In the latest trading session, Carvana (CVNA) closed at $351.09, marking a +1.49% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.61%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 0.95%.
Coming into today, shares of the company had gained 2.19% in the past month. In that same time, the Retail-Wholesale sector gained 0.8%, while the S&P 500 gained 3.85%.
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's upcoming EPS is projected at $1.09, signifying a 678.57% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.57 billion, indicating a 34% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.99 per share and a revenue of $18.08 billion, signifying shifts of +213.84% and +32.23%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Carvana. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 a 1.66% rise in the Zacks Consensus EPS estimate. Carvana presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Carvana is currently being traded at a Forward P/E ratio of 69.3. This denotes a premium relative to the industry average Forward P/E of 24.79.
Also, we should mention that CVNA has a PEG ratio of 1.35. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.41 based on yesterday's closing prices.
Story ContinuesThe Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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 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 Report
This article originally published on Zacks Investment Research (zacks.com).
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