CarMax (KMX) Stock Moves -0.67%: What You Should Know
CarMax (KMX) closed at $98.55 in the latest trading session, marking a -0.67% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.74%.
Heading into today, shares of the used car dealership chain had lost 8.55% over the past month, lagging the Retail-Wholesale sector's loss of 8% and the S&P 500's loss of 4.6% 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 $1.41, up 11.02% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.8 billion, up 51.02% from the year-ago period.
Investors should also note any recent changes to analyst estimates for CarMax. Recent revisions tend to reflect the latest 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.
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. The Zacks Consensus EPS estimate has moved 0.26% lower within the past month. CarMax currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that CarMax has a Forward P/E ratio of 13.57 right now. This valuation marks a discount compared to its industry's average Forward P/E of 15.84.
Also, we should mention that KMX has a PEG ratio of 0.86. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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 197, putting it in the bottom 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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CarMax, Inc. (KMX) : Free Stock Analysis Report
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