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CarMax (KMX) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, CarMax (KMX - Free Report) closed at $99.82, marking a -1.53% move from the previous day. This change lagged the S&P 500's daily loss of 1.26%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq lost 0.44%.
Heading into today, shares of the used car dealership chain had gained 1.36% over the past month, lagging the Retail-Wholesale sector's gain of 7.3% and the S&P 500's gain of 6.07% in that time.
CarMax will be looking to display strength as it nears its next earnings release, which is expected to be April 12, 2022. The company is expected to report EPS of $1.34, up 5.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.7 billion, up 49.12% from the year-ago period.
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.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.56% lower. CarMax is currently a Zacks Rank #4 (Sell).
Looking at its valuation, CarMax is holding a Forward P/E ratio of 14.38. For comparison, its industry has an average Forward P/E of 16.77, which means CarMax is trading at a discount to the group.
We can also see that KMX currently has a PEG ratio of 0.91. 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.38 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 198, putting it in the bottom 22% 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.
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
In the latest trading session, CarMax (KMX - Free Report) closed at $99.82, marking a -1.53% move from the previous day. This change lagged the S&P 500's daily loss of 1.26%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq lost 0.44%.
Heading into today, shares of the used car dealership chain had gained 1.36% over the past month, lagging the Retail-Wholesale sector's gain of 7.3% and the S&P 500's gain of 6.07% in that time.
CarMax will be looking to display strength as it nears its next earnings release, which is expected to be April 12, 2022. The company is expected to report EPS of $1.34, up 5.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.7 billion, up 49.12% from the year-ago period.
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.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.56% lower. CarMax is currently a Zacks Rank #4 (Sell).
Looking at its valuation, CarMax is holding a Forward P/E ratio of 14.38. For comparison, its industry has an average Forward P/E of 16.77, which means CarMax is trading at a discount to the group.
We can also see that KMX currently has a PEG ratio of 0.91. 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. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.38 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 198, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.