CarMax, Inc. (NYSE:KMX) is one of the oversold mid-cap stocks to buy according to hedge funds. On October 1, 2025, Morgan Stanley lowered its price target on CarMax from $80 to $56 while maintaining an Overweight rating. The firm flagged execution risks tied to CarMax’s omni-channel strategy, noting that its ability to deliver on its digital and physical integration remains uncertain amid intensifying competition. Carvana, in particular, was singled out as having a “competitive moat,” casting a shadow ove ...