Carvana (CVNA) closed at $338.28 in the latest trading session, marking a +2.75% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 1.56%. On the other hand, the Dow registered a gain of 1.29%, and the technology-centric Nasdaq increased by 2.21%.
Heading into today, shares of the company had lost 8.99% over the past month, lagging the Retail-Wholesale sector's loss of 5.02% and the S&P 500's gain of 0.41%.
Market participants will be closely following the financial results of Carvana in its upcoming release. The company plans to announce its earnings on October 29, 2025. The company's earnings per share (EPS) are projected to be $1.3, reflecting a 103.13% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.94 billion, indicating a 35.06% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.15 per share and a revenue of $18.94 billion, representing changes of +223.9% and +38.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.58% higher. Carvana presently features a Zacks Rank of #3 (Hold).
Investors should also note Carvana's current valuation metrics, including its Forward P/E ratio of 63.99. Its industry sports an average Forward P/E of 20.99, so one might conclude that Carvana is trading at a premium comparatively.
It is also worth noting that CVNA currently has a PEG ratio of 1.07. 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 1.43.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
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.
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Carvana Co. (CVNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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