Sohini Mondal
2 min read
In This Article:
With a market cap of $10.6 billion, CarMax, Inc. (KMX) operates as a retailer of used vehicles and related products. Operates through two segments: CarMax Sales Operations and CarMax Auto Finance, the company offers a wide selection of used cars through its nationwide network of stores and online channels.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and CarMax fits this description perfectly. It also provides financing options, extended service plans, and appraisals, streamlining the car-buying and selling experience with transparency and ease.
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Shares of the Richmond, Virginia-based company have dipped 24.2% from its 52-week high of $91.25. KMX stock has dropped 5.9% over the past three months, underperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 5.5% increase.
In the long term, KMX stock has crumbled 15.4% on a YTD basis, whereas XLY has decreased 3.9%. In addition, over the past 52 weeks, shares of CarMax have declined 5.4%, lagging behind XLY's 18.8% return.
The stock has been trading below its 50-day moving average since late February and its 200-day moving averages since early March.
Shares of CarMax rose 6.6% following the release of its strong Q1 2026 results on June 20. The company reported revenue of $7.6 billion, up 6.1% year-over-year, surpassing Wall Street expectations. It also reported a 9% increase in total retail used vehicle unit sales to 230,210 in Q1, with comparable store sales up 8.1%. Retail used vehicle revenue rose 7.5%, while total gross profit grew 12.8% to $893.6 million, driven by record per-unit profit of $2,407.
Meanwhile, EPS came in at $1.38, reflecting a 42.3% increase from the prior-year quarter, and exceeding analysts’ estimate by 16.9%.
Compared to its peer, Penske Automotive Group, Inc. (PAG) has outperformed KMX stock. PAG stock has soared 16.5% on a YTD basis and 17.8% over the past 52 weeks.
Although the stock has underperformed the sector, analysts are moderately optimistic about its stock’s prospects. KMX stock has a consensus rating of “Moderate Buy” from the 17 analysts covering the stock, and as of writing, it is trading below the mean price target of $80.60.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
