In the latest close session, Carvana (CVNA) was down 3.39% at $67.25. This move lagged the S&P 500's daily loss of 1.62%. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
Coming into today, shares of the company had lost 5.58% in the past month. In that same time, the Retail-Wholesale sector lost 6.71%, while the S&P 500 lost 0.03%.
Investors will be eagerly watching for the performance of Carvana in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.42, indicating a 61.54% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $6.9 billion, indicating a 42.6% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.58 per share and a revenue of $27.58 billion, representing changes of -6.51% and +35.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Carvana. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.54% higher. As of now, Carvana holds a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Carvana is holding a Forward P/E ratio of 44.06. This denotes a premium relative to the industry average Forward P/E of 16.72.
We can also see that CVNA currently has a PEG ratio of 11.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CVNA's industry had an average PEG ratio of 0.98 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Carvana Co. (CVNA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).