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Should You Buy #1 (Strong Buy)-Ranked Carvana (CVNA) for Your Portfolio?

Carvana was upgraded to the Zacks Rank #1 list on November 2, 2024. The Zacks Rank is a unique stock-rating model that helps you take advantage of earnings estimate revision trends and provides a way to get into stocks highly sought after by institutional investors.

Headquartered in Phoenix, AZ, Carvana Co. is a leading e-commerce platform for buying and selling used cars. The company, which had filed for its IPO in 2017, has had an amazing run ever since, with revenues jumping around 15-fold between 2017 and 2021. Revenues rose 6% in 2022 & fell 20.8% in 2023. Carvana’s end-to-end online business model that covers every aspect of used-car retailing — including sales, financing, logistics, inspection and repair centers, as well as software development — has transformed traditional used-car sales in several ways.

For fiscal 2024, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.86 to $1.16 per share. CVNA boasts an average earnings surprise of 73%.

Earnings are forecasted to see growth of 54.7% for the current fiscal year, and sales are expected to increase 24.9%.

Additionally, CVNA has climbed higher over the past four weeks, gaining 26.4%. The S&P 500 is up 1% in comparison.

Bottom Line

With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Carvana could be just the stock to help your portfolio generate returns that could fund your retirement, your kids' college tuition, or your short- and long-term savings goals.

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Carvana Co. (CVNA) : Free Stock Analysis Report

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