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Why Carvana (CVNA) Outpaced the Stock Market Today

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Carvana (CVNA - Free Report) ended the recent trading session at $200.22, demonstrating a +1.46% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, added 0.76%.

The the stock of company has risen by 16.32% in the past month, leading the Retail-Wholesale sector's loss of 0.42% and the S&P 500's gain of 1.47%.

Investors will be eagerly watching for the performance of Carvana in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 30, 2024. In that report, analysts expect Carvana to post earnings of $0.24 per share. This would mark year-over-year growth of 4.35%. In the meantime, our current consensus estimate forecasts the revenue to be $3.43 billion, indicating a 23.86% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.62 per share and a revenue of $13.17 billion, representing changes of -17.33% and +22.29%, respectively, from the prior 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Carvana presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Carvana is presently being traded at a Forward P/E ratio of 320.36. This signifies a premium in comparison to the average Forward P/E of 22.4 for its industry.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons of all 250+ industries.

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.

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


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