Bullish Prospects For CarMax Inc. (NYSE: KMX) Shares In 2022
Posted On March 25, 2022
CarMax Inc. (NYSE:KMX) price on Friday, March 25, fall -1.95% below its previous day’s close as a downside momentum from buyers pushed the stock’s value to $97.34.
A look at the stock’s price movement, the level at last check in today’s session was $99.28, moving within a range at $98.70 and $100.58. The beta value (5-Year monthly) was 1.49 while the PE ratio in trailing twelve months stood at 13.69. Turning to its 52-week performance, $155.98 and $96.39 were the 52-week high and 52-week low respectively. Overall, KMX moved -1.07% over the past month.
CarMax Inc.’s market cap currently stands at around $15.97 billion, with investors looking forward to this quarter’s earnings report slated for Mar 30, 2022 – Apr 04, 2022. Analysts project the company’s earnings per share (EPS) to be $1.43, which has seen fiscal year 2022 EPS growth forecast to increase to $7.29 and about $7.32 for fiscal year 2023. Per the data, EPS growth is expected to be 61.30% for 2022 and 0.40% for the next financial year.
Analysts have a consensus estimate of $7.68 billion for the company’s revenue for the quarter, with a low and high estimate of $6.98 billion and $8.35 billion respectively. The average forecast suggests up to a 48.70% growth in sales growth compared to quarterly growth in the same period last fiscal year. Wall Street analysts have also projected the company’s year-on-year revenue for 2022 to grow to $31.41 billion, representing a 65.70% jump on that reported in the last financial year.
Revisions could be used as tool to get short term price movement insight, and for the company that in the past seven days was 5 upward and no downward review(s). Turning to the stock’s technical picture we see that short term indicators suggest on average that KMX is a 100% Sell. On the other hand, the stock is on average a 100% Sell as suggested by medium term indicators while long term indicators are putting the stock in 100% Sell category.
18 analyst(s) have given their forecast ratings for the stock on a scale of 1.00-5.00 for a strong buy to strong sell recommendation. A total of 3 analyst(s) rate the stock as a Hold, 11 recommend KMX as a Buy and 3 give it an Overweight rating. Meanwhile, 0 analyst(s) rate the stock as Underweight and 1 say it is a Sell. As such, the average rating for the stock is Overweight which could provide an opportunity for investors keen on increasing their holdings of the company’s stock.
The technical evaluation for the stock shows the PEG ratio is 0.83, with KMX’s current price about -5.07% and -8.57% off the 20-day and 50-day simple moving averages respectively. The Relative Strength Index (RSI, 14) currently prints 37.12, while 7-day volatility ratio is 3.19% and 3.88% in the 30-day chart. Further, CarMax Inc. (KMX) has a beta value of 1.49, and an average true range (ATR) of 3.89. Analysts have given the company’s stock an average 52-week price target of $141.54, forecast between a low of $87.00 and high of $195.00. Looking at the price targets, the low is 10.62% off recent price level in today’s trading while to achieve the yearly target high, it has to move -100.33%. Nonetheless, investors will most likely welcome a -43.83% jump to $140.00 which is the analysts’ median price.
In the market, a comparison of CarMax Inc. (KMX) and its peers suggest the former has performed considerably weaker. Data shows KMX’s intraday price has changed -1.95% today and -23.98% over the past year. Comparatively, Carvana Co. (CVNA) has moved -8.42% so far today and only -42.02% in the past 12 months. Looking at another peer, we see that IAA Inc. (IAA) price has dipped -0.08% on the day. However, the stock is -30.73% off its price today a year ago. Moreover, ACV Auctions Inc. (ACVA) is also down -3.05% in today’s trading while keeping a a downtrend of -50.83% over the past year. Elsewhere, the overall performance for the S&P 500 and Dow Jones Industrial shows that the indexes are up 0.32% and 0.49% respectively on the day as seen in early trades.
If we refocus on CarMax Inc. (NYSE:KMX), historical trading data shows that trading volumes averaged 1.52 million over the past 3 months. The company’s latest data on shares outstanding shows there are 162.01 million shares.
The 0.31% of CarMax Inc.’s shares are in the hands of company insiders while institutional holders own 97.90% of the company’s shares. Current price change has pushed the stock -23.77% YTD, which shows the potential for further growth is there. It is this reason that could see investor optimism for the KMX stock continues to rise going into the next quarter.