CarMax stock: buy or sell?

KMX stock price: $76.86 0.62% At close on May 20th, 2019

Updated on:
May 20th, 2019

4

Shares of CarMax grew a slightly good 0.62% and closed at $76.86. Monday was the third climbing day in a row, gaining 1.24%.

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 fits 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.

None of our preferred buy setups matches with CarMax stock situation right now, therefore this is not a suitable entry point.

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 fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is CarMax stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 7 ratings published for KMX stock in the last 30 days.

The general sentiment of these ratings is bullish for KMX stock, with 6 positive ratings.
Is KMX a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-17Morgan StanleyOverweightOverweight
2019-4-17Credit Suisse GroupOutperformOutperform
2019-4-1StephensEqual WeightOverweight
2019-4-1Buckingham ResearchBuyBuy
2019-1-7Buckingham ResearchNeutralBuy
2019-1-2Wedbushn/aBuy
2019-1-18WedbushOutperformNeutral

CarMax stock analysis

Daily outlook

Shares of CarMax ended today at $76.86 and grew a slightly good 0.62%.

CarMax ended today at $76.86 and grew a slightly good 0.62%. Since March when KMX stock price broke up the SMA200d line, it gained $13.18 (20.70%).

KMX stock chart (daily)

Weekly outlook

CarMax closed this week at $76.86 and appreciated a slightly fine 0.62%.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $79.61 resistance. Far behind is the all-time high CarMax hit by mid June 2018 but price is just -5.89% below that top. Since late March when KMX stock price broke up the SMA40w line, it gained $15.23 (24.71%).

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 598.70%, with an average of 27.20% per year. If you had invested right after KMX's IPO a $1,000 in CarMax stock in 1997, it would worth $5,987.00 today.

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

CarMax stock historical price chart

KMX stock reached all-time highs on June with a price of $81.67.

CarMax stock price target is $77.60

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 5 price predictions for KMX stock published in the last month:
KMX stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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%
2019-1-2WedbushSet Price Targetn/a$70.00-
2019-1-18WedbushDowngrades$70.00$60.00-14.3%
(in average)$77.50$77.600.0%
Moving in a range from $93.00 and $60.00, the price forecast for KMX stock is $77.60. In average, analysts' outlook on KMX price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, CarMax reported its latest financial data, posting a beatiful growth for the Earnings per Share (EPS) ratio. Experts were expecting $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 turnover report draw a great increase of 6.15% to $18,173.10 M dollars. In contrast, its earnings margin (compared to revenues) remained stable to 4.64%, that is $842.41 million.

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 reported $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 decent growth and soared 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 a stock, it's always worth to review its ownership structure.

CarMax shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.54% of all shares.

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

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

KMXANCPRTCRMTGPI
Market cap$12.8 B$3.6 B$14.9 B$650.1 M$1.4 B
Total shares166.2 M89.2 M228.2 M6.7 M17.8 M
Float shares153.8 M58.9 M199.4 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

Monday, May 20th, 2019
Open$75.95
Close$76.86
Day range$75.94 - $77.43
Previous close$76.39
Session gain0.62%
Average true range$1.55
50d mov avg$71.67
100d mov avg$66.64
200d mov avg$68.52
Daily pattern
Weekly pattern lb02a

CarMax performance

To better understand CarMax performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare CarMax to AutoNation, Copart, America's Car-Mart, Group 1 Automotive, KAR Auction Services, Penske Automotive and Rush Enterprises:
Stock3m6m12m
KMXCarMax26.96%23.49%14.24%
ANAutoNation2.48%7.78%-13.33%
CPRTCopart12.13%34.13%20.48%
CRMTAmerica's Car...17.96%15.37%77.45%
GPIGroup 1 Automotiv...24.53%39.32%8.36%
KARKAR Auction Servi...17.32%-1.76%5.69%
PAGPenske Automotive0.87%4.60%-4.97%
RUSHARush Enterprises-13.95%-1.11%-15.33%

CarMax competitors

We picked a few stocks to conform a list of CarMax competitors to check if you are interested in investing in KMX:

Latest CarMax stock news