CarMax (KMX) Falls: Stock Tumbles 9.5% – Tale of the Tape

Zacks

CarMax Inc. (KMX) saw a big move last session, as the company’s shares fell by over 9% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading below the volatile price range of $51.57 to $53.57 in the past one-month time frame.

The retailer of used vehicles has seen a mixed track record when it comes to current year estimate revisions over the past few weeks (2 increases, 1 decrease), and the consensus for earnings hasn’t been in a trend either. This recent price action is discouraging, so make sure to keep a close watch on this firm in the near future, and especially on earnings estimates following the recent slump.

KMX currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector include Advance Auto Parts Inc. (AAP) and O'Reilly Automotive Inc. (ORLY). One can also consider America's Car-Mart Inc. (CRMT) from the broader Automobile sector. All these stocks hold a Zacks Rank #2 (Buy).

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