Carvana (CVNA) closed the latest trading day at $237.15, indicating a +0.91% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 1.26%.
Heading into today, shares of the company had gained 15.23% over the past month, outpacing the Retail-Wholesale sector's loss of 3.18% and the S&P 500's loss of 4.77% in that time.
Market participants will be closely following the financial results of Carvana in its upcoming release. The company plans to announce its earnings on May 7, 2025. It is anticipated that the company will report an EPS of $0.71, marking a 273.17% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.02 billion, reflecting a 31.3% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.58 per share and revenue of $16.95 billion, indicating changes of +125.16% and +23.98%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Carvana. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 past month, the Zacks Consensus EPS estimate has moved 2.66% higher. As of now, Carvana holds a Zacks Rank of #2 (Buy).
Looking at its valuation, Carvana is holding a Forward P/E ratio of 65.67. This represents a premium compared to its industry's average Forward P/E of 23.5.
Meanwhile, CVNA's PEG ratio is currently 1.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CVNA's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 145, placing it within the bottom 42% of over 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.
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Carvana Co. (CVNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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