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CarMax (KMX) Stock Moves -0.3%: What You Should Know

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CarMax (KMX - Free Report) closed at $72.53 in the latest trading session, marking a -0.3% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.46%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 6.06%.

Coming into today, shares of the used car dealership chain had gained 10.46% in the past month. In that same time, the Retail-Wholesale sector gained 0.44%, while the S&P 500 gained 0.85%.

CarMax will be looking to display strength as it nears its next earnings release. On that day, CarMax is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 53.21%. Our most recent consensus estimate is calling for quarterly revenue of $7.17 billion, down 23.02% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.26 per share and revenue of $26.63 billion. These totals would mark changes of -25.41% and -10.28%, respectively, from last year.

Any recent changes to analyst estimates for CarMax should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 19.47% lower. CarMax is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that CarMax has a Forward P/E ratio of 32.21 right now. This valuation marks a premium compared to its industry's average Forward P/E of 25.55.

Investors should also note that KMX has a PEG ratio of 1.75 right now. 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. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.81 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 74, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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

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