In the latest close session, Carvana (CVNA) was down 6.16% at $401.11. The stock's performance was behind the S&P 500's daily loss of 0.43%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.94%.
Coming into today, shares of the company had gained 1.28% in the past month. In that same time, the Retail-Wholesale sector gained 4.04%, while the S&P 500 gained 0.89%.
Investors will be eagerly watching for the performance of Carvana in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 18, 2026. The company's earnings per share (EPS) are projected to be $1.1, reflecting a 96.43% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.23 billion, reflecting a 47.5% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.48 per share and a revenue of $19.95 billion, indicating changes of +244.65% and 0%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 a 2.76% fall in the Zacks Consensus EPS estimate. Carvana is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Carvana has a Forward P/E ratio of 58.49 right now. For comparison, its industry has an average Forward P/E of 16.03, which means Carvana is trading at a premium to the group.
It's also important to note that CVNA currently trades at a PEG ratio of 1.03. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.1.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carvana Co. (CVNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
