Shares of CarMax jumped 7.4% after Baird increased its price target to $48 from $42 and kept an Outperform rating, reflecting heightened confidence in the retailer’s outlook.

Forecasts for 2026 suggest used-car inventory levels will improve, creating a more favorable sales environment for CarMax and its peers in the automotive retail sector.

CarMax has experienced 14 moves exceeding 5% over the past year, is up 15.7% year-to-date, but remains 49% below its 52-week high, underscoring ongoing volatility.