Ariel Investments released its second-quarter 2025 investor letter, noting a +5.81% increase in the Ariel Appreciation Fund. The rebounding stock market was attributed to heightened interest in AI stocks, positive economic data, and robust corporate earnings. Check out the fund’s top five holdings for 2025.

CarMax, Inc. (NYSE:KMX) was highlighted in Ariel Appreciation Fund’s second-quarter 2025 investor letter. The used vehicle retailer’s stock saw a one-month return of -6.77% and a 22.49% loss over the last 52 weeks. On July 18, 2025, CarMax, Inc. (NYSE:KMX) closed at $62.62 per share with a market capitalization of $9.398 billion.

Ariel Appreciation Fund mentioned CarMax, Inc. (NYSE:KMX) in its investor letter, noting the company’s attractive valuation and long growth runway. Despite macro uncertainty, CarMax’s management expertise and brand strength make it a solid investment. The company’s omni-channel presence and focus on personalizing the consumer experience contribute to its appeal.

CarMax, Inc. (NYSE:KMX) is not among the 30 most popular stocks among hedge funds, though 59 hedge fund portfolios held it at the end of the first quarter. In Q1 2025, CarMax, Inc. (NYSE:KMX) reported total sales of $7.5 billion, up 6% from the previous year. While CarMax has potential, some AI stocks may offer greater upside potential with less downside risk.

Read more at Yahoo Finance: CarMax (KMX) Traded Lower Amid Macro Uncertainty