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Why Carvana (CVNA) Dipped More Than Broader Market Today
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In the latest trading session, Carvana (CVNA - Free Report) closed at $65.40, marking a -2.24% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.45%. Meanwhile, the Dow experienced a drop of 1.21%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
Prior to today's trading, shares of the company had gained 2.92% outpaced the Retail-Wholesale sector's loss of 7.24% and the S&P 500's loss of 2.43%.
Investors will be eagerly watching for the performance of Carvana in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.5, signifying a 138.10% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.63 billion, showing a 35.14% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.68 per share and a revenue of $29.02 billion, demonstrating changes of -0.59% and +42.82%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return 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 #3 (Hold).
From a valuation perspective, Carvana is currently exchanging hands at a Forward P/E ratio of 39.92. This expresses a premium compared to the average Forward P/E of 16.56 of its industry.
It is also worth noting that CVNA currently has a PEG ratio of 1.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.18.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 31% 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.
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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Why Carvana (CVNA) Dipped More Than Broader Market Today
In the latest trading session, Carvana (CVNA - Free Report) closed at $65.40, marking a -2.24% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.45%. Meanwhile, the Dow experienced a drop of 1.21%, and the technology-dominated Nasdaq saw a decrease of 0.01%.
Prior to today's trading, shares of the company had gained 2.92% outpaced the Retail-Wholesale sector's loss of 7.24% and the S&P 500's loss of 2.43%.
Investors will be eagerly watching for the performance of Carvana in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.5, signifying a 138.10% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.63 billion, showing a 35.14% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.68 per share and a revenue of $29.02 billion, demonstrating changes of -0.59% and +42.82%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return 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 #3 (Hold).
From a valuation perspective, Carvana is currently exchanging hands at a Forward P/E ratio of 39.92. This expresses a premium compared to the average Forward P/E of 16.56 of its industry.
It is also worth noting that CVNA currently has a PEG ratio of 1.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.18.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 170, positioning it in the bottom 31% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.