Retail Stocks to Avoid: AAP, KMX, and WOOF Analysis

Advance Auto Parts, CarMax, and Petco are consumer stocks that may be risky due to disappointing same-store sales, high capital intensity, and high debt-to-EBITDA ratios. Advance Auto Parts has seen declining same-store sales over the past two years and a high debt-to-EBITDA ratio of 7x. CarMax has lagging same-store sales and a commoditized inventory, leading to a gross margin of 10.9%. Petco has weak same-store sales trends and a high debt-to-EBITDA ratio of 7x.