In the last three months, 11 analysts have published ratings on CarMax (NYSE:KMX), offering a diverse range of perspectives from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 6 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 3 | 2 | 0 | 0 |
| 3M Ago | 0 | 3 | 0 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $80.64, a high estimate of $92.00, and a low estimate of $58.00. This current average represents a 1.13% decrease from the previous average price target of $81.56.
Decoding Analyst Ratings: A Detailed Look
The standing of CarMax among financial experts becomes clear 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 |
|---|---|---|---|---|---|
| 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 | - |
| 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 |
| Scott Devitt | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Michael Montani | Evercore ISI Group | Lowers | Outperform | $84.00 | $85.00 |
| Scott Devitt | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Michael Montani | Evercore ISI Group | Adjusts | Outperform | $85.00 | $80.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to CarMax. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
For valuable insights into CarMax's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on CarMax analyst ratings.
About CarMax
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.
Financial Milestones: CarMax's Journey
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
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. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.79%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): CarMax's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.36% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): CarMax's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.77%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.07.
Analyst Ratings: Simplified
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.