Carvana (CVNA) closed at $345.92 in the latest trading session, marking a -3.19% move from the prior day. This move lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.03%.
The company's shares have seen an increase of 5.12% over the last month, surpassing the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 3.94%.
The investment community will be paying close attention to the earnings performance of Carvana in its upcoming release. The company is slated to reveal its earnings on July 30, 2025. The company is forecasted to report an EPS of $1.09, showcasing a 678.57% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.57 billion, reflecting a 34% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.99 per share and a revenue of $18.08 billion, indicating changes of +213.84% and +32.23%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Carvana. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.66% upward. Right now, Carvana possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Carvana is currently trading at a Forward P/E ratio of 71.58. This expresses a premium compared to the average Forward P/E of 25 of its industry.
It is also worth noting that CVNA currently has a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CVNA's industry had an average PEG ratio of 1.44 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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