$KMX Q2 Earnings Report
$KMX Short
CarMax has been down 43% so far this year. One reason for this is that instead of taking advantage of high car prices, they are trying to attract as many new customers as possible by lowering their prices which not only affects their revenue but also makes investors stay away from them. On top of that, high inflation rates are also having a huge toll on them. As we saw with Walmart giving worse than anticipated results, I expect the same thing on this stock. Walmart is a place where people visit every day for their daily necessities which is the exact opposite of CarMax so if a company like Walmart is having trouble I'm expecting it to be even worse for CarMax. Not to mention the fact that they sell used cars so their customer base already is composed of people who don't have the buying power for new products. As also stated in their last quarter’s report by the CEO, they have been adversely affected due to slow economic growth and rising vehicle prices. During the time of this statement, the Fed hadn’t raised interest rates yet so I’m also expecting this to have an effect on them. Another thing contributing to their loss is gas prices soaring. As I mentioned before, their customer base is mostly people who rather buy cheaper alternatives so gas prices going up definitely isn’t a favorable thing. If in their report they mention that their plan of attracting customers has worked and they can expect long-term growth, I can see the stock prices going up however, I don't think this would be the case. Considering the economic growth trends, this is very unlikely as they also have been doing this for just a couple of months. The car price bubble is also already popped so vehicles are starting to go down either way, which would make potential customers also look at other car dealerships as an option.
Key Data Label Value Exchange NYSE Sector Consumer Discretionary Industry Other Specialty Stores 1 Year Target $120.00 Today's High/Low $91.45/$89.50 Share Volume 835,697 Average Volume 1,490,570 Previous Close $89.75 52 Week High/Low $155.98/$84.37 Market Cap 14,423,472,571 P/E Ratio 12.94 Forward P/E 1 Yr. 14.59 Earnings Per Share(EPS) $6.96 Annualized Dividend N/A Ex-Dividend Date N/A Dividend Pay Date N/A Current Yield N/A Beta 1.42 Ceo: Time: Before market Estimate: -9%