Zacks Upgrades Earnings Outlook for CarMax and Diamondback Energy Following Strong Results

Key Facts

In a move reflecting growing optimism in the retail and energy sectors, Zacks Research has upgraded its FY2027 earnings per share estimates for CarMax to $2.58, up from the previous $2.24 forecast. Additionally, the firm adjusted its Q2 2026 EPS estimate for Diamondback Energy slightly upward to $5.24. These revisions follow recent quarterly earnings reports where both companies exceeded Wall Street expectations, prompting analysts to recalibrate their near-term and long-term financial outlooks.

These positive adjustments come as the automotive retail sector navigates interest rate pressures, with peers like AutoNation reporting mixed earnings growth per market data. For Diamondback Energy, the upgraded outlook aligns with stabilized crude prices and superior operational efficiency in the Permian Basin compared to industry rivals. Per market data, upward revisions from Zacks often serve as a catalyst for improved investor sentiment, even as some other institutions maintain more cautious 'Hold' or 'Reduce' ratings.

Regarding current market levels, KMX shares closed at $50.98 while FANG closed at $172.04 (close July 02, 2026). Traders are closely monitoring the Michigan Consumer Sentiment index, which recently printed at 49.5, as a key driver for automotive spending. Upcoming speeches from Federal Reserve officials will also be critical catalysts to watch, as monetary policy direction will dictate borrowing costs for both corporate expansion and consumer financing.