Zacks Research Has Optimistic Opinion of CarMax Q2 Earnings

CarMax, Inc. (NYSE:KMX) – Investment analysts at Zacks Research upped their Q2 2028 earnings per share estimates for CarMax in a note issued to investors on Friday, October 16th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $1.12 for the quarter, up from their prior forecast of $1.08. Zacks Research currently has a “Strong-Buy” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.10 per share. Zacks Research also issued estimates for CarMax’s Q3 2028 earnings at $0.90 EPS, Q4 2028 earnings at $0.53 EPS, FY2028 earnings at $3.76 EPS, Q1 2029 earnings at $1.13 EPS, Q2 2029 earnings at $1.19 EPS and FY2029 earnings at $4.36 EPS.

Other research analysts have also recently issued research reports about the stock. Barclays upped their price target on shares of CarMax from $61.00 to $67.00 and gave the company an “equal weight” rating in a report on Wednesday, September 30th. Truist Financial raised their price objective on shares of CarMax from $50.00 to $60.00 and gave the stock a “hold” rating in a report on Wednesday, September 30th. BNP Paribas Exane reaffirmed a “strong sell” rating and issued a $48.00 target price (up from $33.00) on shares of CarMax in a research note on Wednesday, September 30th. JPMorgan Chase & Co. upped their target price on shares of CarMax from $60.00 to $70.00 and gave the stock a “neutral” rating in a research note on Friday, September 18th. Finally, Stephens increased their target price on CarMax from $66.00 to $74.00 and gave the stock an “overweight” rating in a report on Friday, September 25th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $57.85.

CarMax Stock Performance

Shares of KMX stock opened at $53.77 on Monday. The company has a debt-to-equity ratio of 2.66, a quick ratio of 0.57 and a current ratio of 2.33. The company has a market capitalization of $7.63 billion, a P/E ratio of 26.23, a price-to-earnings-growth ratio of 1.45 and a beta of 1.23. The company’s 50 day moving average price is $58.08 and its two-hundred day moving average price is $51.42. CarMax has a 52 week low of $30.26 and a 52 week high of $65.28.

CarMax (NYSE:KMX) last issued its quarterly earnings data on Tuesday, September 29th. The company reported $1.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.73 by $0.43. CarMax had a return on equity of 7.76% and a net margin of 1.06%. The business had revenue of $7.88 billion during the quarter, compared to analyst estimates of $7.09 billion. During the same period in the previous year, the firm earned $0.64 EPS. CarMax’s quarterly revenue was up 19.5% compared to the same quarter last year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Global Retirement Partners LLC acquired a new position in shares of CarMax during the second quarter worth $29,000. Basecamp Wealth Advisors LLC boosted its holdings in shares of CarMax by 105.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 636 shares of the company’s stock valued at $26,000 after acquiring an additional 327 shares in the last quarter. Anchor Investment Management LLC acquired a new stake in shares of CarMax during the 2nd quarter valued at $37,000. Wellington Grp LLC grew its position in CarMax by 6,500.0% during the 1st quarter. Wellington Grp LLC now owns 726 shares of the company’s stock worth $30,000 after acquiring an additional 715 shares during the last quarter. Finally, Aberdeen Wealth Management LLC bought a new stake in CarMax during the 2nd quarter worth $39,000.

About CarMax

CarMax, Inc is a specialty retailer of used vehicles and operates one of the largest used-car sales networks in the United States. The company sells a broad selection of pre-owned cars, trucks and SUVs through its retail stores and online platform, offering customers tools for vehicle search, appraisal, financing and purchase.

CarMax also operates a vehicle appraisal and acquisition business, buying vehicles from consumers and other sources for resale through its retail or wholesale channels.