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Carvana (CVNA) Soars 5.3%: Is Further Upside Left in the Stock?
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Carvana (CVNA - Free Report) shares soared 5.3% in the last trading session to close at $185.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 37.5% loss over the past four weeks.
Carvana surged yesterday as Piper Sandler upgrade its rating on the stock, boosting investor confidence. Bank of America also provided insights, stating that Amazon’s entry into the used-car market won’t significantly pressure Carvana. The reassurance eased concerns about competition, fueling a rally in CVNA stock.
This company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +273.2%. Revenues are expected to be $3.95 billion, up 29% 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 7.4% 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 part of the Zacks Internet - Commerce industry. Alibaba (BABA - Free Report) , another stock in the same industry, closed the last trading session 4.4% lower at $136.91. BABA has returned 13.8% in the past month.
For Alibaba, the consensus EPS estimate for the upcoming report has changed +14.8% over the past month to $1.37. This represents a change of -2.1% from what the company reported a year ago. Alibaba currently has a Zacks Rank of #1 (Strong Buy).
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Carvana (CVNA) Soars 5.3%: Is Further Upside Left in the Stock?
Carvana (CVNA - Free Report) shares soared 5.3% in the last trading session to close at $185.42. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 37.5% loss over the past four weeks.
Carvana surged yesterday as Piper Sandler upgrade its rating on the stock, boosting investor confidence. Bank of America also provided insights, stating that Amazon’s entry into the used-car market won’t significantly pressure Carvana. The reassurance eased concerns about competition, fueling a rally in CVNA stock.
This company is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +273.2%. Revenues are expected to be $3.95 billion, up 29% 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 7.4% 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 #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Carvana is part of the Zacks Internet - Commerce industry. Alibaba (BABA - Free Report) , another stock in the same industry, closed the last trading session 4.4% lower at $136.91. BABA has returned 13.8% in the past month.
For Alibaba, the consensus EPS estimate for the upcoming report has changed +14.8% over the past month to $1.37. This represents a change of -2.1% from what the company reported a year ago. Alibaba currently has a Zacks Rank of #1 (Strong Buy).