In the latest close session, Carvana (CVNA) was down 2.23% at $315.76. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.31%.
Heading into today, shares of the company had gained 3.21% over the past month, outpacing the Retail-Wholesale sector's gain of 2.13% and lagging the S&P 500's gain of 5.05%.
The investment community will be paying close attention to the earnings performance of Carvana in its upcoming release. The company's upcoming EPS is projected at $1.09, signifying a 678.57% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.56 billion, up 33.84% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5 per share and revenue of $18.06 billion, indicating changes of +214.47% and +32.12%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carvana. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.8% increase. Right now, Carvana possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Carvana is presently being traded at a Forward P/E ratio of 64.57. This denotes a premium relative to the industry average Forward P/E of 25.79.
Also, we should mention that CVNA has a PEG ratio of 1.26. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.5.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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