The latest trading session saw Carvana (CVNA) ending at $232.32, denoting a +0.79% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.88%. Elsewhere, the Dow saw an upswing of 1.24%, while the tech-heavy Nasdaq appreciated by 0.65%.
Prior to today's trading, shares of the company had gained 3.54% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.92% and the S&P 500's gain of 1.17% in that time.
Market participants will be closely following the financial results of Carvana in its upcoming release. The company's upcoming EPS is projected at $0.25, signifying a 125% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.34 billion, indicating a 37.8% growth compared to the corresponding quarter of the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carvana. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Carvana holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Carvana is currently exchanging hands at a Forward P/E ratio of 86.53. This represents a premium compared to its industry's average Forward P/E of 22.36.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Carvana Co. (CVNA) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
