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

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In the latest close session, Carvana (CVNA - Free Report) was down 1.07% at $473.31. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.28%.

Prior to today's trading, shares of the company had gained 8.35% outpaced the Retail-Wholesale sector's gain of 4.8% and the S&P 500's gain of 0.6%.

Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. The company's earnings report is set to go public on February 18, 2026. The company is predicted to post an EPS of $1.1, indicating a 96.43% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.23 billion, reflecting a 47.5% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.49 per share and a revenue of $19.95 billion, indicating changes of +245.28% and 0%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Carvana. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 2.78% fall in the Zacks Consensus EPS estimate. As of now, Carvana holds a Zacks Rank of #3 (Hold).

Digging into valuation, Carvana currently has a Forward P/E ratio of 65.48. This denotes a premium relative to the industry average Forward P/E of 17.45.

One should further note that CVNA currently holds a PEG ratio of 1.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.15.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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