Carmax Inc Stock Buy Hold or Sell Recommendation

KMX Stock  USD 87.11  0.13  0.15%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding CarMax Inc is 'Hold'. Macroaxis provides CarMax buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CarMax positions. The advice algorithm takes into account all of CarMax's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting CarMax's buy or sell advice are summarized below:
Real Value
79.75
Target Price
77.25
Hype Value
87.33
Market Value
87.11
Naive Value
86.9
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell CarMax Inc given historical horizon and risk tolerance towards CarMax. When Macroaxis issues a 'buy' or 'sell' recommendation for CarMax Inc, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out CarMax Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as CarMax and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards CarMax Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in population.

Execute CarMax Buy or Sell Advice

The CarMax recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on CarMax Inc. Macroaxis does not own or have any residual interests in CarMax Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute CarMax's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell CarMaxBuy CarMax
Hold

Market Performance

OKDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon CarMax Inc has a Risk Adjusted Performance of 0.0683, Jensen Alpha of (0.09), Total Risk Alpha of (0.23), Sortino Ratio of 0.0366 and Treynor Ratio of 0.0864
Macroaxis provides advice on CarMax Inc to complement and cross-verify current analyst consensus on CarMax Inc. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure CarMax is not overpriced, please confirm all CarMax Inc fundamentals, including its debt to equity, and the relationship between the gross profit and price to earnings to growth . Given that CarMax Inc has a price to earning of 14.73 X, we suggest you to validate CarMax Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

CarMax Trading Alerts and Improvement Suggestions

CarMax Inc has a frail financial position based on the latest SEC disclosures
Over 100.0% of the company shares are owned by institutional investors
Latest headline from finance.yahoo.com: Acqueon and Cresta Launch AI-Powered Revenue Generation and Recovery Solution

CarMax Returns Distribution Density

The distribution of CarMax's historical returns is an attempt to chart the uncertainty of CarMax's future price movements. The chart of the probability distribution of CarMax daily returns describes the distribution of returns around its average expected value. We use CarMax Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of CarMax returns is essential to provide solid investment advice for CarMax.
Mean Return
0.22
Value At Risk
-3.19
Potential Upside
3.21
Standard Deviation
1.96
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of CarMax historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

CarMax Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as CarMax is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading CarMax Inc backward and forwards among themselves. CarMax's institutional investor refers to the entity that pools money to purchase CarMax's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Amvescap Plc.2023-12-31
3.2 M
Akre Capital Management, Llc2023-12-31
2.7 M
Morningstar Investment Services Llc2023-12-31
2.7 M
Fiduciary Management, Inc. Of Milwaukee2023-12-31
2.6 M
Turtle Creek Asset Management Inc.2023-12-31
2.6 M
London Company Of Virginia2023-12-31
2.4 M
Cooke & Bieler Lp2023-12-31
2.3 M
First Pacific Advisors, Lp2023-12-31
2.3 M
Wellington Management Company Llp2023-12-31
2.3 M
Vanguard Group Inc2023-12-31
18.1 M
Blackrock Inc2023-12-31
10.9 M
Note, although CarMax's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

CarMax Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to CarMax or Specialty Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that CarMax's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a CarMax stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.09
β
Beta against NYSE Composite2.38
σ
Overall volatility
2.00
Ir
Information ratio 0.04

CarMax Volatility Alert

CarMax Inc currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of -0.09. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CarMax's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CarMax's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

CarMax Implied Volatility

CarMax's implied volatility exposes the market's sentiment of CarMax Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if CarMax's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that CarMax stock will not fluctuate a lot when CarMax's options are near their expiration.

CarMax Fundamentals Vs Peers

Comparing CarMax's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze CarMax's direct or indirect competition across all of the common fundamentals between CarMax and the related equities. This way, we can detect undervalued stocks with similar characteristics as CarMax or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of CarMax's fundamental indicators could also be used in its relative valuation, which is a method of valuing CarMax by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare CarMax to competition
FundamentalsCarMaxPeer Average
Return On Equity0.0864-0.31
Return On Asset0.0181-0.14
Profit Margin0.02 %(1.27) %
Operating Margin0.02 %(5.51) %
Current Valuation32.62 B16.62 B
Shares Outstanding157.92 M571.82 M
Shares Owned By Insiders0.32 %10.09 %
Shares Owned By Institutions99.68 %39.21 %
Number Of Shares Shorted18.36 M4.71 M
Price To Earning14.73 X28.72 X
Price To Book2.27 X9.51 X
Price To Sales0.49 X11.42 X
Revenue29.68 B9.43 B
Gross Profit2.8 B27.38 B
EBITDA1.33 B3.9 B
Net Income484.76 M570.98 M
Cash And Equivalents102.72 M2.7 B
Cash Per Share0.36 X5.01 X
Total Debt18.93 B5.32 B
Debt To Equity3.59 %48.70 %
Current Ratio2.75 X2.16 X
Book Value Per Share38.25 X1.93 K
Cash Flow From Operations1.28 B971.22 M
Short Ratio13.10 X4.00 X
Earnings Per Share3.13 X3.12 X
Price To Earnings To Growth1.08 X4.89 X
Target Price79.85
Number Of Employees30 K18.84 K
Beta1.61-0.15
Market Capitalization13.74 B19.03 B
Total Asset26.18 B29.47 B
Retained Earnings3.72 B9.33 B
Working Capital3.1 B1.48 B
Note: Sale by Natalie Wyatt of 3191 shares of CarMax [view details]

CarMax Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as CarMax . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About CarMax Buy or Sell Advice

When is the right time to buy or sell CarMax Inc? Buying financial instruments such as CarMax Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Other Current Liabilities533.3M398.2M333.1M169.0M
Total Assets26.3B26.2B21.1B22.1B

Use Investing Ideas to Build Portfolios

In addition to having CarMax in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Adviser Favorites Thematic Idea Now

Adviser Favorites
Adviser Favorites Theme
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Adviser Favorites Theme or any other thematic opportunities.
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When determining whether CarMax Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of CarMax's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Carmax Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Carmax Inc Stock:
Check out CarMax Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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Is CarMax's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CarMax. If investors know CarMax will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CarMax listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.176
Earnings Share
3.13
Revenue Per Share
178.474
Quarterly Revenue Growth
(0.04)
Return On Assets
0.0181
The market value of CarMax Inc is measured differently than its book value, which is the value of CarMax that is recorded on the company's balance sheet. Investors also form their own opinion of CarMax's value that differs from its market value or its book value, called intrinsic value, which is CarMax's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CarMax's market value can be influenced by many factors that don't directly affect CarMax's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CarMax's value and its price as these two are different measures arrived at by different means. Investors typically determine if CarMax is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CarMax's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.