
CarMax (KMX) Stock Forecast & Price Target
CarMax (KMX) Analyst Ratings
Bulls say
CarMax demonstrated notable growth in the sales of older, higher mileage vehicles, which accounted for 40% of total sales, reflecting a 5% year-over-year increase. The company has plans to enhance its advertising efforts starting in the third quarter of fiscal 2026, which could increase market awareness and drive further sales. Additionally, CarMax's CAF income rose by 9% year-over-year to $175 million, bolstered by successful underwriting and pricing adjustments, indicating strong operational performance amidst competitive market conditions.
Bears say
CarMax's financial performance in fiscal 2025 reveals significant challenges, with retail units declining by 8.0% year-over-year and used unit comps dropping by 9%, which is a concerning trend against management's preliminary guidance. Although the retail average selling price (ASP) of $26.4K exceeded expectations, the retail gross profit per unit declined by 3% year-over-year to $2.2K, indicating pressure on profitability. Additionally, the company's third-quarter retail sales fell by 7% year-over-year to $4.5 billion, alongside a sharp 16% decline in other gross profit and an 11.4% decrease in wholesale gross profit per unit, underscoring the ongoing struggles facing CarMax in a competitive market.
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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