Zacks Research Issues Negative Estimate for CarMax Earnings

Key Points

• Zacks Research lowered CarMax’s Q1 2028 EPS estimate to $0.95 from $1.01 and maintained a “Hold” rating. The firm projects fiscal 2028 EPS of $2.71 and fiscal 2029 EPS of $2.91.
• Analyst sentiment remains cautious: CarMax has a consensus “Reduce” rating, with 15 Hold, three Sell, and two Buy ratings and an average price target of $51.67.
• CarMax shares opened at $57.20, versus a 52-week range of $30.26 to $65.28. Director Sona Chawla recently bought 2,000 shares for approximately $106,780, while institutional investors also increased or initiated positions.

CarMax, Inc. (NYSE:KMX - Free Report) - Analysts at Zacks Research lowered their Q1 2028 earnings estimates for CarMax in a research report issued to clients and investors on Thursday, September 17th. Zacks Research analyst Team now expects that the company will post earnings per share of $0.95 for the quarter, down from their prior forecast of $1.01. Zacks Research has a "Hold" rating on the stock. The consensus estimate for CarMax's current full-year earnings is $2.71 per share. Zacks Research also issued estimates for CarMax's Q2 2028 earnings at $0.83 EPS, Q3 2028 earnings at $0.68 EPS, Q4 2028 earnings at $0.25 EPS, FY2028 earnings at $2.71 EPS, Q1 2029 earnings at $0.81 EPS, Q2 2029 earnings at $0.73 EPS and FY2029 earnings at $2.91 EPS.

A number of other equities analysts have also recently commented on the company. Weiss Ratings raised CarMax from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, July 20th. Benchmark reaffirmed a "hold" rating on shares of CarMax in a research note on Thursday, June 18th. JPMorgan Chase & Co. lifted their target price on CarMax from $60.00 to $70.00 and gave the company a "neutral" rating in a research report on Friday. Morgan Stanley boosted their target price on CarMax from $35.00 to $44.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 23rd. Finally, Wall Street Zen raised shares of CarMax from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Two investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $51.67.

CarMax Stock Down 0.0%

NYSE KMX opened at $57.20 on Monday. The business has a fifty day moving average price of $59.50 and a two-hundred day moving average price of $49.45. The stock has a market capitalization of $8.12 billion, a PE ratio of 37.39, a PEG ratio of 2.64 and a beta of 1.17. CarMax has a fifty-two week low of $30.26 and a fifty-two week high of $65.28. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82.

Insider Buying and Selling

In other CarMax news, Director Sona Chawla bought 2,000 shares of the business's stock in a transaction that occurred on Thursday, June 25th. The shares were acquired at an average cost of $53.39 per share, for a total transaction of $106,780.00. Following the transaction, the director directly owned 21,702 shares in the company, valued at approximately $1,158,669.78. This represents a 10.15% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.01% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CarMax

Large investors have recently modified their holdings of the business. Anchor Investment Management LLC acquired a new position in shares of CarMax during the second quarter worth $37,000. The Manufacturers Life Insurance Company increased its holdings in CarMax by 0.9% in the second quarter. The Manufacturers Life Insurance Company now owns 2,420,139 shares of the company's stock valued at $128,001,000 after purchasing an additional 21,882 shares during the period. Capstone Financial Advisors Inc. increased its holdings in CarMax by 5.6% in the second quarter. Capstone Financial Advisors Inc. now owns 9,500 shares of the company's stock valued at $502,000 after purchasing an additional 500 shares during the period. WINTON GROUP Ltd raised its position in CarMax by 181.0% during the 2nd quarter. WINTON GROUP Ltd now owns 38,780 shares of the company's stock worth $2,051,000 after purchasing an additional 24,977 shares during the last quarter. Finally, Engineers Gate Manager LP bought a new position in CarMax during the 2nd quarter worth $3,531,000.

Key CarMax News

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: JPMorgan Chase reportedly expects strong appreciation for CarMax (KMX) shares, providing a positive counterpoint to the broader analyst caution. The optimism may reflect potential recovery in used-vehicle demand and earnings growth. JPMorgan Chase & Co. Forecasts Strong Price Appreciation for CarMax Stock
• Neutral Sentiment: A financial comparison of CarMax (KMX) and Warby Parker (WRBY) offers relative valuation and financial metrics but does not appear to represent a new operational development or change to CarMax’s outlook. CarMax vs. Warby Parker Financial Comparison
• Neutral Sentiment: Analysts have issued forecasts for CarMax’s fiscal second-quarter earnings. The estimates will be an important near-term catalyst, particularly because investors are assessing whether the company can sustain its recent earnings momentum after its latest quarterly results beat expectations. Analysts Issue Forecasts for CarMax’s Q2 Earnings
• Negative Sentiment: Zacks Research lowered its earnings forecasts across multiple future periods. Its fiscal 2028 EPS estimate fell to $2.71 from $3.11, while its fiscal 2029 estimate declined to $2.91 from $3.90. Quarterly estimates were also reduced, including Q1 2028 to $0.95 from $1.01, Q2 2028 to $0.83 from $0.97, Q3 2028 to $0.68 from $0.84, and Q4 2028 to $0.25 from $0.30. The firm maintained a Hold rating. These cuts suggest weaker expected profitability and are likely the main source of selling pressure.

About CarMax

CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales.

In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements.

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