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CarMax (KMX) Dips More Than Broader Markets: What You Should Know
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CarMax (KMX - Free Report) closed the most recent trading day at $102.59, moving -1.8% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the used car dealership chain had lost 1.11% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.29% and the S&P 500's gain of 2.67% in that time.
CarMax will be looking to display strength as it nears its next earnings release. On that day, CarMax is projected to report earnings of $1.34 per share, which would represent year-over-year growth of 5.51%. Our most recent consensus estimate is calling for quarterly revenue of $7.59 billion, up 47.04% from the year-ago period.
Any recent changes to analyst estimates for CarMax should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 3.12% lower. CarMax is currently a Zacks Rank #4 (Sell).
In terms of valuation, CarMax is currently trading at a Forward P/E ratio of 14.71. For comparison, its industry has an average Forward P/E of 16.32, which means CarMax is trading at a discount to the group.
Meanwhile, KMX's PEG ratio is currently 0.93. 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 1.37 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 201, putting it in the bottom 21% 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.
To follow KMX in the coming trading sessions, be sure to utilize Zacks.com.
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CarMax (KMX) Dips More Than Broader Markets: What You Should Know
CarMax (KMX - Free Report) closed the most recent trading day at $102.59, moving -1.8% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the used car dealership chain had lost 1.11% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.29% and the S&P 500's gain of 2.67% in that time.
CarMax will be looking to display strength as it nears its next earnings release. On that day, CarMax is projected to report earnings of $1.34 per share, which would represent year-over-year growth of 5.51%. Our most recent consensus estimate is calling for quarterly revenue of $7.59 billion, up 47.04% from the year-ago period.
Any recent changes to analyst estimates for CarMax should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 3.12% lower. CarMax is currently a Zacks Rank #4 (Sell).
In terms of valuation, CarMax is currently trading at a Forward P/E ratio of 14.71. For comparison, its industry has an average Forward P/E of 16.32, which means CarMax is trading at a discount to the group.
Meanwhile, KMX's PEG ratio is currently 0.93. 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 1.37 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 201, putting it in the bottom 21% 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.
To follow KMX in the coming trading sessions, be sure to utilize Zacks.com.