CarMax (KMX) is experiencing a period of significant volatility. The company's shares have slipped up to
53% in 2025, largely due to a slumping used car market.
Vulcan Value Partners recently added KMX to their All-Cap Strategy, despite the downward trend. The company's
quarterly profit and revenue dipped, causing concerns over sales pressure and rising debt. Surprisingly, the stock managed to soar
27%, sparking a risk vs reward narrative. Controversy surrounds the recent
CEO exit, with financial pundit Jim Cramer saying KMX 'misjudged' the market. There are ongoing shareholder lawsuits over tariff-driven growth and alleged concealments.
Barclays has adjusted its price target for KMX, increasing it from $24 to $28, despite maintaining an Underweight rating. The third-quarter earnings are expected to decline, which might challenge the turnaround hopes. The company's valuation has been questioned in recent times. Shareholders are urged to seek legal counsel, with a deadline set for an upcoming class-action lawsuit. On a brighter note, KMX has outpaced some competitors' daily gains and has managed to beat sales expectations for Q4 CY2025. Nonetheless, the challenges remain with leadership transition, legal hassles and cyclical weakness adding to the hardship.
Carmax KMX News Analytics from Thu, 30 Oct 2025 07:00:00 GMT to Sat, 24 Jan 2026 15:38:37 GMT -
Rating -7
- Innovation -3
- Information 5
- Rumor -4
