CarMax (NYSE:KMX) Stock Bumped Up to Strong-Buy by Zacks Research

Zacks Research upgraded shares of CarMax (NYSE:KMX) from a hold rating to a strong-buy rating in a report published on Thursday morning,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 equities research analysts have also recently commented on KMX. Wall Street Zen raised CarMax from a “hold” rating to a “buy” rating in a report on Saturday, October 10th. Bank of America raised CarMax from an “underperform” rating to a “buy” rating and upped their price objective for the stock from $50.00 to $65.00 in a research note on Thursday. JPMorgan Chase & Co. upped their price objective on CarMax from $60.00 to $70.00 and gave the stock a “neutral” rating in a research note on Friday, September 18th. BNP Paribas Exane reiterated a “strong sell” rating and set a $48.00 target price (up from $33.00) on shares of CarMax in a research report on Wednesday, September 30th. Finally, Royal Bank Of Canada lifted their target price on CarMax from $45.00 to $56.00 and gave the company a “sector perform” rating in a research note on Wednesday, September 30th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, CarMax currently has a consensus rating of “Hold” and a consensus target price of $57.85.

CarMax Price Performance

Shares of KMX stock traded up $0.67 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 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 52 week low of $30.26 and a 52 week high of $65.28. The firm has a 50 day simple moving average of $58.32 and a two-hundred day simple moving average of $51.18. The company has a debt-to-equity ratio of 2.66, a current ratio of 2.33 and a quick ratio of 0.57.

CarMax (NYSE:KMX) last released its earnings results on Tuesday, September 29th. The company reported $1.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.73 by $0.43. The company had revenue of $7.88 billion for the quarter, compared to analysts’ expectations of $7.09 billion. CarMax had a net margin of 1.06% and a return on equity of 7.76%. CarMax’s revenue for the quarter was up 19.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.64 EPS. As a group, equities research analysts predict that CarMax will post 3.10 earnings per share for the current fiscal year.

Hedge Funds Weigh In On CarMax

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

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.