B of A Securities analyst John Murphy has maintained an Underperform rating on CarMax (NYSE:KMX) while raising the price target to $45 from $40. The revised target suggests a more conservative outlook compared to the company's current market performance, despite the increase in the valuation estimate.

Rating and Price Target Details

The research note highlights a shift in the price objective without altering the underlying negative sentiment toward the stock. The following table summarizes the updated analyst stance:

The decision to raise the price target indicates a recalibration of the firm's financial model, potentially driven by recent market data or operational metrics from CarMax. However, the persistence of the Underperform rating signals that B of A Securities continues to see downside risks or limited upside potential relative to the broader sector.

Jabil Inc. raised its fiscal 2026 outlook for revenue, core operating margins, core earnings per share (EPS), and adjusted free cash flow, citing strong demand for AI infrastructure and better-than-expected performance in its automotive and connected living segments. The company increased its sales outlook from $34.000 billion to $35.000 billion and adjusted its core diluted EPS guidance from $12.25 to $12.70, compared to an analyst estimate of $12.38.

Third Quarter Performance

For the three months ended May 31, 2026, Jabil achieved net revenue of $8.751 billion, an 11.79 percent increase over sales of $7.828 billion in the same period last year. U.S. GAAP operating income was $445 million, with U.S. GAAP diluted EPS of $2.59. On a non-GAAP basis, core operating income was $504 million and core diluted EPS was $3.16, beating the analyst consensus estimate of $3.10. Net income attributable to Jabil Inc. was $275 million.

Outlook

Jabil provided guidance for the fourth quarter of fiscal 2026, projecting net revenue between $9.2 billion and $10.0 billion. The company expects U.S. GAAP diluted EPS to range from $3.24 to $3.64, compared to an analyst estimate of $3.01, while core diluted EPS is forecast between $3.80 and $4.20, versus an analyst estimate of $3.72.

For the full fiscal year 2026, Jabil increased its outlook to $35 billion in net revenue. The company projects a core operating margin of 5.8%, core diluted EPS of $12.70, and adjusted free cash flow of $1.4+ billion.