16 analysts have expressed a variety of opinions on CarMax (NYSE:KMX) over the past quarter, offering a diverse set of opinions 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 | 2 | 7 | 7 | 0 | 0 |
| Last 30D | 0 | 0 | 2 | 0 | 0 |
| 1M Ago | 2 | 4 | 4 | 0 | 0 |
| 2M Ago | 0 | 2 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $59.81, a high estimate of $84.00, and a low estimate of $42.00. A 20.32% drop is evident in the current average compared to the previous average price target of $75.06.
Interpreting Analyst Ratings: A Closer 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 |
|---|---|---|---|---|---|
| David Bellinger | Mizuho | Lowers | Neutral | $46.00 | $78.00 |
| Scott Devitt | Wedbush | Maintains | Neutral | $54.00 | $54.00 |
| Jeff Lick | Stephens & Co. | Lowers | Equal-Weight | $42.00 | $53.00 |
| Michael Albanese | Benchmark | Lowers | Buy | $60.00 | $75.00 |
| Daniela Haigian | Morgan Stanley | Lowers | Overweight | $56.00 | $80.00 |
| Jeff Lick | Stephens & Co. | Lowers | Overweight | $53.00 | $74.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $47.00 | $74.00 |
| Steven Shemesh | RBC Capital | Lowers | Outperform | $59.00 | $81.00 |
| Craig Kennison | Baird | Lowers | Outperform | $60.00 | $90.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $52.00 | $80.00 |
| Chris Pierce | Needham | Lowers | Buy | $60.00 | $92.00 |
| 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 |
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: 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.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of CarMax's market position. Stay informed and make well-judged decisions with the assistance of 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 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.
Unraveling the Financial Story of CarMax
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Challenges: CarMax's revenue growth over 3M faced difficulties. As of 31 August, 2025, the company experienced a decline of approximately -5.97%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.45%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): CarMax's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.53%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): CarMax's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.35%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.09, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
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.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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