CarMax stock: buy or sell?

KMX stock price: $84.63 -1.95% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

CarMax ended today at $84.63 and slipped a fateful -1.95%.

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?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

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 is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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
2019-9-3Morgan Stanleyn/aOverweight
2019-7-18Bank of American/aBuy
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

CarMax stock analysis

Daily outlook

CarMax shares slipped -1.95% to $84.63 today.

CarMax slipped a fateful -1.95% and closed at $84.63. Since SMA100d and SMA200d crossed up on June, KMX price climbed $3.41 per share (4.20%). Since price and SMA100d lines crossed up on Aug/29, KMX climbed $3.36 (4.13%). On July, KMX hit a new all time high, pushing higher than on July tops. Check different trading setups that use ATHs as triggers.

KMX stock chart (daily)

Weekly outlook

CarMax shares slipped -2.44% this week, ending at $84.63. By mid August KMX collapsed a shocking -5.20% in just one week.

The downtrend marked by KMX has left successive declining peaks and bottoms. If the support holds the price, this might mark a double bottom shape and create a flat-base to reverse this downtrend. Not so far away is the last price record CarMax marked late July. Early June, SMA20w and SMA40w crossed up triggering a rise of 8.11%. Since late March when KMX stock price broke up the SMA40w line, it gained $23.00 (37.32%).

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 669.40%, with an average of 30.40% per year. If you had invested right after KMX's IPO a $1,000 in CarMax stock in 1997, it would worth $6,694.00 today.

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

CarMax stock historical price chart

KMX stock reached all-time highs on July with a price of $92.01.

CarMax stock price target is $98.50

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. 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 13 price forecasts for KMX stock:
KMX stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-3Morgan StanleyLowers Target$99.00$97.00-2%
2019-7-18Bank of AmericaRaises Target$112.00$150.0033.9%
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%
(in average)$86.30$98.5014.0%
The price prediction for CarMax stock is $98.50, moving in a range between $150.00 and $80.00. In average, analysts' outlook on KMX price forecast is positive, increasing the target by a 14.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, CarMax presented its financial report, posting a good climb for the Earnings per Share (EPS) ratio. Analyst 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 turnover report draw a very good increase of 6.15% to $18,173.10 M USD. When comparing 2019 vs 2018, on the other hand, profit margin (that is, the net income divided by revenues) remained 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 reported $4,318.60 M in revenues 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 stayed steady a 0.03% compared to previous quarter when profit margin was 4.43%. When comparing turnover to same quarter last year, CarMax sales marked a nice growth 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 overview 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.

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

KMXANCPRTCRMTGPI
Market cap$14.0 B$4.5 B$18.9 B$609.6 M$1.6 B
Total shares165.6 M89.1 M229.1 M6.7 M18.6 M
Float shares154.8 M60.0 M200.5 M6.2 M15.7 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

Friday, September 20th, 2019
Open$86.60
Close$84.63
Day range$84.63 - $87.11
Previous close$86.31
Session gain-1.95%
Average true range$2.17
50d mov avg$85.35
100d mov avg$83.30
200d mov avg$73.83
Daily pattern
Weekly pattern lt02a

CarMax performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We selected AutoNation, Copart, America's Car-Mart, Group 1 Automotive, KAR Auction Services, Penske Automotive and Rush Enterprises as the bechmarking frame for CarMax stock.
Stock3m6m12m
KMXCarMax-1.18%37.32%8.26%
ANAutoNation19.26%51.06%14.24%
CPRTCopart11.69%39.38%57.06%
CRMTAmerica's Car...7.05%6.50%17.72%
GPIGroup 1 Automotiv...10.75%43.06%22.83%
KARKAR Auction Servi...8.00%41.42%16.06%
PAGPenske Automotive-1.67%9.75%-5.57%
RUSHARush Enterprises11.64%-2.79%-5.30%

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