CarMax faces market share loss amid competitive pressure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 Jan 26
Source: NASDAQ.COM
CarMax Inc (KMX) shares have reached a 20-day high, rising 3.65% in regular trading.
The company is currently facing significant challenges, including a 7% year-over-year revenue decline to $5.8 billion in Q3 2025, primarily due to losing market share to competitor Carvana, which reported a 44% increase in units sold last quarter. Additionally, the resignation of CEO Bill Nash has raised concerns among investors about the company's future, despite its current P/E ratio suggesting it may be undervalued.
These developments indicate a turbulent period for CarMax, as it must navigate competitive pressures while attempting to stabilize its market position and restore investor confidence.
Analyst Views on KMX
Wall Street analysts forecast KMX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KMX is 33.60 USD with a low forecast of 24.00 USD and a high forecast of 37.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 46.960
Low
24.00
Averages
33.60
High
37.00
Current: 46.960
Low
24.00
Averages
33.60
High
37.00
About KMX
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
