
CarMax (KMX) Stock Forecast & Price Target
CarMax (KMX) Analyst Ratings
Bulls say
CarMax is the largest used-vehicle retailer in the US and its used-vehicle sales accounted for 80% of fiscal 2026 revenue. The company has a strong financial track record, with a steady increase in annual revenue over the past few years. Additionally, CarMax's announced partnership with the shareholder-friendly Starboard Value is expected to bring about potential areas of significant P&L unlock, leading to further growth and success for the company.
Bears say
CarMax is facing significant challenges, including increasing competition, deteriorating affordability dynamics due to elevated used vehicle prices and interest rates, and pressure on its car financing business. The company's initiatives to improve pricing competitiveness and customer experience may be difficult to execute simultaneously with cost reductions, and its reliance on CarMax Auto Finance (CAF) earnings is increasing while facing challenges in the lending market. However, there are some positives, such as a new growth strategy and improved unit comps and retail GPU. The new CEO may bring positive changes, but there is risk in terms of competition and regulatory measures in the auto industry.
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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