In the latest trading session, Carvana (CVNA) closed at $343.30, marking a -0.68% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.53%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 0.83%.
Shares of the company have appreciated by 33.36% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 4.46% and the S&P 500's gain of 5.17%.
Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. The company is expected to report EPS of $1.11, up 692.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.55 billion, up 33.38% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.64 per share and a revenue of $17.96 billion, signifying shifts of +191.82% and +31.37%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 25.7% higher. Carvana presently features a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Carvana is currently being traded at a Forward P/E ratio of 74.49. For comparison, its industry has an average Forward P/E of 25.16, 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 1.45. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.45.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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