CarMax Inc. (NYSE:KMX) reported better-than-expected third-quarter 2025 earnings on Thursday.The used-car retail giant reported earnings per share of 43 cents, beating the analyst consensus estimate of 39 cents. Adjusted earnings per share for the quarter were 51 cents, which excluded restructuring charges of 8 cents per share. Quarterly sales of $5.794 billion, down 6.9% year-over-year, surpassed the Street view of $5.678 billion.“Our unmatched physical and digital infrastructure, beloved national brand, a ...

Core Viewpoint - Wedbush Securities has upgraded Carvana (CVNA) stock from "Neutral" to "Outperform," raising the 12-month price target to $400, citing recent selloff as an opportunity for investors [1] Group 1: Company Performance - Carvana has delivered several quarters of strong growth, with expectations to surpass CarMax in used-car unit volume sooner than anticipated [2] - The company aims to reach 3 million annual retail sales by 2033 and expand adjusted EBITDA margins to 12% by 2027 [2] - Recent quarter saw record revenue and a 44% surge in vehicles sold, although margin pressure led to a temporary decline in shares [3] Group 2: Market Position and Innovations - Carvana operates as a fully online used-car retailer, allowing customers to browse, finance, purchase, trade in, and arrange delivery or pickup through its website or app [4] - The company has transformed the used-car market with innovations like car "vending machines," 360° virtual vehicle tours, and an integrated logistics, inspection, and reconditioning network [5] - Carvana's market capitalization currently stands at $86.7 billion [5] Group 3: Stock Performance and Market Trends - CVNA stock reached a 52-week high of $413.33 in late July but has since pulled back, currently sitting 4% below that peak and above the 52-week low of $148.25 [5] - The stock has shown a strong comeback throughout the year, reflecting renewed optimism in Carvana's business model despite volatility in the used-car and auto-credit markets [6]

Economic Data and Federal Reserve Outlook - Recent economic data has created uncertainty regarding the Federal Reserve's future interest rate cuts, with initial jobless claims dropping by 14,000 to a seasonally adjusted 218,000 for the week ended September 20 [10][11] - The U.S. economy grew faster than previously estimated in the second quarter, driven by strong consumer spending and business investment [10][11] - Investor expectations for another 25 basis points cut in the Fed's October meeting have decreased to 83.4%, down from approximately 92% [10][11] Market Performance - Most S&P 500 sectors ended lower, with energy gaining 0.9% and technology increasing by 0.03%, largely due to Intel's shares rising by 8.9% [5][11] - The Dow Jones Industrial Average fell by 173.96 points (0.38%) to 45,947.32, the S&P 500 lost 33.25 points (0.50%) to 6,604.72, and the Nasdaq Composite decreased by 113.16 points (0.50%) to 22,384.70 [6][11] - CarMax shares dropped by 20.1% following a report of lower second-quarter profit, while Accenture shares fell by 2.7% despite reporting revenue above expectations [6][11] Investor Sentiment and Future Expectations - Investors are keenly awaiting upcoming quarterly results from companies, particularly as market valuations are considered high after recent record highs [7][11] - There is a mixed sentiment among monetary policymakers regarding the direction of interest rates, with some advocating for accelerated policy easing [8][11] - The upcoming monthly U.S. jobs report is anticipated to be significant for market direction [7][11]