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

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The most recent trading session ended with Carvana (CVNA - Free Report) standing at $82.40, reflecting a -0.57% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq appreciated by 0.23%.

Heading into today, shares of the company had gained 7.16% over the past month, outpacing the Retail-Wholesale sector's gain of 0.04% and the S&P 500's gain of 1.5% in that time.

The investment community will be paying close attention to the earnings performance of Carvana in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.80, reflecting a 47.02% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.66 billion, up 2.01% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$3.40 per share and revenue of $11.16 billion, indicating changes of -553.33% and +3.61%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 5% higher. Carvana is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 46, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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