Strength Seen in Carvana (CVNA): Can Its 6.6% Jump Turn into More Strength?

Carvana (CVNA) shares soared 6.6% in the last trading session to close at $188.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.5% loss over the past four weeks.Carvana's stock jumped after it reinstated an agreement to sell $4 billion worth of used-car loan receivables to Ally Financial. This yearlong deal follows claims by short-seller Hindenburg Research that Ally was distancing itself from its partnership with the online car marketplace.This company is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +125%. Revenues are expected to be $3.33 billion, up 37.2% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Carvana, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CVNA going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Carvana belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, MercadoLibre (MELI), closed the last trading session 1.9% lower at $1,799.42. Over the past month, MELI has returned -5.8%.For MercadoLibre, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $7.89. This represents a change of +142.8% from what the company reported a year ago. MercadoLibre currently has a Zacks Rank of #3 (Hold).5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA): Free Stock Analysis Report MercadoLibre, Inc. (MELI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks