CarMax stock: buy or sell?

KMX stock price: $86.39 -2.70% At close on July 16th, 2019

Updated on:
July 16th, 2019

4

CarMax fell -2.70% to $86.39 after reaching all time highs yesterday.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

These 2 buy setups are elegible for CarMax stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is CarMax stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 15 ratings published for KMX stock in the last 30 days.

The general sentiment of these ratings is bullish for KMX stock, with 10 positive ratings.
Is KMX a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-6-28Northcoast ResearchBuyNeutral
2019-6-28Argusn/aBuy
2019-6-24WedbushNeutralAverage
2019-6-24Robert W. Bairdn/aOutperform
2019-6-24GuggenheimBuyOutperform
2019-6-24Buckingham ResearchBuyNeutral
2019-6-24Buckingham ResearchBuyNeutral
2019-6-24Bank of American/an/a
2019-6-19Royal Bank of Canadan/aOutperform
2019-6-17Credit Suisse Groupn/aOutperform
2019-6-14Oppenheimern/aOutperform
2019-4-17Morgan StanleyOverweightOverweight
2019-4-17Credit Suisse GroupOutperformOutperform
2019-4-1StephensEqual WeightOverweight
2019-4-1Buckingham ResearchBuyBuy

CarMax stock analysis

Daily outlook

After several days of continuous rises in past weeks, CarMax fell -2.70% to $86.39.

After marking all time highs yesterday, CarMax fell -2.70% to $86.39. Since SMA100d and SMA200d crossed up on Jun 12th, KMX price climbed $5.17 per share (6.37%). Since last March when KMX stock price broke up the SMA200d line, it gained $22.71 (35.66%). Yesterday, KMX hit a new all time high, pushing higher than on Friday tops. Check different trading setups that use ATHs as triggers.

KMX stock chart (daily)

Weekly outlook

Shares of CarMax closed this week at $86.39 after topping to a new all time high ($89.40) even it couldn't close with gains and dropped an awful -2.87%. After 4 weeks soaring, this week declined a -2.88%.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $79.61 resistance. Since SMA20d and SMA40w crossed up early June, KMX price climbed $8.11 per share (10.36%). Since price and SMA40w lines crossed up late March, KMX climbed $24.76 (40.18%).

KMX stock chart (weekly)

CarMax stock price history

CarMax IPO was on February 4th, 1997 at $11.00 per share1. Since then, KMX stock grew a 685.40%, with a yearly average of 31.20%. If you had invested $1,000 in CarMax stock in 1997, it would worth $6,854.00 today.

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

CarMax stock historical price chart

KMX stock reached all-time highs yesterday with a price of $89.40.

CarMax stock price target is $92.80

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 12 price predictions for CarMax stock:
KMX stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-6-24WedbushReiterates$65.00$80.0023.1%
2019-6-24Robert W. BairdReiterates$80.00$99.0023.8%
2019-6-24GuggenheimReiterates$87.00$95.009.2%
2019-6-24Buckingham ResearchReiterates$81.00$94.0016%
2019-6-24Buckingham ResearchDowngrades$81.00$94.0016%
2019-6-24Bank of AmericaRaises Target$95.00$112.0017.9%
2019-6-19Royal Bank of CanadaRaises Target$86.00$92.007%
2019-6-17Credit Suisse GroupReiterates$84.00$90.007.1%
2019-6-14OppenheimerRaises Target$88.00$100.0013.6%
2019-4-17Morgan StanleyRaises Target$89.00$93.004.5%
2019-4-17Credit Suisse GroupReiterates$75.00$84.0012%
2019-4-1Buckingham ResearchRaises Target$76.00$81.006.6%
(in average)$82.30$92.8013.0%
The price target for CarMax stock is $92.80, moving in a range between $112.00 and $80.00. In average, analysts' outlook on KMX price forecast is positive, increasing the prediction by a 13.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, CarMax reported its latest financial data, posting a decent gain for the Earnings per Share (EPS). Experts expected $1.04 per share, but 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 revenues report draw a pretty good gain of 6.15% to $18,173.10 M dollars. When comparing 2019 vs 2018, nevertheless, profit margin (that is, the net income divided by revenues) stayed steady 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 M in sales for 2019-Q1, a 0.53% up compared to previous quarter. Reported quarter earnings marked $192.56 M with a profit margin of 4.46%. Profit margin remained steady a 0.03% compared to previous quarter when profit margin was 4.43%. When comparing sales to same quarter last year, CarMax sales marked a nice increase and escalated 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 company, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For CarMax, 0.54% of all outstanding shares are owned by its staff.

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

For a better context understanding, the next table shows ownership data compared to other related stocks:

KMXANCPRTCRMTGPI
Market cap$14.4 B$0.0 M$17.7 B$604.5 M$1.5 B
Total shares166.2 M0.0 M228.2 M7.1 M18.5 M
Float shares153.3 M58.9 M200.5 M6.3 M15.5 M
  - Institutional holdings (%)106.1%87.1%86.9%74.9%106.4%
  - Insider holdings (%)0.5%13.6%12.9%8.2%6.8%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

CarMax summary

Tuesday, July 16th, 2019
Open$85.88
Close$86.39
Day range$82.64 - $86.96
Previous close$88.79
Session gain-2.70%
Average true range$1.83
50d mov avg$81.83
100d mov avg$74.89
200d mov avg$69.80
Daily pattern
Weekly pattern lb02c

CarMax performance

To better understand CarMax performance you must becnhmark its gains with other related stocks in same sector or industry. We compared CarMax against AutoNation, Copart, America's Car-Mart, Group 1 Automotive, KAR Auction Services, Penske Automotive and Rush Enterprises in the following table:
Stock3m6m12m
KMXCarMax12.19%39.52%11.99%
ANAutoNation9.44%9.18%-14.80%
CPRTCopart19.07%54.75%31.35%
CRMTAmerica's Car...-10.06%19.50%32.37%
GPIGroup 1 Automotiv...13.56%34.07%22.83%
KARKAR Auction Servi...17.26%28.57%12.65%
PAGPenske Automotive-0.02%-2.63%-3.91%
RUSHARush Enterprises-20.25%-10.10%-21.32%

CarMax competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for CarMax. We selected 7 companies as CarMax competitors as they are in the same industry or have similar market objectives.

Latest CarMax stock news