In the latest trading session, CarMax (KMX) closed at $124.44, marking a -0.31% move from the previous day. This move lagged the S&P 500's daily loss of 0.25%.
Prior to today's trading, shares of the used car dealership chain had lost 3.37% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.06% and the S&P 500's gain of 1.26% in that time.
Wall Street will be looking for positivity from KMX as it approaches its next earnings report date. The company is expected to report EPS of $1.60, up 595.65% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.03 billion, up 86.73% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.79 per share and revenue of $22.67 billion. These totals would mark changes of +28.1% and +19.61%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for KMX. 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.
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.
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 0.22% lower. KMX is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, KMX currently has a Forward P/E ratio of 21.56. For comparison, its industry has an average Forward P/E of 20.73, which means KMX is trading at a premium to the group.
We can also see that KMX currently has a PEG ratio of 1.88. 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 was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Automotive - Retail and Wholesale - Parts industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 87, putting it in the top 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.
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CarMax, Inc. (KMX) : Free Stock Analysis Report
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