Today, CarMax stock price is at $76.10, up 1.2%, helped by upbeat consumer sentiment surveys. Analyst notes suggest strong retail confidence could drive incremental sales volumes, aligning with management's growth targets. CarMax Inc.’s recent profit miss and the stock’s 20% selloff have made analysts at Morgan Stanley question the used-car retailer’s ability to operate in a “competitive” environment — and much more so when that competitor is none other than Carvana Co. CarMax (NYSE:KMX) shares have dropped by 23% during the past five trading days, reaching approximately $44 per share. Furthermore, the stock is now down over 40% year-to-date. At these prices, it appears relatively undervalued, trading at around 13 times trailing earnings and 0.3 times sales, significantly below the S&P 500. In addition, KMX continues to be a robust business with an extensive national store network and an expanding digital presence, providing it with network effects that smaller rivals cannot replicate. The main question is if the stock is inexpensive enough to warrant a purchase. However, the answer is not particularly compelling. In pre-market sessions, CarMax stock price advanced to $75.80, buoyed by sector-wide optimism after a major competitor reported robust Q2 earnings. Traders are watching for signals of margin expansion, especially as CarMax continues integrating AI-driven pricing models to optimize retail sales.