CarMax (NYSE:KMX – Get Free Report) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday, Zacks reports. Zacks Research also issued estimates for CarMax’s Q3 2027 earnings at $0.44 EPS, Q4 2027 earnings at $0.49 EPS, FY2027 earnings at $3.39 EPS, Q1 2028 earnings at $1.21 EPS, Q2 2028 earnings at $1.08 EPS, Q3 2028 earnings at $0.87 EPS, Q4 2028 earnings at $0.52 EPS, FY2028 earnings at $3.68 EPS, Q1 2029 earnings at $1.10 EPS, Q2 2029 earnings at $1.16 EPS and FY2029 earnings at $4.25 EPS.
A number of other analysts also recently issued reports on KMX. Weiss Ratings upgraded shares of CarMax from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, July 20th. JPMorgan Chase & Co. upped their price objective on CarMax from $60.00 to $70.00 and gave the company a “neutral” rating in a report on Friday, September 18th. UBS Group set a $65.00 price objective on CarMax in a report on Thursday. Morgan Stanley increased their price objective on CarMax from $47.00 to $53.00 and gave the stock an “equal weight” rating in a research report on Wednesday, September 30th. Finally, Mizuho raised their target price on CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research note on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, CarMax has an average rating of “Hold” and an average target price of $57.85.
Read Our Latest Report on CarMax
CarMax Trading Up 1.3%
KMX stock traded up $0.67 during trading on Thursday, reaching $53.29. 2,304,625 shares of the stock were exchanged, compared to its average volume of 3,952,594. The company has a current ratio of 2.33, a quick ratio of 0.57 and a debt-to-equity ratio of 2.66. The business has a 50 day moving average price of $58.32 and a 200-day moving average price of $51.18. CarMax has a 1 year low of $30.26 and a 1 year high of $65.28. The firm has a market capitalization of $7.56 billion, a price-to-earnings ratio of 26.00, a P/E/G ratio of 1.48 and a beta of 1.23.
CarMax (NYSE:KMX – Get Free Report) last posted its earnings results on Tuesday, September 29th. The company reported $1.16 earnings per share for the quarter, beating the consensus estimate of $0.73 by $0.43. CarMax had a net margin of 1.06% and a return on equity of 7.76%. The company had revenue of $7.88 billion for the quarter, compared to analyst estimates of $7.09 billion. During the same period in the previous year, the business posted $0.64 EPS. CarMax’s revenue was up 19.5% on a year-over-year basis. On average, research analysts predict that CarMax will post 3.10 earnings per share for the current year.
Institutional Inflows and Outflows
Large investors have recently bought and sold shares of the stock. Krilogy Financial LLC raised its stake in shares of CarMax by 38.2% in the 3rd quarter. Krilogy Financial LLC now owns 19,097 shares of the company’s stock valued at $968,000 after acquiring an additional 5,282 shares during the period. NorthCrest Asset Manangement LLC boosted its position in shares of CarMax by 28.5% during the 3rd quarter. NorthCrest Asset Manangement LLC now owns 15,574 shares of the company’s stock worth $838,000 after purchasing an additional 3,450 shares during the period. Wedmont Private Capital purchased a new position in shares of CarMax during the 3rd quarter worth approximately $209,000. GAMMA Investing LLC boosted its position in shares of CarMax by 15.1% during the 3rd quarter. GAMMA Investing LLC now owns 11,347 shares of the company’s stock worth $625,000 after purchasing an additional 1,487 shares during the period. Finally, Farther Finance Advisors LLC increased its holdings in CarMax by 48.7% in the 3rd quarter. Farther Finance Advisors LLC now owns 11,089 shares of the company’s stock valued at $611,000 after purchasing an additional 3,631 shares during the last quarter.
Key Stories Impacting CarMax
Here are the key news stories impacting CarMax this week:
- Positive Sentiment: Bank of America upgraded CarMax to Buy from Underperform and raised its price target to $65 from $50. The firm cited CarMax’s improved price competitiveness, cost reductions and expected market-share gains. It also believes enforcement of the Federal Trade Commission’s price-transparency rules could provide a lasting sales benefit. BofA Securities Upgrades CarMax to Buy From Underperform, Adjusts Price Target to $65 From $50
- Positive Sentiment: Zacks upgraded KMX to Rank #1, or Strong Buy, reflecting increased optimism about the company’s earnings outlook. CarMax was also included on Zacks’ list of top value stocks, which may attract additional value-oriented interest. CarMax Upgraded to Strong Buy: Here’s Why
- Positive Sentiment: Zacks Research raised numerous CarMax earnings forecasts, including estimates for fiscal 2027, fiscal 2028 and fiscal 2029. Its FY2029 EPS projection increased to $4.25 from $2.91, while FY2027 and FY2028 estimates rose to $3.39 and $3.68, respectively. These revisions reinforce expectations for improving profitability. CarMax Earnings Estimate Revisions
- Neutral Sentiment: Recent analysis compares CarMax with Genuine Parts and other retail-wholesale companies on valuation and year-to-date performance. The coverage may influence how investors assess KMX’s relative value, but it does not represent a new company operating update. KMX vs. GPC: Which Stock Is the Better Value Option?
- Negative Sentiment: CarMax had recently fallen sharply, losing 15.3% over four weeks before the latest rebound. Although technical indicators showed the stock as oversold and earnings revisions suggested a potential reversal, the decline highlights continued volatility and investor sensitivity to the company’s outlook. CarMax Loses 15.3% in 4 Weeks
CarMax Company Profile
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.
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