NEW YORK - CarMax Inc (NYSE:KMX). experienced another day of losses in a mixed trading session today, with its stock price dropping by 5.56% to close at $64.15. This decline marked the second consecutive day the company's shares have fallen, now sitting significantly below its year-high of $87.50 recorded on July 19th.
In a day where the S&P 500 Index saw a slight increase of 0.12% and the Dow Jones Industrial Average edged down by 0.13%, CarMax underperformed compared to some of its industry peers. Carvana Co (NYSE:CVNA)., ACV Auctions Inc., and OPENLANE Inc. also faced declines but were less severe than CarMax's, with their shares decreasing by 5.27%, 1.72%, and 1.77% respectively.
The trading volume for CarMax surged to a notable high, with approximately 3.3 million shares changing hands, which is well above the 50-day average volume of 2.2 million. The heightened activity underscores investor reactions to the company's recent performance amidst a volatile market environment.
Investors are keeping an eye on the automotive retail sector as companies like CarMax navigate through market fluctuations that have impacted stock valuations across various industries.
InvestingPro Insights
As per InvestingPro data, CarMax Inc. carries a market cap of $10.18B and a P/E ratio of 22.19. Over the last quarter of 2024, the company experienced a revenue decline of 18.53%, with a total revenue of $28,544.35M. The company's gross profit margin stood at 11.39% during the same period.
InvestingPro Tips suggest a declining trend in earnings per share for CarMax. In addition, 8 analysts have revised their earnings downwards for the upcoming period, indicating potential challenges ahead. However, it's important to note that CarMax remains a prominent player in the Specialty Retail industry, with liquid assets exceeding short-term obligations, providing some financial stability amidst market fluctuations. For more comprehensive insights, readers can explore the additional 11 tips available on InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.