- CarMax (KMX, Financial) outperformed in Q1, with significant growth in used car sales and profits.
- Price targets suggest potential upside, though analyst opinions vary.
- GuruFocus indicates a favorable valuation status for CarMax.
CarMax Inc. (KMX) reported impressive performance in its first quarter, buoyed by a robust 9% increase in used car sales and an extraordinary 42% leap in profits. These results initially sent the company's shares soaring. However, investor enthusiasm was tempered due to concerns surrounding the broader economic landscape and the potential rise in loan defaults. This cautious atmosphere has left analysts divided regarding the company's future prospects, with recommendations spanning from Hold to Buy.
Wall Street Analysts Forecast
According to the latest forecasts from 14 Wall Street analysts, the average one-year price target for CarMax Inc (KMX, Financial) stands at $82.58. This estimate features a high prediction of $105.00 and a low of $55.00, indicating a potential upside of 23.78% from the current stock price of $66.72. For more extensive insights, explore the CarMax Inc (KMX) Forecast page.
In terms of brokerage recommendations, CarMax has received an average recommendation score of 2.2 from 19 brokerage firms, suggesting an "Outperform" status. On the scale used, 1 represents a Strong Buy while 5 signifies a Sell.
The GF Value, a proprietary metric from GuruFocus, estimates CarMax Inc's fair value to be $78.56 within a year. This hints at a potential upside of 17.75% from its current price tag of $66.715. The GF Value is derived from historical multiples, past business growth, and future performance forecasts. For a comprehensive overview, visit the CarMax Inc (KMX, Financial) Summary page.
