Forecasting The Future: 12 Analyst Projections For CarMax
Across the recent three months, 12 analysts have shared their insights on CarMax (NYSE:KMX), expressing a variety of opinions spanning from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 5 | 6 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 4 | 4 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Analysts have recently evaluated CarMax and provided 12-month price targets. The average target is $78.58, accompanied by a high estimate of $105.00 and a low estimate of $66.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 1.26%.
Decoding Analyst Ratings: A Detailed Look
The analysis of recent analyst actions sheds light on the perception of CarMax by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael Montani | Evercore ISI Group | Raises | In-Line | $72.00 | $68.00 |
| Steven Shemesh | RBC Capital | Raises | Outperform | $75.00 | $73.00 |
| Brian Nagel | Oppenheimer | Maintains | Outperform | $105.00 | $105.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $70.00 | $66.00 |
| Chris Pierce | Needham | Lowers | Buy | $87.00 | $91.00 |
| Adam Jonas | Morgan Stanley | Maintains | Overweight | $80.00 | $80.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $68.00 | $73.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Hold | $66.00 | $72.00 |
| David Bellinger | Mizuho | Lowers | Neutral | $72.00 | $75.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
| Michael Montani | Evercore ISI Group | Lowers | In-Line | $68.00 | $72.00 |
| Seth Basham | Wedbush | Maintains | Outperform | $90.00 | $90.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to CarMax. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarMax compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for CarMax's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Capture valuable insights into CarMax's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on CarMax analyst ratings.
Discovering CarMax: A Closer Look
CarMax sells, finances, and services used and new cars through a chain of around 250 used retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales typically account for about 83% of revenue (79% in fiscal 2024 due to the chip shortage) and wholesale about 13% (19% in fiscal 2024), with the remaining portion composed of extended service plans and repair. In fiscal 2024, the company retailed and wholesaled 765,572, and 546,331 used vehicles, respectively. CarMax is the largest used-vehicle retailer in the US but still estimates that it had only about 3.7% US market share of vehicles 0-10 years old in 2023. It seeks over 5% share a few years from now. CarMax is based in Richmond, Virginia.
Financial Milestones: CarMax's Journey
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Challenges: CarMax's revenue growth over 3 months faced difficulties. As of 31 May, 2024, the company experienced a decline of approximately -7.46%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.14%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.49%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): CarMax's ROA stands out, surpassing industry averages. With an impressive ROA of 0.56%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: CarMax's debt-to-equity ratio is below the industry average at 3.13, reflecting a lower dependency on debt financing and a more conservative financial approach.
How Are Analyst Ratings Determined?
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.