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CarMax (KMX) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, CarMax (KMX - Free Report) closed at $129.34, marking a -1.94% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%.
Prior to today's trading, shares of the used car dealership chain had lost 1.71% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.13% and lagged the S&P 500's gain of 1.89% in that time.
KMX will be looking to display strength as it nears its next earnings release. In that report, analysts expect KMX to post earnings of $1.75 per share. This would mark a year-over-year decline of 2.23%. Meanwhile, our latest consensus estimate is calling for revenue of $6.42 billion, up 19.41% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.73 per share and revenue of $26.47 billion. These totals would mark changes of +48.89% and +39.69%, respectively, from last year.
Any recent changes to analyst estimates for KMX 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. 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. The Zacks Consensus EPS estimate has moved 3.26% higher within the past month. KMX is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that KMX has a Forward P/E ratio of 19.6 right now. For comparison, its industry has an average Forward P/E of 19.42, which means KMX is trading at a premium to the group.
It is also worth noting that KMX currently has a PEG ratio of 1.13. 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. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.47 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 8, putting it in the top 4% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, CarMax (KMX - Free Report) closed at $129.34, marking a -1.94% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%.
Prior to today's trading, shares of the used car dealership chain had lost 1.71% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.13% and lagged the S&P 500's gain of 1.89% in that time.
KMX will be looking to display strength as it nears its next earnings release. In that report, analysts expect KMX to post earnings of $1.75 per share. This would mark a year-over-year decline of 2.23%. Meanwhile, our latest consensus estimate is calling for revenue of $6.42 billion, up 19.41% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.73 per share and revenue of $26.47 billion. These totals would mark changes of +48.89% and +39.69%, respectively, from last year.
Any recent changes to analyst estimates for KMX 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. 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. The Zacks Consensus EPS estimate has moved 3.26% higher within the past month. KMX is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that KMX has a Forward P/E ratio of 19.6 right now. For comparison, its industry has an average Forward P/E of 19.42, which means KMX is trading at a premium to the group.
It is also worth noting that KMX currently has a PEG ratio of 1.13. 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. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.47 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 8, putting it in the top 4% 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.