CarMax Drops as Investors Underwhelmed by Revival Strategy

CarMax Inc.’s shares slumped as investors weren’t convinced about its turnaround strategy of cutting vehicle prices while increasing its cost-savings goal in a competitive market.

Shares sunk as much as 17% in New York, the most since November. The stock was up 27% this year through Monday’s close, though the stock remains down more than 60% over the past five years. Investors were also disappointed by a pause in buybacks.