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CarMax (KMX) Stock Moves -0.81%: What You Should Know

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CarMax (KMX) closed at $100.35 in the latest trading session, marking a -0.81% move from the prior day. This change was narrower than the S&P 500's 1.84% loss on the day. At the same time, the Dow lost 1.38%, and the tech-heavy Nasdaq lost 0.38%.

Coming into today, shares of the used car dealership chain had lost 7.98% in the past month. In that same time, the Retail-Wholesale sector lost 0.61%, while the S&P 500 lost 1.96%.

Wall Street will be looking for positivity from CarMax as it approaches its next earnings report date. 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 $7.86 billion, up 52.21% from the year-ago period.

KMX's full-year Zacks Consensus Estimates are calling for earnings of $7.38 per share and revenue of $31.85 billion. These results would represent year-over-year changes of +63.27% and +68.06%, respectively.

It is also important to note the 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.23% lower. CarMax currently has a Zacks Rank of #3 (Hold).

Investors should also note CarMax's current valuation metrics, including its Forward P/E ratio of 13.7. Its industry sports an average Forward P/E of 16.2, so we one might conclude that CarMax is trading at a discount comparatively.

Also, we should mention that KMX has a PEG ratio of 0.86. 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 1.34 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 102, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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