CarMax (NYSE:KMX) Stock Rating Upgraded by Zacks Research

CarMax (NYSE:KMX) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report issued on Tuesday,Zacks.com reports. Zacks Research also issued estimates for CarMax’s Q2 2028 earnings at $0.97 EPS, Q3 2028 earnings at $0.84 EPS, FY2028 earnings at $3.11 EPS and Q1 2029 earnings at $1.13 EPS.

A number of other brokerages have also weighed in on KMX. Mizuho lifted their price objective on CarMax from $38.00 to $43.00 and gave the stock a “neutral” rating in a research report on Thursday, June 18th. Benchmark restated a “hold” rating on shares of CarMax in a report on Thursday, June 18th. Morgan Stanley raised their price target on CarMax from $35.00 to $44.00 and gave the stock an “equal weight” rating in a research note on Tuesday, June 23rd. Truist Financial lifted their price target on shares of CarMax from $47.00 to $50.00 and gave the company a “hold” rating in a report on Thursday, June 18th. Finally, Barclays raised shares of CarMax from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $37.00 to $61.00 in a research report on Tuesday, July 21st. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, fourteen have given a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $51.00.

CarMax Stock Performance

CarMax stock opened at $58.71 on Tuesday. The company has a current ratio of 2.70, a quick ratio of 0.82 and a debt-to-equity ratio of 2.87. The firm has a market cap of $8.33 billion, a P/E ratio of 38.37, a P/E/G ratio of 2.66 and a beta of 1.15. CarMax has a 1-year low of $30.26 and a 1-year high of $62.56. The firm has a 50-day moving average of $54.11 and a 200-day moving average of $46.31.

CarMax (NYSE:KMX) last announced its quarterly earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.96 by $0.35. The company had revenue of $8.01 billion for the quarter, compared to the consensus estimate of $7.42 billion. CarMax had a return on equity of 6.64% and a net margin of 0.84%.CarMax’s revenue was up 6.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.38 EPS. Sell-side analysts expect that CarMax will post 2.73 EPS for the current year.

Insider Buying and Selling at CarMax

In other news, CEO Keith Barr bought 9,400 shares of the firm’s stock in a transaction dated Monday, June 22nd. The stock was purchased at an average price of $53.01 per share, with a total value of $498,294.00. Following the transaction, the chief executive officer owned 33,375 shares of the company’s stock, valued at approximately $1,769,208.75. The trade was a 39.21% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Peter J. Bensen bought 2,500 shares of the firm’s stock in a transaction dated Monday, June 22nd. The stock was purchased at an average cost of $52.20 per share, with a total value of $130,500.00. Following the transaction, the director directly owned 24,796 shares in the company, valued at approximately $1,294,351.20. This represents a 11.21% increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders have bought 13,900 shares of company stock valued at $735,574. 1.01% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On CarMax

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Jones Financial Companies Lllp grew its holdings in shares of CarMax by 3.1% during the 1st quarter. Jones Financial Companies Lllp now owns 5,372 shares of the company’s stock worth $419,000 after purchasing an additional 161 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of CarMax by 0.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,389 shares of the company’s stock worth $2,446,000 after purchasing an additional 173 shares during the last quarter. Huntington National Bank raised its holdings in CarMax by 62.4% in the 4th quarter. Huntington National Bank now owns 690 shares of the company’s stock valued at $27,000 after buying an additional 265 shares during the period. Ossiam raised its holdings in CarMax by 19.5% in the 2nd quarter. Ossiam now owns 1,713 shares of the company’s stock valued at $115,000 after buying an additional 280 shares during the period. Finally, Lakewood Asset Management LLC lifted its position in CarMax by 0.9% in the fourth quarter. Lakewood Asset Management LLC now owns 30,189 shares of the company’s stock valued at $1,167,000 after buying an additional 282 shares during the last quarter.

CarMax News Roundup

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.