Zacks Research Issues Negative Outlook for CarMax Earnings

CarMax, Inc. (NYSE:KMX) – Equities research analysts at Zacks Research lowered their Q1 2027 earnings per share estimates for CarMax in a report released on Thursday, April 9th. Zacks Research analyst Team now anticipates that the company will earn $1.18 per share for the quarter, down from their prior estimate of $1.34. Zacks Research has a “Hold” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax’s Q2 2027 earnings at $0.72 EPS, Q3 2027 earnings at $0.51 EPS, Q4 2027 earnings at $0.05 EPS, Q1 2028 earnings at $1.13 EPS, Q2 2028 earnings at $0.76 EPS, Q3 2028 earnings at $0.55 EPS and Q4 2028 earnings at $0.13 EPS.

KMX has been the subject of a number of other research reports. Stephens upped their target price on CarMax from $39.00 to $43.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 2nd. Weiss Ratings reaffirmed a “sell (d)” rating on shares of CarMax in a research report on Wednesday. Wall Street Zen raised CarMax from a “sell” rating to a “hold” rating in a research report on Saturday, April 4th. Robert W. Baird upped their target price on CarMax from $44.00 to $48.00 and gave the stock an “outperform” rating in a research report on Wednesday, February 18th. Finally, JPMorgan Chase & Co. decreased their target price on CarMax from $30.00 to $28.00 and set an “underweight” rating for the company in a research report on Friday, December 19th. One analyst has rated the stock with a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $39.71.

CarMax Stock Up 2.4%

Shares of CarMax stock opened at $45.31 on Friday. The stock has a market capitalization of $6.42 billion, a P/E ratio of 14.95, a PEG ratio of 1.13 and a beta of 1.30. The company has a quick ratio of 0.51, a current ratio of 1.99 and a debt-to-equity ratio of 2.74. The stock has a 50 day moving average price of $42.94 and a two-hundred day moving average price of $42.27. CarMax has a 12-month low of $30.26 and a 12-month high of $71.99.

Institutional Investors Weigh In On CarMax

Several hedge funds have recently modified their holdings of KMX. Huntington National Bank boosted its position in shares of CarMax by 62.4% in the fourth quarter. Huntington National Bank now owns 690 shares of the company’s stock valued at $27,000 after acquiring an additional 265 shares during the period. CYBER HORNET ETFs LLC bought a new stake in shares of CarMax in the second quarter valued at approximately $28,000. MUFG Securities EMEA plc bought a new stake in shares of CarMax in the second quarter valued at approximately $30,000. Center for Financial Planning Inc. bought a new stake in shares of CarMax in the third quarter valued at approximately $31,000. Finally, Advisory Services Network LLC bought a new stake in shares of CarMax in the third quarter valued at approximately $32,000.

Trending Headlines about CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax agreed to add two directors — William “Bill” Cobb and Jim Kessler — including a Starboard nominee after talks with activist investor Starboard; the appointments are expected to accelerate changes around pricing, digital tools and cost efficiency, and are being received as a constructive governance outcome by investors. CarMax Announces William Cobb and Jim Kessler to Join the Board
• Neutral Sentiment: CarMax has refreshed its board with independent director nominees in filings and corporate announcements, signaling ongoing governance changes but leaving execution and timing uncertain until new directors are seated. CarMax refreshes board with new independent director nominees
• Neutral Sentiment: Investors are focused on Q4 results due April 14; Street estimates and valuation commentary are mixed — some analysts point to improving used-vehicle trends and relative valuation support, but the quarter will be the next clear data point. Unveiling CarMax (KMX) Q4 Outlook: Wall Street Estimates for Key Metrics
• Negative Sentiment: Several outlets report that analysts have trimmed EPS and revenue forecasts ahead of the quarter because of softer used-car demand — this creates downside risk if results or any guidance disappoint. Top Wall Street Forecasters Revamp CarMax Expectations Ahead Of Q4 Earnings

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.