Core Insights - A company with a 40-year operating history and a book value of approximately $65 per share is currently trading in the mid-$20s, indicating a significant valuation gap that suggests market skepticism about its fundamentals [1] Investment Strategy - The investment approach focuses on identifying mispriced opportunities driven by market fear, prevailing narratives, or misunderstandings, particularly in cyclical industries, energy, industrials, and under-followed mid-caps [1] - The strategy emphasizes cash flow durability, balance sheet strength, and the risks associated with various capital structures [1] - Asymmetric setups are targeted, where companies have already faced market punishment while their fundamentals are stabilizing or improving, allowing for potential significant stock price changes with modest shifts in market expectations [1] Communication and Analysis - The analysis is shared on Seeking Alpha to provide insights into the investment idea generation process and company analysis [1] - Readers are encouraged to challenge the investment thesis and engage in critical thinking about the investment approach [1]

Group 1: Stock Performances - EchoStar Corporation (NASDAQ:SATS) gained 24.70% after Morgan Stanley upgraded the stock from Equal-Weight to Overweight and raised its price target from $82 to $110 [1] - Rocket Lab Corporation (NASDAQ:RKLB) rose 22.78% due to advancing a South Korean Earth-imaging mission into its next available launch window [2] - Pan American Silver Corp. (PAAS) increased 11.18% amid higher trading of precious metal companies, driven by investor optimism of a Fed rate cut [3] - Core & Main, Inc. (NYSE:CNM) gained 11.19% after reporting better-than-expected Q3 adjusted EPS, with multiple analysts raising their price forecast [3] - Flex Ltd. (NASDAQ:FLEX) increased 4.70% after Goldman Sachs maintained a Buy rating and raised its price forecast from $67 to $74 [4] Group 2: Acquisitions and Analyst Upgrades - Confluent, Inc. (NASDAQ:CFLT) increased 0.64% following IBM's agreement to acquire the company for $31 per share, with multiple analysts raising their price forecast [1][2] - Carvana Co. (NYSE:CVNA) rose 5.35% after announcing it will join the S&P 500 on December 22, 2025, along with multiple analysts raising their price forecast [2]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased CarMax, Inc. securities between June 20, 2025, and November 5, 2025, about the January 2, 2026, deadline to become a lead plaintiff in a securities class action lawsuit [1]. Group 1: Class Action Details - Investors who purchased CarMax securities during the specified Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties must move the Court by January 2, 2026, to serve as lead plaintiff, representing other class members [3]. - The lawsuit alleges that defendants made materially false and misleading statements regarding CarMax's growth prospects, which were overstated due to temporary market conditions [5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in this area [4]. - The firm has secured significant settlements for investors, including over $438 million in 2019, and has been recognized as a leader in the field of securities class action litigation [4].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][3]. Group 1: Lawsuit Details - The lawsuit is based on claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, representing investors in CarMax securities [3]. - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [3]. Group 2: Company Performance and Stock Impact - CarMax reported disappointing financial results for Q2 of fiscal year 2026, including a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [6]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million the previous year, attributed to a "pull forward" in demand due to U.S. tariffs [6]. - Following the financial report, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 to $45.60 on September 25, 2025 [7]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 outlook, led to an additional stock drop of over 24% [7]. Group 3: Company Background - CarMax operates in the used car sales industry and had previously promoted strong demand for its vehicles, which was later questioned due to the impact of tariffs [4]. - The law firm Bleichmar Fonti & Auld LLP, representing the plaintiffs, has a history of successful recoveries in securities class actions, including over $900 million from Tesla's Board of Directors [9].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against CarMax, Inc. and reminds investors of the deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the company [2][4]. Group 1: Legal Action and Investor Information - Investors who purchased CarMax securities between June 20, 2025, and September 24, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights [1][2]. - The deadline for investors to seek the role of lead plaintiff in the class action lawsuit is January 2, 2026 [2]. - The lawsuit alleges that CarMax and its executives made false and misleading statements regarding the company's growth prospects, which were overstated due to temporary factors [4]. Group 2: Financial Performance and Impact - CarMax reported a decrease in income from CarMax Auto Finance (CAF) by 11.2%, with a provision for loan losses amounting to $142.2 million in the second quarter of fiscal 2026, compared to $112.6 million in the same period the previous year [5]. - The provision for loan losses included an increase of $71.3 million in the estimate of lifetime losses on existing loans, primarily due to worsening performance among the 2022 and 2023 vintages [5]. - Following the financial results announcement, CarMax's stock price fell by $11.45 per share, approximately 20%, closing at $45.60 per share on September 26, 2025 [5].

Core Viewpoint - A class action lawsuit has been filed against CarMax, Inc. and certain senior executives for securities fraud following a significant stock drop attributed to potential violations of federal securities laws [1][2]. Group 1: Lawsuit Details - Investors have until January 2, 2026, to request to lead the case, which is pending in the U.S. District Court for the District of Maryland [2]. - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of CarMax investors [2]. Group 2: Company Performance and Stock Impact - CarMax reported disappointing financial results for Q2 FY 2026, with a 5.4% decline in retail used unit sales, a 6.3% decline in comparable store used unit sales, and a 2.2% decline in wholesale units [5]. - The company's net income for Q2 was approximately $95.4 million, down from $132.8 million the previous year [5]. - Following the announcement of these results, CarMax's stock price dropped by $11.45 per share, or roughly 20%, from $57.05 on September 24, 2025, to $45.60 on September 25, 2025 [6]. - An unexpected departure of CEO Bill Nash on November 6, 2025, along with a weak preliminary Q3 2025 outlook, led to an additional stock price drop of over 24% [6]. Group 3: Market Context - CarMax's previous claims of strong demand were allegedly inflated due to a temporary boost from U.S. tariffs on cars, which prompted customers to purchase vehicles before the tariffs took effect [3]. - The lawsuit also investigates whether CarMax properly assessed or reserved for its portfolio of car loans following the CEO's departure [4].

Core Viewpoint - CarMax, Inc. is facing a class action lawsuit due to significant declines in revenue and profit, which were attributed to inventory adjustments and increased loan loss provisions, leading to a substantial drop in share price [2][3][4]. Financial Performance - CarMax reported a revenue decline of 6.0% year-over-year for Q2 2026, with total retail used vehicle revenues down 7.2% and total gross profit declining by 5.6% [2]. - The company experienced a $71.3 million increase in loan loss provisions, impacting overall financial results [2]. Share Price Impact - Following the release of the disappointing financial results, CarMax's share price fell by $11.45, or 20.1%, closing at $45.60 per share on September 25, 2025 [3]. Allegations in the Lawsuit - The class action complaint alleges that CarMax's management made materially false and misleading statements regarding the company's growth prospects, which were overstated and not reflective of the actual business conditions [4]. - It is claimed that the earlier growth in the 2026 fiscal year was a temporary effect driven by customer speculation regarding tariffs, which was not disclosed to investors [4]. Legal Proceedings - Investors who purchased CarMax securities between June 20, 2025, and November 5, 2025, are eligible to file a lead plaintiff motion by January 2, 2026, in the ongoing class action lawsuit [1][5].

NEW YORK, Dec. 12, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in CarMax, Inc. ("CarMax, Inc." or the "Company") (NYSE: KMX) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of CarMax, Inc. investors who were adversely affected by alleged securities fraud between June 20, 2025 and November 5, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/carmax-inc-lawsuit-submis ...

NEW YORK, Dec. 12, 2025 /PRNewswire/ -- Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of CarMax, Inc. (NYSE: KMX) between June 20, 2025 and November 5, 2025, both dates inclusive (the "Class Period"), of the important January 2, 2026 lead plaintiff deadline in the securities class action first filed by the Firm. So what: If you purchased CarMax securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs ...

Core Viewpoint - The article discusses a securities class action lawsuit against CarMax, Inc. alleging that the company misled investors about its business stability and growth prospects, resulting in significant stock declines [2][4]. Summary by Sections Lawsuit Details - The lawsuit claims that CarMax and its executives concealed critical information regarding the company's operational challenges, leading to two major stock crashes [2][5]. - The class period for the lawsuit is defined as June 20, 2025, to November 5, 2025 [3]. Allegations - The complaint identifies two main undisclosed issues: 1. CarMax misrepresented its Q1 2026 growth as sustainable, failing to disclose it was driven by a temporary surge in customer demand due to anticipated tariffs [4]. 2. Management assured investors about the stability of their loan portfolio, which later revealed a significant risk, resulting in a $142 million loan loss provision, a 40% increase sequentially [4]. Stock Performance - Following the disclosure of poor Q2 results on September 25, 2025, which included a 24% drop in net EPS, the stock fell by 20% [4]. - The unexpected termination of the CEO on November 6, 2025, amid weak Q3 guidance led to another severe decline in stock value [4]. Investor Actions - Investors who suffered losses are encouraged to contact Hagens Berman to discuss their rights and potential involvement in the lawsuit, with a lead plaintiff deadline set for January 2, 2026 [5][6].