CarMax Forecast Update: Analysts Adjust Price Targets and Ratings
CarMax Readies for Third Quarter Financial Results
CarMax, Inc. (NYSE: KMX) is set to announce its third-quarter financial results soon, following closely watched developments in the automotive retail market. Analysts have high expectations, predicting improved earnings compared to the same period last year.
Projected Earnings and Revenue
Analysts anticipate that CarMax will report earnings of 61 cents per share for the quarter, an increase from the previous year’s earnings of 52 cents per share. Despite these positive earnings expectations, revenue forecasts suggest a slight decline from $6.15 billion last year to $6.05 billion this year.
Recent Performance and Stock Movement
On September 26, CarMax reported earnings per share of 85 cents, which fell slightly short of the analyst consensus estimate of 86 cents. Following this announcement, shares of CarMax experienced a decrease of 2.1%, closing at $81.42. Such fluctuations in stock performance indicate the volatile nature of the automotive sector.
Analyst Ratings Summary
Recent updates from prominent analysts provide insight into their expectations for CarMax moving forward:
- JP Morgan's Rajat Gupta maintained an Underweight rating but increased the price target from $65 to $70 on December 5, with an impressive accuracy rate of 77%.
- Stephens & Co. analyst Jeff Lick initiated coverage with an Equal-Weight rating, setting a price target of $86, supported by a 67% accuracy rate.
- RBC Capital's Steven Shemesh reiterated an Outperform rating with a target of $82 on October 16, demonstrating 65% accuracy in his analyses.
- Wedbush's Seth Basham also reiterated an Outperform rating and raised the price target to $95, showcasing a 76% accuracy rate.
- Oppenheimer's Brian Nagel maintained his Outperform rating with a target set at $105, reflecting a 73% accuracy rate.
Market Sentiment and Investment Considerations
As investors assess CarMax's viability, numerous analysts’ recommendations shape the market's expectations. Given the fluctuations in stock value and the varied analyst ratings, potential investors may want to carefully evaluate their options in light of upcoming earnings reports and market responses.
Frequently Asked Questions
What is CarMax's expected earnings for the upcoming quarter?
Analysts expect CarMax to report earnings of 61 cents per share for the upcoming quarter.
How did CarMax's earnings compare to last year's results?
Last year's earnings were 52 cents per share, showing an increase in expected earnings this year.
What impact have recent analyst ratings had on CarMax's stock?
Recent analyst ratings and adjustments have resulted in fluctuations in CarMax's stock price, indicating a mixed market sentiment.
Are there any recent changes in CarMax stock ratings?
Yes, several analysts have revised their price targets and ratings, which can influence investor decisions and market performance.
What should investors consider before purchasing CarMax stock?
Investors should evaluate the latest earnings projections, analyst ratings, and overall market conditions before making investment decisions regarding CarMax.
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