Carvana (CVNA) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest close session, Carvana (CVNA) was down 3.93% at $377.24. This move lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%. The company's stock has climbed by 5.58% in the past month, exceeding the Retail-Wholesale sector's gain of 1.09% and the S&P 500's gain of 3.15%.Investors will be eagerly watching for the performance of Carvana in its upcoming earnings disclosure. On that day, Carvana is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 101.56%. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 billion, up 34.4% from the prior-year quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.12 per share and a revenue of $18.83 billion, indicating changes of +222.01% and +37.72%, respectively, from the former year. Investors should also pay attention to any latest changes in analyst estimates for Carvana. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.99% higher within the past month. Right now, Carvana possesses a Zacks Rank of #2 (Buy). In terms of valuation, Carvana is currently trading at a Forward P/E ratio of 76.77. This expresses a premium compared to the average Forward P/E of 21.72 of its industry. It's also important to note that CVNA currently trades at a PEG ratio of 1.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce industry currently had an average PEG ratio of 1.48 as of yesterday's close. The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% of all 250+ industries. The Zacks Industry Rank gauges the strength of our individual 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. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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