Is Most-Watched Stock Carvana Co. (CVNA) Worth Betting on Now?

Core Viewpoint - Carvana has been trending in stock searches, with recent performance showing a decline of -7.9% over the past month, contrasting with the S&P 500's increase of +1.3% and the Internet - Commerce industry’s decline of -2.6% [1] Earnings Estimates Revisions - Carvana is expected to report earnings of $1.33 per share for the current quarter, reflecting a significant increase of +107.8% year-over-year, with a 30-day estimate change of +4.4% [4] - For the current fiscal year, the consensus earnings estimate is $5.23, indicating a year-over-year change of +228.9%, with a 30-day estimate change of +2.2% [4] - The next fiscal year’s consensus earnings estimate stands at $6.99, showing a change of +33.8% from the previous year, with a recent estimate change of +3.9% [5] Revenue Growth Projections - The consensus sales estimate for Carvana is $4.99 billion for the current quarter, representing a year-over-year increase of +36.5% [10] - For the current fiscal year, revenue estimates are $19.03 billion, indicating a change of +39.2%, while the next fiscal year’s estimate is $24.9 billion, reflecting a change of +30.8% [10] Recent Performance and Surprise History - In the last reported quarter, Carvana achieved revenues of $4.84 billion, a year-over-year increase of +41.9%, and an EPS of $1.28 compared to $0.14 a year ago [11] - The company exceeded consensus revenue estimates by +5.62% and EPS estimates by +16.36% [11] - Carvana has consistently beaten consensus EPS and revenue estimates over the last four quarters [12] Valuation Metrics - Carvana is rated D on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [14][15] Conclusion - The Zacks Rank 2 suggests that Carvana may outperform the broader market in the near term, despite its current valuation concerns [17]