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Carvana (CVNA) Soars 11.5%: Is Further Upside Left in the Stock?
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Carvana (CVNA - Free Report) shares rallied 11.5% in the last trading session to close at $21.26. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 81.6% gain over the past four weeks.
Yesterday's price surge can be attributed to the company's improved second-quarter 2023 financial outlook, showcasing its dedication to driving profitability and revolutionizing the car-buying experience. With projected adjusted EBITDA surpassing $50 million, Carvana demonstrates its ability to generate substantial earnings. Moreover, non-GAAP total gross profit per unit is expected to be above $6,000, indicating a 63% improvement from the same quarter in 2022, setting a new company record. These figures exemplify Carvana's ongoing commitment to operational efficiencies and customer-centric strategies.
This company is expected to post quarterly loss of $1.38 per share in its upcoming report, which represents a year-over-year change of +41.3%. Revenues are expected to be $2.63 billion, down 32.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Carvana, the consensus EPS estimate for the quarter has been revised 3.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CVNA going forward to see if this recent jump can turn into more strength down the road.
Carvana is a member of the Zacks Internet - Commerce industry. One other stock in the same industry, Alibaba (BABA - Free Report) , finished the last trading session 0.4% higher at $85.86. BABA has returned 0.2% over the past month.
Alibaba's consensus EPS estimate for the upcoming report has changed -9.9% over the past month to $1.87. Compared to the company's year-ago EPS, this represents a change of +6.9%. Alibaba currently boasts a Zacks Rank of #3 (Hold).
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Carvana (CVNA) Soars 11.5%: Is Further Upside Left in the Stock?
Carvana (CVNA - Free Report) shares rallied 11.5% in the last trading session to close at $21.26. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 81.6% gain over the past four weeks.
Yesterday's price surge can be attributed to the company's improved second-quarter 2023 financial outlook, showcasing its dedication to driving profitability and revolutionizing the car-buying experience. With projected adjusted EBITDA surpassing $50 million, Carvana demonstrates its ability to generate substantial earnings. Moreover, non-GAAP total gross profit per unit is expected to be above $6,000, indicating a 63% improvement from the same quarter in 2022, setting a new company record. These figures exemplify Carvana's ongoing commitment to operational efficiencies and customer-centric strategies.
This company is expected to post quarterly loss of $1.38 per share in its upcoming report, which represents a year-over-year change of +41.3%. Revenues are expected to be $2.63 billion, down 32.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Carvana, the consensus EPS estimate for the quarter has been revised 3.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CVNA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Carvana is a member of the Zacks Internet - Commerce industry. One other stock in the same industry, Alibaba (BABA - Free Report) , finished the last trading session 0.4% higher at $85.86. BABA has returned 0.2% over the past month.
Alibaba's consensus EPS estimate for the upcoming report has changed -9.9% over the past month to $1.87. Compared to the company's year-ago EPS, this represents a change of +6.9%. Alibaba currently boasts a Zacks Rank of #3 (Hold).