Back to top

Image: Bigstock

CarMax (KMX) Stock Moves 0.54%: What You Should Know

Read MoreHide Full Article

In the latest trading session, CarMax (KMX - Free Report) closed at $149.62, marking a +0.54% move from the previous day. The stock outpaced the S&P 500's daily of 0%.

Heading into today, shares of the used car dealership chain had gained 8.79% over the past month, outpacing the Retail-Wholesale sector's gain of 7.25% and the S&P 500's gain of 7.79% in that time.

Wall Street will be looking for positivity from KMX as it approaches its next earnings report date. In that report, analysts expect KMX to post earnings of $1.47 per share. This would mark year-over-year growth of 3.52%. Our most recent consensus estimate is calling for quarterly revenue of $7.44 billion, up 43.44% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.33 per share and revenue of $30.17 billion. These totals would mark changes of +62.17% and +59.19%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for KMX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 0.7% lower. KMX is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, KMX is currently trading at a Forward P/E ratio of 20.29. This represents a discount compared to its industry's average Forward P/E of 20.54.

We can also see that KMX currently has a PEG ratio of 1.55. 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. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.51 as of yesterday's close.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


CarMax, Inc. (KMX) - free report >>

Published in