Carmax Inc Stock Chance of Future Stock Price Finishing Over 68.92
| KMX Stock | USD 69.46 1.95 2.73% |
Closest to current price CarMax long CALL Option Payoff at Expiration
CarMax |
CarMax Target Price Odds to finish over 68.92
The tendency of CarMax Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to stay above $ 68.92 in 90 days |
| 69.46 | 90 days | 68.92 | about 90.22 |
Based on a normal probability distribution, the odds of CarMax to stay above $ 68.92 in 90 days from now is about 90.22 (This CarMax Inc probability density function shows the probability of CarMax Stock to fall within a particular range of prices over 90 days) . Probability of CarMax Inc price to stay between $ 68.92 and its current price of $69.46 at the end of the 90-day period is about 1.69 .
Considering the 90-day investment horizon the stock has the beta coefficient of 2.43 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, CarMax will likely underperform. Additionally CarMax Inc has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. CarMax Price Density |
| Price |
Predictive Modules for CarMax
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as CarMax Inc. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of CarMax's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
CarMax Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. CarMax is not an exception. The market had few large corrections towards the CarMax's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold CarMax Inc, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of CarMax within the framework of very fundamental risk indicators.α | Alpha over NYSE Composite | -0.18 | |
β | Beta against NYSE Composite | 2.43 | |
σ | Overall volatility | 5.85 | |
Ir | Information ratio | -0.04 |
CarMax Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of CarMax for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for CarMax Inc can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Over 100.0% of the company shares are owned by institutional investors | |
| Latest headline from zacks.com: Auto Roundup KMXs Weak Quarterly Results, TSLAs FSD Price Cut More |
CarMax Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of CarMax Stock often depends not only on the future outlook of the current and potential CarMax's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. CarMax's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 158.7 M | |
| Cash And Short Term Investments | 1.1 B |
CarMax Technical Analysis
CarMax's future price can be derived by breaking down and analyzing its technical indicators over time. CarMax Stock technical analysis helps investors analyze different prices and returns patterns as well as diagnose historical swings to determine the real value of CarMax Inc. In general, you should focus on analyzing CarMax Stock price patterns and their correlations with different microeconomic environments and drivers.
CarMax Predictive Forecast Models
CarMax's time-series forecasting models is one of many CarMax's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models are widely used for non-stationary data. Non-stationary data are called the data whose statistical properties, e.g., the mean and standard deviation, are not constant over time, but instead, these metrics vary over time. This non-stationary CarMax's historical data is usually called time series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the stock market movement and maximize returns from investment trading.
Things to note about CarMax Inc
Checking the ongoing alerts about CarMax for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for CarMax Inc help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
| Over 100.0% of the company shares are owned by institutional investors | |
| Latest headline from zacks.com: Auto Roundup KMXs Weak Quarterly Results, TSLAs FSD Price Cut More |
Check out CarMax Backtesting, CarMax Valuation, CarMax Correlation, CarMax Hype Analysis, CarMax Volatility, CarMax History as well as CarMax Performance. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Complementary Tools for CarMax Stock analysis
When running CarMax's price analysis, check to measure CarMax's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CarMax is operating at the current time. Most of CarMax's value examination focuses on studying past and present price action to predict the probability of CarMax's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CarMax's price. Additionally, you may evaluate how the addition of CarMax to your portfolios can decrease your overall portfolio volatility.
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |
Is CarMax's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CarMax. If investors know CarMax will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CarMax listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.25) | Earnings Share 3.02 | Revenue Per Share 178.322 | Quarterly Revenue Growth (0.01) | Return On Assets 0.0177 |
The market value of CarMax Inc is measured differently than its book value, which is the value of CarMax that is recorded on the company's balance sheet. Investors also form their own opinion of CarMax's value that differs from its market value or its book value, called intrinsic value, which is CarMax's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CarMax's market value can be influenced by many factors that don't directly affect CarMax's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CarMax's value and its price as these two are different measures arrived at by different means. Investors typically determine if CarMax is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CarMax's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.