CarMax rises after Fortune workplace recognition

What happened

CarMax (KMX) rose 4.2% on October 20, 2026, after the company was named one of Fortune's 2026 Best Workplaces in Retail, according to GlobeNewsWire. The stock opened 1.1% above the previous close and finished the day at $53.82, outperforming the Consumer Cyclical sector median. Trading volume was 0.6 times its 20-day average.

How big was the move

The stock's rise was 1.8 times a typical daily move for this stock and was 2.9 percentage points better than the sector median on the day. The S&P 500 rose 0.3% on the same session while the S&P 500 over five sessions fell 1.2%. Over the last five sessions the stock rose 5.9%, a stronger short-term run than the broader market. With a beta of 0.62, the stock tends to move less than the market, making this a large, mostly company-specific move that came after the Fortune recognition.

The technical picture

On the technical front, the stock sat 0.8% below its 20-day moving average and 7.2% below its 50-day moving average, while its price was 9.8% above its 200-day average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 97 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) was 47, in the neutral range between 30 and 70, and the stock was 17.6% below its 52-week high.

The near-term trend shows some recent weakness: the stock fell 7.0% over one month and fell 6.3% over three months, though it rose 25.5% over one year, which is 9.7 percentage points ahead of the S&P 500. Volatility was 36% annualized over 60 days, lower than 68% of its own readings over five years, suggesting recent price swings have been modest relative to its history.

Fundamentals and valuation

For the four quarters through August 31, 2026, revenue was $27.63 billion, which grew 4.8% from a year earlier. Diluted earnings per share were $2.13 for that period, and earnings per share growth from a year earlier fell 37.5%. Gross margin was 10.1%, down from 11.2% a year earlier, and operating margin was 0.5%, down from 0.8% a year earlier. The company reported net debt of 17.0 times EBITDA and a free-cash-flow margin of 4.1%.

Valuation metrics show the stock at 25.3 times trailing earnings and 16.9 times expected forward earnings. Its price to trailing earnings is higher than 71% of its own readings over the past five years, where the five-year median is 22.8 times earnings. The free-cash-flow yield was 15.1%. Return on invested capital was 0.4%, and share count over one year decreased by 5.7%.

These figures sketch a company with modest top-line growth, contracting margins and high leverage relative to EBITDA, while trading at a premium to much of its own recent valuation history. PromtFinance scores ranked CarMax Neutral on Value and Growth, Very weak on Quality, and Positive on Momentum, reflecting that mix of stronger price momentum but weaker profitability and balance-sheet metrics.

Earnings and analyst expectations

CarMax last reported on September 29, 2026, with earnings per share of $1.16 against $0.73 expected, 58.5% above estimates. That marked four consecutive quarters beating estimates, and the average surprise over the last four reports was 52.4% above estimates. Despite those upside surprises, the typical two-day reaction after recent reports was a fall of 6.3%.

The next report is scheduled for December 17, 2026. Analysts’ consensus price target was $61.00, 13.3% above the closing price on October 20, 2026, based on 37 analysts with a consensus rating of Hold; 32% of those ratings were Buy or Strong Buy.

What to watch

• December 17, 2026: next earnings report date
• September 29, 2026: last report delivered earnings per share of $1.16, 58.5% above estimates
• Consensus price target $61.00, 13.3% above the closing price
• In the past five years the stock had 60 sessions with a gain of at least 4.2%; twenty trading days later the median result was a decline of 0.3%, and 29 of 60 were higher
• Time above the 200-day average: 97 consecutive trading days