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KMX vs RH
Which Stock Would AI Choose? CarMax (KMX) vs. RH (RH) Stock Comparison
Key Takeaways
- CarMax and RH are both consumer-discretionary retailers, but they serve very different ends of the market: CarMax is the largest U.S. used-vehicle retailer, while RH is a luxury home-furnishings brand.
- CarMax is in the early stages of a turnaround under new leadership, while RH is executing a major product transition centered on its new RH Estates line.
- On relative performance, KMX has shown stronger and more consistent momentum in recent quarters, while RH carries higher volatility (a higher beta) and a heavier balance-sheet burden.
- Tickeron AI Verdict: Based on trend consistency, relative strength, and improving fundamentals, the AI would currently favor KMX (CarMax) over RH.
- For deeper coverage of each name, explore KMX Major News, KMX Today's Price Move, RH Major News, and RH Today's Price Move.
- To see how automated strategies are positioning across thousands of tickers, explore the Trending AI Robots page.
Introduction
CarMax, Inc. (KMX) and RH (RH) sit in the same broad consumer-discretionary sector, yet their businesses could hardly be more different. CarMax is the largest used-vehicle retailer in the United States, a high-volume, scale-driven operation sensitive to interest rates, credit quality, and vehicle affordability. RH, formerly Restoration Hardware, is a premium home-furnishings and lifestyle brand focused on affluent consumers, galleries, and a growing hospitality footprint. This stock comparison is most relevant to traders and investors evaluating two turnaround stories with contrasting risk profiles: a value-oriented auto retailer rebuilding profitability versus a luxury retailer betting on a bold product pivot. Understanding their relative performance and market positioning can help clarify which name offers the more compelling setup in the current environment.
KMX Overview and Recent Performance
CarMax operates the largest network of used-vehicle retail stores in the U.S., alongside a wholesale auction business and its own auto-finance arm, CarMax Auto Finance. In recent quarters, the company has pivoted to a turnaround strategy under newly appointed CEO Keith Barr, who took the helm in early 2026 amid pressure from activist investor Starboard Value. The company has focused on competitive pricing, cost discipline, and a four-pillar strategic framework aimed at restoring unit and earnings growth.
Recent market activity has reflected growing, though uneven, confidence in that turnaround. CarMax posted back-to-back earnings beats, with fiscal first-quarter adjusted earnings of $1.31 per share on roughly $8 billion in revenue, followed by a second quarter in which used-vehicle comparable-store sales rebounded sharply. Despite these beats, the stock has been volatile, as investors weigh margin compression from price cuts against improving sales volume. Over the trailing year, KMX has traded well above its 200-day moving average, signaling improving trend strength, while its elevated debt load and sensitivity to the credit cycle remain key watchpoints.
RH Overview and Recent Performance
RH is a specialty retailer that exclusively sells its own brand of high-end furniture, lighting, textiles, and décor, positioning itself as a luxury lifestyle company rather than a conventional furniture chain. The business is built around large-format galleries, a sourcebook-driven catalog model, and, increasingly, hospitality elements such as restaurants and guesthouses. The company is currently executing what management calls an "extraordinary product transition," anchored by the launch of RH Estates, a more traditional-leaning collection aimed at attracting new, affluent customers.
Recent market activity has been dramatic. RH's latest quarterly report delivered a substantial earnings beat, with adjusted earnings per share and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) coming in well above analyst expectations, supported in part by tariff refunds. The stock rallied sharply following the results, and at least one major firm upgraded the name on "building momentum" in the product transition. However, RH's forward revenue guidance has at times underwhelmed, and the company carries a heavy debt load and elevated price volatility (a beta near 1.9), reflecting both the potential and the risk of its turnaround.
Trending AI Robots
Tickeron's Trending AI Robots page highlights a curated selection of automated trading strategies chosen for their suitability to current market conditions. Tickeron offers hundreds of AI trading bots that collectively trade thousands of different tickers, but only a subset earns a place in this trending section. Each bot operates with its own trading style, strategy, timeframe, performance history, and set of covered tickers, so no two bots behave alike. The bots' performance statistics and win rates vary widely depending on market regime, making it important to review each bot's profile before following it. For investors interested in how algorithmic systems are interpreting names like KMX and RH, the Trending AI Robots section is a practical starting point for exploring automated market positioning.
Head-to-Head Comparison
The most fundamental contrast between these two names is scale and business model. CarMax generates roughly $29 billion in trailing revenue through high-volume, lower-margin transactions, with profitability concentrated in a used-vehicle gross profit per unit that management has been actively managing downward to drive volume. RH, by contrast, generates about $3.4 billion in revenue with materially higher gross margins (above 40%) but far smaller scale and greater reliance on discretionary luxury spending.
Growth drivers also diverge. CarMax's recovery hinges on used-vehicle affordability, credit availability, and execution of its cost-reduction plan, areas closely tied to interest rates and the broader auto-financing cycle. RH's outlook rests on the success of its product pivot, new gallery openings, and an eventual recovery in the housing market, which remains subdued. On risk, RH carries higher beta and a heavily leveraged balance sheet, while CarMax, though also carrying substantial debt tied to its financing arm, trades with lower volatility and more diversified revenue streams. Market sentiment has improved for both, but CarMax's turnaround is supported by concrete unit-growth data, whereas RH's is still partly dependent on the unproven rollout of a new collection.
Tickeron AI Verdict
Weighing observable factors such as trend consistency, stability, and the quality of recent catalysts, Tickeron's AI would currently lean toward KMX (CarMax) over RH. CarMax's combination of stronger relative performance, a stock price holding above its longer-term moving averages, improving unit-sales trends, and lower volatility offers a more consistent technical and fundamental setup. RH's recent earnings beat and product-transition momentum are genuine positives, but its higher beta, heavier leverage, and dependence on an unproven luxury pivot introduce greater uncertainty. This is a probabilistic assessment rather than a definitive forecast: RH could reward risk-tolerant investors if its Estates line succeeds, while CarMax presents a steadier turnaround profile under the current data.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is KMX is a Buy and RH is a Hold.
KMX's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for KMX turned positive on October 20, 2026. Looking at past instances where KMX's MACD turned positive, the stock continued to rise in 34 of 43 cases over the following month. The odds of a continued upward trend are 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where KMX's RSI Indicator exited the oversold zone, 18 of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 62%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 38 of 57 cases where KMX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 67%.
Following a +5.26% 3-day Advance, the price is estimated to grow further. Considering data from situations where KMX advanced for three days, in 207 of 305 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
The Aroon Indicator entered an Uptrend today. In 154 of 225 cases where KMX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 68%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 11, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KMX as a result. In 63 of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KMX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
KMX broke above its upper Bollinger Band on October 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 3 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 9 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. KMX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.194) is normal, around the industry mean (1.554). P/E Ratio (31.975) is within average values for comparable stocks, (12.811). KMX's Projected Growth (PEG Ratio) (1.417) is slightly higher than the industry average of (0.695). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (0.324) is also within normal values, averaging (0.919).
The Tickeron SMR rating for this company is 86 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KMX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
RH in upward trend: 10-day moving average crossed above 50-day moving average on October 29, 2026
The 10-day moving average for RH crossed bullishly above the 50-day moving average on October 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 16 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
RH moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +7.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where RH advanced for three days, in 219 of 273 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
The Aroon Indicator entered an Uptrend today. In 157 of 196 cases where RH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 80%.
Bearish Trend Analysis
The 10-day RSI Indicator for RH moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 31 similar instances where the indicator moved out of overbought territory. In 26 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 84%.
The Momentum Indicator moved below the 0 level on November 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on RH as a result. In 67 of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 78%.
The Moving Average Convergence Divergence Histogram (MACD) for RH turned negative on November 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In 36 of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at 77%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
RH broke above its upper Bollinger Band on October 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 10 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 42 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating fairly steady price growth. RH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 67 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: RH's P/B Ratio (20.603) is very high in comparison to the industry average of (2.289). P/E Ratio (22.122) is within average values for comparable stocks, (17.578). Projected Growth (PEG Ratio) (0.630) is also within normal values, averaging (1.159). Dividend Yield (0.000) settles around the average of (0.102) among similar stocks. P/S Ratio (0.723) is also within normal values, averaging (1.057).
The Tickeron PE Growth Rating for this company is 77 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RH’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
KMX | RH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 27 | 29 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 82 Overvalued | 67 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 86 | 10 | |
PRICE GROWTH RATING 1..100 | 40 | 56 | |
P/E GROWTH RATING 1..100 | 3 | 77 | |
SEASONALITY SCORE 1..100 | 9 | 42 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
RH's Valuation (67) in the Specialty Stores industry is in the same range as KMX (82). This means that RH’s stock grew similarly to KMX’s over the last 12 months.
RH's Profit vs Risk Rating (100) in the Specialty Stores industry is in the same range as KMX (100). This means that RH’s stock grew similarly to KMX’s over the last 12 months.
RH's SMR Rating (10) in the Specialty Stores industry is significantly better than the same rating for KMX (86). This means that RH’s stock grew significantly faster than KMX’s over the last 12 months.
KMX's Price Growth Rating (40) in the Specialty Stores industry is in the same range as RH (56). This means that KMX’s stock grew similarly to RH’s over the last 12 months.
KMX's P/E Growth Rating (3) in the Specialty Stores industry is significantly better than the same rating for RH (77). This means that KMX’s stock grew significantly faster than RH’s over the last 12 months.
| KMX | RH | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 62% | 1 day ago 84% |
| Stochastic ODDS (%) | 1 day ago 67% | 1 day ago 75% |
| Momentum ODDS (%) | 1 day ago 68% | 1 day ago 78% |
| MACD ODDS (%) | 1 day ago 79% | 1 day ago 77% |
| TrendWeek ODDS (%) | 1 day ago 72% | 1 day ago 79% |
| TrendMonth ODDS (%) | 1 day ago 68% | 1 day ago 82% |
| Advances ODDS (%) | 2 days ago 68% | 14 days ago 80% |
| Declines ODDS (%) | 6 days ago 71% | 6 days ago 80% |
| BollingerBands ODDS (%) | 1 day ago 73% | 1 day ago 85% |
| Aroon ODDS (%) | 1 day ago 68% | 1 day ago 80% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
KMX’s FA Score shows that 1 FA rating(s) are green while RH’s FA Score has 1 green FA rating(s).
- KMX’s FA Score: 1 green, 4 red.
- RH’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
KMX’s TA Score shows that 5 TA indicator(s) are bullish while RH’s TA Score has 5 bullish TA indicator(s).
- KMX’s TA Score: 5 bullish, 2 bearish.
- RH’s TA Score: 5 bullish, 5 bearish.
Price Growth
KMX (@Automotive Aftermarket) experienced а +1.52% price change this week, while RH (@Specialty Stores) price change was -6.21% for the same time period.
The average weekly price growth across all stocks in the @Automotive Aftermarket industry was -3.16%. For the same industry, the average monthly price growth was -0.25%, and the average quarterly price growth was -14.21%.
The average weekly price growth across all stocks in the @Specialty Stores industry was -1.46%. For the same industry, the average monthly price growth was +12.85%, and the average quarterly price growth was +17.47%.
Reported Earning Dates
KMX is expected to report earnings on Dec 17, 2026.
RH is expected to report earnings on Dec 10, 2026.
Industries' Descriptions
@Automotive Aftermarket (-3.16% weekly)The Automotive Aftermarket consists of the manufacturing, remanufacturing, distribution, retailing, and installation of vehicle parts and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The aftermarket parts many not be manufactured by the OEM. According to a Technavio study, the US automotive parts aftermarket size is estimated to grow by USD 24.33 billion during 2018-2022 (CAGR 3%). Like many other industries, the automotive aftermarket is also being intensely penetrated by the digital boom. The online auto parts sales market is predicted to exceed $13B by 2020 (according to a study by Mirakl).
@Specialty Stores (-1.46% weekly)The specialty stores sector includes companies dedicated to the sale of retail products focused on a single product category, such as clothing, carpet, books, or office supplies. A specialty store could face intense competition from big-box departmental chains, and therefore offering an adequate collection of the product type it specializes in is key in maintaining/growing its market.
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KMX and
Correlation & Price change
A.I.dvisor indicates that over the last year, KMX has been loosely correlated with CPRT. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if KMX jumps, then CPRT could also see price increases.
| Ticker / NAME | Correlation To KMX | 1D Price Change % | ||
|---|---|---|---|---|
| KMX | 100% | -0.55% | ||
| CPRT - KMX | 58% Loosely correlated | -0.40% | ||
| FND - KMX | 52% Loosely correlated | -0.74% | ||
| HZO - KMX | 52% Loosely correlated | +0.04% | ||
| HNST - KMX | 52% Loosely correlated | -1.92% | ||
| RH - KMX | 51% Loosely correlated | +0.80% | ||
More | ||||
RH and
Correlation & Price change
A.I.dvisor indicates that over the last year, RH has been loosely correlated with FND. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is some statistical probability that if RH jumps, then FND could also see price increases.
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| ALIL | 29.76 | 0.34 | +1.14% |
| Argent Focused Small Cap ETF (ALIL) | |||
| RUSC | 37.37 | 0.33 | +0.90% |
| Russell Investments U.S. Small Cap Equity ETF (RUSC) | |||
| GAPR | 42.66 | 0.23 | +0.53% |
| FT Vest U.S. Equity Moderate Buffer Fund - Apr (GAPR) | |||
| FLGV | 19.67 | -0.03 | -0.15% |
| Franklin U.S. Treasury Bond ETF (FLGV) | |||
| SZK | 17.32 | -0.15 | -0.84% |
| ProShares UltraShort Consumer Staples (SZK) | |||