Company Summaries CarMax (KMX) - CarMax reported Q1 2025 results with adjusted earnings per share of 97 cents, exceeding analyst estimates by 2 cents, while revenues were $7.11 billion, falling short by$50 million [4]. - The company sold nearly $21 billion in used vehicles in fiscal 2024 and operates 248 locations across the U.S. [16]. - Despite a 3.1$50.4 million, a 24% increase year-over-year [17][19]. CarGurus (CARG) - CarGurus operates a digital auto platform without physical locations, reporting a 6% year-over-year increase in average monthly unique users in the U.S. to 34 million, and a 19% increase internationally to 8.6 million [7][8]. - The company generated $187.2 million in Marketplace Revenue in Q1 2024, a 12$215.8 million due to drops in wholesale and product revenue [24]. - Analysts favor CARG stock, with 11 out of 14 rating it a buy and a target price of $27.75, approximately 10$1.31 billion and reported over 26 million average monthly unique visitors, with 615 million visits in 2023 [21]. - The company derives more than 80% of its revenue from subscriptions, earning about $2,500 per month from each of its 19,500 dealers [22]. - In Q1 2024, Cars.com’s Marketplace Revenue was$187.2 million, a 12% increase year-over-year, while overall sales decreased by 7% to $215.8 million [24].