Carvana (CVNA) closed the most recent trading day at $337.60, moving +1.14% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 1.07%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 1.37%.
Prior to today's trading, shares of the company had lost 14.82% lagged the Retail-Wholesale sector's loss of 5.23% and the S&P 500's gain of 1.08%.
The investment community will be paying close attention to the earnings performance of Carvana in its upcoming release. The company is slated to reveal its earnings on October 29, 2025. The company's upcoming EPS is projected at $1.3, signifying a 103.13% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.94 billion, up 35.06% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.15 per share and revenue of $18.94 billion, which would represent changes of +223.9% and +38.54%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Carvana. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate has moved 1.45% higher within the past month. Right now, Carvana possesses a Zacks Rank of #2 (Buy).
Looking at its valuation, Carvana is holding a Forward P/E ratio of 64.88. This expresses a premium compared to the average Forward P/E of 21.03 of its industry.
It is also worth noting that CVNA currently has a PEG ratio of 1.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Commerce industry stood at 1.38 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 57, this industry ranks in the top 24% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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