Car-Mart, the Bentonville-based used-car retailer, jumped almost 43 percent in the second quarter, the best performance of the largest 20 publicly traded companies in Arkansas.
America’s Car-Mart, which closed at $ 17. 92 on Monday, reported better-than-expected earnings in its most recent quarterly report, including a 30 percent rise in same-stores sales. On Monday the company was added to the Russell 3000 index, one of the Russell Investments indexes that often are used by investment managers and institutional investors for index funds and as benchmarks for investment strategies.
“The bad news on the economic front could be good news for America’s Car-Mart,” said Chris Harkins, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock.
Because of the rise in bankruptcy and foreclosure rates and a decline in consumers’ credit scores, alternative car lots can offer a solution, Harkins said. America’s Car-Mart focuses on the buy here-pay here segment of used car sales — the buyer returns to the store where he bought the car to make regular payments.
“Consumers are struggling and the demand for these services has increased,” Harkins said.
Interestingly, while CarMax, (the car company Buffet love) stocks trade about $15 Car-Mart is trading at $18.00. Any idea why? Drop your answer in the comment box below
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