CarMax (KMX - Free Report) closed at $96.69 in the latest trading session, marking a -0.59% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.86%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 1.13%.
Heading into today, shares of the used car dealership chain had gained 4.39% over the past month, outpacing the Retail-Wholesale sector's gain of 2.75% and the S&P 500's gain of 3.66% in that time.
Wall Street will be looking for positivity from KMX as it approaches its next earnings report date. The company is expected to report EPS of $1.14, up 4.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.65 billion, up 8.15% from the year-ago period.
KMX's full-year Zacks Consensus Estimates are calling for earnings of $5.29 per share and revenue of $19.78 billion. These results would represent year-over-year changes of +10.44% and +8.83%, respectively.
Investors should also note any recent changes to analyst estimates for KMX. Recent revisions tend to reflect the latest 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. KMX currently has a Zacks Rank of #2 (Buy).
In terms of valuation, KMX is currently trading at a Forward P/E ratio of 18.38. This represents a discount compared to its industry's average Forward P/E of 19.09.
Investors should also note that KMX has a PEG ratio of 1.46 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Automotive - Retail and Wholesale - Parts stocks are, on average, holding a PEG ratio of 1.6 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 27, putting it in the top 11% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.