Zacks Research Has Negative Forecast for CarMax Q1 Earnings

CarMax, Inc. (NYSE:KMX) – Zacks Research dropped their Q1 2027 earnings estimates for CarMax in a report released on Thursday, April 9th. Zacks Research analyst Team now expects that the company will earn $1.18 per share for the quarter, down from their previous estimate of $1.34. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for CarMax’s current full-year earnings is $3.23 per share. Zacks Research also issued estimates for CarMax’s Q2 2027 earnings at $0.72 EPS, Q3 2027 earnings at $0.51 EPS, Q4 2027 earnings at $0.05 EPS, Q1 2028 earnings at $1.13 EPS, Q2 2028 earnings at $0.76 EPS, Q3 2028 earnings at $0.55 EPS and Q4 2028 earnings at $0.13 EPS.

Several other equities analysts also recently commented on the stock. Robert W. Baird upped their price objective on shares of CarMax from $44.00 to $48.00 and gave the company an “outperform” rating in a research note on Wednesday, February 18th. Wedbush lowered their price objective on shares of CarMax from $40.00 to $36.00 and set a “neutral” rating for the company in a research note on Friday, December 19th. Barclays upped their price objective on shares of CarMax from $24.00 to $28.00 and gave the company an “underweight” rating in a research note on Wednesday, January 21st. Stephens upped their price objective on shares of CarMax from $39.00 to $43.00 and gave the company an “equal weight” rating in a research note on Thursday, April 2nd. Finally, Bank of America upped their price objective on shares of CarMax from $27.00 to $31.00 and gave the company an “underperform” rating in a research note on Friday, December 19th. One research analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, CarMax has an average rating of “Reduce” and an average price target of $39.93.

CarMax Stock Performance

Shares of NYSE:KMX opened at $46.70 on Friday. The company has a market cap of $6.62 billion, a price-to-earnings ratio of 15.41, a price-to-earnings-growth ratio of 1.17 and a beta of 1.30. The company has a 50-day moving average price of $42.99 and a 200-day moving average price of $42.19. The company has a current ratio of 1.99, a quick ratio of 0.51 and a debt-to-equity ratio of 2.74. CarMax has a 12 month low of $30.26 and a 12 month high of $71.99.

Hedge Funds Weigh In On CarMax

A number of institutional investors have recently bought and sold shares of KMX. SRS Investment Management LLC grew its stake in CarMax by 1,717.5% in the fourth quarter. SRS Investment Management LLC now owns 5,637,803 shares of the company’s stock worth $217,845,000 after purchasing an additional 5,327,603 shares during the period. AQR Capital Management LLC grew its stake in CarMax by 151.8% in the fourth quarter. AQR Capital Management LLC now owns 7,930,345 shares of the company’s stock worth $306,429,000 after purchasing an additional 4,780,903 shares during the period. Norges Bank purchased a new stake in CarMax in the fourth quarter worth $159,232,000. The Manufacturers Life Insurance Company grew its stake in CarMax by 795.5% in the second quarter. The Manufacturers Life Insurance Company now owns 1,846,406 shares of the company’s stock worth $124,097,000 after purchasing an additional 1,640,219 shares during the period. Finally, Arrowstreet Capital Limited Partnership grew its stake in CarMax by 73.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 3,522,923 shares of the company’s stock worth $158,074,000 after purchasing an additional 1,494,205 shares during the period.

CarMax News Summary

Here are the key news stories impacting CarMax this week:

• Positive Sentiment: CarMax agreed to add two directors — William “Bill” Cobb and Jim Kessler — following talks with activist Starboard, a move that reduces near‑term governance uncertainty and increases board expertise on auto and consumer issues; this is likely supporting the stock today. CarMax Announces William Cobb and Jim Kessler to Join the Board
• Neutral Sentiment: Market attention is focused on CarMax’s Q4 earnings release set for April 14; previews show mixed expectations for revenue and margins, so guidance and used‑vehicle trends will be key catalysts. Unveiling CarMax Q4 Outlook
• Neutral Sentiment: Coverage in financial press (Seeking Alpha, MarketWatch) highlights CarMax among stocks to watch and notes the stock’s recent rebound versus broader underperformance — media attention can amplify moves around the earnings date. Stocks to watch after market on Thursday: CRWV, CDNL, and KMX
• Negative Sentiment: Zacks Research has trimmed EPS estimates across multiple quarters (2027–2028), lowering several quarterly forecasts and keeping a “Hold” view — those downward revisions signal weaker near‑term profitability expectations and represent a headwind into the earnings print. Zacks: Q4 Outlook & Estimates

CarMax Company Profile

CarMax (NYSE: KMX) is a leading retailer of used vehicles in the United States, offering customers a streamlined, no-haggle purchasing experience. The company’s inventory spans a broad range of makes and models, each of which undergoes a comprehensive inspection process before being offered for sale. Customers can shop in person at CarMax’s retail locations or browse the company’s online platform, which provides detailed vehicle histories, virtual tours and contactless purchasing options.

Originally launched in 1993 as a division of Circuit City, CarMax became an independent, publicly traded company in 1997.