Research Analysts Offer Predictions for CarMax Q2 Earnings

Key Points

• Zacks Research raised CarMax’s Q2 2028 EPS estimate to $0.97 from $0.95 and projects fiscal 2028 EPS of $3.11. Zacks rates the stock “Strong Buy,” while the broader analyst consensus remains “Hold” with a $51 average price target.
• CarMax shares opened at $58.71, near their 52-week high of $62.56, after the company recently beat quarterly expectations with $1.31 EPS and $8.01 billion in revenue. Revenue increased 6.2% year over year.
• Insiders purchased $735,574 worth of CarMax shares over the past three months, including purchases by the CEO and a director, while institutional investors such as Bank of America also increased their holdings.

CarMax, Inc. (NYSE:KMX - Free Report) - Equities researchers at Zacks Research increased their Q2 2028 EPS estimates for CarMax in a report issued on Wednesday, August 12th. Zacks Research analyst Team now expects that the company will post earnings of $0.97 per share for the quarter, up from their prior estimate of $0.95. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for CarMax's current full-year earnings is $2.73 per share. Zacks Research also issued estimates for CarMax's Q3 2028 earnings at $0.84 EPS, FY2028 earnings at $3.11 EPS and Q1 2029 earnings at $1.13 EPS.

KMX has been the topic of a number of other reports. Robert W. Baird lifted their price objective on CarMax from $48.00 to $55.00 and gave the stock an "outperform" rating in a research report on Thursday, June 18th. Wall Street Zen upgraded CarMax from a "sell" rating to a "hold" rating in a report on Saturday, June 13th. Stephens raised CarMax from an "equal weight" rating to an "overweight" rating and set a $66.00 price target for the company in a research note on Thursday, June 18th. Mizuho raised their price target on CarMax from $38.00 to $43.00 and gave the stock a "neutral" rating in a research note on Thursday, June 18th. Finally, Weiss Ratings upgraded shares of CarMax from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $51.00.

CarMax Stock Up 0.9%

Shares of NYSE:KMX opened at $58.71 on Thursday. CarMax has a 1 year low of $30.26 and a 1 year high of $62.56. The company has a market cap of $8.33 billion, a PE ratio of 38.37, a P/E/G ratio of 2.66 and a beta of 1.15. The company has a debt-to-equity ratio of 2.87, a current ratio of 2.70 and a quick ratio of 0.82. The stock's 50-day moving average is $54.11 and its 200 day moving average is $46.31.

CarMax (NYSE:KMX - Get Free Report) last posted its earnings results on Wednesday, June 17th. The company reported $1.31 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.35. The company had revenue of $8.01 billion during the quarter, compared to analyst estimates of $7.42 billion. CarMax had a net margin of 0.84% and a return on equity of 6.64%. CarMax's revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.38 earnings per share.

Insider Buying and Selling at CarMax

In other news, CEO Keith Barr bought 9,400 shares of the firm's stock in a transaction dated Monday, June 22nd. The stock was purchased at an average price of $53.01 per share, with a total value of $498,294.00. Following the transaction, the chief executive officer owned 33,375 shares of the company's stock, valued at approximately $1,769,208.75. The trade was a 39.21% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Peter J. Bensen bought 2,500 shares of the stock in a transaction dated Monday, June 22nd. The stock was purchased at an average price of $52.20 per share, with a total value of $130,500.00. Following the purchase, the director owned 24,796 shares in the company, valued at $1,294,351.20. This trade represents a 11.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have bought 13,900 shares of company stock valued at $735,574. 1.01% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On CarMax

A number of institutional investors have recently added to or reduced their stakes in KMX. Freestone Capital Holdings LLC purchased a new stake in CarMax during the 4th quarter valued at about $968,000. Bessemer Group Inc. raised its holdings in CarMax by 28.1% in the first quarter. Bessemer Group Inc. now owns 156,121 shares of the company's stock worth $6,491,000 after buying an additional 34,211 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of CarMax by 61.7% in the first quarter. Bank of America Corp DE now owns 1,687,359 shares of the company's stock worth $70,160,000 after buying an additional 643,834 shares in the last quarter. Convergence Investment Partners LLC bought a new position in shares of CarMax in the first quarter worth approximately $1,688,000. Finally, Louisiana State Employees Retirement System purchased a new stake in shares of CarMax during the first quarter valued at approximately $2,615,000.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: Zacks upgraded CarMax from “Hold” to “Strong Buy,” adding to the near-term bullish sentiment around the used-car retailer. Zacks.com
• Positive Sentiment: Zacks raised multiple earnings forecasts, including Q1 2029 EPS to $1.13 from $0.98, Q2 2028 EPS to $0.97 from $0.95, Q3 2028 EPS to $0.84 from $0.82, and fiscal 2028 EPS to $3.11 from $2.96. The revisions suggest improving expectations for CarMax’s longer-term profitability.
• Positive Sentiment: CarMax was added to Zacks’ Rank #1 Strong Buy list, reinforcing the view that its valuation and earnings outlook compare favorably with other stocks covered by the research firm. Zacks Strong Buy Stocks
• Neutral Sentiment: CarMax was named to PEOPLE’s 2026 Companies That Care list for the seventh time, ranking No. 70. The recognition supports the company’s employee and community reputation but is unlikely to materially affect revenue or earnings. CarMax Companies That Care
• Negative Sentiment: A shareholder-rights law firm announced an investigation into potential fiduciary-duty breaches by CarMax directors and officers. The announcement could increase legal uncertainty and weigh on investor confidence, although no wrongdoing has been established. CarMax Shareholder Investigation
• Negative Sentiment: Despite the Zacks upgrade, broader analyst sentiment remains cautious: recent price targets have generally been below the current trading level, and Bank of America previously rated the stock “Underperform.” This creates downside risk if earnings momentum fails to meet the raised forecasts.

CarMax Company Profile

CarMax NYSE: KMX is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company's inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax's retail locations or browse the company's online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.

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