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Carvana (CVNA) closed at $197 in the latest trading session, marking a -0.68% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the company had lost 16.14% over the past month, lagging the Retail-Wholesale sector's loss of 4.84% and the S&P 500's loss of 2.8% in that time.
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 $0.25, up 125% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.33 billion, showing a 37.21% escalation compared to the year-ago quarter.
Investors should also note any recent changes to analyst estimates for Carvana. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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, there's been no change in the Zacks Consensus EPS estimate. 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 74.46. Its industry sports an average Forward P/E of 21.6, so one might conclude that Carvana is trading at a premium comparatively.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 69, positioning it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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