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CarMax (KMX) Stock Sinks As Market Gains: What You Should Know

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CarMax (KMX - Free Report) closed at $124.24 in the latest trading session, marking a -0.3% move from the prior day. This change lagged the S&P 500's daily gain of 0.13%.

Heading into today, shares of the used car dealership chain had lost 8.32% over the past month, lagging the Retail-Wholesale sector's loss of 4.68% and the S&P 500's gain of 1.82% 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 $1.76 per share. This would mark a year-over-year decline of 1.68%. Meanwhile, our latest consensus estimate is calling for revenue of $6.42 billion, up 19.41% from the prior-year quarter.

KMX's full-year Zacks Consensus Estimates are calling for earnings of $6.97 per share and revenue of $26.47 billion. These results would represent year-over-year changes of +54.2% and +39.69%, respectively.

Any recent changes to analyst estimates for KMX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 3.67% higher. KMX currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note KMX's current valuation metrics, including its Forward P/E ratio of 17.89. This represents a discount compared to its industry's average Forward P/E of 18.51.

It is also worth noting that KMX currently has a PEG ratio of 1.03. 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. KMX's industry had an average PEG ratio of 1.44 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 7, putting it in the top 3% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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