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CARMAX INC

CarMax

CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.

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CarMax Inc

Analysts' ratings for CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) over the last quarter vary from bullish to bearish, as provided by 4 analysts.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $92.75, a high estimate of $105.00, and a low estimate of $65.00. This current average has decreased by 1.59% from the previous average price target of $94.25. 
<img src="https://www.benzinga.com/files/images/story/2025/1743534049_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive CarMax. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Seth Basham</td>
<td>Wedbush</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$100.00</td>
<td>$100.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Underweight</td>
<td>$65.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>Michael Montani</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$105.00</td>
<td>$107.00</td>
</tr>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$101.00</td>
<td>$98.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarMax. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of CarMax compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of CarMax's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of CarMax's market position. Stay informed and make well-informed decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/KMX/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on CarMax analyst ratings.</a>
<h2>Get to Know CarMax Better</h2>
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
<h3>CarMax: Financial Performance Dissected</h3>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Over the 3 months period, CarMax showcased positive performance, achieving a revenue growth rate of 1.22% as of 30 November, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: CarMax's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.02%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): CarMax's ROE stands out, surpassing industry averages. With an impressive ROE of 2.02%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): CarMax's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.46%, the company showcases efficient use of assets and strong financial health.
Debt Management: CarMax's debt-to-equity ratio is below the industry average. With a ratio of 3.09, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>How Are Analyst Ratings Determined?</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

4 Analysts Have This To Say About CarMax

Wedbush analyst Seth Basham reiterates CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Outperform and maintains $100 price target.

Reiteration

Wedbush Reiterates Outperform on CarMax, Maintains $100 Price Target

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Shares of e-commerce, retail, and apparel stocks are trading lower following greater-than-expected inflation data measured through the PCE price index for February, while personal spending missed estimates. Additionally, recent tariff announcements may be weighing on equities.

Shares of used car stocks are trading higher following US auto tariffs, which could raise prices of new vehicles.

JP Morgan analyst Rajat Gupta maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Underweight and lowers the price target from $72 to $65.

JP Morgan Maintains Underweight on CarMax, Lowers Price Target to $65

President Donald Trump&#8216;s announcement of a 25% tariff on auto imports has sparked widespread concern among economists and market analysts, with many warning of potential <a href="https://www.benzinga.com/25/03/44506345/trump-imposes-25-tariffs-on-auto-imports-says-this-will-continue-to-spur-growth-canada-eu-slam-the-move">severe economic consequences</a>.
What Happened: The tariffs, set to take effect on Apr. 3, aim to boost domestic auto manufacturing but could trigger significant market disruption. Prominent economists have raised alarms about the potential economic fallout. Peter Schiff highlighted that the tariffs will increase car prices and potentially put upward pressure on interest rates.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Trump imposed 25% tariffs on imported cars, which will raise the price of all cars. Then he&#39;s also proposing the tax deductibility of interest on loans to buy domestic cars. Since cars will cost more, the size of auto loans will rise, putting upward pressure on interest rates.
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1905018258920517646?ref_src=twsrc%5Etfw">March 26, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Economist Justin Wolfers suggested the tariffs might discourage car purchases, potentially creating a ripple effect across the automotive market. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">We&#39;ve been thinking about buying a second car, but with tariffs boosting the cost of imports by 25% — and reduced competition boosting prices of domestics — I might just wait a bit, hoping he walks it back. Now work through the macro consequences if others have similar thoughts.
&mdash; Justin Wolfers (@JustinWolfers) <a href="https://twitter.com/JustinWolfers/status/1905023749260222941?ref_src=twsrc%5Etfw">March 26, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Gary Black of The Future Fund LLC was even more direct, stating that Trump has &#8220;found further ways to push the economy into recession.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Trump (aka Tariff man) found further ways to push the economy into recession today, signing a proclamation to implement a 25% tariff on auto imports, expanding a trade war designed to bring more manufacturing jobs to the US and setting the stage for an even broader push on levies…
&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1905048163464966306?ref_src=twsrc%5Etfw">March 27, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Providing historical context, Scott Paul, President of The Alliance for American Manufacturing, noted that &#8216;Trump would not be 1st POTUS to suggest higher tariffs on autos,&#8217; citing long-standing tariffs on pickup trucks and recent tariffs on Chinese EVs. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Trump would not be 1st POTUS to suggest higher tariffs on autos. We&#39;ve had 25% tariffs on pickup trucks (- Canada &amp; Mexico) for 40+ years. Biden imposed 100% tariffs on Chinese EVs to prevent them. US absorbs more car imports than any other nation by far&#8230;via <a href="https://twitter.com/dunne_insights?ref_src=twsrc%5Etfw">@dunne_insights</a> <a href="https://t.co/qQGdNdXDyH">pic.twitter.com/qQGdNdXDyH</a>
&mdash; Scott Paul (@ScottPaulAAM) <a href="https://twitter.com/ScottPaulAAM/status/1904953064806547868?ref_src=twsrc%5Etfw">March 26, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The United Auto Workers, meanwhile, advocated for auto companies to absorb the tariff costs, stating, &#8216;auto companies…should absorb the cost of these tariffs rather than passing them on to consumers,&#8217; suggesting potential legislative support.
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<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">As they shift their supply chains and investments to the US, auto companies that have enjoyed years of record profits should absorb the cost of these tariffs rather than passing them on to consumers, and the UAW would support legislative or regulatory action requiring them to do…
&mdash; UAW (@UAW) <a href="https://twitter.com/UAW/status/1905034079726174306?ref_src=twsrc%5Etfw">March 26, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/markets/asia/25/03/44486235/chinas-milk-tea-chain-chagee-files-for-nasdaq-ipo-under-cha-taking-on-starbucks-in-growing-market" target="_blank" rel="noreferrer noopener">China's Milk Tea Chain Chagee Files For Nasdaq IPO Under ‘CHA,' Taking On Starbucks In Growing Market</a>
Why It Matters: The market&#8217;s immediate reaction was negative, with the S&amp;P 500, tracked by SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), dropping 1.1% and the Nasdaq 100, tracked by Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), falling 1.83%. Automotive stocks saw significant declines, with Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) dropping 5.6% and General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) falling 9.11%.
The tariffs will primarily affect non-U.S. content in autos under the USMCA trade pact. The Trump administration argues that U.S. automakers have sufficient capacity to increase domestic production and avoid tariffs.
Some potential beneficiaries include companies with strong domestic production, like Tesla, Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>), and domestic used car dealers such as AutoNation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AN#NYSE">AN</a>) and CarMax Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>).
Read Next: 
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<li><a href="https://www.benzinga.com/government/regulations/25/03/44503568/sp-says-us-growth-to-slow-in-2025-but-recession-not-most-likely-outcome-yet">S&amp;P Says US Growth To Slow In 2025, But Recession Not &#8216;Most Likely Outcome Yet&#8217;</a></li>
</ul>
Image via Shutterstock
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Equities

Economics

BYDDY

STLA

TSLA

Trump's 25% Auto Tariff Raises Will Put Pressure On Interest Rates, Says Economist — Tesla Investor Gary Black Says President Found 'Further Ways To Push The Economy Into Recession Today'

President Donald Trump declared on Wednesday the introduction of a 25% tariff on auto imports. This decision aims to stimulate domestic production but could financially strain automakers dependent on international supply chains.
What Happened: The tariffs, poised to generate $100 billion annually, are set to be enforced starting April 3, <a href="https://apnews.com/article/autos-tariffs-trump-tax-imports-ford-gm-e53823ef7bbb7b3c46d11eca90aaa638?user_email=97d05b29432d778bbb1ffb8f16f2769451bf1d6125981f71ceccbe18ec8d01d8&amp;utm_medium=APNews_Alerts&amp;utm_source=Sailthru_AP&amp;utm_campaign=NewsAlert_Mar26_2025_05:37PM&amp;utm_term=AP%20News%20Alerts#">reported</a> the Associated Press. The administration anticipates that the increased costs will incentivize the opening of more factories within the U.S., thereby reducing dependence on global supply chains. However, American automakers, who rely on components sourced globally, might face heightened expenses and reduced sales.
&#8220;This will continue to spur growth,&#8221; said Trump on his decision, according to the Press.
Under the USMCA trade pact covering the United States, Mexico, and Canada, the 25% tariffs would only affect non-U.S. content in autos and parts.
The administration argues that U.S. automakers have enough excess capacity to increase domestic production and bypass the tariffs. An official also pointed out that automakers have been aware of the potential tariffs since Trump&#8217;s campaign.
Shares of General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) dropped by over 3% on Wednesday, while Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) experienced a slight uptick. Stellantis N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>), the parent company of Jeep and Chrysler, saw its stock value decline by nearly 3.6%.
International leaders, including Canadian Prime Minister Mark Carney and European Commission President Ursula von der Leyen, have criticized the tariffs, suggesting a potential escalation into a global trade conflict. Trump also proposed a tax incentive for American-made vehicles, allowing buyers to deduct auto loan interest from federal taxes.
Carney said, &#8220;This is a very direct attack.&#8221; The Prime Minister vowed to defend Canadian workers and companies. He said, &#8220;We will defend our country.&#8221;
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/03/44505050/dollar-tree-sells-family-dollar-for-1-billion-truly-addition-by-subtraction-analyst-says">Dollar Tree Sells Family Dollar For $1 Billion: &#8216;Truly Addition By Subtraction,&#8217; Analyst Says</a>
Why It Matters: The announcement follows&nbsp;<a href="https://in.benzinga.com/25/03/44494096/trump-hints-at-more-lenient-stance-on-upcoming-april-tariffs-with-just-minor-considerations-i-dont-want-to-have-too-many-exceptions">Trump&#8217;s earlier hints</a>&nbsp;that the tariffs might be less stringent than initially anticipated, offering some relief to investors. During a Newsmax interview, Trump suggested a more lenient approach, acknowledging minimal exceptions.
Earlier, Trump had indicated that while&nbsp;<a href="https://in.benzinga.com/news/global/25/03/44468587/trump-announces-auto-tariffs-are-imminent-but-some-countries-might-receive-exemptions">tariffs on automobiles were imminent</a>, not all would be enforced by April 2. He mentioned potential exemptions for certain countries, though specifics were not provided.
Trump&#8217;s tariffs on steel, aluminum, and auto imports <a href="https://in.benzinga.com/25/03/44342459/4-auto-stocks-set-to-benefit-from-trumps-tariffs">hurt foreign-part-dependent automakers</a> but benefit companies with strong domestic production and supply chains. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), BYD Company Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>), and GM are poised to gain, while automakers reliant on cross-border supply chains face higher costs. Used car dealers like AutoNation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AN#NYSE">AN</a>) and CarMax, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NASDAQ">KMX</a>) may also benefit as new car prices rise.
Image via Shutterstock
Check out more of Benzinga&#8217;s Future Of Mobility coverage by <a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>
Read Next:
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<li><a href="https://www.benzinga.com/politics/25/03/44505859/trumps-approval-rating-hits-new-low-since-inauguration-americans-unhappy-with-presidents-handling-of-economy">Trump&#8217;s Approval Rating Hits New Low Since Inauguration: Americans Unhappy With President&#8217;s Handling Of Economy</a></li>
</ul>
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

Politics

General

Trump Imposes 25% Tariffs On Auto Imports, Says 'This Will Continue To Spur Growth' — Canada, EU Slam The Move

LULU

Shares of retail, apparel, and e-commerce companies are trading higher amid overall market strength on reports of potentially narrowed or targeted tariffs, which may be easing investor concerns.

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Shares of companies within the broader consumer discretionary sector are trading higher amid a continued market rebound despite mixed sales data.

President Donald Trump's decision to slap tariffs on Canada, Mexico and China includes levies on auto imports from all three countries. Additionally, 25% tariffs on steel and aluminum were tacked on and triggered on March 12.
S&amp;P Global said the most likely scenario is an "extended disruption period lasting 16 to 20 weeks," with "several high exposure vehicles" either slowing or ceasing production.
That's bad news for many car makers, who ship steel, parts and even whole vehicles across North America before they're sold. 
But look deeper and some sectors of the auto industry may actually prosper from these tariffs.
Here are four car companies set to benefit from the tariff tit-for-tat. 
Market experts say disruption is the rule going forward across the globe – and with American and European automakers looking better going forward.
"Trump&#8217;s tariffs on steel, aluminum, and Chinese imports are placing production expense on American automakers, constricting margins for foreign-part-dependent companies," said Fei Chen, founder and CEO at Intellectia.AI, a financial intelligence company.
"Diversified Japanese and European automakers are less impacted. Chinese automakers, especially BYD and Geely, could benefit most as China doubles down on domestic EV manufacturing and export efforts, focusing on tariff-friendly markets in Asia, the Middle East, and Latin America," Chen said.
High tariff activity is causing automaker CEOs to alter their strategic planning, which casts additional clouds on auto stocks.
"Right now, the administration's tariffs are forcing automakers to examine their supply base to see what the easiest shifts may be to ease some of the burden on what components are produced where," said Brian Sponheimer, portfolio manager at Gabelli Funds. "For production of full product lines to be moved from Mexico or Canada to the US, the cost would be measured in billions, so automakers must choose whether that cost makes sense on a long-term basis given the potential for a tariff increase that may not be measured in multiple years."
<h2 class="wp-block-heading">Auto Stocks To Test Drive In 2025</h2>
In such a chaotic sector environment, which auto stocks stand out during the tariff wars? Here's what industry experts have to say.
Tesla (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) – Tesla hasn't gotten off to a great start, but tariffs may give the stock a much-needed tune-up. "Love it or hate it, they&#8217;re the EV champs," said Alex Black, chief marketing officer at EpicVIN. "Tariff-free importation of strategic battery components plus brand loyalty will sustain them."
Toyota (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>) This Japanese automaker should continue to thrive mainly due to its diverse supply base and strong hybrid offerings, making Toyota "tariff and rising production cost-resistant," Chen said.
BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) The Chinese giant EV maker, with strong demand, is growing in Europe and Latin America. "They&#8217;re vertically integrated, so they have cost control superior to most," Black said.
Chen agreed. "As the automaker expanding beyond U.S. borders, it's escaping tariffs as it capitalizes on global EV demand." 
General Motors (NYSE: GM), a home grown legend, GM has based its domestic production in Detroit MI, and "now it's in prime position to be at the forefront of production locally and to combat the challenges that most other car manufacturers will face among these new regulations," said Lucas Barcelo, founder at Thrivin Life, an automation and analytics marketing company.
"GM has a good diversified supply chain, their domestic production will allow them to mitigate tariff impact, they have remained relatively financially strong over the years, and now we'll get to see how they adapt and innovate among big changes &#8211; this is their chance to shine," Barcelo added.
Used car specialists: Tariffs raise costs, making consumers less likely to purchase a new vehicle.
"This makes stocks that generate profits from the used vehicle market and through service and parts more likely to benefit on a relative basis," Sponheimer said. "We have long appreciated the dealer model that AutoNation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AN#NYSE">AN</a>) and Penske (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PAG#NYSE">PAG</a>) employ, driving over half of gross profits from parts and service."
Additionally, CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) will likely experience an inflection in the addressable market for late-model used vehicles starting in 2H, Sponheimer added. "With more consumers looking to purchase used vehicles, the company should benefit from volatility in the new market." 
<h2 class="wp-block-heading">Takeaway On Tariffs And Auto Stocks</h2>
When kicking tires on auto stocks, extend that research into auto aftermarket companies, which tend to get overlooked by investors.
"The US new vehicle market is in the range of 15-17 million units in a typical year, and the used market is 40 million in annual sales, and the total vehicle population in the United States is over 290 million vehicles," Sponheimer said.
He likes companies that service the larger, less cyclical total vehicle population, where the average vehicle age is nearing 13 years old.
"These vehicles require service, particularly as complexity has skyrocketed," Sponheimer noted. "So this automotive aftermarket produces outstanding business models with outstanding cash flow characteristics."
Additionally, the aftermarket tends to be an area where inflationary pressure can be passed along. "This is typically a fertile fishing ground for auto stocks," he added.
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Opinion

4 Auto Stocks Set To Benefit From Trump's Tariffs

DKNG

IRBT

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Shares of companies within the broader consumer discretionary sector are trading lower. The sector may be down on overall market concerns amid tariff uncertainty.

In the last three months, 7 analysts have published ratings on CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>), offering a diverse range of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">2</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for CarMax, revealing an average target of $92.43, a high estimate of $105.00, and a low estimate of $72.00. Witnessing a positive shift, the current average has risen by 6.41% from the previous average price target of $86.86.
<img src="https://www.benzinga.com/files/images/story/2025/1741716027_0_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
A clear picture of CarMax's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Michael Montani</td>
<td>Evercore ISI Group</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$105.00</td>
<td>$107.00</td>
</tr>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$101.00</td>
<td>$98.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Underweight</td>
<td>$72.00</td>
<td>$70.00</td>
</tr>
<tr>
<td>Scot Ciccarelli</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$88.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>Steven Shemesh</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$103.00</td>
<td>$99.00</td>
</tr>
<tr>
<td>David Bellinger</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Neutral</td>
<td>$80.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$98.00</td>
<td>$90.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to CarMax. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of CarMax compared to the broader market.</li>
<li>Price Targets: Analysts predict movements in price targets, offering estimates for CarMax's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
Capture valuable insights into CarMax's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/KMX/analyst-ratings?adType=benzinga-insights&amp;ad=analyst-ratings&amp;campaign=wallstreetadvantage">Stay up to date on CarMax analyst ratings.</a>
<h2>Unveiling the Story Behind CarMax</h2>
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
<h3>CarMax's Economic Impact: An Analysis</h3>
Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
Revenue Growth: CarMax's remarkable performance in 3 months is evident. As of 30 November, 2024, the company achieved an impressive revenue growth rate of 1.22%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: CarMax's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.02%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.02%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): CarMax's ROA stands out, surpassing industry averages. With an impressive ROA of 0.46%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.09.
<h2>The Basics of Analyst Ratings</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

7 Analysts Assess CarMax: What You Need To Know

Evercore ISI Group analyst Michael Montani maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Outperform and lowers the price target from $107 to $105.

Evercore ISI Group Maintains Outperform on CarMax, Lowers Price Target to $105

Shares of retail, apparel, and ecommerce stocks are trading lower amid a decline in consumer spending data. Additionally, Kohl's issued expectations for sales to fall in 2025.

<img alt="USA News Concept: Letter Tiles Trade War On US Flag, 3d illustration - stock image" class="article-image-one" src="https://www.marketbeat.com/logos/articles/med_20250211152805_6-stocks-poised-to-benefit-from-a-trade-war-in-une.jpg" style="height:631px; width:1200px" />
President Trump put a 30-day pause on levying 25% tariffs on Canada and Mexico but proceeded to levy an additional 10% tariff on Chinese imports. Trump has also acknowledged that he would be levying tariffs on European imports in time. The repercussions of tariffs have been a hotly debated topic. In the event that Trump follows through with his planned 25% tariffs on Canada and Mexico as well as levying similar tariffs to European imports, here are six stocks that could benefit and probably not in the direct way you think.
<h2>Nucor: Soaring Steel Prices Bolster Margins</h2>
As the nation&#39;s largest steel producer, <a href="https://www.marketbeat.com/stocks/NYSE/NUE/">Nucor Co. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/nue#NYSE">NUE</a>) would benefit from the protectionist impact of tariffs just as they did in 2018. By taking on an additional 25% tariff on imported steel, manufacturers would be forced to buy domestic steel. The influx of demand would lead to higher prices.
This is what happened during the 2018 tariffs, when imported steel was too expensive after the 25% tariffs, domestic steel producers also took the opportunity to raise their prices. This resulted in short-term margin expansion, which also led to soaring inflation. However, sustained higher steel prices can also impact demand in the long run.
<h2>CarMax: Higher Steel Prices Mean Higher New Car Prices</h2>
Higher steel prices would result in higher costs being passed onto the consumer. New car prices would increase, making it tougher on consumers. It&#39;s estimated that the 25% tariffs imposed on Mexico and Canada could result in <a href="https://www.freep.com/story/money/cars/2025/02/03/trump-tariffs-new-car-prices-layoffs-canada-mexico/78179356007/">increasing the cost of a new car by $1,000 to $9,000</a>.
This would cause many consumers to consider buying a used vehicle for cheaper without getting smacked by the immediate depreciation once the car is driven off the lot. <a href="https://www.marketbeat.com/stocks/NYSE/KMX/">CarMax Inc. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/kmx#NYSE">KMX</a>) is the nation&#39;s largest used car dealership. They would naturally be the benefactor as customers migrate to their showrooms to purchase used vehicles. The growing demand would result in higher used car prices, leading to margin expansion for CarMax.
<h2>Reborn Coffee: Inflation Sends Commodity Prices Rising</h2>
It is widely believed that levying tariffs on imports will drive inflation higher, especially if retaliatory tariffs are levied on American exports.&nbsp;This can also lead to higher commodity prices, which can bolster margins for coffee roasters like <a href="https://www.marketbeat.com/stocks/NASDAQ/REBN/">Reborn Coffee Inc. (NASDAQ: </a><a class="ticker" href="https://www.benzinga.com/stock/rebn#NASDAQ">REBN</a>).&nbsp;
Coffee prices hit a 27-year high at the end of November 2024. However, that was also driven by forecasts of tightening supply in 2025.
If supply constraints persist, elevated coffee prices could provide continued tailwinds for roasters, though higher costs may eventually pressure consumer demand.
<h2>Kroger: Food Inflation Is Profitable for Food Distributors and Grocers</h2>
Higher inflation may force consumers to tighten their budgets again, but they&#39;ll still need to spend on the necessities in the <a href="https://www.marketbeat.com/stocks/sectors/consumer-staples/">consumer staples sector</a>. Major supermarket chains like <a href="https://www.marketbeat.com/stocks/NYSE/KR/">Kroger Co. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/kr#NYSE">KR</a>) would benefit from expanding margins as they pass on cost increases to customers and add a little extra for themselves.
Additionally, they would also gain from consumers trading down from name brand food items to Kroger&#39;s higher margin&nbsp;<a href="https://www.marketbeat.com/stock-ideas/shoe-carnival-stock-one-size-fits-all-investors/">private label</a> items. This shift could further strengthen Kroger&#39;s pricing power and boost overall profitability amid economic uncertainty.
<h2>Charles Schwab: Rising Interest Rates Boost Net Interest Margin&nbsp;&nbsp;</h2>
If inflation starts rising sharply, it will leave the Federal Reserve no choice but to reverse its interest rate cut policy and raise interest rates. Higher interest rates mean higher net interest income (NII) and margins for banks and brokers. <a href="https://www.marketbeat.com/stocks/NYSE/SCHW/">Charles Schwab Inc. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/schw#NYSE">SCHW</a>) would be a clear benefactor from higher NII as its assets under management (AUM) have grown to more than $10 trillion. They would also collect more interest on margin loans.
This is not a guess but a reality based on precedent. History has shown that rising rates tend to benefit financial institutions, making this scenario more than just speculation.
<h2>Allstate: Interest Income Climbs</h2>
Aside from banks, insurance companies are in the business of holding a ton of cash and cash equivalents. Insurance companies like <a href="https://www.marketbeat.com/stocks/NYSE/ALL/">Allstate Co. (NYSE: </a><a class="ticker" href="https://www.benzinga.com/stock/all#NYSE">ALL</a>) collect a ton of premium, which it invests in cash and liquid interest-bearing instruments and securities like money market funds, CDs, Treasury, and municipal and investment grade bonds.
Higher interest rates equate to higher investment income. As interest rates rise, these investments generate higher yields, boosting overall investment income and profitability.
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Our team has identified the <a href="https://www.marketbeat.com/newsletter/PDFoffer.aspx?offer=top5&amp;RegistrationCode=SyndicatedArticleLink">five stocks</a> that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
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The article &quot;<a href="https://www.marketbeat.com/stock-ideas/6-stocks-poised-to-benefit-from-a-trade-war-in-unexpected-ways/">6 Stocks Poised to Benefit From a Trade War in Unexpected Ways</a>&quot; first appeared on MarketBeat.

REBN

SCHW

6 Stocks Poised To Benefit From A Trade War In Unexpected Ways

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>UBS cut Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) price target from $114 to $107. UBS analyst Lloyd Walmsley maintained a Buy rating. Uber shares closed at $66.85 on Friday. <a href="https://www.benzinga.com/quote/UBER/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities raised the price target for AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) from $211 to $217. Truist Securities analyst Srikripa Devarakonda maintained a Buy rating. AbbVie shares closed at $183.90 on Friday. <a href="https://www.benzinga.com/quote/ABBV/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Goldman Sachs raised Atlassian Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEAM#NASDAQ">TEAM</a>) price target from $245 to $370. Goldman Sachs analyst Kash Rangan maintained a Buy rating. Atlassian shares closed at $306.78 on Friday. <a href="https://www.benzinga.com/quote/TEAM/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Keefe, Bruyette &amp; Woods raised the price target for Trustmark Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRMK#NASDAQ">TRMK</a>) from $45 to $47. Keefe, Bruyette &amp; Woods analyst Catherine Mealor maintained an Outperform rating. Trustmark shares closed at $37.50 on Friday. <a href="https://www.benzinga.com/quote/TRMK/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Susquehanna raised the price target for Baker Hughes Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKR#NASDAQ">BKR</a>) from $53 to $55. Susquehanna analyst Charles Minervino maintained a Positive rating. Baker Hughes shares closed at $46.18 on Friday. <a href="https://www.benzinga.com/quote/BKR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Stifel cut e.l.f. Beauty, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELF#NYSE">ELF</a>) price target from $115 to $105. Stifel analyst Mark Astrachan maintained a Hold rating. e.l.f. Beauty shares settled at $99.91 on Friday. <a href="https://www.benzinga.com/quote/ELF/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Telsey Advisory Group raised Tapestry, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPR#NYSE">TPR</a>) price target from $74 to $83. Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating. Tapestry shares closed at $72.94 on Friday. <a href="https://www.benzinga.com/quote/TPR/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Baird increased CrowdStrike Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>) price target from $390 to $430. Baird analyst Shrenik Kothari downgraded the stock from Outperform to Neutral. CrowdStrike shares closed at $398.07 on Friday.  <a href="https://www.benzinga.com/quote/CRWD/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Needham raised the price target for CarMax, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) from $98 to $101. Needham analyst Chris Pierce maintained a Buy rating. UPS shares settled at $85.64 on Friday. <a href="https://www.benzinga.com/quote/KMX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>BMO Capital increased NIKE, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) price target from $92 to $95. BMO Capital analyst Simeon Siegel maintained an Outperform rating. Nike shares closed at $76.90 on Friday. <a href="https://www.benzinga.com/quote/NKE/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
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Nike To Rally Around 24%? Here Are 10 Top Analyst Forecasts For Monday

In the preceding three months, 9 analysts have released ratings for CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>), presenting a wide array of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">4</td>
<td align="right">2</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">3</td>
<td align="right">2</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for CarMax, presenting an average target of $86.78, a high estimate of $103.00, and a low estimate of $70.00. This current average has increased by 7.29% from the previous average price target of $80.88. 
<img src="https://www.benzinga.com/files/images/story/2025/1738584028_0.png" alt="price target chart" />
<h2>Analyzing Analyst Ratings: A Detailed Breakdown</h2>
The standing of CarMax among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$101.00</td>
<td>$98.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Underweight</td>
<td>$72.00</td>
<td>$70.00</td>
</tr>
<tr>
<td>Scot Ciccarelli</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$88.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>Steven Shemesh</td>
<td>RBC Capital</td>
<td>Raises</td>
<td>Outperform</td>
<td>$103.00</td>
<td>$99.00</td>
</tr>
<tr>
<td>David Bellinger</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Neutral</td>
<td>$80.00</td>
<td>$72.00</td>
</tr>
<tr>
<td>Chris Pierce</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$98.00</td>
<td>$90.00</td>
</tr>
<tr>
<td>Rajat Gupta</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Underweight</td>
<td>$70.00</td>
<td>$65.00</td>
</tr>
<tr>
<td>Jeff Lick</td>
<td>Stephens &amp; Co.</td>
<td>Announces</td>
<td>Equal-Weight</td>
<td>$86.00</td>
<td>-</td>
</tr>
<tr>
<td>Michael Montani</td>
<td>Evercore ISI Group</td>
<td>Raises</td>
<td>In-Line</td>
<td>$83.00</td>
<td>$81.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to CarMax. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of CarMax compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of CarMax's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of CarMax's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/KMX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on CarMax analyst ratings.</a>
<h2>Unveiling the Story Behind CarMax</h2>
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
<h3>CarMax: Financial Performance Dissected</h3>
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: CarMax's revenue growth over a period of 3 months has faced challenges. As of 30 November, 2024, the company experienced a revenue decline of approximately -11.27%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: CarMax's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.02% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): CarMax's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.02%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): CarMax's ROA excels beyond industry benchmarks, reaching 0.46%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 3.09, CarMax adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Analyst Verdict: CarMax In The Eyes Of 9 Experts

Needham analyst Chris Pierce maintains CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) with a Buy and raises the price target from $98 to $101.

Needham Maintains Buy on CarMax, Raises Price Target to $101

Disclosed in a recent SEC filing on January 30, Tuite, SVP &amp; Chief Product Officer at CarMax (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>), made a noteworthy transaction involving the exercise of company stock options.
What Happened: A notable Form 4 filing on Thursday with the <a href="https://www.sec.gov/Archives/edgar/data/0001170010/000117001025000017//Archives/edgar/data/1170010/000117001025000017/0001170010-25-000017-index.htm">U.S. Securities and Exchange Commission</a> revealed that Tuite, SVP &amp; Chief Product Officer at CarMax, exercised stock options for 4,869 shares of KMX, resulting in a transaction value of $43,674.
The Friday morning market activity shows CarMax shares down by 0.01%, trading at $87.58. This implies a total value of $43,674 for Tuite's 4,869 shares.
<h3>All You Need to Know About CarMax</h3>
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
<h3>Financial Insights: CarMax</h3>
Revenue Growth: CarMax's revenue growth over a period of 3 months has faced challenges. As of 30 November, 2024, the company experienced a revenue decline of approximately -11.27%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 10.89%, indicating potential difficulties in maintaining profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): CarMax's EPS reflects a decline, falling below the industry average with a current EPS of 0.81.
</li>
</ul>
Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.09, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Analysis:
<ul>
<li>
Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 29.79 suggests caution, as the stock may be overvalued in the eyes of investors.
</li>
<li>
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.53, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio of 18.43, the company's market valuation exceeds industry averages.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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<h3>Illuminating the Importance of Insider Transactions</h3>
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>A Deep Dive into Insider Transaction Codes</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001170010">Check Out The Full List Of CarMax's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Notable Insider Move: Tyler Tuite Takes Part In Options Exercise At CarMax, Resulting In $43K

ARMK

BALY

CENN

CVCO

DENN

EXPE

GMBL

GOLF

LAUR

MBLY

MOND

PATK

PRKS

SERV

TDUP

UXIN

Shares of companies within the broader consumer discretionary sector are trading higher following softer-than-expected December inflation data.

Press Releases

RICHMOND FLYING SQUIRRELS AND CARMAX ANNOUNCE NEW BALLPARK AND ENTERTAINMENT VENUE AS CARMAX PARK

CarMax Announces Second Quarter Conference Call

CarMax Earns Spot on Fortune's Best Workplaces in Retail List for the Tenth Consecutive Year

CarMax Reports Second Quarter Fiscal Year 2025 Results

CarMax Announces Third Quarter Conference Call

GOLDEN STATE VALKYRIES ANNOUNCE CARMAX AS FOUNDING PARTNER

CarMax Reports Third Quarter Fiscal Year 2025 Results

CarMax Announces 12 Hiring Events for Automotive Technicians and Service Professionals on February 20

ANGEL CITY FOOTBALL CLUB ANNOUNCES NEW PARTNERSHIP WITH CARMAX

CarMax Announces Fourth Quarter Conference Call

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