Carvana (CVNA) ended the recent trading session at $308.56, demonstrating a +2.52% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 0.66%, and the technology-dominated Nasdaq saw an increase of 0.77%.
Shares of the company have depreciated by 7.44% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 4.96%, and the S&P 500's loss of 4.71%.
The investment community will be closely monitoring the performance of Carvana in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.42, reflecting a 5.96% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.12 billion, up 44.62% from the year-ago period.
CVNA's full-year Zacks Consensus Estimates are calling for earnings of $6.98 per share and revenue of $26.97 billion. These results would represent year-over-year changes of -17.4% and +32.7%, respectively.
Investors might also notice recent changes to analyst estimates for Carvana. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.66% decrease. Carvana currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Carvana is currently exchanging hands at a Forward P/E ratio of 43.12. This signifies a premium in comparison to the average Forward P/E of 15.01 for its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
