
CarMax (KMX) Stock Forecast & Price Target
CarMax (KMX) Analyst Ratings
Bulls say
CarMax, the largest used-vehicle retailer in the U.S., generated significant revenue in fiscal 2025, with used-vehicle sales comprising 83% of total revenue from the retailing of 789,050 vehicles. The company is positioned for growth as it aims to capture a larger market share, currently estimated at only 3.7% of the U.S. market for vehicles 0-10 years old, bolstered by improved operational performance and new leadership. Additionally, CarMax's Auto Finance business is enhancing earnings, supported by tightening credit standards that are expected to improve used auto loan performance, contributing positively to the overall financial outlook.
Bears say
CarMax is experiencing significant financial challenges, with the company projecting a decline in comparable store used unit sales between -8% and -12% year-over-year, driven by deteriorating affordability dynamics resulting from elevated used vehicle prices and high interest rates. Expectations for diluted EPS are notably lower than market consensus, with guidance indicating a range of $0.18 to $0.36, which reflects a sharp contraction in retail unit sales and a decline in wholesale business pricing. Additionally, management's preliminary guidance suggests a deceleration in used unit sales and further deterioration in financial performance, compounded by the forthcoming leadership change as CEO Bill Nash steps down.
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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