Carvana (CVNA) closed at $440.44 in the latest trading session, marking a +2.41% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.62%. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.65%.
The company's shares have seen a decrease of 4% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.14% and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Carvana in its forthcoming earnings report. The company is predicted to post an EPS of $1.07, indicating a 91.07% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $5.17 billion, up 45.87% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.39 per share and a revenue of $19.93 billion, indicating changes of +238.99% and 0%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Carvana boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Carvana is presently trading at a Forward P/E ratio of 58.18. This indicates a premium in contrast to its industry's Forward P/E of 18.27.
It is also worth noting that CVNA currently has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.15 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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