Investors interested in Automotive - Retail and Wholesale - Parts stocks are likely familiar with CarMax (KMX) and Genuine Parts (GPC). But which of these two companies is the best option for those looking for undervalued stocks?
Here is how CarMax (KMX) and Abercrombie & Fitch (ANF) have performed compared to their sector so far this year.
Bank of America has upgraded CarMax Inc (NYSE:KMX), the US used-car retailer, to 'buy' from 'underperform' and raised its price target to $65 from $50 as improving price competitiveness drives market share gains. The bank expects enforcement of the Federal Trade Commission's (FTC) price-transparency rules, alongside CarMax's own pricing changes, to support sales growth beyond the initial regulatory boost.
CarMax (KMX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
CarMax (KMX) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.
KMX's shares fell 5.8% since Q2 results as higher vehicle sales, cost discipline and CAF growth were accompanied by margin pressures and rising credit exposure.
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CarMax TodayKMXCarMax$60.10 +3.55 (+6.28%) As of 03:00 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$30.26▼$65.28P/E Ratio39.05Price Target$53.15Add to WatchlistCarMax's NYSE: KMX latest results suggest its turnaround strategy is gaining traction.
CarMax, Inc. (KMX) Q2 2027 Earnings Call Transcript
CarMax NYSE: KMX reported fiscal 2027 second-quarter results marked by higher vehicle sales, expanded earnings and improving operating leverage, as the used-car retailer pointed to early benefits from its “Shift into GEAR” strategy.
CarMax Inc (NYSE:KMX) increased second-quarter diluted earnings per share 81.3% to $1.16 despite pricing actions that squeezed retail profit per vehicle. Revenue rose 19.5% to $7.9 billion in the quarter ended August 31, 2026, part of financial year 2027, while net earnings reached $165.3 million.
CarMax (NYSE:KMX | KMX Price Prediction) stock is up 6% to $59.75 early in the session after the used-car retailer posted stronger fiscal 2027 second-quarter earnings and indicated a return to share buybacks.