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CarMax (KMX) Gains But Lags Market: What You Should Know
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CarMax (KMX - Free Report) closed at $105.80 in the latest trading session, marking a +0.53% move from the prior day. This change lagged the S&P 500's 1.86% gain on the day. Meanwhile, the Dow gained 1.79%, and the Nasdaq, a tech-heavy index, added 0.4%.
Coming into today, shares of the used car dealership chain had lost 5.16% in the past month. In that same time, the Retail-Wholesale sector lost 4.64%, while the S&P 500 lost 5.05%.
CarMax will be looking to display strength as it nears its next earnings release. In that report, analysts expect CarMax to post earnings of $1.41 per share. This would mark year-over-year growth of 11.02%. Our most recent consensus estimate is calling for quarterly revenue of $7.8 billion, up 51.02% from the year-ago period.
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. 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. 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 0.26% lower. CarMax currently has a Zacks Rank of #3 (Hold).
In terms of valuation, CarMax is currently trading at a Forward P/E ratio of 14.39. For comparison, its industry has an average Forward P/E of 15.84, which means CarMax is trading at a discount to the group.
Investors should also note that KMX has a PEG ratio of 0.91 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 1.33 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 110, putting it in the top 44% 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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CarMax (KMX) Gains But Lags Market: What You Should Know
CarMax (KMX - Free Report) closed at $105.80 in the latest trading session, marking a +0.53% move from the prior day. This change lagged the S&P 500's 1.86% gain on the day. Meanwhile, the Dow gained 1.79%, and the Nasdaq, a tech-heavy index, added 0.4%.
Coming into today, shares of the used car dealership chain had lost 5.16% in the past month. In that same time, the Retail-Wholesale sector lost 4.64%, while the S&P 500 lost 5.05%.
CarMax will be looking to display strength as it nears its next earnings release. In that report, analysts expect CarMax to post earnings of $1.41 per share. This would mark year-over-year growth of 11.02%. Our most recent consensus estimate is calling for quarterly revenue of $7.8 billion, up 51.02% from the year-ago period.
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. 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. 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 0.26% lower. CarMax currently has a Zacks Rank of #3 (Hold).
In terms of valuation, CarMax is currently trading at a Forward P/E ratio of 14.39. For comparison, its industry has an average Forward P/E of 15.84, which means CarMax is trading at a discount to the group.
Investors should also note that KMX has a PEG ratio of 0.91 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 1.33 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 110, putting it in the top 44% 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.