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Why Carvana (CVNA) Dipped More Than Broader Market Today

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Carvana (CVNA - Free Report) closed the most recent trading day at $31.07, moving -1.65% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.26%. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 1.54%.

The company's shares have seen a decrease of 26.36% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.25% and the S&P 500's loss of 3.67%.

The investment community will be closely monitoring the performance of Carvana in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. On that day, Carvana is projected to report earnings of -$0.85 per share, which would represent year-over-year growth of 68.16%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.77 billion, indicating a 18.3% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$3.70 per share and a revenue of $11.06 billion, representing changes of +57.27% and -18.73%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Right now, Carvana possesses a Zacks Rank of #1 (Strong Buy).

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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