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CarMax Stock Drops Further after Disappointing Quarterly Report

The stock price for used car retailer CarMax (KMX) fell 11.7% after the company released its quarterly earnings report.

The stock fell 1.51% over the last 24 hours, so it looks like the coin has not reached the bottom of its fall yet. In light of the sales numbers, CarMax opted to move back a key sales goal they had set- to sell more than two million units every year. The target for that sales milestone has been pushed from 2026 to somewhere before 2030.

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The fourth quarter report that was released this week detailed that CarMax revenue dropped 1.7% compared to last year. With sales of $5.63 billion, CarMax is not about to go out of business, but it did not meet its sales targets, which is disappointing for the company.

That caused the stock to fall substantially, and it is surprising to see such a large drop with such a small sales decrease. However, the stock market is dealing with a tough economy right now, and with inflation high and rising, even slight missteps on the stock market can have major repercussions.

Should You Be Investing in CarMax Stock Now That It Is Down?

Now that CarMax stock is priced lower than it has been in about six weeks, it could be tempting for anyone expecting the company’s stock to shoot back up in the future. Is it a good investment right now?

We believe this is an opportune time to buy CarMax stock. The company has done well this year, and its stock should start doing well again soon. We may not see anything near its 2021 stock values again, but there are moderate profits expected in the near future with this stock if investors jump in at this point.

Watching the company’s long-term trends, we believe the stock price will increase well before the next quarterly report. 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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