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Carvana (CVNA) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, Carvana (CVNA - Free Report) closed at $267.81, marking a +1.42% move from the previous day. This change outpaced the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.98%.

The company's stock has climbed by 36.78% in the past month, exceeding the Retail-Wholesale sector's gain of 7.15% and the S&P 500's gain of 2.07%.

The investment community will be closely monitoring the performance of Carvana in its forthcoming earnings report. The company is scheduled to release its earnings on February 19, 2025. On that day, Carvana is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 124%. At the same time, our most recent consensus estimate is projecting a revenue of $3.33 billion, reflecting a 37.41% rise from the equivalent quarter last year.

It is also important to note the recent changes to analyst estimates for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has shifted 5.68% upward. Carvana is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Carvana is currently trading at a Forward P/E ratio of 93.81. This represents a premium compared to its industry's average Forward P/E of 22.17.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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