CarMax Stock Reaches New Low 🚗

Early Bird Prime for November 9, 2025

CarMax $KMX ( ▲ 4.79% ) is having an awful year. The stock has taken a nosedive, plummeting 60.16%. Just when you thought it couldn't get any worse, the company announced this week that its CEO is hitting the road, and they're bracing for an 8% to 12% decrease in comparable store used unit sales. This news sent the stock skidding to its lowest level in over a decade.

The day after this bombshell, analysts from JP Morgan, RBC Capital, and Mizuho decided to pile on the misery. They either downgraded the stock or lowered the price target, citing margin pressure.

Despite the recent turbulence, there's a glimmer of hope for those who believe in the power of mean reversion. If CarMax can pull off a successful turnaround, investors might just see a recovery.

CarMax still holds the title of the largest used vehicle retailer in the United States. With a vast nationwide footprint and a logistics network, CarMax remains a formidable player. New entrants and smaller competitors might find themselves stuck in the slow lane trying to catch up.

The company's expansion into auctions, reconditioning, financing, and digital commerce is like adding turbo boosters to its business model. As consumer and dealer needs evolve, CarMax is positioned to capture more value across the vehicle lifecycle.

The used vehicle market is fragmented, and CarMax is the largest and most technologically advanced consolidator. If anyone can piece it all together, it's them.

Should you buy CarMax's stock right now in 2025 or avoid the stock? Here’s the answer:

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