In the latest trading session, Carvana (CVNA) closed at $195.19, marking a +0.35% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.12%. Meanwhile, the Dow experienced a rise of 0.52%, and the technology-dominated Nasdaq saw a decrease of 0.23%.

The company's stock has dropped by 23.95% in the past month, falling short of the Retail-Wholesale sector's loss of 4.43% and the S&P 500's loss of 3.45%.

Analysts and investors alike will be keeping a close eye on the performance of Carvana in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.25, indicating a 125% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.33 billion, up 37.21% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Carvana is currently a Zacks Rank #3 (Hold).

Looking at valuation, Carvana is presently trading at a Forward P/E ratio of 73.02. Its industry sports an average Forward P/E of 20.64, so one might conclude that Carvana is trading at a premium comparatively.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 141, finds itself in the bottom 44% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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

To read this article on Zacks.com click here.

Zacks Investment Research