Latest news with #KMX
Yahoo
5 hours ago
- Automotive
- Yahoo
Are Wall Street Analysts Predicting CarMax Stock Will Climb or Sink?
Valued at a market cap of $8.7 billion, CarMax, Inc. (KMX) is a leading retailer of used vehicles and related products. The Richmond, Virginia-based company offers customers a broad selection of domestic, imported, luxury, hybrid, and electric vehicles. Additionally, it offers vehicle financing, extended protection plans, reconditioning services, and repair services. This used vehicle retailer has significantly lagged behind the broader market over the past 52 weeks. Shares of CarMax have declined 27.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16.4%. Moreover, on a YTD basis, the stock is down 29.4%, compared to SPX's 9.7% surge. More News from Barchart Trade the Warren Buffett Rally in UnitedHealth Stock With This High-Reward, Low-Risk Options Strategy Lyft Generates Huge FCF Margins - LYFT Stock Is Too Cheap Powell, Trump Talks and Other Can't Miss Items this Week Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Narrowing the focus, KMX has also considerably underperformed the Consumer Discretionary Select Sector SPDR Fund's (XLY) 24.8% uptick over the past 52 weeks and 1.8% YTD rise. On Jun. 20, CarMax's shares surged 6.6% following its better-than-expected Q1 earnings release. Primarily due to a 7.5% rise in used vehicle sales, the company reported overall revenue of $7.5 billion, up 6.1% from the same period last year and marginally above the consensus estimates. Moreover, this solid top-line performance, along with a 70-basis-point expansion in gross profit margin, contributed to a notable 42.3% year-over-year increase in its net income to $1.38 per share, which topped the consensus estimates by an impressive margin of 16.9%. For the current fiscal year, ending in February 2026, analysts expect KMX's EPS to grow 19.3% year over year to $3.90. The company's earnings surprise history is mixed. It met or exceeded the consensus estimates in three of the last four quarters, while missing on another occasion. Among the 19 analysts covering the stock, the consensus rating is a "Moderate Buy' which is based on nine 'Strong Buy,' three "Moderate Buy," five 'Hold,' one "Moderate Sell,' and one 'Strong Sell' rating. This configuration is more bullish than a month ago, with eight analysts suggesting a 'Strong Buy' rating, and two recommending a 'Strong Sell.' On Aug. 12, Evercore Inc. (EVR) analyst Michael Montani maintained a "Buy" rating on KMX and set a price target of $80, implying a 38.5% potential upside from the current levels. The mean price target of $79.88 represents a 38.3% premium from KMX's current price levels, while the Street-high price target of $105 suggests an ambitious upside potential of 81.8%. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
29-07-2025
- Automotive
- Yahoo
What to Expect From CarMax's Q2 2026 Earnings Report
Valued at a market cap of $9 billion, CarMax, Inc. (KMX) is a leading retailer of used vehicles headquartered in Richmond, Virginia. The company also provides related services such as vehicle financing, extended warranties, accessories, and repair services, offering a comprehensive car-buying experience to its customers. It is expected to announce its fiscal Q2 earnings for 2026 on Thursday, Sep. 25. Prior to this event, analysts project this used vehicles retailer to report a profit of $1.05 per share, up 23.5% from $0.85 per share in the year-ago quarter. The company has met or surpassed Wall Street's bottom-line estimates in three of the last four quarters, while missing on another occasion. Its earnings of $1.38 per share in the previous quarter topped the consensus estimates by almost 17%. More News from Barchart Tesla Just Signed a Chip Supply Deal with Samsung. What Does That Mean for TSLA Stock? Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1 Is Lucid Motors Stock a Buy, Sell, or Hold for July 2025? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. For the full year, analysts expect CarMax to report EPS of $3.91, up 19.6% from $3.27 per share in fiscal 2025. Its EPS is expected to further grow 15.9% year-over-year to $4.53 in fiscal 2027. Shares of KMX have declined 27.4% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 17.1% rise and the Consumer Discretionary Select Sector SPDR Fund's (XLY) 23.9% return over the same time frame. Shares of CarMax closed up 6.6% on Jun. 20, after it delivered better-than-expected Q1 results. Mainly due to a 7.5% increase in used vehicle sales, the company's overall revenue improved 6.1% year-over-year to $7.5 billion, exceeding Wall Street's expectations by a slight margin. Moreover, its gross profit margin expanded by 70 basis points, leading to a notable 42.3% rise in its net income to $1.38 per share, which topped the consensus estimates by 16.9%. Wall Street analysts are moderately optimistic about KMX's stock, with an overall "Moderate Buy" rating. Among 18 analysts covering the stock, nine recommend "Strong Buy," three indicate "Moderate Buy," three advise 'Hold,' one suggests a "Moderate Sell,' and two recommend "Strong Sell' ratings. The mean price target for KMX is $80.62, implying a 33.8% premium from the current levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
21-07-2025
- Automotive
- Yahoo
CarMax (KMX) Traded Lower Amid Macro Uncertainty
Ariel Investments, an investment management company, released its 'Ariel Appreciation Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following the initial market decline triggered by the "Liberation Day" tariff announcement, the stock market rebounded, bolstered by heightened interest in AI stocks, positive economic data, and robust corporate earnings. Against this backdrop, the fund increased +5.81% in the second quarter, outpacing the Russell Midcap Value Index's +5.35% returns and trailing the Russell Midcap Index's +8.53% returns. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Ariel Appreciation Fund highlighted stocks such as CarMax, Inc. (NYSE:KMX). CarMax, Inc. (NYSE:KMX) is a used vehicle retailer headquartered in Richmond, Virginia. The one-month return of CarMax, Inc. (NYSE:KMX) was -6.77%, and its shares lost 22.49% of their value over the last 52 weeks. On July 18, 2025, CarMax, Inc. (NYSE:KMX) stock closed at $62.62 per share, with a market capitalization of $9.398 billion. Ariel Appreciation Fund stated the following regarding CarMax, Inc. (NYSE:KMX) in its second quarter 2025 investor letter: "Lastly, used and wholesale vehicle auction operator, CarMax, Inc. (NYSE:KMX), trader lower in the quarter. Although the company's earnings rose sharply year-over-year, management suspended the timeframes around its long-term strategic objectives due to macro uncertainty. At current levels, KMX's valuation is particularly attractive. Management has a strong track record of navigating headwinds and their inventory management expertise, alongside KMX's brand and scale are difficult to replicate. Looking out, we believe the company has a long runway for growth as its omni-channel presence and initiatives targeted at personalizing the consumer experience seamlessly combine its world-class in-store experience and online offerings." A happy customer inspecting a newly purchased used car with the help of a sales assistant. CarMax, Inc. (NYSE:KMX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of the first quarter, compared to 57 in the previous quarter. In the first quarter, CarMax, Inc. (NYSE:KMX) delivered total sales of $7.5 billion, up 6% compared to last year. While we acknowledge the potential of CarMax, Inc. (NYSE:KMX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered CarMax, Inc. (NYSE:KMX) and shared Alphyn Capital Management's views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
12-07-2025
- Automotive
- Yahoo
Alphyn Capital Management Exited CarMax (KMX) as Share Price Stagnated
Alphyn Capital Management, an investment management firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned 12.4% net in the second quarter compared to 10.9% for the S&P 500 Index. As of the second quarter of 2025, the top ten holdings accounted for approximately 65% of the portfolio, and approximately 17% of the portfolio was held in cash. Market conditions remained volatile in Q2 due to ongoing tariff developments and evolving interest rate projections. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Alphyn Capital Management highlighted stocks such as CarMax, Inc. (NYSE:KMX). CarMax, Inc. (NYSE:KMX) is a used vehicle retailer headquartered in Richmond, Virginia. The one-month return of CarMax, Inc. (NYSE:KMX) was 1.26%, and its shares lost 16.02% of their value over the last 52 weeks. On July 10, 2025, CarMax, Inc. (NYSE:KMX) stock closed at $66.94 per share, with a market capitalization of $10.05 billion. Alphyn Capital Management stated the following regarding CarMax, Inc. (NYSE:KMX) in its second quarter 2025 investor letter: I fully exited CarMax, Inc. (NYSE:KMX) after several years in which the share price stagnated while peers such as Carvana captured most of the market's enthusiasm. CarMax long occupied a place in the portfolio as the scale player in US used vehicle retail, with proprietary auction data, nationwide reconditioning capacity, and a finance arm that historically captured a healthy share of the value chain. A happy customer inspecting a newly purchased used car with the help of a sales assistant. CarMax, Inc. (NYSE:KMX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of the first quarter, compared to 57 in the previous quarter. In the first quarter, CarMax, Inc. (NYSE:KMX) delivered total sales of $7.5 billion, up 6% compared to last year. While we acknowledge the potential of KMX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered CarMax, Inc. (NYSE:KMX) and shared the list of best cyclical stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
05-07-2025
- Automotive
- Yahoo
RBC Maintains Outperform on CarMax, Raises Price Target After Strong Results
CarMax, Inc. (NYSE:KMX) ranks among the best cyclical stocks to buy now. On June 23, RBC Capital maintained its Outperform rating on CarMax, Inc. (NYSE:KMX), but increased its price target to $81 from $80. The adjustment was made following what RBC called 'better than feared results' from CarMax. The firm highlighted 'notable upside surprises' in both gross profit and used unit comparable sales measures. Despite the encouraging trend, RBC voiced some skepticism about the sustainability of current comparable sales patterns, pointing to macroeconomic uncertainty that may have an effect on consumer vehicle spending. RBC Capital revised its financial forecasts for CarMax, Inc. (NYSE:KMX), lowering its earlier expectations of 2.6% and 5.3% net sales growth for 2025 and 2026 to 1.9% and 3.9%, respectively. CarMax, Inc. (NYSE:KMX) is a used car retailer with two business segments: CarMax Auto Finance and CarMax Sales Operations. With 220 locations nationwide, it is also one of the largest car auction companies in the country. While we acknowledge the potential of KMX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None.
