CarMax, Inc.

The stock is in a strong recovery regime, trading well above its 200-day average and 50-day average after a deep 52-week range. That keeps the intermediate trend constructive, though it remains below the 52-week high, so shareholders should watch whether the rebound can extend into a longer base breakout.

Street sentiment is cautious-to-neutral: the consensus sits at Hold, with 22 Holds, 9 Buys, and 4 Sells. The average target has moved up to 49.11, but it still sits below the current share price, while recent calls skewed higher on targets and one upgrade to Overweight.

The latest quarter was a clear beat, with EPS of 1.31 versus 0.944 expected, but the prior quarter missed sharply. Full-year estimates point to EPS rising from 2.694 to 2.600 next year before improving to 3.036 in 2028, so the setup favors execution and margin stability over one-off surprises.

Recent insider activity leans positive, with six discretionary purchases and no discretionary selling. The buying came from directors and the CEO, while the other entries are award, exemption, or in-kind items that are not the main signal; that pattern suggests management confidence around the current setup.

Profitability is modest but improving enough to support the recovery case, with gross margin at 11.8% and operating margin at 3.43%. Revenue grew 5.5% year over year, while free cash flow reached $2.32 billion and FCF yield was 31.05%, giving the business real cash generation despite thin net margin.

CarMax remains a scaled used-auto retailer with financing attached, which helps it compete on inventory breadth and customer reach. Valuation is not cheap on earnings at 18.94x, but the cash flow profile and recent estimate revisions give it a sturdier setup than a simple low-multiple story.