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Carvana (CVNA) Exceeds Market Returns: Some Facts to Consider

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Carvana (CVNA - Free Report) closed the latest trading day at $180.17, indicating a +2% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.9%. Elsewhere, the Dow saw an upswing of 0.81%, while the tech-heavy Nasdaq appreciated by 1.22%.

The the stock of company has risen by 25.15% in the past month, leading the Retail-Wholesale sector's gain of 5.79% and the S&P 500's gain of 3.15%.

Market participants will be closely following the financial results of Carvana in its upcoming release. The company plans to announce its earnings on October 30, 2024. The company is predicted to post an EPS of $0.22, indicating a 4.35% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.39 billion, reflecting a 22.29% rise from the equivalent quarter last year.

CVNA's full-year Zacks Consensus Estimates are calling for earnings of $0.62 per share and revenue of $13.14 billion. These results would represent year-over-year changes of -17.33% and +22%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Carvana. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 64.57% rise in the Zacks Consensus EPS estimate. Carvana is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, Carvana is holding a Forward P/E ratio of 286.75. This valuation marks a premium compared to its industry's average Forward P/E of 22.34.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 31% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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