Carvana (US:CVNA) ZACKS·2024-11-21 18:21Core Viewpoint - Carvana (CVNA) shows a significantly improving earnings outlook, making it a solid choice for investors as analysts continue to raise earnings estimates for the company [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding Carvana's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, Carvana is projected to earn $0.25 per share, reflecting a 125% increase from the previous year's reported figure. The Zacks Consensus Estimate has risen by 237.84% over the last 30 days, with six estimates increasing and no negative revisions [4]. - For the full year, Carvana is expected to earn $1.16 per share, representing a year-over-year increase of 54.67%. The consensus estimate has increased by 164.76%, with five estimates moving up and no negative revisions [5]. Zacks Rank - Carvana has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which is a reliable rating tool that helps investors leverage earnings estimate trends for investment decisions [6]. - Stocks with a Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [6]. Investment Potential - Strong estimate revisions have led to a 23.9% increase in Carvana's stock over the past four weeks, suggesting that there may still be further upside potential, making it a candidate for portfolio addition [7].