CarMax Inc. shares climbed in premarket trading after the used-vehicle retailer reported stronger-than-expected comparable sales growth. Second-quarter sales from stores open at least a year increased 13%, surpassing analyst estimates of 5.6% growth. This marks a turnaround from four consecutive quarters of declining same-store sales.

CEO Keith Barr's four-pillar strategy and planned price cuts are driving the recovery. The company also announced plans to resume share buybacks at a modest level in the third quarter. Despite macro headwinds including higher interest rates and weaker consumer sentiment, CarMax's stock is up 46% year-to-date.

JPMorgan analyst Rajat Gupta maintains a hold rating, noting more evidence is needed to fully validate the turnaround.