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CarMax (KMX) Dips More Than Broader Markets: What You Should Know
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CarMax (KMX - Free Report) closed at $66.21 in the latest trading session, marking a -0.53% move from the prior day. This move lagged the S&P 500's daily loss of 0.39%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the used car dealership chain had gained 19.52% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.84% and the S&P 500's gain of 6.77% in that time.
CarMax will be looking to display strength as it nears its next earnings release. On that day, CarMax is projected to report earnings of $0.70 per share, which would represent a year-over-year decline of 54.25%. Our most recent consensus estimate is calling for quarterly revenue of $7.45 billion, down 12.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.02 per share and revenue of $31.99 billion. These totals would mark changes of -41.48% and +0.28%, respectively, from last year.
Any recent changes to analyst estimates for CarMax should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.27% lower. CarMax is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that CarMax has a Forward P/E ratio of 16.55 right now. This represents a discount compared to its industry's average Forward P/E of 18.1.
We can also see that KMX currently has a PEG ratio of 2.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CarMax (KMX) Dips More Than Broader Markets: What You Should Know
CarMax (KMX - Free Report) closed at $66.21 in the latest trading session, marking a -0.53% move from the prior day. This move lagged the S&P 500's daily loss of 0.39%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the used car dealership chain had gained 19.52% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.84% and the S&P 500's gain of 6.77% in that time.
CarMax will be looking to display strength as it nears its next earnings release. On that day, CarMax is projected to report earnings of $0.70 per share, which would represent a year-over-year decline of 54.25%. Our most recent consensus estimate is calling for quarterly revenue of $7.45 billion, down 12.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.02 per share and revenue of $31.99 billion. These totals would mark changes of -41.48% and +0.28%, respectively, from last year.
Any recent changes to analyst estimates for CarMax should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.27% lower. CarMax is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that CarMax has a Forward P/E ratio of 16.55 right now. This represents a discount compared to its industry's average Forward P/E of 18.1.
We can also see that KMX currently has a PEG ratio of 2.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.