Carvana (CVNA) closed the most recent trading day at $70.04, moving +1.65% from the previous trading session. This change outpaced the S&P 500's 0.57% loss on the day. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.
The company's stock has climbed by 4.36% in the past month, exceeding the Retail-Wholesale sector's loss of 3.04% and the S&P 500's gain of 2.14%.
The upcoming earnings release of Carvana will be of great interest to investors. In that report, analysts expect Carvana to post earnings of $0.42 per share. This would mark year-over-year growth of 61.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.9 billion, up 42.6% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.58 per share and revenue of $27.58 billion. These totals would mark changes of -6.51% and +35.72%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.64% rise in the Zacks Consensus EPS estimate. At present, Carvana boasts a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Carvana is at present trading with a Forward P/E ratio of 43.61. This represents a premium compared to its industry average Forward P/E of 16.73.
Also, we should mention that CVNA has a PEG ratio of 11.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.01 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 109, this industry ranks in the top 45% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Carvana Co. (CVNA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).