Carvana (CVNA) closed at $60.19 in the latest trading session, marking a -4.08% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.21%. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 2.15%.
The company's shares have seen a decrease of 7.6% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 0.42%.
Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2026. It is anticipated that the company will report an EPS of $0.42, marking a 61.54% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.96 billion, indicating a 43.8% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and a revenue of $28.29 billion, representing changes of -2.96% and +39.19%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Carvana. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.54% upward. Carvana currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Carvana is currently exchanging hands at a Forward P/E ratio of 38.36. For comparison, its industry has an average Forward P/E of 16.93, which means Carvana is trading at a premium to the group.
It's also important to note that CVNA currently trades at a PEG ratio of 10.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Commerce industry stood at 1.11 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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).