CarMax Inc ($KMX) Stock Forecast: Down 8.7% Today

What is CarMax Inc?

CarMax (KMX) is a well-known company in the automotive industry, specializing in the sale of new and used vehicles. The stock had a bearish movement today amidst mixed results in its third-quarter earnings report.

Why is CarMax Inc going down?

KMX stock is down 8.7% on Dec 19, 2025 14:40

• CarMax (KMX) reported Q3 earnings that surpassed expectations but showed a decline in revenues year-over-year, leading to investor concerns about the company's growth prospects.
• The ongoing securities class action lawsuits against CarMax alleging overstated growth prospects due to tariff speculation have likely contributed to the negative sentiment surrounding the stock.
• The evaluation of GM's Sterling Anderson as a potential CEO successor indicates a shift towards technology leadership in the automotive industry, possibly impacting investor confidence in traditional dealership models like CarMax.
• The disappointing financial results reported by CarMax for the second quarter of fiscal year 2026 have further fueled uncertainties among shareholders, triggering a significant drop in the stock price.

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KMX Technical Analysis

KMX News

CarMax Q3 Earnings Surpass Expectations, Revenues Decline Y/Y

CarMax (KMX) reported adjusted earnings of 51 cents per share for the third quarter of fiscal 2026, surpassing the Zacks Consensus Estimate of 32 cents, despite a decline from 81 cents in the previous year. Revenues totaled $5.8 billion, exceeding expectations but representing a 6.9% year-over-year decrease. The company's performance in used-vehicle sales and wholesale vehicle revenues showed mixed results, with unit sales falling but average selling prices and gross profit per unit often beating estimates.

https://www.tradingview.com/news/zacks:5d64efbb4094b:0-carmax-q3-earnings-surpass-expectations-revenues-decline-y-y/

GM’s Mary Barra puts Sterling Anderson to the test as potential CEO

Sterling Anderson, GM's chief product officer, is being evaluated as a potential successor to CEO Mary Barra. His ability to deliver on advanced software and self-driving technology will be the key test. This move indicates a focus on technology leadership for GM's future direction.

https://www.autonews.com/manufacturing/an-gm-sterling-anderson-1219/

CarMax, Inc. (KMX) Lawsuit - Investors Urged to Contact Levi & Korsinsky Before January 2, 2026

Levi & Korsinsky, LLP has filed a securities class action lawsuit against CarMax, Inc. (NYSE: KMX) on behalf of investors who purchased securities between June 20, 2025, and November 5, 2025. The lawsuit alleges that CarMax overstated its growth prospects, claiming that earlier fiscal year 2026 growth was a temporary benefit due to speculation regarding tariffs, making their statements about business, operations, and prospects materially false and misleading. Investors who suffered losses are urged to contact the firm before January 2, 2026, to explore potential recovery.

https://www.ksnt.com/business/press-releases/accesswire/1119364/carmax-inc-kmx-lawsuit-investors-urged-to-contact-levi-korsinsky-before-january-2-2026

CarMax, Inc. (KMX) Lawsuit - Investors Urged to Contact Levi & Korsinsky Before January 2, 2026

Levi & Korsinsky, LLP has filed a securities class action lawsuit against CarMax, Inc. (NYSE:KMX) on behalf of investors who purchased securities between June 20, 2025, and November 5, 2025. The lawsuit alleges that CarMax overstated its growth prospects, claiming that early fiscal year growth was merely a temporary benefit from customers buying cars due to tariff speculation. Investors who suffered losses are encouraged to contact Levi & Korsinsky to explore potential recovery under federal securities laws.

https://www.wwlp.com/business/press-releases/accesswire/1119364/carmax-inc-kmx-lawsuit-investors-urged-to-contact-levi-korsinsky-before-january-2-2026

Pomerantz LLP Notifies Shareholders of Class Action Against CarMax, Inc. – KMX

Pomerantz LLP has announced a class action lawsuit against CarMax, Inc. (NYSE: KMX) following a significant drop in CarMax's stock price. This legal action comes after CarMax reported disappointing financial results for the second quarter of its 2026 fiscal year, with earnings per share and sales falling short of consensus estimates. Shareholders who purchased CarMax securities during the Class Period are encouraged to seek appointment as Lead Plaintiff by January 2, 2026.

https://fox40.com/business/press-releases/accesswire/1099103/pomerantz-llp-notifies-shareholders-of-class-action-against-carmax-inc-kmx

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CarMax Inc Price History

19.11.2025 - KMX Stock was down 8.7%

• CarMax (KMX) reported Q3 earnings that surpassed expectations but showed a decline in revenues year-over-year, leading to investor concerns about the company's growth prospects.
• The ongoing securities class action lawsuits against CarMax alleging overstated growth prospects due to tariff speculation have likely contributed to the negative sentiment surrounding the stock.
• The evaluation of GM's Sterling Anderson as a potential CEO successor indicates a shift towards technology leadership in the automotive industry, possibly impacting investor confidence in traditional dealership models like CarMax.
• The disappointing financial results reported by CarMax for the second quarter of fiscal year 2026 have further fueled uncertainties among shareholders, triggering a significant drop in the stock price.

02.09.2025 - KMX Stock was up 5.6%

• Despite previous investor concerns and unforeseen financial setbacks, CarMax (KMX) exhibited a notable bullish trend.
• Recent scrutiny from legal entities and analyst downgrades had a pessimistic impact on the stock's perception.
• Initial sell-offs triggered by unanticipated losses and weaker second-quarter results may have shifted with the current bullish trend, indicating a potential shift in investor sentiment.
• It seems that investors are interpreting recent challenges as temporary hurdles, fostering a renewed optimism in CarMax's future outlook.

21.09.2025 - KMX Stock was up 4.5%

• CarMax (KMX) experienced a strong bullish movement today.
• The ongoing investigation by Bragar Eagel & Squire, P.C. might have initially caused some uncertainty among investors, but it seems that the market has responded positively to the news.
• The recognition of CarMax as one of the top 3 consumer stocks set to perform well in October might have boosted investor confidence and attracted more buyers to the stock.
• The oversold status of consumer discretionary stocks, including CarMax, might have created a buying opportunity for investors looking to capitalize on undervalued companies, leading to the bullish movement in the stock.

26.08.2025 - KMX Stock was up 5.3%

• Despite recent downgrades and missing earnings estimates, CarMax experienced a strong bullish movement today.
• The market may have reacted positively due to CarMax's consistent recognition as a top workplace and its ability to maintain a strong position in the retail sector.
• Investors might be optimistic about CarMax's future performance, possibly expecting improvements in retail sales and financial results following recent challenges.
• The bullish movement could also be influenced by broader market trends or sector-specific factors impacting the automotive industry.

21.10.2025 - KMX Stock was up 5.4%

• The bullish movement in KMX stock could be attributed to CarMax's recent expansion into Arkansas, hinting at growth and revenue potential.
• Despite a class action lawsuit, demand concerns, and CEO departure, investors appear optimistic about CarMax's resilience and market position.
• The market may be reacting positively to the job creation aspect of CarMax's expansion to 42 states, indicating economic growth possibilities for the company.
• Investors seem more interested in CarMax's expansion and growth prospects rather than its current legal challenges, influencing the stock's upward trajectory.

25.10.2025 - KMX Stock was up 5.4%

• Despite ongoing legal challenges involving securities fraud allegations, CarMax's stock price saw a significant rise.
• The surge in stock value may be influenced by an upgrade in Carvana's stock by Wedbush, pointing towards a positive market sentiment within the automotive industry.
• Investors seem to hold positive expectations for CarMax's future performance, potentially overlooking the company's current legal hurdles.
• This sudden upward movement in stock value could be driven by market speculation or short-term trading strategies rather than reflecting the company's underlying financial performance.

06.10.2025 - KMX Stock was down 12.8%

• CarMax's stock dropped over 10% following the CEO's resignation, leading to investor uncertainty.
• Numerous class action lawsuits alleging securities fraud and financial mismanagement have exacerbated negative sentiment around the stock.
• The unexpected $142 million loss provision and Q2 growth challenges have raised concerns about CarMax's financial well-being, contributing to the significant stock decline.
• Leadership changes, legal disputes, and financial difficulties have created a challenging environment for CarMax, resulting in today's bearish market movement.

25.08.2025 - KMX Stock was down 23.5%

• CarMax (KMX) experienced a strong bearish movement due to its second-quarter earnings missing expectations, with weaker retail sales and higher loan loss provisions impacting the results.
• The breach of the 52-week low reflects investor concerns about the company's financial performance and future outlook.
• Despite being recognized for its workplace culture and ranking highly on lists such as Fortune's Best Workplaces in Retail, the positive news was overshadowed by the disappointing earnings report.
• The market reaction indicates that investors are closely monitoring the company's ability to address challenges in retail sales and loan provisions to regain confidence and improve financial performance.

20.10.2025 - KMX Stock was up 5.2%

• Despite a class action lawsuit and challenges in demand, along with the departure of the CEO, CarMax's stock showed a strong bullish movement.
• The market's positive response may stem from potential resolutions or strategies introduced by the company to tackle legal and operational issues.
• Investor optimism about CarMax's ability to navigate legal troubles and management changes could be driving the stock's upward trend.
• This unforeseen market reaction suggests that investors perceive the lawsuit and CEO departure to have a less severe impact on CarMax's long-term prospects than initially anticipated.

07.10.2025 - KMX Stock was down 13.7%

• The bearish movement in CarMax's stock price can be attributed to the termination of CEO Bill Nash and the subsequent appointment of an interim CEO, causing uncertainty and lack of confidence among investors.
• The announcement of a securities class action pending against CarMax may have further fueled negative sentiment and led to increased selling pressure on the stock.
• Downgrades by top Wall Street analysts, including the change in outlook from Buy to Hold, also contributed to the downward pressure on CarMax's stock price.
• Overall, the combination of leadership changes, legal challenges, and analyst downgrades likely played a significant role in the bearish market movement of CarMax today.

06.10.2025 - KMX Stock was down 25.1%

• The bearish movement in CarMax's stock price today can be attributed to the following factors:
• The announcement of the CEO stepping down led to uncertainty and lack of confidence among investors, resulting in a sell-off of the stock.
• Multiple class action lawsuits against CarMax, with investors facing substantial losses, added to the negative sentiment surrounding the company.
• The legal implications and potential financial impact of the lawsuits created a cloud of uncertainty, causing investors to react by selling off their positions in CarMax.
• The combination of leadership changes and legal troubles likely contributed to the bearish trend in CarMax's stock price today.

10.11.2025 - KMX Stock was up 5.7%

• Investors may consider the recent legal issues and fraud accusations as temporary hurdles for CarMax, leading to the surge in the stock price.
• Despite the unfavorable Q2 Fiscal Year 2026 financial results and stock decline, the current stock price might have attracted investors, prompting increased demand and the upward movement in the market.
• The company's ability to navigate challenges and remain resilient could have boosted investor confidence, contributing to the favorable market performance witnessed today.