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CarMax (KMX) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, CarMax (KMX - Free Report) closed at $72.66, marking a -1.77% move from the previous day. This change lagged the S&P 500's 0.87% gain on the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.23%.
Coming into today, shares of the used car dealership chain had gained 19.25% in the past month. In that same time, the Retail-Wholesale sector gained 5.85%, while the S&P 500 gained 10.5%.
CarMax will be looking to display strength as it nears its next earnings release. In that report, analysts expect CarMax to post earnings of $0.78 per share. This would mark a year-over-year decline of 49.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.48 billion, down 12.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $31.96 billion, which would represent changes of -39.88% and +0.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CarMax. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 3.78% lower. CarMax is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, CarMax currently has a Forward P/E ratio of 17.92. For comparison, its industry has an average Forward P/E of 18.72, which means CarMax is trading at a discount to the group.
It is also worth noting that KMX currently has a PEG ratio of 2.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KMX's industry had an average PEG ratio of 1.72 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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 Sinks As Market Gains: What You Should Know
In the latest trading session, CarMax (KMX - Free Report) closed at $72.66, marking a -1.77% move from the previous day. This change lagged the S&P 500's 0.87% gain on the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.23%.
Coming into today, shares of the used car dealership chain had gained 19.25% in the past month. In that same time, the Retail-Wholesale sector gained 5.85%, while the S&P 500 gained 10.5%.
CarMax will be looking to display strength as it nears its next earnings release. In that report, analysts expect CarMax to post earnings of $0.78 per share. This would mark a year-over-year decline of 49.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.48 billion, down 12.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.13 per share and revenue of $31.96 billion, which would represent changes of -39.88% and +0.18%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for CarMax. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 3.78% lower. CarMax is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, CarMax currently has a Forward P/E ratio of 17.92. For comparison, its industry has an average Forward P/E of 18.72, which means CarMax is trading at a discount to the group.
It is also worth noting that KMX currently has a PEG ratio of 2.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KMX's industry had an average PEG ratio of 1.72 as of yesterday's close.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.