Will CVNA's earnings momentum continue in Q1 2025?

Carvana's (CVNA) earnings momentum is likely to continue in Q1 2025, based on several key indicators:

1. Projected Earnings Growth: CVNA's estimated EPS for Q1 2025 is $0.68, which represents a significant 268.29% increase compared to the same quarter of the previous year. This suggests a strong earnings momentum.

2. Revenue Projection: The estimated revenue for Q1 2025 is $3.76 billion. This is a 27.93% increase from the same quarter last year, indicating a strong revenue growth trajectory.
3. Analyst Optimism: Piper Sandler analysts recently upgraded CVNA from Neutral to Buy, highlighting the company's reduced valuation and offering an attractive opportunity for investors. This positive outlook from analysts suggests confidence in CVNA's continued earnings momentum.
4. Financial Strength: CVNA's high Altman Z-score of 4.28 and a robust Piotroski F-Score of 7 indicate a healthy financial position. These metrics are indicative of a lower risk of financial distress, which is a good sign for continued earnings momentum.
5. Market Performance: Despite some recent volatility, CVNA's stock has shown a notable uptick due to the analyst upgrade, climbing 4.04%. This performance suggests that investors are responding positively to the company's earnings potential.

In conclusion, CVNA's strong earnings growth, positive analyst sentiment, and robust financial metrics suggest that the company's earnings momentum is likely to continue in Q1 2025. However, investors should remain cautious due to potential challenges and market fluctuations.