CarMax (KMX) reported earnings 30 days ago. What's next for the stock?
Four directors snap up CarMax shares on the heels of the auto retailer's first-quarter earnings report.
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CarMax NYSE: KMX entered a market reversal earlier this year asc it transitioned to a new CEO and activist investors took positions. The story now is that Keith Barr's four-pillar strategy to increase volume, improve digital sales, add value on each transaction, and drive efficiency is gaining traction.
CarMax (KMX) is in a transition phase, executing a four-pillar strategy to enhance customer experience and operational efficiency. KMX reported strong Q1 results, beating EPS and revenue expectations, with management crediting early execution of its strategic plan. Technical analysis signals a bullish trend: KMX trades above its 30-week EMA, with both short- and long-term momentum turning positive.
CarMax NYSE: KMX entered a market reversal earlier this year asc it transitioned to a new CEO and activist investors took positions. The story now is that Keith Barr's four-pillar strategy to increase volume, improve digital sales, add value on each transaction, and drive efficiency is gaining traction.
KMX beats Q1 earnings and revenue estimates as higher wholesale and retail sales plus lower SG&A costs help offset retail margin pressure.
CarMax puts its four-pillar reset at the center as pricing, digital simplification, cost control and finance penetration shape its next phase.
CarMax is rated Buy following a post-earnings dip, with Street estimates appearing overly pessimistic given easier upcoming comps. KMX's new four-pillar strategy targets competitive pricing, digital experience, profitability expansion, and cost efficiency, aiming to stabilize gross profit per unit. I project $3.27 in EPS and $27.8B revenue for FY27, materially above consensus, supporting a $59 price target and 24% upside.
CarMax stock fell in midday trading Wednesday as questions remain about the company's ability to grow and cut costs. The used vehicle retailer's new CEO, Keith Barr, told CNBC that he has a new plan to turn the company around, which will take years to execute.
CarMax revenues are up, and CEO Keith Barr said he is focused on improving the company's digital car shopping experience. The used car dealer reported quarterly earnings Wednesday (June 17) that showed net revenues of $8 billion, a 6.2% increase.