CarMax Stock Gets Increased EPS Forecast from Zacks Research

Key Points

• Zacks Research raised CarMax’s Q3 2027 EPS forecast to $0.44 from $0.40 and projected FY2027, FY2028, and FY2029 EPS of $3.39, $3.68, and $4.25, respectively.
• Despite the improved earnings outlook, Zacks maintained a Hold rating. Broader analyst sentiment remains cautious, with CarMax carrying a consensus “Reduce” rating and a $56.46 average price target.
• CarMax recently exceeded quarterly expectations, reporting $1.16 EPS versus the $0.73 consensus and revenue of $7.88 billion, up 19.5% year over year; shares opened at $49.77 and were down 2.1%.

CarMax, Inc. (NYSE:KMX - Free Report) - Research analysts at Zacks Research lifted their Q3 2027 earnings per share estimates for shares of CarMax in a note issued to investors on Tuesday, October 13th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $0.44 for the quarter, up from their prior estimate of $0.40. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for CarMax's current full-year earnings is $3.01 per share. Zacks Research also issued estimates for CarMax's Q4 2027 earnings at $0.49 EPS, FY2027 earnings at $3.39 EPS, Q1 2028 earnings at $1.21 EPS, Q2 2028 earnings at $1.08 EPS, Q3 2028 earnings at $0.87 EPS, Q4 2028 earnings at $0.52 EPS, FY2028 earnings at $3.68 EPS, Q1 2029 earnings at $1.10 EPS, Q2 2029 earnings at $1.16 EPS and FY2029 earnings at $4.25 EPS.

A number of other equities analysts have also recently commented on the stock. Royal Bank Of Canada boosted their price target on shares of CarMax from $45.00 to $56.00 and gave the stock a "sector perform" rating in a research note on Wednesday, September 30th. Stephens raised their price objective on shares of CarMax from $66.00 to $74.00 and gave the company an "overweight" rating in a research report on Friday, September 25th. Barclays raised their price objective on shares of CarMax from $61.00 to $67.00 and gave the company an "equal weight" rating in a research report on Wednesday, September 30th. UBS Group lifted their price objective on shares of CarMax from $57.00 to $62.00 and gave the stock a "neutral" rating in a report on Wednesday, September 30th. Finally, Truist Financial upped their target price on shares of CarMax from $50.00 to $60.00 and gave the stock a "hold" rating in a research report on Wednesday, September 30th. Two analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, CarMax currently has a consensus rating of "Reduce" and a consensus price target of $56.46.

CarMax Trading Down 2.1%

Shares of KMX opened at $49.77 on Thursday. CarMax has a 1-year low of $30.26 and a 1-year high of $65.28. The company has a market capitalization of $7.06 billion, a P/E ratio of 24.28, a P/E/G ratio of 1.47 and a beta of 1.23. The company has a debt-to-equity ratio of 2.66, a current ratio of 2.33 and a quick ratio of 0.57. The firm's 50 day simple moving average is $58.53 and its 200 day simple moving average is $51.08.

CarMax (NYSE:KMX - Get Free Report) last posted its quarterly earnings data on Tuesday, September 29th. The company reported $1.16 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.43. The company had revenue of $7.88 billion for the quarter, compared to analysts' expectations of $7.09 billion. CarMax had a net margin of 1.06% and a return on equity of 7.76%. CarMax's revenue for the quarter was up 19.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.64 earnings per share.

Institutional Trading of CarMax

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Global Retirement Partners LLC purchased a new stake in shares of CarMax during the second quarter valued at approximately $29,000. Basecamp Wealth Advisors LLC grew its holdings in shares of CarMax by 105.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company's stock worth $26,000 after purchasing an additional 327 shares during the last quarter. Anchor Investment Management LLC purchased a new position in shares of CarMax in the second quarter worth $37,000. Wellington Grp LLC increased its stake in shares of CarMax by 6,500.0% in the first quarter. Wellington Grp LLC now owns 726 shares of the company's stock worth $30,000 after buying an additional 715 shares during the period. Finally, Aberdeen Wealth Management LLC bought a new stake in CarMax during the 2nd quarter valued at $39,000.

Trending Headlines about CarMax

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks sharply raised its long-term CarMax earnings forecasts. FY2027 EPS was lifted to $3.39 from $2.54, FY2028 to $3.68 from $2.71, and FY2029 to $4.25 from $2.91. The revisions imply improving profitability expectations well beyond the current-year consensus of $3.01 per share.
• Positive Sentiment: Quarterly estimates were also increased across the forecast period, including Q3 2027 EPS to $0.44 from $0.40, Q4 2027 to $0.49 from $0.27, Q1 2028 to $1.21 from $0.95, Q2 2028 to $1.08 from $0.83, Q3 2028 to $0.87 from $0.68, Q4 2028 to $0.52 from $0.25, Q1 2029 to $1.10 from $0.81, and Q2 2029 to $1.16 from $0.73.
• Neutral Sentiment: Despite the higher earnings outlook and Strong Buy ranking, Zacks Research retained a Hold rating in its estimate updates. This mixed message could limit the upside from the revisions.

About CarMax

CarMax, Inc is a retailer of used vehicles operating in the United States. The company sells a broad selection of used cars, trucks and SUVs through its dealership network and online platform, offering customers the ability to research, purchase and arrange delivery for vehicles through an omnichannel shopping experience.

In addition to retail vehicle sales, CarMax provides vehicle financing through CarMax Auto Finance and offers customers access to extended protection products and related services.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.