CarMax stock: buy or sell?
May 20th, 2019
CarMax Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. The company operates in two segments, CarMax Sales Operations and CarMax Auto Finance.
Should I buy CarMax stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to define your own trading plan that fits your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with CarMax stock situation right now, therefore this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is CarMax stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we collected 7 ratings published for KMX stock in the last 30 days. The general sentiment of these ratings is bullish for KMX stock, with 6 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-4-17||Credit Suisse Group||Outperform||Outperform|
CarMax stock analysis
Shares of CarMax ended today at $76.86 and grew a slightly good 0.62%.
CarMax ended today at $76.86 and grew a slightly good 0.62%. Since March when KMX stock price broke up the SMA200d line, it gained $13.18 (20.70%).
CarMax closed this week at $76.86 and appreciated a slightly fine 0.62%.
Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $79.61 resistance. Far behind is the all-time high CarMax hit by mid June 2018 but price is just -5.89% below that top. Since late March when KMX stock price broke up the SMA40w line, it gained $15.23 (24.71%).
CarMax stock price history
CarMax IPO was on February 4th, 1997 at $11.00 per share1. Since then, KMX stock grew a 598.70%, with an average of 27.20% per year. If you had invested right after KMX's IPO a $1,000 in CarMax stock in 1997, it would worth $5,987.00 today.
1: Adjusted price after possible price splits or reverse-splits.
CarMax stock historical price chart
KMX stock reached all-time highs on June with a price of $81.67.
CarMax stock price target is $77.60How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 5 price predictions for KMX stock published in the last month:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-4-17||Morgan Stanley||Raises Target||$89.00||$93.00||4.5%|
|2019-4-17||Credit Suisse Group||Reiterates||$75.00||$84.00||12%|
|2019-4-1||Buckingham Research||Raises Target||$76.00||$81.00||6.6%|
|2019-1-2||Wedbush||Set Price Target||n/a||$70.00||-|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn March, CarMax reported its latest financial data, posting a beatiful growth for the Earnings per Share (EPS) ratio. Experts were expecting $1.04 per share, but CarMax posted $1.13.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsCompared to 2018, last anual turnover report draw a great increase of 6.15% to $18,173.10 M dollars. In contrast, its earnings margin (compared to revenues) remained stable to 4.64%, that is $842.41 million.
|2013||$10,960 M||-||$434 M4.0%||-|
|2014||$12,570 M||14.69%||$493 M3.9%||13.43%|
|2015||$14,269 M||13.51%||$597 M4.2%||21.27%|
|2016||$15,150 M||6.17%||$623 M4.1%||4.36%|
|2017||$15,875 M||4.79%||$627 M3.9%||0.57%|
|2018||$17,120 M||7.84%||$664 M3.9%||5.92%|
|2019||$18,173 M||6.15%||$842 M4.6%||26.85%|
Quarterly financial resultsCarMax reported $4,318.60 million in revenues for 2019-Q1, a 0.53% up compared to previous quarter. Reported quarter income marked $192.56 million with a profit margin of 4.46%. Profit margin stayed stable a 0.03% compared to previous quarter when profit margin was 4.43%. When comparing revenues to same quarter last year, CarMax sales marked a decent growth and soared a 5.74%.
|2017-Q2||$4,540 M||-||$212 M4.7%||-|
|2017-Q3||$4,390 M||-3.30%||$181 M4.1%||-14.30%|
|2017-Q4||$4,107 M||-6.45%||$149 M3.6%||-17.96%|
|2018-Q1||$4,084 M||-0.56%||$122 M3.0%||-17.93%|
|2018-Q2||$4,793 M||17.34%||$239 M5.0%||95.39%|
|2018-Q3||$4,766 M||-0.55%||$221 M4.6%||-7.44%|
|2018-Q4||$4,296 M||-9.87%||$190 M4.4%||-13.84%|
|2019-Q1||$4,319 M||0.53%||$193 M4.5%||1.18%|
CarMax ownershipWhen you are planning to invest in a stock, it's always worth to review its ownership structure.
CarMax shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.54% of all shares.
Bearish positions for KMX stock account 0.00%, no big difference from last month.
For a better understanding, the next table shows ownership data compared to other related companies:
|Market cap||$12.8 B||$3.6 B||$14.9 B||$650.1 M||$1.4 B|
|Total shares||166.2 M||89.2 M||228.2 M||6.7 M||17.8 M|
|Float shares||153.8 M||58.9 M||199.4 M||6.3 M||15.5 M|
|- Institutional holdings (%)||106.1%||87.1%||86.9%||74.9%||106.4%|
|- Insider holdings (%)||0.5%||13.6%||12.9%||8.2%||6.8%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Monday, May 20th, 2019|
|Day range||$75.94 - $77.43|
|Average true range||$1.55|
|50d mov avg||$71.67|
|100d mov avg||$66.64|
|200d mov avg||$68.52|
CarMax performanceTo better understand CarMax performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare CarMax to AutoNation, Copart, America's Car-Mart, Group 1 Automotive, KAR Auction Services, Penske Automotive and Rush Enterprises:
|GPIGroup 1 Automotiv...||24.53%||39.32%||8.36%|
|KARKAR Auction Servi...||17.32%||-1.76%||5.69%|
CarMax competitorsWe picked a few stocks to conform a list of CarMax competitors to check if you are interested in investing in KMX:
- AutoNation (AN)
- Copart (CPRT)
- America's Car-Mart (CRMT)
- Group 1 Automotive (GPI)
- KAR Auction Services (KAR)
- Penske Automotive (PAG)
- Rush Enterprises (RUSHA)
Latest CarMax stock news
- Seeking AlphaCarMax Is Learning From CarvanaApril 6, 2019
- Seeking AlphaCarMax: Raising Price Target To $126, Omnichannel Launch Much Stronger Than ExpectedApril 3, 2019
- Seeking AlphaLong CarMax: Accelerating Into Top GearApril 3, 2019
- InvestorPlaceCarMax Earnings: KMX Stock Revs Higher on Profit BeatMarch 29, 2019
- InvestorPlace3 Big Stock Charts for Wednesday: Chubb, Symantec and CarMaxMarch 27, 2019