Research Analysts Offer Predictions for CarMax Q2 Earnings

CarMax, Inc. (NYSE:KMX) – Equities research analysts at Zacks Research raised their Q2 2028 earnings per share estimates for CarMax in a research report issued on Wednesday, August 12th. Zacks Research analyst Team now anticipates that the company will earn $0.97 per share for the quarter, up from their prior forecast of $0.95. Zacks Research currently has a “Strong-Buy” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $2.73 per share. Zacks Research also issued estimates for CarMax’s Q3 2028 earnings at $0.84 EPS, FY2028 earnings at $3.11 EPS and Q1 2029 earnings at $1.13 EPS.

CarMax (NYSE:KMX) last released its quarterly earnings data on Wednesday, June 17th. The company reported $1.31 EPS for the quarter, beating the consensus estimate of $0.96 by $0.35. CarMax had a return on equity of 6.64% and a net margin of 0.84%.The company had revenue of $8.01 billion for the quarter, compared to analysts’ expectations of $7.42 billion. During the same period last year, the firm posted $1.38 earnings per share. CarMax’s revenue was up 6.2% compared to the same quarter last year.

Other research analysts also recently issued research reports about the company. JPMorgan Chase & Co. raised CarMax from an “underweight” rating to a “neutral” rating and increased their target price for the company from $38.00 to $60.00 in a report on Wednesday, July 29th. Morgan Stanley increased their target price on shares of CarMax from $35.00 to $44.00 and gave the stock an “equal weight” rating in a report on Tuesday, June 23rd. Benchmark restated a “hold” rating on shares of CarMax in a research note on Thursday, June 18th. Truist Financial raised their target price on shares of CarMax from $47.00 to $50.00 and gave the stock a “hold” rating in a research note on Thursday, June 18th. Finally, Robert W. Baird lifted their price target on shares of CarMax from $48.00 to $55.00 and gave the company an “outperform” rating in a report on Thursday, June 18th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, CarMax has an average rating of “Hold” and a consensus target price of $51.00.

CarMax Stock Up 0.9%

Shares of CarMax stock opened at $58.71 on Thursday. The company’s 50 day moving average is $54.11 and its 200 day moving average is $46.31. The company has a market cap of $8.33 billion, a price-to-earnings ratio of 38.37, a price-to-earnings-growth ratio of 2.66 and a beta of 1.15. The company has a quick ratio of 0.82, a current ratio of 2.70 and a debt-to-equity ratio of 2.87. CarMax has a twelve month low of $30.26 and a twelve month high of $62.56.

Institutional Investors Weigh In On CarMax

Institutional investors and hedge funds have recently modified their holdings of the stock. Basecamp Wealth Advisors LLC lifted its holdings in shares of CarMax by 105.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock worth $26,000 after buying an additional 327 shares in the last quarter. Huntington National Bank grew its stake in CarMax by 62.4% during the fourth quarter. Huntington National Bank now owns 690 shares of the company’s stock valued at $27,000 after acquiring an additional 265 shares in the last quarter. CYBER HORNET ETFs LLC purchased a new position in CarMax during the second quarter valued at $28,000. Global Retirement Partners LLC purchased a new position in CarMax during the second quarter valued at $29,000. Finally, Wellington Grp LLC increased its holdings in CarMax by 6,500.0% in the 1st quarter. Wellington Grp LLC now owns 726 shares of the company’s stock valued at $30,000 after acquiring an additional 715 shares during the last quarter.

Insider Activity

In other CarMax news, CEO Keith Barr bought 9,400 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The shares were bought at an average price of $53.01 per share, with a total value of $498,294.00. Following the purchase, the chief executive officer owned 33,375 shares of the company’s stock, valued at $1,769,208.75. This trade represents a 39.21% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Sona Chawla purchased 2,000 shares of the stock in a transaction that occurred on Thursday, June 25th. The stock was acquired at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the completion of the acquisition, the director owned 21,702 shares in the company, valued at $1,158,669.78. This represents a 10.15% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired 13,900 shares of company stock worth $735,574 over the last ninety days. Corporate insiders own 1.01% of the company’s stock.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks upgraded CarMax from “Hold” to “Strong Buy,” adding to the near-term bullish sentiment around the used-car retailer. Zacks.com
• Positive Sentiment: Zacks raised multiple earnings forecasts, including Q1 2029 EPS to $1.13 from $0.98, Q2 2028 EPS to $0.97 from $0.95, Q3 2028 EPS to $0.84 from $0.82, and fiscal 2028 EPS to $3.11 from $2.96. The revisions suggest improving expectations for CarMax’s longer-term profitability.
• Positive Sentiment: CarMax was added to Zacks’ Rank #1 Strong Buy list, reinforcing the view that its valuation and earnings outlook compare favorably with other stocks covered by the research firm. Zacks Strong Buy Stocks
• Neutral Sentiment: CarMax was named to PEOPLE’s 2026 Companies That Care list for the seventh time, ranking No. 70. The recognition supports the company’s employee and community reputation but is unlikely to materially affect revenue or earnings. CarMax Companies That Care
• Negative Sentiment: A shareholder-rights law firm announced an investigation into potential fiduciary-duty breaches by CarMax directors and officers. The announcement could increase legal uncertainty and weigh on investor confidence, although no wrongdoing has been established. CarMax Shareholder Investigation
• Negative Sentiment: Despite the Zacks upgrade, broader analyst sentiment remains cautious: recent price targets have generally been below the current trading level, and Bank of America previously rated the stock “Underperform.” This creates downside risk if earnings momentum fails to meet the raised forecasts.

CarMax Company Profile

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.