We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Carvana Stock Keep Soaring to New Highs or is the Rally Overdone?
Hitting fresh 52-week highs of $312 a share on Tuesday, Carvana (CVNA - Free Report) stock is sitting on gains of over +50% in 2025 and has soared more than +800% in the last three years. This blazing price performance has outperformed its Zacks Internet-Commerce peers, including e-commerce conglomerates such as Amazon (AMZN - Free Report) and MercadoLibre (MELI - Free Report) .
Starting to reach lofty growth expectations, investors may be wondering if the rally in Carvana stock will continue with its end-to-end online business model covering every aspect of used-car retailing, from sales, financing, and logistics, to inspections and repairs. Notably, CVNA is only 15% from its all-time high of $370 a share, which came in August of 2021.
Attributing to Carvana’s strong financial performance have been the company’s cost-cutting initiatives, including the restructuring of its debt. After several years of insolvency and bankruptcy concerns, Carvana currently has $7.1 billion in total liabilities, which is reassuringlybeneath its total assets of $8.87 billion.
Furthermore, Carvana recently posted Q1 EPS of $1.51 in early May, which swung from an adjusted loss of -$0.41 a share in the prior period and crushed expectations of $0.75 by 101%. This came as Q1 sales increased 38% year over year to $4.23 billion and topped estimates of $4.04 billion.
Image Source: Zacks Investment Research
Monitoring Carvana’s Growth Trajectory
Taking market share from competitors such as Auto Trader Group (ATDRY - Free Report) and Cars.com (CARS - Free Report) , Carvana’s total sales are now expected to increase 31% in fiscal 2025 and are projected to spike another 25% in FY26 to $22.55 billion.
More impressive, annual earnings are currently slated to soar 192% this year to $4.64 per share versus EPS of $1.59 in 2024. Plus, FY26 EPS is projected to increase another 33% to $6.16
Image Source: Zacks Investment Research
Compelling EPS Revisions
More compelling to Carvana’s attractive growth trajectory is that FY25 and FY26 EPS estimates have continued to trend higher in the last week and have now soared 35% and 23% over the last 90 days, respectively.
Image Source: Zacks Investment Research
Bottom Line
While Carvana stock is still trading at a noticeable premium to the broader market at 65.5X forward earnings, the trend of positive EPS revisions has started to level out the company’s P/E valuation. Even better, this does suggest more upside could be in store for Carvana stock with CVNA sporting a Zacks Rank #1 (Strong Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Will Carvana Stock Keep Soaring to New Highs or is the Rally Overdone?
Hitting fresh 52-week highs of $312 a share on Tuesday, Carvana (CVNA - Free Report) stock is sitting on gains of over +50% in 2025 and has soared more than +800% in the last three years. This blazing price performance has outperformed its Zacks Internet-Commerce peers, including e-commerce conglomerates such as Amazon (AMZN - Free Report) and MercadoLibre (MELI - Free Report) .
Starting to reach lofty growth expectations, investors may be wondering if the rally in Carvana stock will continue with its end-to-end online business model covering every aspect of used-car retailing, from sales, financing, and logistics, to inspections and repairs. Notably, CVNA is only 15% from its all-time high of $370 a share, which came in August of 2021.
Image Source: Zacks Investment Research
Cost-Cutting Initiatives & Strong Financial Results
Attributing to Carvana’s strong financial performance have been the company’s cost-cutting initiatives, including the restructuring of its debt. After several years of insolvency and bankruptcy concerns, Carvana currently has $7.1 billion in total liabilities, which is reassuringly beneath its total assets of $8.87 billion.
Furthermore, Carvana recently posted Q1 EPS of $1.51 in early May, which swung from an adjusted loss of -$0.41 a share in the prior period and crushed expectations of $0.75 by 101%. This came as Q1 sales increased 38% year over year to $4.23 billion and topped estimates of $4.04 billion.
Image Source: Zacks Investment Research
Monitoring Carvana’s Growth Trajectory
Taking market share from competitors such as Auto Trader Group (ATDRY - Free Report) and Cars.com (CARS - Free Report) , Carvana’s total sales are now expected to increase 31% in fiscal 2025 and are projected to spike another 25% in FY26 to $22.55 billion.
More impressive, annual earnings are currently slated to soar 192% this year to $4.64 per share versus EPS of $1.59 in 2024. Plus, FY26 EPS is projected to increase another 33% to $6.16
Image Source: Zacks Investment Research
Compelling EPS Revisions
More compelling to Carvana’s attractive growth trajectory is that FY25 and FY26 EPS estimates have continued to trend higher in the last week and have now soared 35% and 23% over the last 90 days, respectively.
Image Source: Zacks Investment Research
Bottom Line
While Carvana stock is still trading at a noticeable premium to the broader market at 65.5X forward earnings, the trend of positive EPS revisions has started to level out the company’s P/E valuation. Even better, this does suggest more upside could be in store for Carvana stock with CVNA sporting a Zacks Rank #1 (Strong Buy).