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CarMax Inc (NYSE:KMX) stock has reached a new 52-week low, trading at $57.48, with InvestingPro analysis indicating the stock is currently undervalued. The company maintains strong liquidity with a current ratio of 2.39, and management has been actively buying back shares. This marks a significant downturn for the company, reflecting a challenging year in the market. Over the past 12 months, CarMax shares have experienced a substantial decline, with a 1-year change of -31.31%. Despite the pressures facing the used car retailer amidst fluctuating market conditions and potential shifts in consumer demand, the company maintains a P/E ratio of 15.94 and analysts project profitability this year. Investors will be closely monitoring the company’s strategies and market trends as CarMax navigates this period of financial adjustment. Get deeper insights with InvestingPro, which offers 13 additional investment tips and a comprehensive Pro Research Report for KMX.
In other recent news, CarMax has reported a series of developments that are capturing investor attention. RBC Capital raised its price target for CarMax to $81 from $80, maintaining an Outperform rating, citing "better than feared results" in used unit comparable sales and gross profit metrics. Similarly, Truist Securities increased its price target to $74 from $72, noting a solid first-quarter performance with an 8.1% increase in used unit comparable sales. Morgan Stanley (NYSE:MS) assumed coverage of CarMax with an Overweight rating and an $80 price target, highlighting consistent same-store growth and strong gross profit per unit. Despite these positive assessments, Mizuho (NYSE:MFG) has lowered its price target to $78 from $80, maintaining a Neutral rating but acknowledging an increase in earnings estimates after a stronger-than-expected fiscal Q1. Evercore ISI reiterated its Outperform rating with a price target of $85, emphasizing growth opportunities in the 10-year-old and older vehicle market. These developments reflect a mixed but generally positive outlook among analysts for CarMax’s financial health and market positioning.
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