Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Bitcoin USD

    70,769.56
    +2,014.73 (+2.93%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,261.21
    +12.72 (+0.24%)
     
  • Dow

    39,828.30
    +68.22 (+0.17%)
     
  • Nasdaq

    16,403.48
    +3.96 (+0.02%)
     
  • Gold

    2,242.00
    +29.30 (+1.32%)
     
  • Crude Oil

    83.10
    +1.75 (+2.15%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

CarMax (KMX) Dips More Than Broader Markets: What You Should Know

CarMax (KMX) closed at $65.56 in the latest trading session, marking a -1.8% move from the prior day. This change lagged the S&P 500's daily loss of 1.54%. Meanwhile, the Dow lost 1.45%, and the Nasdaq, a tech-heavy index, lost 0.16%.

Heading into today, shares of the used car dealership chain had gained 4.66% over the past month, outpacing the Retail-Wholesale sector's gain of 0.95% and the S&P 500's gain of 4.54% in that time.

Wall Street will be looking for positivity from CarMax as it approaches its next earnings report date. The company is expected to report EPS of $0.63, down 58.82% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.33 billion, down 14.06% from the prior-year quarter.

KMX's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $31.8 billion. These results would represent year-over-year changes of -42.94% and -0.33%, respectively.

ADVERTISEMENT

Investors might also notice recent changes to analyst estimates for CarMax. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 8.73% lower. CarMax currently has a Zacks Rank of #5 (Strong Sell).

Investors should also note CarMax's current valuation metrics, including its Forward P/E ratio of 17.05. This represents a discount compared to its industry's average Forward P/E of 18.75.

Investors should also note that KMX has a PEG ratio of 2.71 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. The Automotive - Retail and Wholesale - Parts industry currently had an average PEG ratio of 1.79 as of yesterday's close.

The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CarMax, Inc. (KMX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research