CarMax Stock Got Clobbered 17% in One Day. Is the Stock a Buy Now?
CarMax (NYSE: KMX) stock had a rough Thursday last week after the company reported weaker-than-expected earnings. It was a seemingly perfect storm of negativity: finding investor sentiment declining, missing analysts' estimates, and pulling its guidance for long-term growth.But the used-car retailer had been trading at a premium. Is it now a buying opportunity?CarMax hit a speed bump the day of its fourth-quarter earnings conference call, as it shed 17% of its value in one trading day. In fact, the results might have brought the stock back into buyable territory after its price-to-earnings (P/E) ratio sank to a one-year low:Continue reading
CarMax (NYSE: KMX) stock had a rough Thursday last week after the company reported weaker-than-expected earnings. It was a seemingly perfect storm of negativity: finding investor sentiment declining, missing analysts' estimates, and pulling its guidance for long-term growth.
But the used-car retailer had been trading at a premium. Is it now a buying opportunity?
CarMax hit a speed bump the day of its fourth-quarter earnings conference call, as it shed 17% of its value in one trading day. In fact, the results might have brought the stock back into buyable territory after its price-to-earnings (P/E) ratio sank to a one-year low: