KMX Stock Analysis: Buy, Sell, or Hold?

KMX - CarMax Inc.

RETAIL-AUTO DEALERS & GASOLINE STATIONS
$62.13
1.08 (1.77%) ▲
5d: +3.69%
30d: +6.41%
90d: +59.64%
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LOW Confidence
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Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Sep 24, 2026
Smart Money Distribution

Options positioning is turning defensive after a sharp run-up - a pattern consistent with institutional profit-taking. View Scanner →

Signal fired Aug 7, 2026 at $58.18 · last confirmed Aug 17, 2026

Strength: 6.1/10

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Interactive Price Chart (1 Month)

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💡
Bottom Line:
📊 MIXED SIGNALS: KMX shows conflicting indicators. Wait for confirmation before entering.
See Forward Earnings Fair Value & Price Prediction →

Long-Term Wealth Forecast (2031)

Based on Analyst Consensus Growth & Historical Valuation

0% (Stagnation) 50% (Hyper Growth)
EST. PRICE IN 2031
$40.07
Based on -1.2% avg growth
INTRINSIC VALUE TODAY
$24.88
Trading above historical range

How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.1x Exit PE.

In-depth Analysis How we analyze

Valuation Analysis: KMX is currently trading at $62.13, which is considered extended relative to its 30-day fair value range of $56.83 to $59.70. From a valuation perspective, the stock is trading at a premium (Forward PE: 24.8) compared to its historical average (17.1). At these levels, the market is pricing in 13.2% annual earnings growth.

Technical Outlook: Technically, KMX is in a strong uptrend. The price is approaching resistance at $63.00. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.

Market Sentiment: KMX scores 25/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. However, the stock is trading significantly above the average Wall Street target of $54.85. Current signals suggest waiting for a better entry point before initiating new positions.

Quick Decision Summary

Current Position EXTENDED
Historical Trading Range $56.83 - $59.70
Company Quality Score 32/100 (SELL)
Volume Confirmation HIGH
Confidence Score 22.4%

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All Signals

  • BEARISH: Price extended above range
  • BEARISH: Weak technical setup (25/100)
  • BULLISH: High volume confirmation
  • BEARISH: Trading 11.7% above Wall St target ($54.85)
  • BULLISH: Expecting earnings turnaround to 13.2% growth with 5.5% revenue growth
  • WARNING: Composite score 32/100 in the bottom quintile — this cohort historically lags the market

Trading Range Analysis

30-Day Trading Range $56.83 - $59.70
Current vs Trading Range EXTENDED

Support & Resistance Levels

Support Level $57.25
Resistance Level $63.00
Current Trend Strong Uptrend
Technical data as of Aug 21, 2026

Fundamental Context

Forward P/E (Next Year Est.) 24.81
Wall Street Target $54.85 (-11.7%)
Revenue Growth (YoY) 5.5%
Earnings Growth (YoY) -5.2%
Profit Margin 0.8%
Valuation Premium vs History +13.2% premium
PE vs Historical 24.8 vs 17.1 STRETCHED
Market-Implied Price Targets If current PE multiple persists
Implied Growth (YoY): +13.2% (market-implied from PE analysis)
1-Year Target $70.33 (+13%)
2-Year Target $79.61 (+28%)
3-Year Target $90.12 (+45%)
3-Yr Target (if PE normalizes) (PE: 25→17) PE COMPRESSION $62.11 (0%)
Earnings growth offset by PE compression
3-Year Scenarios Using analyst projected EPS growth
Bull: (PE: 24.8, Growth: -6.5%) $50.80 (+-18%)
Base: (SPY PE: 20.1, Growth: -6.5%) $41.09 (-34%)
Bear: (PE: 17.1, Growth: -6.5%) $34.92 (-44%)
📈 Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (38x PE), but valuation improves significantly next year (25x PE) as earnings recover.
Trailing PE: 37.92 | Current EPS (TTM): $1.61
Bull Case $104.44 (+68%)
Analyst growth 55.5%, PE expands to 41.7
Base Case $94.95 (+53%)
Market implied 55.5%, PE stable at 37.9
Bear Case $41.51 (-33%)
Severe decline -20.0%, PE contracts to 32.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
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Last updated: August 22, 2026 4:23 PM ET
Data refreshes hourly during market hours. Next update: 5:23 PM
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Ticker Score Recommendation Change %
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL

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