KMX Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
CarMax Inc (KMX) is not a strong buy for a beginner investor with a long-term horizon at this time. The technical indicators are bearish, the financial performance shows significant declines in revenue and net income, and while there are some positive developments like the launch of AI-powered apps, the overall sentiment and recent analyst ratings suggest caution. The stock may not align with the user's goal of long-term growth.
The MACD histogram is negative (-0.227) and contracting, indicating bearish momentum. RSI is neutral at 40.931, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key support is at 40.122, and resistance is at 44.9. The stock is trading below its pivot level of 42.511, suggesting downward pressure.
CarMax has launched AI-powered vehicle shopping and ChatGPT apps, which could improve customer experience and market competitiveness. Hedge funds have significantly increased their buying activity (+179.34% last quarter).
Analysts have mixed ratings, with several lowering price targets due to margin pressures and competitive challenges. The unexpected CEO departure in November 2025 raised concerns about corporate governance.
In Q3 FY2026, revenue dropped to $5.79 billion (-6.9% YoY), net income fell to $62.2 million (-50.4% YoY), EPS declined to $0.43 (-46.91% YoY), and gross margin decreased to 8.99% (-8.73% YoY). These figures indicate significant financial struggles.
Recent analyst ratings are mixed. Baird raised the price target to $48 and maintained an Outperform rating, while Evercore ISI raised the target to $42 but kept an In Line rating. Barclays and JPMorgan remain bearish with Underweight ratings and price targets of $28 and $24, respectively, citing margin pressures and competitive challenges.
