Analysts' ratings for CarMax (NYSE:KMX) over the last quarter vary from bullish to bearish, as provided by 17 analysts.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 0 | 11 | 6 | 0 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 6 | 3 | 0 |
| 3M Ago | 0 | 0 | 5 | 2 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $33.35, a high estimate of $40.00, and a low estimate of $24.00. A decline of 16.87% from the prior average price target is evident in the current average.
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 |
|---|---|---|---|---|---|
| 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 |
| John Babcock | Barclays | Announces | Underweight | $28.00 | - |
| Daniela Haigian | Morgan Stanley | Lowers | Equal-Weight | $35.00 | $56.00 |
| Steven Shemesh | RBC Capital | Lowers | Sector Perform | $34.00 | $59.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $35.00 | $47.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $35.00 | $52.00 |
| Rajat Gupta | JP Morgan | Lowers | Underweight | $30.00 | $50.00 |
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: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing 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.
About CarMax
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.
CarMax's Economic Impact: An Analysis
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Negative Revenue Trend: Examining CarMax's financials over 3M reveals challenges. As of 30 November, 2025, the company experienced a decline of approximately -6.9% in revenue growth, reflecting 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 1.07%, the company showcases strong profitability and effective cost control.
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 ROA excels beyond industry benchmarks, reaching 0.24%. This signifies efficient management of assets and strong financial health.
Debt Management: CarMax's debt-to-equity ratio is below the industry average. With a ratio of 2.94, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
What Are Analyst Ratings?
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.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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