Is Trending Stock Carvana Co. (CVNA) a Buy Now?

Core Viewpoint - Carvana's stock has underperformed recently, with a return of -14.2% over the past month, contrasting with the S&P 500's +1.3% and the Internet - Commerce industry's +6.6% [1] Earnings Estimate Revisions - Carvana is expected to report earnings of $1.10 per share for the current quarter, reflecting a +96.4% change year-over-year, with a consensus estimate change of +0.9% over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is $4.85, indicating a +205% year-over-year change, although this estimate has decreased by -5% in the last month [4] - For the next fiscal year, the consensus estimate is $7.09, representing a +46.3% change from the previous year, with a +5.3% increase in the estimate over the past month [5] Revenue Growth Projections - The consensus sales estimate for the current quarter is $5.13 billion, indicating a +44.5% year-over-year change [10] - For the current fiscal year, the sales estimate is $19.8 billion, reflecting a +44.8% change, while the next fiscal year's estimate is $25.49 billion, indicating a +28.7% change [10] Last Reported Results and Surprise History - Carvana reported revenues of $5.65 billion in the last quarter, a +54.5% year-over-year increase, with an EPS of $1.03 compared to $0.64 a year ago [11] - The reported revenues exceeded the Zacks Consensus Estimate of $5.05 billion by +11.8%, while the EPS fell short by -22.56% [11] - Over the last four quarters, Carvana has surpassed consensus EPS estimates three times and topped revenue estimates each time [12] Valuation - Carvana is graded 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 - Carvana's Zacks Rank 3 suggests it may perform in line with the broader market in the near term, despite the recent market buzz [17]