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Carvana (CVNA) Gains But Lags Market: What You Should Know

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Carvana (CVNA - Free Report) closed at $18.37 in the latest trading session, marking a +0.82% move from the prior day. This change lagged the S&P 500's 1.14% gain on the day. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.04%.

Carvana will be looking to display strength as it nears its next earnings release, which is expected to be November 3, 2022. In that report, analysts expect Carvana to post earnings of -$1.93 per share. This would mark a year-over-year decline of 407.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.79 billion, up 9.01% from the year-ago period.

CVNA's full-year Zacks Consensus Estimates are calling for earnings of -$8.95 per share and revenue of $15.16 billion. These results would represent year-over-year changes of -449.08% and +18.33%, respectively.

Any recent changes to analyst estimates for Carvana should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 7.95% lower within the past month. Carvana is currently sporting a Zacks Rank of #4 (Sell).

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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