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CarMax (NYSE:KMX)‘s stock had its “neutral” rating restated by Zacks in a research report issued to clients and investors on Tuesday. They currently have a $55.00 price objective on the stock. Zacks‘s price objective suggests a potential upside of 5.95% from the stock’s previous close.

Zacks’ analyst wrote, “CarMax posted an 18.8% increase in earnings per share to $0.76 in the first quarter of fiscal 2015. Earnings surpassed the Zacks Consensus Estimate of $0.66. Net sales and operating revenues rose 13.3% to $3.75 billion, also outdoing the Zacks Consensus Estimate of $3.57 billion. The year-over-year improvement in revenues was mainly due to increase in used vehicle sales, new vehicle sales and wholesale vehicle sales. In the long run, CarMax’s focus on the used-vehicle market and its aggressive store expansion strategy should help it outperform peers. However, we are concerned about high competition in the used-car market and high cash outflow of the company. As a result, we have maintained our Neutral recommendation.”

CarMax (NYSE:KMX) traded down 3.35% on Tuesday, hitting $50.17. The stock had a trading volume of 2,386,517 shares. CarMax has a 52 week low of $42.54 and a 52 week high of $53.67. The stock has a 50-day moving average of $45.29 and a 200-day moving average of $46.38. The company has a market cap of $11.051 billion and a P/E ratio of 22.81.

CarMax (NYSE:KMX) last released its earnings data on Friday, June 20th. The company reported $0.76 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.67 by $0.09. The company had revenue of $3.75 billion for the quarter, compared to the consensus estimate of $3.60 billion. During the same quarter in the prior year, the company posted $0.64 earnings per share. The company’s quarterly revenue was up 13.3% on a year-over-year basis. On average, analysts predict that CarMax will post $2.54 earnings per share for the current fiscal year.

KMX has been the subject of a number of other recent research reports. Analysts at RBC Capital raised their price target on shares of CarMax from $49.00 to $54.00 in a research note on Monday. They now have a “sector perform” rating on the stock. Separately, analysts at William Blair upgraded shares of CarMax from a “market perform” rating to an “outperform” rating in a research note on Friday. Finally, analysts at Oppenheimer cut their price target on shares of CarMax from $55.00 to $51.00 in a research note on Thursday, May 8th. They now have an “outperform” rating on the stock. Five research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average target price of $52.50.

CarMax, Inc (NYSE:KMX) is a holding company and its operations are conducted through its subsidiaries.

To view Zacks’ full report, visit Zacks’ official website.

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