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KMX — Trend Pullback to 20 EMA
Status: Watch
Scanner score: 65.0/100
Why this was flagged
KMX was identified as a bullish technical setup based on the Trend Pullback to 20 EMA pattern. The scanner found a score of 65.0/100 using trend alignment, momentum, price action, volume, and risk-management rules.
Trade framework
Position-sizing example
These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.
Exit plan
- Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
- Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
- Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
- Time exit: Reassess or close a trade that fails to progress within the suggested holding window.
Technical chart
Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.
$1,000 educational outcome examples
These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.
Easy explanation for new investors
Recent news context
This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.
Overall context: Caution (High confidence)
CarMax reported weak Q2 2026 results, missing both EPS and revenue estimates due to increased credit loss provisions and an 11.8% year-over-year revenue contraction. The company also recently settled a lawsuit with the DOJ regarding military vehicle repossessions. Despite these financial headwinds, management plans $150 million in cost reductions to offset losses in upcoming quarters. CarMax has also emphasized brand loyalty strategies and is scheduled to host a conference call on September 29, 2026. While technical indicators show a neutral pullback, the combination of missed targets, rising credit losses, and legal settlements creates significant near-term uncertainty for the stock.
Potentially supportive context
- Management plans to implement at least $150 million in incremental SG&A reductions to improve financial performance.
- The company anticipates a gain from a non-prime securitization transaction that may benefit Q3 2026 results.
- Recent marketing efforts focus on brand loyalty and transparency, aiming to strengthen long-term consumer engagement.
Risks and caution items
- Q2 2026 results showed a 38.07% EPS miss and an 11.8% year-over-year revenue decline.
- The company paid over $420,000 in a DOJ settlement over illegal repossessions of military members' vehicles.
- Same-store sales and gross margins are currently experiencing weakness, prompting caution from financial analysts.
- Rising credit loss provisions at CarMax Auto Finance are pressuring current profitability.
Latest reviewed article: Sep 10, 2026 6:39 pm
Recent related articles
The average transaction price for new vehicles reached $50,089 in August, close to the all-time high of $50,612 in December 2025. Despite rising prices, high interest rates, and low incentives, consumers continue to buy new cars. The article poses the question to…
CarMax, Inc. (NYSE: KMX) is scheduled to report its second-quarter financial results for the period ending August 31, 2026, before the market opens on September 29, 2026. Following the release, the company will host an investor conference call at 8:00 a.m. ET…
Bank of New York Mellon Corp has made a new investment of $2.75 million in Cars.com Inc. (NYSE:CARS), acquiring 251,160 shares, which represents a 0.45% stake in the company. Institutional investors now collectively own 89.15% of Cars.com. The company recently reported quarterly…
Bank of America Corp DE significantly reduced its stake in Cars.com Inc. by 73.7% in the first quarter, now owning 243,124 shares valued at $1.97 million. Despite this, other institutional investors like Pale Fire Capital SE and Par Capital Management Inc. increased…
CarMax (KMX) reported a disappointing Q2 2026, missing both EPS and revenue estimates due to a surge in credit loss provisions at CarMax Auto Finance. Earnings per diluted share fell 38.07% short of expectations, and revenue contracted 11.8% year over year. The…
This article analyzes three consumer retail stocks: CarMax (KMX), Williams-Sonoma (WSM), and Boot Barn (BOOT). It recommends caution with CarMax due to weak same-store sales and lower gross margins, and with Williams-Sonoma due to declining revenue and slower earnings growth. Boot Barn,…
CarMax CMO Sarah Lane discusses how the company has built brand loyalty by focusing on transparency, acting with integrity, and strategically investing in women's sports. She explains that CarMax's 30-year legacy of disrupting the automotive industry through honesty resonates with consumers, especially…
Moore Capital Management LP significantly increased its stake in Carvana Co. by 6,806% in the second quarter, now owning 86,187 shares valued at $5.7 million. This comes as institutional investors hold 56.71% of the stock, while corporate insiders have recently sold shares…
Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.
Scanner confirmations
- Price is above the 20-, 50-, and 200-day moving averages, with bullish moving-average alignment.
- RSI is in a constructive momentum range without being overbought.
- Price is near the 20 EMA in a bullish trend and the current candle is positive.