Friday Market Snap Shot

CarMax (KMX) stock saw heavy volatility this week, dropping 9% before rebounding 13% on Thursday after its quarterly earnings report.

The initial drop was caused by lower profit margins per vehicle and a long-term corporate turnaround plan. However, the stock recovered quickly because overall revenue and earnings beat expectations, leading several analysts to raise their price targets.

For the first quarter of fiscal 2027 (ended May 31, 2026), CarMac reported net revenues of $8.01 billion and net earnings of $185.6 million, resulting in a diluted EPS of $1.31. The figures comfortably exceeded Wall Street consensus estimates, which had projected revenue of $7.39 billion and an EPS of $0.96.