How to Buy CarMax Stock (KMX) in 2026

How to buy CarMax stock

Because CarMax is a publicly traded company, anyone can buy shares. To buy stock in CarMax or any other company that's listed on a major U.S. stock exchange, follow these steps:

1. Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
2. Search for CarMax: Enter the ticker "KMX" into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

Should I invest in CarMax stock?

Automotive stocks, such as CarMax, are cyclical in nature. When consumers have less money to spend, they'll often keep their older vehicles longer. Because CarMax finances almost half of the vehicles it sells, the company is also vulnerable to loan losses if customers can't afford their car payments.

Is CarMax profitable?

CarMax was profitable in its most recent fiscal year, which ended in February 2025. The company posted nearly $2.9 billion in gross profit, up 6.8% year over year, and diluted EPS of $3.21, compared with $2.75 the prior year. Fourth-quarter EPS jumped 81% to $0.58, though the stock fell 17% after results narrowly missed analyst expectations.

Investors were also unsettled by CarMax withdrawing its long-term targets for revenue, unit sales, and market share, citing uncertainty in the operating environment. Looking ahead, potential auto tariffs and a weaker economy add risk: higher vehicle and parts costs could pressure margins, while a downturn or tighter credit could hurt sales and increase loan defaults, especially since CarMax finances about 43% of its vehicles.

Does CarMax stock pay a dividend?

CarMax has never paid a dividend, and investors shouldn't expect this to change anytime soon. According to its 10-K filing, the company intends to retain earnings for operational costs and to expand its geographic reach. The report states that management doesn't expect to pay a dividend in the foreseeable future.

How to invest in CarMax through ETFs

If you're unsure about buying individual shares of CarMax, you could invest in an exchange-traded fund (ETF) that provides exposure to CarMax. An ETF is a collection of many different stocks that trade as a single security on stock exchanges.

The advantage of investing in an ETF is that you spread your risk across many companies, so you're less likely to sustain steep losses. There are many different ETFs with exposure to CarMax. Here are a few to consider:

• First Trust S-Network E-Commerce ETF (NYSEMKT:ISHP): This ETF invests in e-commerce stocks with a minimum market capitalization of $100 million. CarMax has been included in its 60 holdings and had a weighting of 1.46% as of mid-2025. The ETF's expense ratio is 0.60%, which translates to fees of $60 if you invest $10,000 in the fund.
• Invesco S&P 500 Equal Weight Consumer Discretionary ETF (NYSEMKT:RSPD): This fund invests in the consumer discretionary stocks represented in the S&P 500 index, assigning each company an equal weighting. CarMax has been among its 51 holdings. The fund has a 0.40% expense ratio, which means you'd pay $40 in fees on a $10,000 investment.
• SPDR S&P Retail ETF (NYSEMKT:XRT): This ETF invests in an index of retail stocks and had 76 holdings as of mid-2025. Automotive retail stocks, including CarMax, represent about 21% of the fund's holdings. The expense ratio is 0.35%, so if you invested $10,000, you'd pay $35 in fees.

Will CarMax stock split?

CarMax split its stock once in March 2007, after its board of directors voted on a 2-for-1 stock split. A company typically splits its stock to make its share price more affordable for retail investors. Given that CarMax shares were trading for less than $70 in mid-May 2025, an upcoming stock split is unlikely.

The bottom line

CarMax has made significant investments in its omnichannel platforms, enabling customers to handle much of the process of shopping for a vehicle, obtaining financing, and trading in their vehicle online. Its no-haggle shopping is another way it differentiates itself from other used car retailers.

While CarMax has a unique business model, it will continue to deal with the challenges other used car retailers face, including higher interest rates and inflation, both of which could cause potential customers to hold off on trading in their vehicles. If you want to invest in CarMax, be prepared to hold the stock for the long term.

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