Analyst Ratings for CarMax Inc. (KMX)

Updated: 2017-07-29

Analysts covering CarMax Inc. (NYSE:KMX) have given it a consensus rating of Overweight. KMX had previously received a consensus rating of Overweight a month ago.

19 analysts issued ratings on the stock, where 9 gave KMX a buy rating, 1 gave an overweight rating, 7 issued a hold rating, 0 issued an underweight rating, and 2 gave a sell rating. Compared to three months ago, there has been an increase of 0 in the number of analysts with a positive outlook on the stock. During this time, the number of analysts bearish on the stock has increased by 0.

Investment analysts gave a few price targets for KMX. The most optimistic analyst gave a price target of 82, implying potential capital gains of 22.77 percent. The most pessimistic price target was 49, implying potential capital losses of -26.64 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 0.54 percent on average, compared to last month. That number becomes 2.74 percent if we expand the time horizon to include the past 3 months instead of just one. On the other hand, earnings estimates for the fiscal year have been revised upwards by 0.41 percent, as compared to a month ago. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes 5.85 percent.

People are often interested in whether analysts were united in the direction of their revisions. Over the past month, 1 analysts increased their quarterly estimates, which can be compared to the 0 analysts that decreased their estimates. Also over the last month, 1 analysts increased their estimates for the FY earnings, while 0 analysts made negative revisions to their fiscal year's estimates.

KMX has an estimated earnings growth rate of 6.65 percent as forecasted by analysts. The PEG ratio of a stock is another value frequently studied by investors. A lower PEG ratio is favorable, because that is often interpreted as the company being fairly priced relative to its growth rate. Wall Street investors typically prefer a PEG ratio to be smaller than 1, though it could be better to see where the ratio stands relative to peers in the industry. The PEG ratio of KMX is 2.87.

KMX has traded between a high of 69.11 and a low of 47.50 over the past year. Currently the stock is 40.61 percent higher than its low, and 3.36 percent lower than its 52-week high. KMX has a price/earnings ratio of 19.08. Investors typically compare the P/E ratio to a company's peers in the industry. The KMX value stock report compares KMX to some of its peers using value stock charts. The stock has a market capitalization of $12.18 billion. KMX will post this quarters earnings in days, on 0000-00-00.