Carvana (CVNA) ended the recent trading session at $206.20, demonstrating a +1.25% swing from the preceding day's closing price. The stock lagged the S&P 500's daily gain of 1.81%. On the other hand, the Dow registered a gain of 1.56%, and the technology-centric Nasdaq increased by 2.06%.

Shares of the company witnessed a gain of 22.19% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 5.27% and the S&P 500's loss of 6.14%.

The investment community will be paying close attention to the earnings performance of Carvana in its upcoming release. The company is slated to reveal its earnings on May 7, 2025. The company is predicted to post an EPS of $0.69, indicating a 268.29% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.96 billion, indicating a 29.52% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.48 per share and revenue of $16.9 billion. These totals would mark changes of +118.87% and +23.57%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Carvana. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.39% higher. Carvana is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Carvana is presently being traded at a Forward P/E ratio of 58.45. For comparison, its industry has an average Forward P/E of 21.48, which means Carvana is trading at a premium to the group.

It's also important to note that CVNA currently trades at a PEG ratio of 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry had an average PEG ratio of 1.3 as trading concluded yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Carvana Co. (CVNA) : Free Stock Analysis Report

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

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