CarMax (KMX) Testing All-Time High Ahead of Q1 Report

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Auto retailer CarMax (KMX) reports first-quarter numbers June 21. The company will release its quarterly numbers before the market open with the consensus calling for earnings of $1.48 on sales of $5.18 billion. KMX has appreciated 31% on the year.

Technical Analysis

KMX was recently trading at $82.15 down $1.17 from its 12-month high and $26.91 above its 12-month low. InvestorsObserver’s Stock Score Report gives KMX a 85 long-term technical score and a 81 short-term technical score. The stock has recent support above $76 and recent resistance below $83.5. Of the 11 analysts who cover the stock 8 rate it Strong Buy, 2 rate it Buy, 1 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, KMX gets a score of 80 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

KMX shares recently hit an all-time high and the stock has remained resilient despite volatility in the overall market. The U.S. economy remains on solid ground with low unemployment and strong consumer confidence, and while the auto industry has slowed down, overall economic conditions remain very favorable for the sector. CarMax has shown impressive earnings growth of 13.7% per annum over the last five years, and look ahead analysts expect more of the same with forecast annual growth of 12.2% for the next five years. The company posted positive earnings surprises the last four quarters, but sales have come in slightly below estimates the last two quarters. Wall Street has overlooked the revenue misses in put its focus on the positive earnings surprises and the company’s strong growth history. The street expects another earnings beat with a whisper number of $1.51 for the quarter. The stock has an attractive valuation with shares trading at just 14.7 times future earnings and analysts have an average price target of $85.22.

KMX
About CarMax Inc

CarMax sells, finances, and services used and new cars through a chain of more than 200 retail stores. It was formed in 1993 as a unit of Circuit City and spun off into an independent company in late 2002. Used-vehicle sales account for about 84% of revenue, wholesale about 13%, and the remaining portion is composed of extended service plans and repair. In fiscal 2019, the company retailed and wholesaled 748,961 and 447,491 used vehicles, respectively.

  • Last Price:
    $85.85
  • Previous Close:
    $84.76
  • Change:
    $1.09 (1.29%)
  • Open:
    $85.65
  • Volume:
    415,111
  • Average Volume (100 Day):
    1,846,953
  • Market Capitalization:
    $14.2 B
  • Day's Range:
    $85.02 - $86.05
  • Dividend Yield:
    0.00%
  • 52-week Range:
    $89 - $55.24
  • P-E:
    16.80
  • EPS:
    $5.05
  • Earnings Date:
    9/25/19
  • Ex Dividend Date:
    N/A
  • Sector:
    Consumer Cyclical
  • Industry:
    Auto & Truck Dealerships
  • Analyst Average Recommendation:
    Moderate Buy

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