Carvana Co. (CVNA) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Carvana (CVNA)? Shares have been on the move with the stock up 5.1% over the past month. The stock hit a new 52-week high of $359.9 in the previous session. Carvana has gained 75.7% since the start of the year compared to the 5.2% gain for the Zacks Retail-Wholesale sector and the 7.4% 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 $4.99 per share on $18.08 in revenues. This represents a 213.84% change in EPS on a 32.23% change in revenues. For the next fiscal year, the company is expected to earn $6.14 per share on $22.66 in revenues. This represents a year-over-year change of 22.96% and 25.33%, respectively.Valuation MetricsThough Carvana has recently hit a 52-week high, what is next for Carvana? 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 B, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 71.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 25X. On a trailing cash flow basis, the stock currently trades at 167.2X versus its peer group's average of 15.9X. Additionally, the stock has a PEG ratio of 1.39. 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 look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Carvana currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.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 passes the test. Thus, it seems as though Carvana shares could have a bit more room to run in the near term.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want 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