
CarMax (KMX) Stock Forecast & Price Target
CarMax (KMX) Analyst Ratings
Bulls say
CarMax, the largest used-vehicle retailer in the US, achieved significant retail and wholesale sales figures in fiscal 2025, with 789,050 used vehicles retailed and 544,312 wholesaled, contributing notably to its revenue composition of 83% from used-vehicle sales and 17% from wholesale activities. The company is poised for growth, targeting an increase in its market share from 3.7% to over 5%, supported by new leadership and improved operational efficiencies driven by omni-channel and technology investments. Furthermore, CarMax Auto Finance (CAF) has been a substantial contributor to the company’s earnings, and positive trends in delinquency rates indicate potential for enhanced loan performance, fostering optimism for future profitability.
Bears say
CarMax reports a significant decline in retail unit sales, with expectations for comparable store used unit sales to decrease between 8% and 12% year-over-year, coupled with a sharp decline in retail and wholesale revenues. The company expects diluted EPS to fall within the range of $0.18 to $0.36, well below consensus estimates of $0.81, largely due to elevated used vehicle prices, high interest rates, and a subsequent drop in affordability for consumers. Additionally, the impending resignation of CEO Bill Nash and poor performance from the company's asset-backed securities portfolio are contributing factors to diminished investor confidence and increased financing costs.
This aggregate rating is based on analysts' research of CarMax and is not a guaranteed prediction by Public.com or investment advice.
CarMax (KMX) Analyst Forecast & Price Prediction
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