
CarMax (KMX) Stock Forecast & Price Target
CarMax (KMX) Analyst Ratings
Bulls say
CarMax is the largest used-vehicle retailer in the US with over 260 retail stores and a market share of only 3.6%, leaving plenty of room for growth. The company's new CEO, Keith Barr, comes highly recommended and is expected to drive long-term value for investors. Despite near-term earnings pressure, the company has a solid plan in place to transform the business and improve competitive positioning, including investing in price and advertising, reducing costs, and expanding monetization capabilities. However, there are risks to the thesis, including potential declines in consumer spending and increased competition in the used-car market.
Bears say
CarMax is facing headwinds from a competitive used vehicle market, with potential unit growth deceleration and reduced retail gross profit per unit. The recent announcement by shareholder Starboard Value, which has identified areas for P&L improvement, may signal upcoming corporate governance changes, but this does not address the fundamental competitive factors at play. Additionally, while CarMax has made efforts towards diversity and inclusion, there is room for improvement in equitable employment practices.
This aggregate rating is based on analysts' research of CarMax and is not a guaranteed prediction by Public.com or investment advice.
CarMax (KMX) Analyst Forecast & Price Prediction
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