During the last three months, a group of eight analysts, who are employed by prominent Wall Street banks, have shared their insights on the stock of CarMax (NYSE:KMX). Their primary responsibility is to thoroughly comprehend a company’s operations in order to predict its stock performance over the next year. Here is a breakdown of the analysts’ ratings for CarMax:
– Bullish: 0
– Somewhat Bullish: 4
– Indifferent: 3
– Somewhat Bearish: 1
– Bearish: 0
In total, there have been eight ratings provided. Interestingly, the average price target determined by these analysts is $85.38, which is higher than the current price of CarMax at $82.41. This suggests a potential upside. It is noteworthy that this average price target has experienced a significant increase of 16.69% compared to the previous average of $73.17.
To arrive at their conclusions, analysts typically engage in forecasting a company’s future earnings for the next five years, while also evaluating the predictability and risk associated with the company’s revenue streams. They actively participate in company conference calls and meetings, meticulously examine financial statements, and maintain communication with insiders to gather valuable information for their stock ratings.
Furthermore, some analysts may go beyond stock ratings and provide additional forecasts for metrics such as growth estimates, earnings, and revenue. These forecasts serve as supplementary guidance for investors considering investments in specific stocks.
CarMax, Inc.
KMX
Strong Buy
Updated on: 19/09/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
CarMax Inc.: Stable Performance and Potential Earnings Growth in the Retail Trade Sector
KMX stock had a relatively stable performance on September 19, 2023. The stock opened at $81.64 and fluctuated between $81.22 and $81.98. The trading volume for the day was 2,681, significantly lower than the average volume of 1,544,280 over the past three months.
CarMax Inc. is a well-established player in the retail trade sector. The company has a market capitalization of $13.2 billion.
CarMax experienced a decline of 56.94% in earnings growth in the previous year. This year, earnings growth decreased by only 0.23%. However, the company is expected to achieve a significant earnings growth of 15.27% over the next five years.
The revenue growth for CarMax in the last year was negative, with a decline of 6.95%.
The price-to-earnings (P/E) ratio of 28.3 suggests that investors are willing to pay a premium for each dollar of CarMax’s earnings. The price-to-sales ratio of 0.37 indicates that the stock is trading at a relatively low price compared to its revenue. The price-to-book ratio of 2.34 suggests that the stock is trading at a moderate premium to its book value.
CarMax’s performance on September 19, 2023, was relatively stable compared to its peers. Carvana Co saw a slight increase of 1.46% in its stock price, while Openlane Inc had a smaller increase of 0.64%. America’s CAR-MART Inc experienced no change in its stock price.
CarMax is scheduled to release its next earnings report on September 28, 2023. Analysts are forecasting an earnings per share (EPS) of $0.74 for this quarter. The company reported annual revenue of $29.7 billion and a net profit margin of 1.63% in the last fiscal year.
Although CarMax has faced challenges in recent years, the company’s solid market presence and potential earnings growth in the future may attract investors. However, thorough research and analysis are crucial before making any investment decisions.
Carmax Inc Stock Analysis: Price Forecasts and Consensus Rating
On September 19, 2023, Carmax Inc’s stock performance was analyzed based on data from CNN Money. The 14 analysts offering 12-month price forecasts for Carmax Inc had a median target of $81.00, with a high estimate of $96.00 and a low estimate of $44.00. The median estimate represented a -1.20% decrease from the last price of $81.98.
According to the data, the current consensus among 19 polled investment analysts was to hold stock in Carmax Inc. This rating had remained steady since September, indicating that there had been no changes from a hold rating.
In terms of financial performance, Carmax Inc reported earnings per share of $0.74 for the current quarter. This was accompanied by sales of $7.0 billion. The reporting date for these figures was set for September 28.
Based on the analysts’ price forecasts, it seems that there may be a slight decrease in the stock price of Carmax Inc in the coming months. However, it is important to note that these forecasts are subject to change as new information becomes available.
Investors should consider the consensus rating of holding stock in Carmax Inc, as it suggests that analysts do not currently see a strong buy or sell signal. However, it is always advisable to conduct thorough research and analysis before making any investment decisions.
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