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Carvana (CVNA) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Carvana (CVNA - Free Report) closed at $326.09, marking a -4.93% move from the previous day. This move lagged the S&P 500's daily gain of 0.07%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Prior to today's trading, shares of the company had gained 8.63% outpaced the Retail-Wholesale sector's gain of 5.27% and the S&P 500's gain of 5.71%.

The investment community will be paying close attention to the earnings performance of Carvana in its upcoming release. The company is slated to reveal its earnings on July 30, 2025. The company is expected to report EPS of $1.1, up 685.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.56 billion, up 33.62% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.04 per share and a revenue of $18.09 billion, indicating changes of +216.98% and +32.3%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Carvana. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.73% higher. Carvana currently has a Zacks Rank of #2 (Buy).

In the context of valuation, Carvana is at present trading with a Forward P/E ratio of 68.08. This denotes a premium relative to the industry average Forward P/E of 23.1.

We can additionally observe that CVNA currently boasts a PEG ratio of 1.33. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce was holding an average PEG ratio of 1.68 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons 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.

To follow CVNA in the coming trading sessions, be sure to utilize Zacks.com.


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