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Is a Surprise Coming for Carvana (CVNA) This Earnings Season?
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Investors are always looking for stocks that are poised to beat at earnings season and Carvana Co. (CVNA - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Carvana is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for CVNA in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at a loss of 67 cents per share for CVNA, narrower than a broader Zacks Consensus Estimate of a loss of 70 cents per share. This suggests that analysts have very recently bumped up their estimates for CVNA, giving the stock a Zacks Earnings ESP of +4.54% heading into earnings season.
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Clearly, recent earnings estimate revisions suggest that good things are ahead for Carvana, and that a beat might be in the cards for the upcoming report.
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Is a Surprise Coming for Carvana (CVNA) This Earnings Season?
Investors are always looking for stocks that are poised to beat at earnings season and Carvana Co. (CVNA - Free Report) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Carvana is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for CVNA in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at a loss of 67 cents per share for CVNA, narrower than a broader Zacks Consensus Estimate of a loss of 70 cents per share. This suggests that analysts have very recently bumped up their estimates for CVNA, giving the stock a Zacks Earnings ESP of +4.54% heading into earnings season.
Carvana Co. Price and EPS Surprise
Carvana Co. price-eps-surprise | Carvana Co. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that CVNA has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Carvana, and that a beat might be in the cards for the upcoming report.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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