CarMax Stock News

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When it comes to used cars in the United States, CarMax Inc. NYSE: KMX stands out as the largest used car dealership. The auto/tires/trucks sector giant operates more than 245 physical dealerships in the country, and it popularized the concept of a “no-haggle” pricing policy for buying used cars.

CarMax's fiscal Q3 showed good unit sales trends and resilient gross profit, already pushing great earnings momentum in the previously slow industry. Unit sales trends are also seen to have improved throughout December, but some uncertainty regarding interest rates and used car prices remain. I again estimate KMX stock to be valued with a fair margin of safety at a fair value of $92.

CarMax NYSE: KMX has headwinds in 2204 but is navigating difficult times well, selling more cars than expected and sustaining a solid margin. The company isn't thriving but is growing and building leverage for when economic headwinds ease.

CarMax shares have gained 10% over the past year but are now overvalued at 23x earnings, justifying a "sell" rating. Despite stable gross margins and disciplined spending, potential credit losses and high valuation pose significant risks to CarMax's stock performance. CarMax's financing division shows tightening credit standards, but existing loan delinquencies and low reserve rates remain conc...

CarMax, Inc.'s fiscal Q2 2025 revenues increased slightly, with a $170 million beat versus consensus, driven by higher volumes despite lower pricing. Comparable store used unit sales rose 4.3%, and total retail used vehicle unit sales increased 5.4%, showing positive momentum. Gross profit increased 10.6% year-over-year, with retail gross profit per used unit flat and wholesale gross profit per...

While CarMax reported solid third-quarter results Thursday (Dec. 19), including a 5.4% increase in retail used unit sales and a 6.3% rise in wholesale unit sales, company officials attributed this growth to strong execution across its business model, led by its omnichannel strategy. This strategy has become a key differentiator, according to CEO Bill Nash.

CarMax, Inc. (NYSE:KMX ) Q3 2025 Earnings Conference Call December 19, 2024 9:00 AM ET Company Participants David Lowenstein - Assistant Vice President, Investor Relations Bill Nash - President and Chief Executive Officer Enrique Mayor-Mora - Executive Vice President and Chief Financial Officer Jon Daniels - Senior Vice President, CarMax Auto Finance Operations Conference Call Participants Bria...