Carvana (CVNA) Registers a Bigger Fall Than the Market: Important Facts to Note

Carvana (CVNA) closed at $292.64 in the latest trading session, marking a -5.44% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.52% for the day. Meanwhile, the Dow experienced a drop of 1.56%, and the technology-dominated Nasdaq saw a decrease of 1.78%.

Coming into today, shares of the company had lost 14.99% in the past month. In that same time, the Retail-Wholesale sector lost 1.95%, while the S&P 500 lost 2.25%.

Market participants will be closely following the financial results of Carvana in its upcoming release. The company's upcoming EPS is projected at $1.42, signifying a 5.96% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.12 billion, up 44.62% from the prior-year quarter.

CVNA's full-year Zacks Consensus Estimates are calling for earnings of $6.98 per share and revenue of $26.97 billion. These results would represent year-over-year changes of -17.4% and +32.7%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Carvana. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 4.72% fall in the Zacks Consensus EPS estimate. Carvana is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Carvana has a Forward P/E ratio of 44.33 right now. This valuation marks a premium compared to its industry average Forward P/E of 15.81.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 38% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

See This Stock Now for Free >>

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 Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research