Lumida
/KMX
⌘K
Carmax Inc

Carmax Inc

KMX
$57.33USD↓-1.95%-1.14 today

MARKET CAP

8.1B

P/E (TTM)

20.5x

FWD P/E

22.7x

DAY RANGE

$57 – $59

52W RANGE

$30
$64

AI Summary

Stalk
StalkMedium

Stage 2 advance grants medium-term bullish permission despite the broader secular downtrend. Price is extended above rising EMAs and marked by extreme overbought readings, and a Bullish Exhaustion candle at the recent high signals initial weakening in upside momentum. Under a Speculative strategy, execution is deferred: stalking for a pullback into the rising EMA cluster or the prior consolidation zone as the optimal entry area.

  • ↑Q1 ’27 revenue rose 6.2% YoY to $8.01 B; EPS of $1.31 topped consensus.
  • ↑Targeted $200 M SG&A cost cuts by fiscal ’27 to expand margins.
  • ↓Retail unit margins fell 10% and gross profit declined 13% YoY.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

CarMax, Inc. (NYSE: KMX) is the largest used car retailer in the United States, recognized for its omnichannel experience that integrates physical dealerships with digital engagement. The company has positioned itself to navigate a dynamic used car market, leveraging a strong brand, customer-centric approach, and advanced technology while adapting to changing consumer preferences and competitive pricing pressures in the automotive landscape.

Bull says

  • ↑Q1 ’27 revenue rose 6.2% YoY to $8.01 B; EPS of $1.31 topped consensus.
  • ↑Targeted $200 M SG&A cost cuts by fiscal ’27 to expand margins.
  • ↑Four-pillar dynamic pricing and digital push drove positive retail comps.
  • ↑$1.31 B share buyback authorization doubles repurchase pace.
  • ↑Upgrades from Stephens and Morgan Stanley reflect rising analyst confidence.
  • ↑Strong balance-sheet quality with solid liquidity and low volatility.

Bear says

  • ↓Retail unit margins fell 10% and gross profit declined 13% YoY.
  • ↓Profitability factors remain weak, signaling challenges in return generation.
  • ↓Elevated leverage heightens debt servicing risk if cash flows soften.
  • ↓Inventory purchases down 12%, exposing supply-chain and stock alignment issues.
  • ↓Financing arm sees higher delinquency and roll rates, raising credit risk.
  • ↓Stagnant revenue growth trends could deter long-term investor interest.

Investment themes with KMX

eTailing↑ +0.56%

Online retail and e-commerce platforms

FIGS · LQDT · CVNA

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 06-19-2026bullish

Transcript signals

Bull points

  • CAF delivered solid income for yet another quarter, and we see tremendous potential for the future.
  • First quarter results delivered net earnings per diluted share of $1.38, up 42 percent versus a year ago.
  • Total gross profit was $894 million, up 13 percent from last year's first quarter.

Bear points

  • Third-party Tier 2 penetration in the quarter was down 100 basis points year over year to 17.7% of sales,
  • CAF's loan loss provision of $102 million was impacted by several notable items, particularly within 2022 and 2023 vintages, along with the uncertain economic outlook, necessitating additional loss reserves.
Read full transcript analysis ›