William Blair analyst Sharon Zackfia has reiterated their bullish stance on KMX stock, giving a Buy rating today.
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Sharon Zackfia’s rating is based on the expectation of robust earnings per share (EPS) growth for CarMax, despite a somewhat subdued comparable sales growth. The projection includes a high-teens percentage increase in EPS for the second quarter, even though used unit sales are expected to remain relatively flat. This outlook is influenced by factors such as a reduction in the number of Saturdays compared to the previous year and some sales being pulled forward due to tariff-related issues.
In addition, Zackfia maintains an Outperform rating for CarMax, citing a reasonable valuation and the anticipation of over 20% EPS growth this year. The forecast also includes high-teens growth by 2026, supported by midsingle-digit gains in full-year comparable sales. This positive long-term perspective underscores the Buy rating, despite the expectation of a slight revenue decline in the near term.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $67.00 price target.