Wrapping up Q3 earnings, we look at the numbers and key takeaways for the vehicle retailer stocks, including America's Car-Mart (NASDAQ: CRMT) and its peers.

Buying a vehicle is a big decision and usually the second-largest purchase behind a home for many people, so retailers that sell new and used cars try to offer selection, convenience, and customer service to shoppers. While there is online competition, especially for research and discovery, the vehicle sales market is still very fragmented and localized given the magnitude of the purchase and the logistical costs associated with moving cars over long distances. At the end of the day, a large swath of the population relies on cars to get from point A to point B, and vehicle sellers are acutely aware of this need.

The 4 vehicle retailer stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.6%.

Luckily, vehicle retailer stocks have performed well with share prices up 19.3% on average since the latest earnings results.

Slowest Q3: America's Car-Mart (NASDAQ: CRMT)

With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.

America's Car-Mart reported revenues of $347.3 million, down 3.6% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ gross margin estimates but a significant miss of analysts’ EPS estimates.

America's Car-Mart delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 22% since reporting and currently trades at $55.75.

Is now the time to buy America's Car-Mart? Access our full analysis of the earnings results here, it’s free.

Best Q3: Camping World (NYSE: CWH)

Founded in 1966 as a single recreational vehicle (RV) dealership, Camping World (NYSE: CWH) still sells RVs along with boats and general merchandise for outdoor activities.

Camping World reported revenues of $1.72 billion, flat year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with a solid beat of analysts’ EPS and EBITDA estimates.

Camping World delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 16.3% since reporting. It currently trades at $24.88.

Is now the time to buy Camping World? Access our full analysis of the earnings results here, it’s free.

Lithia (NYSE: LAD)

With a strong presence in the Western US, Lithia Motors (NYSE: LAD) sells a wide range of vehicles, including new and used cars, trucks, SUVs, and luxury vehicles from various manufacturers.

Lithia reported revenues of $9.22 billion, up 11.4% year on year, falling short of analysts’ expectations by 2.5%. Still, its results were good as it locked in an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.

Lithia delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 23.6% since the results and currently trades at $376.52.

Read our full analysis of Lithia’s results here.

CarMax (NYSE: KMX)

Known for its transparent, customer-centric approach and wide selection of vehicles, Carmax (NYSE: KMX) is the largest automotive retailer in the United States.

CarMax reported revenues of $7.01 billion, flat year on year. This result surpassed analysts’ expectations by 2.7%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ gross margin estimates.

The stock is up 15.6% since reporting and currently trades at $86.08.

Read our full, actionable report on CarMax here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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