CarMax Inc (KMX) Stock Analysis
Recovery setup
Consumer Cyclical · Auto & Truck Dealerships
Sell if holding. Engine safety override at $51.75: Quality below floor (2.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 12%; Below-average business quality.
CarMax is the nation's largest retailer of used vehicles, operating 256 stores in 110 US markets as of Feb 28, 2026, and sold 780,684 used vehicles at retail in fiscal 2026. Revenue comes from used vehicle sales, wholesale auctions, finance income through its CAF segment... Read more
Sell if holding. Engine safety override at $51.75: Quality below floor (2.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 12%; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 90. Score 4.1/10, moderate confidence.
Passes 4/8 gates (positive momentum, clean insider activity, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 5d<=7d. Suitability: moderate.
Recent developments
updated 2026-06-13Recent Developments — CarMax Inc
Latest news
- NEWS CarMax Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call — benzinga Jun 15, 2026 positive
- NEWS Barclays Maintains Underweight on CarMax, Raises Price Target to $31 — benzinga Jun 12, 2026 negative
- NEWS JP Morgan Maintains Underweight on CarMax, Raises Price Target to $37 — benzinga Jun 11, 2026 negative
- NEWS S&P 500, Nasdaq 100 Drop From Records As Rate-Hike Bets Build, Oil Climbs: Stock Market Today — benzinga Jun 3, 2026 neutral
- NEWS 9 Consumer Discretionary Stocks Whale Activity In Today's Session — benzinga May 29, 2026 neutral
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-02-12Item 5.02MEDIUMBoard appointed Keith Barr as President and CEO, effective March 16, 2026. Mr. Barr was CEO of InterContinental Hotels Group 2017–2023. Named successor; annual base salary $1,250,000 with 175% target bonus.SEC filing →
- 2026-03-02Item 5.02LOWCompany entered amended and restated severance agreements with executive officers including Enrique Mayor-Mora, Charles Joseph Wilson, and Shamim Mohammad. No officer departure; compensatory arrangement update.SEC filing →
- 2026-04-09Item 5.02LOWBoard nominated William C. Cobb (CEO of Frontdoor, former H&R Block CEO) and James Kessler (CEO of RB Global) as new board director nominees for 2026 Annual Meeting. Routine board appointment.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
5 floor-breakers
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Revenue shrinking — -1.2% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Negative sentiment — recent news tone and/or analyst downgrades drag the composite below neutral.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $51.75: Quality below floor (2.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.1/10. Specifically: High short interest: 12%; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 90. Prior stop was $47.67. Score 4.1/10, moderate confidence.
Take-profit target: $51.02 (-0.5% upside). Prior stop was $47.67. Stop-loss: $47.67.
Target reached (-28.2% upside); Quality below floor (2.2 < 4.0).
CarMax Inc trades at a P/E of 30.7 (forward 18.5). TrendMatrix value score: 5.9/10. Verdict: Sell.
28 analysts cover KMX with a consensus score of 2.8/5. Average price target: $42.
What does CarMax Inc do?CarMax is the nation's largest retailer of used vehicles, operating 256 stores in 110 US markets as of Feb 28, 2026,...
CarMax is the nation's largest retailer of used vehicles, operating 256 stores in 110 US markets as of Feb 28, 2026, and sold 780,684 used vehicles at retail in fiscal 2026. Revenue comes from used vehicle sales, wholesale auctions, finance income through its CAF segment ($16.37B auto loan portfolio), and extended protection plan fees.