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Carvana (CVNA) Beats Stock Market Upswing: What Investors Need to Know

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The most recent trading session ended with Carvana (CVNA - Free Report) standing at $171.21, reflecting a +0.92% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.4% for the day. Elsewhere, the Dow saw an upswing of 0.62%, while the tech-heavy Nasdaq appreciated by 0.6%.

Heading into today, shares of the company had gained 9.94% over the past month, outpacing the Retail-Wholesale sector's gain of 5.71% and the S&P 500's gain of 1.71% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.22, marking a 4.35% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.39 billion, up 22.29% from the year-ago period.

CVNA's full-year Zacks Consensus Estimates are calling for earnings of $0.62 per share and revenue of $13.14 billion. These results would represent year-over-year changes of -17.33% and +22%, respectively.

It is also important to note the recent changes to analyst estimates for Carvana. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 64.57% higher. As of now, Carvana holds a Zacks Rank of #2 (Buy).

Investors should also note Carvana's current valuation metrics, including its Forward P/E ratio of 275.41. This signifies a premium in comparison to the average Forward P/E of 21.32 for its industry.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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