Barclays has initiated coverage on Carmax Inc (KMX) with an Underweight rating, marking the firm's first assessment of the used vehicle retailer. This action, effective November 11, 2025, comes as Carmax operates within a challenging retail environment, where market dynamics and growth prospects are under scrutiny.
Headquartered in Richmond, Virginia, Carmax is a holding company that specializes in the retail of used vehicles and wholesale vehicle auctions. The firm operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The Sales Operations segment manages all aspects of auto merchandising and service, while the CAF segment provides financing options for customers purchasing vehicles from the company.
As of now, Carmax's stock is priced at $34.79, with a market capitalization of $4.5 billion. The company has a P/E ratio of 8.67 and an EPS of 3.40. Analysts are anticipating upcoming earnings reports, with estimates of $1.46 per share on revenue of $7.8 billion for the quarter ending June 17, 2026.
Analyst ratings and price targets are based on extensive research and financial modeling, reflecting the firm’s views on the company's investment potential. However, these assessments are inherently subject to change as new information emerges. Investors should consider a variety of factors, including company fundamentals and industry trends, when evaluating investment decisions. The most recent analyst consensus indicates a broader view of Buy, with 3 Strong Buy, 7 Buy, 12 Hold, 1 Sell, and no Strong Sell ratings among 23 total analysts.
This update provides insight into the evolving landscape for Carmax, as it navigates both operational challenges and market expectations.