During the last three months, 12 analysts shared their evaluations of CarMax (NYSE:KMX), revealing diverse outlooks from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 6 | 4 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 2 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 0 | 0 |
| 3M Ago | 2 | 3 | 2 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $77.67, along with a high estimate of $92.00 and a low estimate of $58.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 0.93%.
Decoding Analyst Ratings: A Detailed Look
In examining recent analyst actions, we gain insights into how financial experts perceive CarMax. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Rajat Gupta | JP Morgan | Raises | Neutral | $65.00 | $58.00 |
| Scott Devitt | Wedbush | Maintains | Outperform | $84.00 | $84.00 |
| Jeff Lick | Stephens & Co. | Maintains | Overweight | $81.00 | $81.00 |
| Michael Montani | Evercore ISI Group | Lowers | Outperform | $80.00 | $82.00 |
| Rajat Gupta | JP Morgan | Lowers | Neutral | $58.00 | $65.00 |
| Mike Albanese | Benchmark | Announces | Buy | $75.00 | - |
| David Bellinger | Mizuho | Lowers | Neutral | $78.00 | $80.00 |
| Daniela Haigian | Morgan Stanley | Announces | Overweight | $80.00 | - |
| Scott Devitt | Wedbush | Lowers | Outperform | $84.00 | $90.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $74.00 | $72.00 |
| Steven Shemesh | RBC Capital | Raises | Outperform | $81.00 | $80.00 |
| Chris Pierce | Needham | Maintains | Buy | $92.00 | $92.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarMax. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of CarMax's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of CarMax's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on CarMax analyst ratings.
Get to Know CarMax Better
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales were 83% of fiscal 2025 revenue and wholesale about 17%, with the remaining portion composed of extended service plans and repair. In fiscal 2025, the company retailed and wholesaled 789,050 and 544,312 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in calendar 2024. It seeks over 5% share. CarMax is based in Richmond, Virginia.
Key Indicators: CarMax's Financial Health
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: CarMax's remarkable performance in 3M is evident. As of 31 May, 2025, the company achieved an impressive revenue growth rate of 6.09%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: CarMax's net margin is impressive, surpassing industry averages. With a net margin of 2.79%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): CarMax's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.36%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): CarMax's ROA excels beyond industry benchmarks, reaching 0.77%. This signifies efficient management of assets and strong financial health.
Debt Management: CarMax's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.07.
Analyst Ratings: Simplified
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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