CarMax (NYSE:KMX) Stock Rating Raised to Buy at Bank of America

Posted by Stanley Muller on Oct 15th, 2026

CarMax (NYSE:KMX – Get Free Report) was upgraded by stock analysts at Bank of America from an “underperform” rating to a “buy” rating in a research report issued on Thursday, Marketbeat Ratings reports. The firm currently has a $65.00 price target on the stock. Bank of America‘s target price points to a potential upside of 30.61% from the stock’s previous close.

Several other brokerages have also issued reports on KMX. Barclays upped their price target on CarMax from $61.00 to $67.00 and gave the company an “equal weight” rating in a research note on Wednesday, September 30th. JPMorgan Chase & Co. raised their price target on CarMax from $60.00 to $70.00 and gave the company a “neutral” rating in a report on Friday, September 18th. BNP Paribas Exane reiterated a “strong sell” rating and issued a $48.00 price objective (up from $33.00) on shares of CarMax in a research report on Wednesday, September 30th. Wall Street Zen raised CarMax from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. Finally, Zacks Research downgraded shares of CarMax from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, September 16th. Three analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, CarMax presently has an average rating of “Hold” and a consensus target price of $57.85.

Check Out Our Latest Research Report on CarMax

CarMax Stock Performance

KMX stock opened at $49.77 on Thursday. The company has a 50 day moving average price of $58.53 and a 200 day moving average price of $51.08. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $65.28. The company has a debt-to-equity ratio of 2.66, a current ratio of 2.33 and a quick ratio of 0.57. The stock has a market capitalization of $7.06 billion, a PE ratio of 24.28, a price-to-earnings-growth ratio of 1.47 and a beta of 1.23.

CarMax (NYSE:KMX – Get Free Report) last announced its quarterly earnings data on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.43. The firm had revenue of $7.88 billion for the quarter, compared to analyst estimates of $7.09 billion. CarMax had a return on equity of 7.76% and a net margin of 1.06%. The business’s quarterly revenue was up 19.5% compared to the same quarter last year. During the same period last year, the company earned $0.64 EPS. Analysts forecast that CarMax will post 3.01 EPS for the current year.

Hedge Funds Weigh In On CarMax

Several institutional investors and hedge funds have recently made changes to their positions in the company. Bessemer Group Inc. raised its stake in CarMax by 28.1% during the 1st quarter. Bessemer Group Inc. now owns 156,121 shares of the company’s stock worth $6,491,000 after buying an additional 34,211 shares during the period. State Street Corp lifted its holdings in CarMax by 5.6% during the second quarter. State Street Corp now owns 5,156,276 shares of the company’s stock worth $272,715,000 after acquiring an additional 271,216 shares in the last quarter. Bank of America Corp DE grew its stake in CarMax by 61.7% in the first quarter. Bank of America Corp DE now owns 1,687,359 shares of the company’s stock valued at $70,160,000 after acquiring an additional 643,834 shares during the period. WINTON GROUP Ltd grew its stake in CarMax by 181.0% in the second quarter. WINTON GROUP Ltd now owns 38,780 shares of the company’s stock valued at $2,051,000 after acquiring an additional 24,977 shares during the period. Finally, Convergence Investment Partners LLC acquired a new position in CarMax in the first quarter valued at about $1,688,000.

CarMax News Roundup

Here are the key news stories impacting CarMax this week:

Positive Sentiment: Zacks sharply raised its long-term CarMax earnings forecasts. FY2027 EPS was lifted to $3.39 from $2.54, FY2028 to $3.68 from $2.71, and FY2029 to $4.25 from $2.91. The revisions imply improving profitability expectations well beyond the current-year consensus of $3.01 per share.
Positive Sentiment: Quarterly estimates were also increased across the forecast period, including Q3 2027 EPS to $0.44 from $0.40, Q4 2027 to $0.49 from $0.27, Q1 2028 to $1.21 from $0.95, Q2 2028 to $1.08 from $0.83, Q3 2028 to $0.87 from $0.68, Q4 2028 to $0.52 from $0.25, Q1 2029 to $1.10 from $0.81, and Q2 2029 to $1.16 from $0.73.
Neutral Sentiment: Despite the higher earnings outlook and Strong Buy ranking, Zacks Research retained a Hold rating in its estimate updates. This mixed message could limit the upside from the revisions.

CarMax Company Profile

(Get Free Report)

CarMax, Inc is a retailer of used vehicles operating in the United States. The company sells a broad selection of used cars, trucks and SUVs through its dealership network and online platform, offering customers the ability to research, purchase and arrange delivery for vehicles through an omnichannel shopping experience.

In addition to retail vehicle sales, CarMax provides vehicle financing through CarMax Auto Finance and offers customers access to extended protection products and related services.