Score 7.6 (out of 10): CARMAX INC earnings tend to move the stock 4.4% higher, just 1 month later

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What’s Going On Here?

CARMAX INC will announce quarterly earnings on December 22. ‘Wall Street’ analysts expect Earnings Per Share (EPS) of 1.44. Based on option market volatilities, the stock could move by 9.31% in either direction 1 day after the earnings announcement.

Why Now?

After the previous 10 quarterly earnings announcements, the stock returned 4.4% one month after the announcement date. With 90% of those events showing positive returns. Based on our number crunching models, this signal received a high score of 7.6 and is statistically relevant.

What’s This Company About?

CARMAX INC is in the Retail-Automobile business. ‘Wall Street’ analysts think the stock price will be worth 15.9% more (average). Ticker symbol: KMX US.

What’s My Risk / Reward and Time Horizon?

We found 1 month to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 137.54 (4.4%) has been reached. CARMAX INC traded with last price of 131.75.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

3.7% after 2021:Q2, 0.5% after 2021:Q1, 7.7% after 2020:Q4, 1.9% after 2020:Q3, 5.9% after 2020:Q2, 18.3% after 2020:Q1, 4.4% after 2019:Q4, 2% after 2019:Q3, -4.1% after 2019:Q2, 3.5% after 2019:Q1.

Historical Chart:

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Summary:

NameCARMAX INC
ViewUp
Star (1 to 10)7.6
Target+4.4%
Time1 month
Hit Rate90%

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