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Carvana (CVNA) Gains As Market Dips: What You Should Know

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Carvana (CVNA - Free Report) closed at $25.14 in the latest trading session, marking a +0.92% move from the prior day. This move outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the company had lost 6.53% in the past month. In that same time, the Retail-Wholesale sector gained 2.55%, while the S&P 500 lost 3.32%.

Investors will be hoping for strength from Carvana as it approaches its next earnings release. On that day, Carvana is projected to report earnings of -$1.72 per share, which would represent a year-over-year decline of 761.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.02 billion, up 20.63% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$6.78 per share and revenue of $16.12 billion. These totals would mark changes of -315.95% and +25.79%, respectively, from last year.

Any recent changes to analyst estimates for Carvana should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 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, the Zacks Consensus EPS estimate has moved 0.4% lower. Carvana is currently sporting a Zacks Rank of #3 (Hold).

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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