CarMax stock: buy or sell?

KMX stock price: $91.30 -2.13% At close on February 26th, 2020

Updated on:
February 26th, 2020

2

CarMax slipped -2.13% to $91.30 after topping to all time highs on Thursday. With Wednesday it's been 4 red days in a row.

CarMax Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance.

Should I buy CarMax stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, CarMax stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean KMX will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is CarMax stock a buy?

Financial institutions and banks publish stock ratings everyday. Unfortunately, we couldn't detect any rating for KMX stock for the last month.

CarMax stock analysis

Daily outlook

After topping to all time highs on Thursday, CarMax slipped -2.13% to $91.30.

CarMax slipped -2.13% to $91.30 after topping to all time highs on Thursday. On Thursday, KMX hit new all time highs, pushing higher previous ATH of $100.49 recorded on November. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

KMX stock chart (daily)

Weekly outlook

Shares of CarMax collapsed a dreadful -9.79% this week. By mid January KMX climbed an extraordinary 6.89% in just one week.

CarMax shares slid under the support what triggered further losses. Price is now looking for lower supports, and best candidates are 90.2045 and 86.18. Not so far away is the last price record CarMax marked last week. Early June, SMA20w and SMA40w crossed up triggering a rise of 16.63%. Since late March 2019 when KMX stock price broke up the SMA40w line, it gained $29.67 (48.14%).

KMX stock chart (weekly)

CarMax stock price history

CarMax IPO was on February 4th, 1997 at $11.00 per share1. Since then, KMX stock surged a 730.00%, with a yearly average of 31.70%. If you had invested right after KMX's IPO a $1,000 in CarMax stock in 1997, it would worth $7,300.00 today.

1: Adjusted price after possible price splits or reverse-splits.

CarMax stock historical price chart

KMX stock reached all-time highs on Thursday with a price of $103.18.

CarMax stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not detected any price target for CarMax stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

CarMax presented decent results for 2019-Q1 on March. CarMax stepped up Earnings per Share (EPS) by 8.70%, beating analysts consensus of $1.04. CarMax posted $1.13.
KMX earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.13n/a
2017-Q3-n/a0.98n/a
2017-Q42017-12-210.810.810.0%
2018-Q12018-04-040.890.77-13.5%
2018-Q22018-06-221.211.339.9%
2018-Q32018-09-261.221.241.6%
2018-Q42018-12-211.011.097.9%
2019-Q12019-03-291.041.138.7%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2018, last anual sales report draw a very good growth of 6.15% to $18,173.10 million USD. When comparing 2019 vs 2018, in contrast, profit margin (that is, the net income divided by revenues) remained constant a 0.76% to 4.64%.

KMX annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$10,960 M-$434 M4.0%-
2014$12,570 M14.69%$493 M3.9%13.43%
2015$14,269 M13.51%$597 M4.2%21.27%
2016$15,150 M6.17%$623 M4.1%4.36%
2017$15,875 M4.79%$627 M3.9%0.57%
2018$17,120 M7.84%$664 M3.9%5.92%
2019$18,173 M6.15%$842 M4.6%26.85%

Quarterly financial results

CarMax posted $4,318.60 million in revenues for 2019-Q1, a 0.53% up compared to previous quarter. Reported quarter income marked $192.56 million with a profit margin of 4.46%. Profit margin stayed stable a 0.03% compared to previous quarter when profit margin was 4.43%. When comparing revenues to same quarter last year, CarMax sales marked a beatiful gain and jumped a 5.74%.
KMX quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$4,540 M-$212 M4.7%-
2017-Q3$4,390 M-3.30%$181 M4.1%-14.30%
2017-Q4$4,107 M-6.45%$149 M3.6%-17.96%
2018-Q1$4,084 M-0.56%$122 M3.0%-17.93%
2018-Q2$4,793 M17.34%$239 M5.0%95.39%
2018-Q3$4,766 M-0.55%$221 M4.6%-7.44%
2018-Q4$4,296 M-9.87%$190 M4.4%-13.84%
2019-Q1$4,319 M0.53%$193 M4.5%1.18%

CarMax ownership

When you are planning to invest in shares of a stock, it's always worth to check its ownership structure.

CarMax shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.42% of all shares.

Bearish positions for KMX stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to CarMax:

KMX
Market cap$14.9 B
Total shares163.4 M
Float shares162.6 M
  - Institutional holdings (%)103.4%
  - Insider holdings (%)0.4%
Shares in short selling0.0%

CarMax summary

Wednesday, February 26th, 2020
Open$93.97
Close$91.30
Day range$91.29 - $94.92
Previous close$93.29
Session gain-2.13%
Average true range$2.30
50d mov avg$94.66
100d mov avg$94.64
200d mov avg$89.32
Daily patternlt06c
Weekly pattern lt06c

CarMax performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected as the bechmarking frame for CarMax stock.
Stock3m6m12m
KMXCarMax-6.13%9.63%48.09%

CarMax competitors

Unfortunately, we could not find any public company that could be defined as CarMax competitor. This doesn't mean CarMax does not have any competitor in the market, it's just we could not detected it.

    Latest CarMax stock news