Carmax Stock Surge Highlights Auto ETFs As Holiday Approaches

With summertime heat spreading across the nation, Americans anxiously await the Fourth of July holiday. It’s a time for barbecues, family fun, and one of the best seasons for vehicle shopping.

According to, the long holiday weekend in July should be a great time to buy a vehicle, as “There should be a greater mix of incoming and current-year vehicles around the Fourth. Along with other major car-buying holidays like Memorial Day and Black Friday, the website adds, “It’s worth looking at what’s on the lot if you’re unsure whether you want the car from the outgoing or the incoming year.”

Car dealerships anxiously await Independence Day for the opportunity to pad their bottom line by offering discounted prices that attract customers. They often spend more than they intend to once they get on the lot. One of those enterprises is Carmax (KMX). The auto retailer’s stock is up as much as $6.47 or 8.8% after exceeding analysts’ consensus estimate for its first-quarter revenue by twenty cents. CarMax recorded $7.69 billion, beating the $7.49 billion projected by analysts polled by StreetAccount.

Considering Carmax

Headquartered in Richmond, VA, Carmax operates through the CarMax Sales Operations and CarMax Auto Finance (CAF) segments. HQ provides the company with multiple sources of revenue.

While this is good news for the enterprise and investors, for car shoppers, the fireworks this year might be a bit lackluster. The auto industry is still plagued with chip shortages, inflation that has created higher material costs, and reduced inventory.

For ETF investors looking to capitalize on stocks in the auto industry, the Direxion Daily TSLA Bull 1.5X Shares ETF (TSLL) and the GraniteShares 1.25x Long Tesla Daily ETF GraniteShares 1.25x Long TSLA Daily ETF(TSL) are both up triple digits this year, with gains of 185.78% and 144.76% respectively.

Meanwhile, investors looking for ETFs with Carmax specifically in their holdings can opt for the Invesco S&P 500® Pure Value ETF (RPV), the Vanguard S&P 500 ETF (VOO), or the SPDR S&P 500 ETF Trust (SPY), as some of the myriad options available.

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