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Carvana (CVNA) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, Carvana (CVNA - Free Report) was down 2.52% at $66.20. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.46%.
The stock of company has fallen by 6.97% in the past month, lagging the Retail-Wholesale sector's loss of 5.64% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Carvana in its upcoming release. The company's upcoming EPS is projected at $0.42, signifying a 61.54% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.9 billion, showing a 42.6% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.58 per share and a revenue of $28.14 billion, signifying shifts of -6.51% and +38.46%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carvana. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. Carvana currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Carvana is currently trading at a Forward P/E ratio of 42.98. This denotes a premium relative to the industry average Forward P/E of 17.36.
We can additionally observe that CVNA currently boasts a PEG ratio of 11.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Carvana (CVNA) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, Carvana (CVNA - Free Report) was down 2.52% at $66.20. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.46%.
The stock of company has fallen by 6.97% in the past month, lagging the Retail-Wholesale sector's loss of 5.64% and the S&P 500's loss of 1.4%.
The investment community will be paying close attention to the earnings performance of Carvana in its upcoming release. The company's upcoming EPS is projected at $0.42, signifying a 61.54% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.9 billion, showing a 42.6% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.58 per share and a revenue of $28.14 billion, signifying shifts of -6.51% and +38.46%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carvana. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. Carvana currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Carvana is currently trading at a Forward P/E ratio of 42.98. This denotes a premium relative to the industry average Forward P/E of 17.36.
We can additionally observe that CVNA currently boasts a PEG ratio of 11.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.