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Carvana (CVNA) Suffers a Larger Drop Than the General Market: Key Insights
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Carvana (CVNA - Free Report) closed at $64.83 in the latest trading session, marking a -2.76% move from the prior day. This change lagged the S&P 500's daily loss of 1.44%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 2.22%.
The company's shares have seen a decrease of 2.36% over the last month, surpassing the Retail-Wholesale sector's loss of 6.89% and falling behind the S&P 500's gain of 0.08%.
Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.42, showcasing a 61.54% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $6.9 billion, up 42.6% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.58 per share and a revenue of $28.14 billion, demonstrating changes of -6.51% and +38.46%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Carvana is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Carvana is presently trading at a Forward P/E ratio of 42.2. For comparison, its industry has an average Forward P/E of 16.58, which means Carvana is trading at a premium to the group.
One should further note that CVNA currently holds a PEG ratio of 11.25. 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. The average PEG ratio for the Internet - Commerce industry stood at 0.98 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 33% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Carvana (CVNA) Suffers a Larger Drop Than the General Market: Key Insights
Carvana (CVNA - Free Report) closed at $64.83 in the latest trading session, marking a -2.76% move from the prior day. This change lagged the S&P 500's daily loss of 1.44%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 2.22%.
The company's shares have seen a decrease of 2.36% over the last month, surpassing the Retail-Wholesale sector's loss of 6.89% and falling behind the S&P 500's gain of 0.08%.
Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.42, showcasing a 61.54% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $6.9 billion, up 42.6% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.58 per share and a revenue of $28.14 billion, demonstrating changes of -6.51% and +38.46%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Carvana is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Carvana is presently trading at a Forward P/E ratio of 42.2. For comparison, its industry has an average Forward P/E of 16.58, which means Carvana is trading at a premium to the group.
One should further note that CVNA currently holds a PEG ratio of 11.25. 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. The average PEG ratio for the Internet - Commerce industry stood at 0.98 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 33% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.