Carvana (CVNA) closed at $67.12 in the latest trading session, marking a +1.15% move from the prior day. This move outpaced the S&P 500's daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 1.3%.
Shares of the company have depreciated by 1.32% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.24%, and the S&P 500's gain of 1.13%.
The investment community will be closely monitoring the performance of Carvana in its forthcoming earnings report. The company is scheduled to release its earnings on July 29, 2026. In that report, analysts expect Carvana to post earnings of $0.42 per share. This would mark year-over-year growth of 61.54%. At the same time, our most recent consensus estimate is projecting a revenue of $6.9 billion, reflecting a 42.6% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.58 per share and a revenue of $28.14 billion, demonstrating changes of -6.51% and +38.46%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Carvana possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Carvana is presently trading at a Forward P/E ratio of 42. This signifies a premium in comparison to the average Forward P/E of 16.7 for its industry.
One should further note that CVNA currently holds a PEG ratio of 11.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.04.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 187, finds itself in the bottom 24% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Carvana Co. (CVNA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).