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CarMax Inc. (KMX) Stock Rating & Analysis

As of October 12, 2026, MELANY rates CarMax Inc. 57 out of 100 (Hold). Its highest factor score is earnings track record at 100, and its lowest is business quality at 11.

MELANY ratingRated 2026-10-12

KMX · composite score

57/100
Hold
···
Live price
Quality11
Momentum58
Risk-adjusted65
Source basis SEC filings and live market dataDated snapshot

About CarMax Inc.

CarMax sells, finances, and services used and new cars through a chain of over about 260 retail stores; it was created in 1993 as a unit of Circuit City and spun off as an independent company in late 2002. Used-vehicle sales were 80% of fiscal 2026 revenue and wholesale about 17%, with the rest from extended service plans and repair, and in fiscal 2026 it retailed 780,684 and wholesaled 538,203 used vehicles.

Rating as of 2026-10-12 · this is a dated snapshot; the live rating is in the app (Pro, free for 30 days). The price above updates in real time.

Why KMX scores 57/100

KMX's 8 factor scores run from 11 to 100, and 5 of them sit above its composite of 57. Here is how KMX breaks down.

Valuation66/100

Whether the price looks cheap or expensive against earnings, growth, and peers.

  • Forward P/E 14.3x, earnings growth accelerating
  • PEG ratio 0.68 (< 1 = undervalued)
  • FCF yield 8.6%
Business quality11/100

Margins, returns on capital, and balance-sheet strength.

Price momentum58/100

Direction and relative strength of the recent share-price trend.

  • 50-day MA above 200-day (golden cross zone)
Earnings track record100/100

History of beating or missing estimates, and where estimates are heading.

  • Beat EPS estimates 4 of last 4 quarters
  • Avg EPS beat +42%
Analyst sentiment62/100

What Wall Street price targets and revisions are signalling.

  • Institutional net buying +3.0%
Catalyst setup36/100

Near-term events that could move the stock.

Risk-adjusted profile65/100

Upside weighed against volatility and drawdown risk.

Macro fit50/100

How the current rate and market regime suits this kind of company.

Key risks for KMX

  • High debt-to-equity ratio 2.9x, rate-sensitive balance sheet

Sector and theme context

CarMax Inc. sits in the Consumer discretionary cycle theme, which MELANY currently rates 10/100 for strength. Theme strength feeds KMX's momentum and catalyst factors above.

Tracking KMX

CarMax Inc. rates Hold right now, so MELANY is not flagging a fresh entry. Add KMX to a watchlist in the app to follow its rating; an alert the moment it changes is part of Pro, free for 30 days.

How MELANY rates KMX

MELANY is a rules-based engine that scores every stock from 0 to 100 across eight weighted factors, then re-scores as new price, earnings, and fundamental data arrive. CarMax Inc.'s 57/100 reflects mature factor weighting for its profile.

Ratings are algorithmic and change with the data. They are research and education, not personalized investment advice.

Frequently asked questions about KMX

Is CarMax Inc. (KMX) a buy?

As of 2026-10-12, MELANY rated CarMax Inc. Hold with a composite score of 57/100. That is a dated snapshot, not the live rating, and it is an algorithmic reading built from eight factors rather than personalized investment advice. Review the factor breakdown above and the disclaimer below before making any decision.

What is CarMax Inc.'s MELANY score?

CarMax Inc. (KMX) has a MELANY composite score of 57/100, combining valuation, business quality, price momentum, earnings track record, analyst sentiment, catalyst setup, risk-adjusted profile, macro fit.

How is the KMX stock rating calculated?

MELANY scores KMX from 0 to 100 across eight weighted factors using live market and fundamental data, then refreshes the rating automatically as new data arrives.

Should I buy CarMax Inc. stock?

That decision is yours; Market Eyes Live does not give buy or sell advice. What the data says: MELANY rates CarMax Inc. (KMX) Hold with a composite of 57/100 as of 2026-10-12. The factor breakdown above shows what is driving that, which is a better basis for a decision than any one-word verdict.

What is the KMX stock price forecast?

MELANY does not publish price targets or forecasts for KMX. Predicting a future price is exactly the kind of false precision the confidence framework avoids. Instead it scores today's setup, 57/100 across eight factors for CarMax Inc., and re-scores automatically as new price, earnings, and fundamental data arrive.

Is KMX stock overvalued or undervalued?

MELANY's valuation factor currently reads 66/100 for CarMax Inc., where a higher score means the price looks more attractive on that measure. Scores in the 70s and above read as attractively priced, the mid range as roughly fair, and low scores as stretched. The factor breakdown above shows what drives KMX's read.

What price should I buy KMX at?

MELANY is not flagging a fresh entry for KMX at its current Hold rating, so there is no entry zone to publish right now. Add KMX to a watchlist in the app to follow it; an alert the moment the rating changes is part of Pro, free for 30 days.

What are the risks of buying KMX stock?

The top risks MELANY currently flags for CarMax Inc.: High debt-to-equity ratio 2.9x, rate-sensitive balance sheet. The rating on this page already weighs these against the bullish factors; see the risk-adjusted profile score in the breakdown above.

Is CarMax Inc. a good long-term investment?

For long-term durability the two factors that matter most are business quality, which MELANY scores 11/100 for CarMax Inc., and earnings track record, at 100/100. The 57/100 composite blends those with six shorter-horizon factors. Durable quality at a fair price is the long-term case to test; this is research, not personalized investment advice.

Will KMX stock go up?

Nobody can promise a stock's direction, and Market Eyes Live does not predict prices. The measurable part: MELANY's price momentum factor reads 58/100 for KMX right now, and the catalyst setup factor tracks whether near-term events could move it. Both re-score automatically as the data changes.

How current is this KMX rating?

The rating on this page is a snapshot of MELANY's read as of 2026-10-12. The price shown updates live, but the score is not recomputed on this page. MELANY re-scores KMX continuously as new price, earnings, and fundamental data arrive, and the current rating is in the app (Pro, free for 30 days).

How this rating works

Market Eyes Live

Every rating graded in public, KMX included

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