As investors pay attention to signs of cooling off the second-hand car boom, CarMax (KMX) is preparing to release its third-quarter earnings report on Wednesday morning.CarMax stock rose close to the buying point.
Estimate: According to FactSet data, Wall Street expects CarMax’s earnings per share to increase by 2% to $1.45.Revenue is expected to increase by 42% to 7.378 billion US dollars.Same-store unit sales may increase by 11%, higher than the 6.2% in the previous quarter.
The stock price rose 4% to 136.99 points in Tuesday’s stock market trading.CarMax’s stock price rebounded above the 200-day line, but after being sold off since hitting a peak of 155.98 on November 8th, it is still below its 50-day moving average.According to MarketSmith, the relative strength and weakness of KMX stock is lacklustre, and there is little progress in chart analysis in 2021.
Among other used car sellers, Carvana (CVNA) and Shift Technologies (SFT) soared 10% and 5.2%, respectively, but both were close to 52-week lows.
With the booming used car market, the largest used car retailer in the United States has benefited from soaring prices this year.Due to the shortage of chips, the shortage of new cars has pushed up the prices of new and used cars.
According to Edmunds, in October, the average price of a used car exceeded US$27,000 for the first time.But the car information website warned that after hitting a record high, the demand and value of used cars may be cooling.
New car production and inventory began to slowly rise after experiencing a decline for most of this year.
CarMax also faces company-specific challenges.In the second quarter, CarMax’s revenue fell by 4% in the second quarter, although revenue increased by 49%, mainly due to increased SG&A expenses.
These include higher costs related to staffing and salaries, technology and digital platform spending, and advertising.
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Note: The information contained herein is not and should not be construed as an offer, solicitation or recommendation to buy or sell securities.The information was obtained from sources we believe to be reliable; however, no guarantee or implication is made as to its accuracy, timeliness or completeness.The authors may own the stocks they discuss.Information and content are subject to change without notice.
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Post time: Dec-22-2021
