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CarMax (KMX) Stock Moves -0.17%: What You Should Know
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CarMax (KMX - Free Report) closed at $64.66 in the latest trading session, marking a -0.17% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.08%. At the same time, the Dow lost 1.95%, and the tech-heavy Nasdaq lost 0.17%.
Heading into today, shares of the used car dealership chain had gained 2.74% over the past month, outpacing the Retail-Wholesale sector's loss of 2.53% and lagging the S&P 500's gain of 5.29% in that time.
CarMax will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.78, down 49.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, down 12.28% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $32.18 billion, which would represent changes of -39.88% and +0.87%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CarMax. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.84% lower. CarMax is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that CarMax has a Forward P/E ratio of 15.69 right now. Its industry sports an average Forward P/E of 17.8, so we one might conclude that CarMax is trading at a discount comparatively.
Meanwhile, KMX's PEG ratio is currently 2.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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CarMax (KMX) Stock Moves -0.17%: What You Should Know
CarMax (KMX - Free Report) closed at $64.66 in the latest trading session, marking a -0.17% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.08%. At the same time, the Dow lost 1.95%, and the tech-heavy Nasdaq lost 0.17%.
Heading into today, shares of the used car dealership chain had gained 2.74% over the past month, outpacing the Retail-Wholesale sector's loss of 2.53% and lagging the S&P 500's gain of 5.29% in that time.
CarMax will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.78, down 49.02% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.48 billion, down 12.28% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $32.18 billion, which would represent changes of -39.88% and +0.87%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CarMax. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.84% lower. CarMax is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that CarMax has a Forward P/E ratio of 15.69 right now. Its industry sports an average Forward P/E of 17.8, so we one might conclude that CarMax is trading at a discount comparatively.
Meanwhile, KMX's PEG ratio is currently 2.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Automotive - Retail and Wholesale - Parts was holding an average PEG ratio of 1.82 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.