In the latest close session, Carvana (CVNA) was up +1.52% at $343.39. This change outpaced the S&P 500's 0.48% gain on the day. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.94%.
Heading into today, shares of the company had lost 0.55% over the past month, lagging the Retail-Wholesale sector's gain of 3.33% and the S&P 500's gain of 5.13%.
Market participants will be closely following the financial results of Carvana in its upcoming release. The company is predicted to post an EPS of $1.1, indicating a 685.71% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.56 billion, up 33.84% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.06 per share and a revenue of $18.06 billion, representing changes of +218.24% and +32.12%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.8% increase. Carvana is currently a Zacks Rank #2 (Buy).
In terms of valuation, Carvana is presently being traded at a Forward P/E ratio of 66.92. This expresses a premium compared to the average Forward P/E of 25.32 of its industry.
It's also important to note that CVNA currently trades at a PEG ratio of 1.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.4 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Carvana Co. (CVNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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