CarMax (NYSE:KMX) Stock Rating Upgraded by Zacks Research

by · The Markets Daily

CarMax (NYSE:KMX – Get Free Report) was upgraded by stock analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research 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.

Several other equities research analysts also recently issued reports on the company. Robert W. Baird increased their price objective on CarMax from $64.00 to $70.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 30th. BNP Paribas Exane reaffirmed a “strong sell” rating and set a $48.00 target price (up from $33.00) on shares of CarMax in a research note on Wednesday, September 30th. Stephens lifted their target price on CarMax from $66.00 to $74.00 and gave the company an “overweight” rating in a research note on Friday, September 25th. Weiss Ratings upgraded CarMax from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, July 20th. Finally, UBS Group set a $65.00 price target on shares of CarMax in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $57.85.

View Our Latest Stock Report on KMX

CarMax Stock Up 1.3%

NYSE:KMX traded up $0.67 during trading hours on Thursday, hitting $53.29. 2,304,625 shares of the stock traded hands, compared to its average volume of 3,952,594. The firm has a 50 day moving average price of $58.32 and a 200 day moving average price of $51.18. The firm has a market cap of $7.56 billion, a price-to-earnings ratio of 26.00, a PEG ratio of 1.48 and a beta of 1.23. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $65.28. The company has a current ratio of 2.33, a quick ratio of 0.57 and a debt-to-equity ratio of 2.66.

CarMax (NYSE:KMX – Get Free Report) last issued its earnings results on Tuesday, September 29th. The company reported $1.16 EPS for the quarter, topping the consensus estimate of $0.73 by $0.43. CarMax had a return on equity of 7.76% and a net margin of 1.06%. The business had revenue of $7.88 billion during the quarter, compared to analysts’ expectations of $7.09 billion. During the same quarter last year, the firm posted $0.64 earnings per share. CarMax’s revenue was up 19.5% compared to the same quarter last year. Equities research analysts anticipate that CarMax will post 3.10 earnings per share for the current year.

Hedge Funds Weigh In On CarMax

Hedge funds have recently modified their holdings of the stock. Global Retirement Partners LLC acquired a new stake in CarMax during the second quarter valued at $29,000. Basecamp Wealth Advisors LLC grew its stake in CarMax by 105.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock valued at $26,000 after purchasing an additional 327 shares in the last quarter. Anchor Investment Management LLC acquired a new position in CarMax in the 2nd quarter worth about $37,000. Wellington Grp LLC increased its position in CarMax by 6,500.0% in the 1st quarter. Wellington Grp LLC now owns 726 shares of the company’s stock worth $30,000 after purchasing an additional 715 shares during the last quarter. Finally, Aberdeen Wealth Management LLC purchased a new stake in shares of CarMax during the 2nd quarter worth about $39,000.

CarMax News Roundup

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

About CarMax

(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.

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