Bullish Case: Analyst upgrades, easing inflation, and bullish volatility patterns suggest KMX can harness omni-channel investments for robust online sales growth and improved gross margins, potentially overcoming macroeconomic headwinds.


Bearish Case: Persisting high interest rates, disappointing Q4 results, and a challenging macroeconomic environment with tight lending conditions continue to pressure consumer affordability and dampen KMX's near-term growth prospects.


Potential Outcomes:

1. Recovery boosted by easing inflation (40% probability).

2. High interest rates and tight lending persist, hurting sales (35%).

3. Strengthened online platform contributes to recovery (15%).

4. Unexpected macroeconomic shocks negatively impact market (10%).


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April 23, 2024


Carmax Forecast

KMX        Carmax
Price Forecast: NEUTRAL    Price Action: MEAN REVERTING (?)











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