Carvana Co. (CVNA) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Carvana's shares have experienced significant growth, with a 37.1% increase over the past month and a 44.1% rise since the beginning of the year, outperforming both the Zacks Retail-Wholesale sector and the Zacks Internet - Commerce industry [1] Financial Performance - Carvana has consistently exceeded earnings expectations, reporting an EPS of $1.51 against a consensus estimate of$0.75 in its last earnings report [2] - For the current fiscal year, Carvana is projected to achieve earnings of $4.23 per share on revenues of$17.73 billion, reflecting a 166.04% increase in EPS and a 29.64% increase in revenues [3] - The next fiscal year forecasts earnings of $5.79 per share on$22.1 billion in revenues, indicating year-over-year changes of 37.01% and 24.65%, respectively [3] Valuation Metrics - Carvana's current valuation metrics indicate a premium, trading at 69.3X current fiscal year EPS estimates compared to the peer industry average of 24.6X [7] - On a trailing cash flow basis, the stock trades at 137.1X versus the peer group's average of 18X, with a PEG ratio of 1.35 [7] Zacks Rank and Style Scores - Carvana holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - The stock has a Value Score of D, while its Growth and Momentum Scores are both A, resulting in a combined VGM Score of B [6]