A Glimpse Into The Expert Outlook On CarMax Through 13 Analysts
During the last three months, 13 analysts shared their evaluations of CarMax (NYSE:KMX), revealing diverse outlooks from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 9 | 4 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 1 | 0 |
| 2M Ago | 0 | 0 | 5 | 3 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
Analysts have recently evaluated CarMax and provided 12-month price targets. The average target is $34.77, accompanied by a high estimate of $42.00 and a low estimate of $24.00. This current average represents a 0.88% decrease from the previous average price target of $35.08.
Exploring Analyst Ratings: An In-Depth Overview
A clear picture of CarMax's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 |
|---|---|---|---|---|---|
| Michael Montani | Evercore ISI Group | Raises | In-Line | $42.00 | $40.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $40.00 | $38.00 |
| John Babcock | Barclays | Raises | Underweight | $28.00 | $24.00 |
| John Babcock | Barclays | Lowers | Underweight | $24.00 | $28.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $37.00 | $35.00 |
| John Murphy | B of A Securities | Raises | Underperform | $31.00 | $27.00 |
| Steven Shemesh | RBC Capital | Raises | Sector Perform | $37.00 | $34.00 |
| Rajat Gupta | JP Morgan | Lowers | Underweight | $28.00 | $30.00 |
| Jeff Lick | Stephens & Co. | Lowers | Equal-Weight | $36.00 | $39.00 |
| Scott Devitt | Wedbush | Lowers | Neutral | $36.00 | $40.00 |
| David Bellinger | Mizuho | Lowers | Neutral | $36.00 | $46.00 |
| Michael Montani | Evercore ISI Group | Raises | In-Line | $37.00 | $35.00 |
| Scott Devitt | Wedbush | Maintains | Neutral | $40.00 | $40.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarMax. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for CarMax's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into CarMax's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on CarMax analyst ratings.
Discovering CarMax: A Closer Look
CarMax sells, finances, and services used and new cars through a chain of over 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 Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: CarMax's revenue growth over a period of 3M has faced challenges. As of 30 November, 2025, the company experienced a revenue decline of approximately -6.9%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: CarMax's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.07% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): CarMax's ROE stands out, surpassing industry averages. With an impressive ROE of 1.01%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): CarMax's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.24%, the company showcases efficient use 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 2.94.
Analyst Ratings: What Are They?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.