CarMax to Experience Decrease in Earnings Next Week

CarMax is expected to face a decline in earnings when it reports next week. As we wrap up the first week of What My System Says Today, it’s crucial to look ahead to next week’s companies scheduled to report quarterly earnings. By identifying which stocks are poised for positive price movements and which are at risk for a decline, investors can better position themselves in the market.

My Green Zone Power Rating system encompasses 75 metrics for each stock but focuses on six key factors to provide an overall rating. This rating serves as a snapshot of a company’s strength and its future potential, aiding long-term investors in making informed decisions. While quarterly earnings reports can trigger short-term fluctuations, the Green Zone Power Rating system evaluates whether the price action is likely to continue or reverse after the initial reaction.

Companies that are expected to outperform their previous quarter’s earnings tend to see positive price movements following the release of their reports. These companies are covered by at least 10 analysts, receive a “Buy” recommendation, beat analysts’ EPS estimates for the previous quarter, and have a higher EPS estimate for the current quarter. BlackRock and Fastenal are among the companies expected to report better earnings next week, offering insights into the overall market sentiment and economic activity.

In contrast, stocks with bearish potential are identified based on the average analyst estimate predicting a decline in the current quarter’s EPS compared to the previous quarter. JPMorgan Chase & Co. (JPM) and Delta Air Lines (DAL) are among the companies facing potential bearish price action next week. CarMax (KMX) stands out as particularly vulnerable to a decline following its earnings report due to the impact of tariffs on imported automobiles and consumer spending patterns.

The ongoing trade war news and President Trump’s moves have contributed to market uncertainty, making it crucial for investors to monitor earnings reports for valuable insights. By leveraging data-driven tools like the Green Zone Power Rating system, investors can navigate market volatility and position themselves strategically for long-term success. Stay tuned for more updates and analysis to help guide your investment decisions in the weeks ahead.