Investment management company Vulcan Value Partners had a positive third quarter in 2025, with net returns ranging from 3.7% to 5.5% across different composite strategies. CarMax, Inc. (NYSE:KMX) was highlighted in their investor letter, with a 25.97% one-month return decline. The company’s stock closed at $44.42 per share on October 15, 2025.

Vulcan Value Partners expressed confidence in CarMax, Inc. (NYSE:KMX)’s long-term prospects despite short-term challenges. The company’s second quarter results showed a 5% decline in retail volumes due to COVID-related market disruptions. Vulcan Value Partners continued to add to their position in CarMax, emphasizing its solid balance sheet and potential for earnings growth once market conditions stabilize.

54 hedge fund portfolios held CarMax, Inc. (NYSE:KMX) at the end of the second quarter, down from 59 in the previous quarter. The company reported total sales of $6.6 billion in the fiscal second quarter of 2026, representing a 6% decline from the previous year. While CarMax shows potential as an investment, other AI stocks may offer greater upside potential with less downside risk.

CarMax, Inc. (NYSE:KMX) was not listed among the 30 most popular stocks among hedge funds. The company’s stock has faced significant challenges, but Vulcan Value Partners remains optimistic about its long-term growth prospects. Jim Cramer also holds a positive view on CarMax, advising against selling the stock at its current low levels.

Read more at Yahoo Finance: Does CarMax (KMX) Still Have Pandemic Strain?