CarMax Inc. (NYSE: KMX) is scheduled to release its fiscal fourth-quarter financial results before the markets open on Thursday. The consensus estimates from Thomson Reuters are calling for $0.71 in earnings per share (EPS) on $3.68 billion in revenue. The same period from the previous year had $0.67 in EPS on $3.51 billion in revenue.
This stock is currently posting a loss for 2016. But this might prove to be a buying opportunity, one key analyst believes. The stock dropped to a 52-week low in February and is down significantly on a year-over-year basis as well. Many analysts are calling this a stock pickers market, and investors could stand to bottom fish stocks near their lows as opposed to looking for a bottom on the market as a whole.
CarMax has struggled lately as the combination of dislocations in the truck and sport utility vehicle (SUV) market and more challenging comparisons have weighed on used car unit comp growth at the chain. Although headwinds persist, analysts are optimistic that shares now largely seem to discount for nearer term challenges and that used car sales growth at CarMax should rebound as 2016 progresses.
A few analysts weighed in on CarMax prior to the release of the earnings report:
- Morgan Stanley has an Equal Weight rating and a $52 price target.
- Sterne Agee CRT has a Neutral rating.
- Wolfe Research has an Underperform rating.
- Northcoast Research has a Neutral rating.
So far in 2016, CarMax has underperformed the broad markets with the stock down 5%. However, over the past year the stock has dropped about 31%.
Shares of CarMax were trading up 3% at $52.86 on Wednesday, with a consensus analyst price target of $62.35 and a 52-week trading range of $41.25 to $74.55.
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.