Carvana Co. (CVNA) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Carvana (CVNA)? Shares have been on the move with the stock up 37.1% over the past month. The stock hit a new 52-week high of $299 in the previous session. Carvana has gained 44.1% since the start of the year compared to the 3.2% move for the Zacks Retail-Wholesale sector and the 4.8% return for the Zacks Internet - Commerce industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 7, 2025, Carvana reported EPS of $1.51 versus consensus estimate of $0.75 while it beat the consensus revenue estimate by 4.7%.For the current fiscal year, Carvana is expected to post earnings of $4.23 per share on $17.73 billion in revenues. This represents a 166.04% change in EPS on a 29.64% change in revenues. For the next fiscal year, the company is expected to earn $5.79 per share on $22.1 billion in revenues. This represents a year-over-year change of 37.01% and 24.65%, respectively.Valuation MetricsCarvana may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Carvana has a Value Score of D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 69.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.6X. On a trailing cash flow basis, the stock currently trades at 137.1X versus its peer group's average of 18X. Additionally, the stock has a PEG ratio of 1.35. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Carvana currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Carvana fits the bill. Thus, it seems as though Carvana shares could still be poised for more gains ahead.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks