Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

Carvana (CVNA)

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.

CVNA boasts a Momentum Style Score of B and VGM Score of B, and holds a Zacks Rank #1 (Strong Buy) rating. Shares of Carvana has seen some interesting price action recently; the stock is up 1.1% over the past one week and up 26.4% over the past four weeks. And in the last one-year period, CVNA has gained 700%. As for the stock's trading volume, 3,272,055.50 shares on average were traded over the last 20 days.

A company's earnings performance is important for momentum investors as well. For fiscal 2024, five analysts revised their earnings estimate higher in the last 60 days for CVNA, while the Zacks Consensus Estimate has increased $0.86 to $1.16 per share. CVNA also boasts an average earnings surprise of 73%.

CVNA should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

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