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Carvana (CVNA) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest close session, Carvana (CVNA - Free Report) was down 3.93% at $377.24. This move lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The company's stock has climbed by 5.58% in the past month, exceeding the Retail-Wholesale sector's gain of 1.09% and the S&P 500's gain of 3.15%.
Investors will be eagerly watching for the performance of Carvana in its upcoming earnings disclosure. On that day, Carvana is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 101.56%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 34.4% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.12 per share and a revenue of $18.83 billion, indicating changes of +222.01% and +37.72%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Carvana. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.99% higher within the past month. Right now, Carvana possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Carvana is currently trading at a Forward P/E ratio of 76.77. This expresses a premium compared to the average Forward P/E of 21.72 of its industry.
It's also important to note that CVNA currently trades at a PEG ratio of 1.28. 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 industry currently had an average PEG ratio of 1.48 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Carvana (CVNA) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest close session, Carvana (CVNA - Free Report) was down 3.93% at $377.24. This move lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The company's stock has climbed by 5.58% in the past month, exceeding the Retail-Wholesale sector's gain of 1.09% and the S&P 500's gain of 3.15%.
Investors will be eagerly watching for the performance of Carvana in its upcoming earnings disclosure. On that day, Carvana is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 101.56%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 34.4% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.12 per share and a revenue of $18.83 billion, indicating changes of +222.01% and +37.72%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Carvana. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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.
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. The Zacks Consensus EPS estimate has moved 0.99% higher within the past month. Right now, Carvana possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Carvana is currently trading at a Forward P/E ratio of 76.77. This expresses a premium compared to the average Forward P/E of 21.72 of its industry.
It's also important to note that CVNA currently trades at a PEG ratio of 1.28. 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 industry currently had an average PEG ratio of 1.48 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.