The auto dealers and rental industry is growing thanks to factors such as the strong demand for vehicles, robust consumer spending, growth in travel demand, a shift in attitude towards car ownership, the popularity of shared mobility, the impracticality of owning a vehicle, etc.
Amid this backdrop, it could be wise to buy fundamentally strong auto stocks AutoNation, Inc. (AN), Group 1 Automotive, Inc. (GPI), and Cars.com Inc. (CARS), instead of CarMax, Inc.’s (KMX), given its poor fundamentals and growth prospects.
