
CarMax (KMX) Stock Forecast & Price Target
CarMax (KMX) Analyst Ratings
Bulls say
CarMax reported a significant increase in the sales of older, higher mileage vehicles, which now comprise 40% of total sales, reflecting a 5% growth both quarter-over-quarter and year-over-year. The company has also experienced a 9.3% growth in CAF income, reaching $175 million, underscoring strong performance in financing operations. Furthermore, CarMax's strategy to enhance advertising and drive pricing awareness, alongside continued gains from underwriting and pricing adjustments, positions the company well for achieving its market share objectives and sustaining revenue growth.
Bears say
CarMax reported a notable decline in retail unit sales, with a year-over-year decrease of 8.0% and a decline in used unit comparables of 9.0%, surpassing management's preliminary guidance. Although the retail average selling price (ASP) was 2% above expectations at $26.4K, the company faced a 3% drop in retail gross profit per unit to $2.2K, suggesting pressure on profitability. Additionally, gross profit from its vehicle financing segment saw a significant year-over-year decline of 16%, alongside an 11.4% decrease in wholesale gross profit, contributing to a bleak outlook for the company’s financial health.
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
Start investing in CarMax (KMX)
Order type
Buy in
Order amount
Est. shares
0 shares