Analyst Ratings for KAR Auction Services Inc. (KAR)

Updated: 2017-07-26

KAR Auction Services Inc. (NYSE:KAR) was awarded an average rating of Buy from investment analysts following the stock. About 30 days ago, KAR was issued an average rating of Buy.

Of the 14 analysts covering the stock, 10 gave it a buy rating, 2 gave an overweight rating, 2 issued a hold rating, 0 gave an underweight rating, and 0 issued a sell rating. Today, there are 1 more analysts optimistic about the company future as compared with 90 days ago. Over the same time period, there has been an increase of 0 in the number of analysts with a negative outlook on the stock.

Several price targets were given for KAR by the analysts covering the stock. The most optimistic analyst gave a price target of 60, implying potential capital gains of 42.15 percent. The lowest price target was 47, which equates to a potential downside of 11.35 percent. One must be careful with overanalyzing price targets and ratings due to possible conflicts of interest among the analysts releasing them.

Analysts have revised their earnings estimates upwards for this quarter, by about 0 percent on average, compared to last month. This can be compared with the average change in earnings estimates over the past 3 months, which is -1.69 percent. Meanwhile, fiscal year estimates have been revised upwards by 0 percent, compared to last month. If we look at the last 90 days instead, we find a net average change of 0.68 percent in FY estimates.

Investors like to see analysts making revisions in the same direction, as that raises confidence in the revisions. Over the past month, 0 analysts increased their quarterly estimates, while 2 analysts revised their estimates downwards. During this time, 0 analysts made positive revisions in their estimates for this fiscal year's earnings, compared to 2 analysts that revised their FY estimates downwards.

The growth rate of KAR's earnings is estimated by analysts to be 34.03 percent. The PEG ratio of a stock is another value frequently studied by investors. A lower PEG ratio is favorable, because people typically see that as an indicator of higher growth relative to stock price. PEG ratios below 1 are often considered desirable, but many choose to perform ratio comparisons with other companies in the industry. KAR has a PEG ratio of 0.75.

KAR has traded between a high of 47.03 and a low of 38.16 over the past year. Today's price is 10.61 percent above the 52-week low, and 10.25 percent lower than its 52-week high. KAR has a price/earnings ratio of 25.48. Investors typically compare the P/E ratio to a company's peers in the industry. The KAR value stock report compares KAR to some of its peers using value stock charts. The market cap of KAR is $5.75 billion. KAR will post this quarters earnings in days, on 0000-00-00.