Carvana (CVNA) closed at $455.02 in the latest trading session, marking a +2.88% move from the prior day. This change outpaced the S&P 500's 1.16% gain on the day. Meanwhile, the Dow experienced a rise of 1.21%, and the technology-dominated Nasdaq saw an increase of 1.18%.
Coming into today, shares of the company had gained 1.13% in the past month. In that same time, the Retail-Wholesale sector gained 3.08%, while the S&P 500 lost 0.42%.
The upcoming earnings release of Carvana will be of great interest to investors. The company's upcoming EPS is projected at $1.1, signifying a 96.43% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $5.23 billion, indicating a 47.5% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.49 per share and a revenue of $19.95 billion, signifying shifts of +245.28% and 0%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Carvana. Recent revisions tend to reflect the latest near-term business trends. 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. 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, 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 past month, there's been a 2.78% fall in the Zacks Consensus EPS estimate. Currently, Carvana is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Carvana is holding a Forward P/E ratio of 60.53. This denotes a premium relative to the industry average Forward P/E of 16.81.
It is also worth noting that CVNA currently has a PEG ratio of 1.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.08.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 190, positioning it in the bottom 23% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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