In the latest close session, Carvana (CVNA) was down 2.63% at $365.12. The stock's performance was behind the S&P 500's daily gain of 0.3%. Meanwhile, the Dow experienced a drop of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.03%.
Shares of the company witnessed a gain of 8.66% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5%, and the S&P 500's gain of 2.09%.
Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.27, indicating a 98.44% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.87 billion, reflecting a 33.33% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.07 per share and revenue of $18.74 billion, which would represent changes of +218.87% and +37.05%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Carvana is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Carvana is currently exchanging hands at a Forward P/E ratio of 74.04. This expresses a premium compared to the average Forward P/E of 20.56 of its industry.
We can additionally observe that CVNA currently boasts a PEG ratio of 1.24. 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 1.53 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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