KMX Lost 10% In A Week. History Suggests More Pain Is Possible.
- KMX has experienced significant declines in the past, plummeting 79% during the Global Financial Crisis and nearly 57% during the COVID pandemic, often surpassing the drop of the S&P 500.
- Recovery takes time. KMX took approximately 23 months to recover from the Global Financial Crisis and just about 5 months after COVID.
- The recent Inflation Shock saw KMX fall 64 percent, and it is yet to recover
CarMax Stock Performance In Market Crashes:
| KMX | S&P 500 | |
|---|---|---|
| Dot-Com Bubble | ||
| % Change from Pre-Recession Peak | -78% | -37% |
| # of Months for Full Recovery | 14 | 69 |
| Global Financial Crisis | ||
| % Change from Pre-Recession Peak | -79% | -57% |
| # of Months for Full Recovery | 23 | 49 |
| 2018 Correction | ||
| % Change from Pre-Recession Peak | -30% | -20% |
| # of Months for Full Recovery | 6 | 4 |
| Covid Pandemic | ||
| % Change from Pre-Recession Peak | -57% | -34% |
| # of Months for Full Recovery | 5 | 5 |
| Inflation Shock | ||
| % Change from Pre-Recession Peak | -64% | -25% |
| # of Months for Full Recovery | Yet to Recover | 15 |
Worried that KMX is yet to hit the bottom? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
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