Carvana (CVNA) stock recently closed down 1.63% at $369.60, underperforming the S&P 500, though it has gained 1.85% over the last month. The company is poised for significant growth, with consensus estimates for its upcoming October 2025 earnings projecting a 101.56% EPS increase to $1.29 and a 34.4% revenue rise to $4.91 billion, alongside full-year estimates showing over 200% EPS growth. Despite a high Forward P/E of 73.64 relative to its industry's 21.56, Carvana's PEG ratio of 1.23 is below the industry average, and it carries a Zacks Rank #2 (Buy) driven by recent positive EPS estimate revisions, reflecting analyst optimism for its profitability.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Carvana (CVNA) Stock Drops Despite Market Gains: Important Facts to Note Read MoreHide Full Article In the latest close session, Carvana (CVNA - Free Report) was down 1.63% at $369.60. The stock trailed the S&P 500, which registered a daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%. The company's shares have seen an increase of 1.85% over the last month, surpassing the Retail-Wholesale sector's gain of 0.38% and falling behind the S&P 500's gain of 4.26%. 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 October 29, 2025. It is anticipated that the company will report an EPS of $1.29, marking a 101.56% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.91 billion, indicating a 34.4% increase compared to the same quarter of the previous year. CVNA's full-year Zacks Consensus Estimates are calling for earnings of $5.1 per share and revenue of $18.83 billion. These results would represent year-over-year changes of +220.75% and +37.72%, respectively. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. Ranging from 1 (Strong Buy) to 5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with 1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.73% higher within the past month. Carvana currently has a Zacks Rank of 2 (Buy). With respect to valuation, Carvana is currently being traded at a Forward P/E ratio of 73.64. This expresses a premium compared to the average Forward P/E of 21.56 of its industry. We can also see that CVNA currently has 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.45. The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% 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. You can find more information on all of these metrics, and much more, on Zacks.com. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Image: Bigstock Carvana (CVNA) Stock Drops Despite Market Gains: Important Facts to Note In the latest close session, Carvana (CVNA - Free Report) was down 1.63% at $369.60. The stock trailed the S&P 500, which registered a daily gain of 0.37%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq increased by 0.71%. The company's shares have seen an increase of 1.85% over the last month, surpassing the Retail-Wholesale sector's gain of 0.38% and falling behind the S&P 500's gain of 4.26%. 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 October 29, 2025. It is anticipated that the company will report an EPS of $1.29, marking a 101.56% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.91 billion, indicating a 34.4% increase compared to the same quarter of the previous year. CVNA's full-year Zacks Consensus Estimates are calling for earnings of $5.1 per share and revenue of $18.83 billion. These results would represent year-over-year changes of +220.75% and +37.72%, respectively. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Carvana. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. Ranging from 1 (Strong Buy) to 5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with 1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.73% higher within the past month. Carvana currently has a Zacks Rank of 2 (Buy). With respect to valuation, Carvana is currently being traded at a Forward P/E ratio of 73.64. This expresses a premium compared to the average Forward P/E of 21.56 of its industry. We can also see that CVNA currently has 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.45. The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% 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. You can find more information on all of these metrics, and much more, on Zacks.com. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Carvana (CVNA) experienced a 1.63% daily decline to $369.60, underperforming the S&P 500's 0.37% gain, yet its 1.85% monthly increase surpassed the Retail-Wholesale sector's 0.38% gain. The market anticipates significant growth in its upcoming October 29, 2025 earnings, with consensus estimates projecting a 101.56% EPS rise to $1.29 and a 34.4% revenue increase to $4.91 billion. Full-year Zacks Consensus Estimates further reinforce this positive outlook, calling for a 220.75% year-over-year EPS increase to $5.1 per share and a 37.72% revenue growth to $18.83 billion. This optimism is supported by a 0.73% increase in the Zacks Consensus EPS estimate over the past month, contributing to Carvana's current Zacks Rank 2 (Buy). While CVNA trades at a premium Forward P/E of 73.64 compared to its industry's 21.56, its PEG ratio of 1.23 is favorable, lying below the Internet - Commerce industry average of 1.45. The Internet - Commerce industry itself holds a strong Zacks Industry Rank of 44, placing it in the top 18% of all industries, which historically indicates outperformance.
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