Lumida
/KMX
⌘K
Carmax Inc

Carmax Inc

KMX
$61.32USD↑+1.32%+0.80 today

MARKET CAP

8.7B

P/E (TTM)

36.7x

FWD P/E

—

DAY RANGE

$61 – $62

52W RANGE

$30
$65

AI Summary

Stalk
Sell NowMedium

The medium-term downtrend in KMX remains intact, evidenced by lower highs and lower lows under flattened EMAs and the 200 SMA. Supply dominance is reinforced by heavier volume on down-days and failing rallies into the 9/20 EMAs and August resistance zone. Short-term timing favors bearish execution now as price rejects resistance and momentum indicators trend lower. We seek to engage bearish exposure near EMAs and resistance before any potential relief rally.

  • ↑Q1 FY27 sales $8B (+6.2% YoY) driven by competitive pricing.
  • ↑Retail gross profit per unit at $2,407, highest on record.
  • ↓Q1 gross profit $854M, down 4% YoY, compressing margins.
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

CarMax, Inc. (NYSE: KMX) operates as the largest retailer of used cars in the U.S., offering an omnichannel experience that integrates physical dealerships with digital sales. The company emphasizes customer-centric strategies to navigate a fragmented and competitive used car market while leveraging its strong brand presence and national scale. Despite recent challenges, including sales declines and margin pressures due to macroeconomic factors, CarMax remains focused on enhancing operational efficiency and customer satisfaction.

Bull says

  • ↑Q1 FY27 sales $8B (+6.2% YoY) driven by competitive pricing.
  • ↑Retail gross profit per unit at $2,407, highest on record.
  • ↑$200M SG&A savings plan to improve margins amid pressure.
  • ↑Four-pillar growth strategy to integrate digital and physical channels.
  • ↑Strong liquidity and cash flow support ongoing operations.
  • ↑Analyst revisions turn positive, indicating improving sentiment.

Bear says

  • ↓Q1 gross profit $854M, down 4% YoY, compressing margins.
  • ↓Negative earnings yield and weak profitability factors persist.
  • ↓Tier 2 financing delinquencies rise, signaling credit quality risk.
  • ↓Elevated leverage may strain debt service amid rising rates.
  • ↓ASP fell to $27,288, reflecting softer consumer demand.
  • ↓Analyst growth forecasts cut, flagging slower sales momentum.

Investment themes with KMX

eTailing↓ -2.18%

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 ›