Carvana (CVNA) ended the recent trading session at $203.95, demonstrating a -0.45% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.33%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.53%.
Coming into today, shares of the company had lost 11.93% in the past month. In that same time, the Retail-Wholesale sector lost 6.29%, while the S&P 500 lost 4.03%.
The upcoming earnings release of Carvana will be of great interest to investors. The company's upcoming EPS is projected at $0.69, signifying a 268.29% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.92 billion, indicating a 27.93% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $16.86 billion, which would represent changes of +119.5% and +23.27%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Carvana. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Within the past 30 days, our consensus EPS projection has moved 3.23% higher. Right now, Carvana possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Carvana is presently being traded at a Forward P/E ratio of 58.77. This represents a premium compared to its industry's average Forward P/E of 22.68.
Investors should also note that CVNA has a PEG ratio of 1.24 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.24.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% 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.
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Carvana Co. (CVNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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