Latest news with #CVNA
Yahoo
8 hours ago
- Automotive
- Yahoo
Will Carvana Extend Its Streak of Record Retail Sales in Q2?
Carvana Co. CVNA reported retail unit sales of 133,898 in the first quarter of 2025, which increased 46% year over year and set a new record. This growth reflects the company's evolving customer offering, growing consumer awareness and trust and the operational advantages of scale, including increasing inventory selection. The significant rise in retail unit sales contributed to record quarterly revenues of $4.23 billion, up 38% year over year. The reciprocal tariffs imposed by the Trump administration on imports could affect the cost of vehicles. However, Carvana expects that these higher tariffs are more likely to inflate prices of new vehicles relative to used ones, which could create a favorable pricing environment for the used vehicle market. Such conditions may particularly benefit business models focused on delivering strong consumer value, in which CVNA sees itself macroeconomic conditions remain steady, the company anticipates a sequential rise in retail unit sales in the second quarter, which could result in another all-time high. After delivering four consecutive quarters of retail unit growth exceeding 30%, the company has outlined a new long-term management goal. It plans to scale retail unit sales to 3 million annually within the next five to ten years. CVNA carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks competitors, like Lithia Motors, Inc. LAD and Group 1 Automotive, Inc. GPI, have also registered growth in retail unit sales in the latest reported quarter and are expanding their geographical footprints to support further the first quarter of 2025, Lithia's retail new and used vehicle sales reached 91,990 and 107,326 units, respectively, suggesting a year-over-year rise of 7.4% and 4.8%, respectively. Strategic acquisitions and store expansions are boosting Lithia's sales. The company is focused on buying large, high-performing stores in the Southeast and South-Central United States. By also expanding its digital reach, Lithia aims to grow its U.S. market share to 5%, up from just over 1% 1's retail new and used vehicle sales totaled 56,099 and 59,618 units in the first quarter of 2025, marking an improvement of 26.6% and 21.2% year over year, respectively. Acquisitions of dealerships and franchises are boosting Group 1's sales. In May, Group 1 acquired a Lexus and an Acura dealership in Florida and a Mercedes-Benz dealership in Texas to support growth in its key cluster markets. Carvana has outperformed the Zacks Internet – Commerce industry year to date. CVNA shares have gained 51.4% compared with the industry's growth of 4.2%. Image Source: Zacks Investment Research From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.28, higher than its industry's 1.98. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 and 2026 EPS has moved up 9 cents and down 13 cents, respectively, in the past seven days. Image Source: Zacks Investment Research 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 Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CNBC
11 hours ago
- Automotive
- CNBC
Using options to buy the recent dip in this used car retail stock
Despite beating earnings estimates and maintaining solid profit margins, Carvana (CVNA) has been under pressure recently, losing more than 9% in the last eight sessions — all on tariff scare headlines. While tariffs are a legitimate concern for many companies, this kind of sharp drop is a textbook example of a knee-jerk reaction — and the market is full of them. As a mean reversion trader, the goal is to identify these overreactions and take the other side when the setup aligns. In this case, I'm using a couple of key technical indicators to spot whether CVNA is setting up for a bounce: RSI (relative strength index): RSI is a flexible indicator that helps identify both trend reversals and continuations. In this case, the signal is pretty clear — RSI reversed course on 6/26 and has been climbing since, suggesting that the recent bearish momentum may be fading. Support/resistance: Support and resistance levels are often simple to spot — and in the chart below, you'll see clear support around the $280 level. What's interesting is that CVNA is starting to bounce right off that zone, reinforcing its significance. MACD (5,13,5): I like to bring the MACD indicator into my analysis from time to time because it's a solid tool for spotting early entry signals. While the standard MACD can lag a bit, I often use a short-term version to catch momentum shifts sooner. A bullish crossover — where the MACD line crosses above the signal line — typically acts as an early signal to consider getting into a trade. In this case, MACD hasn't confirmed the setup just yet, but it's definitely worth keeping an eye on for potential confirmation. The trade setup: CVNA 305-310 bull call spread To take advantage of this mean reversion setup, I'm using a bull call spread — a strategy that allows me to risk as little as $250 per trade and scale up easily by adding more contracts. For instance, using 10 contracts means risking $2,500 for a shot at $2,500 in profit, as long as CVNA closes at or above $310 by expiration — just $3 above its current price. With the stock trading near $307, the trade is built by buying the $305 call and selling the $310 call. It's a simple, defined-risk structure that gives me upside exposure without tying up too much capital. I break down setups like this in detail in my book Mean Reversion Trading , and you can explore tons of real-world examples at . Here is my exact trade setup: Buy $305 call, July 18 expiry Sell $310 call, July 18 expiry Cost: $250 Potential Profit: $250 -Nishant Pant Founder: Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
4 days ago
- Business
- Yahoo
Is Carvana (CVNA) Outperforming Other Retail-Wholesale Stocks This Year?
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Has Carvana (CVNA) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Carvana is one of 209 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Carvana is currently sporting a Zacks Rank of #1 (Strong Buy). Over the past three months, the Zacks Consensus Estimate for CVNA's full-year earnings has moved 45.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. Our latest available data shows that CVNA has returned about 46.1% since the start of the calendar year. Meanwhile, stocks in the Retail-Wholesale group have lost about 0.1% on average. This shows that Carvana is outperforming its peers so far this year. Sprouts Farmers (SFM) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24.3%. In Sprouts Farmers' case, the consensus EPS estimate for the current year increased 9.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Carvana belongs to the Internet - Commerce industry, which includes 38 individual stocks and currently sits at #66 in the Zacks Industry Rank. This group has gained an average of 2.6% so far this year, so CVNA is performing better in this area. On the other hand, Sprouts Farmers belongs to the Food - Natural Foods Products industry. This 6-stock industry is currently ranked #95. The industry has moved +11.5% year to date. Investors interested in the Retail-Wholesale sector may want to keep a close eye on Carvana and Sprouts Farmers as they attempt to continue their solid performance. 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 Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Automotive
- Yahoo
Carvana (CVNA) is a Top-Ranked Growth Stock: Should You Buy?
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics. Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time. 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 16-fold between 2017 and 2024, 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 Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #1 (Strong Buy) rating. Its bottom-line is projected to rise 208.8% year-over-year for 2025, while Wall Street anticipates its top line to improve by 31.4%. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $1.39 to $4.91 per share. CVNA boasts an average earnings surprise of 137.6%. On a historic basis, Carvana has generated cash flow growth of 28.4%, and is expected to report cash flow expansion of 243% this year. Investors should take the time to consider CVNA for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores. 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 This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Automotive
- Yahoo
Is Carvana's Vending Machine Model Enhancing Efficiency?
Carvana Co. CVNA, a leading e-commerce platform for buying and selling used cars, has a distinct business model, which integrates a fully online car-buying experience with a vertically integrated supply chain. This enables the company to offer high-quality vehicles transparently, efficiently and at competitive sets itself apart from competitors through proprietary logistics software and an in-house delivery network, designed to move vehicles predictably and efficiently while enhancing the customer experience. In many markets, deliveries and pickups are handled by Carvana employees using branded haulers with same-day service available in select areas. Customers in certain regions can collect or return vehicles at one of Carvana's patented car vending machines or other dedicated locations. These vending machines not only offer a unique and memorable pickup experience but also contribute to stronger brand recognition and help reduce variable fulfillment costs. CVNA sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks has observed that the launch of a vending machine in a new market typically leads to increased market penetration and reduced variable operating costs per vehicle sold. In contrast, other major auto retailers such as Group 1 Automotive, Inc. GPI and Lithia Motors, Inc. LAD are taking a hybrid approach, introducing digital capabilities into their existing dealership 1 introduced AcceleRide in 2019 to allow customers to purchase new or used vehicles entirely online. The platform allows Group 1's customers to explore various financing options, assess trade-in values and select home delivery. To enhance convenience, AcceleRide also incorporates manufacturer rebates and incentive offers, along with the ability to finalize all trade-in information digitally. Lithia's digital retail platform, Driveway, is designed to give customers full control over their vehicle ownership journey. Through Driveway, users can access a broad, nationwide selection of new, used, and certified pre-owned vehicles, with the option to have their purchase delivered directly to their home or picked up from one of over 290 Lithia locations within the Driveway network. Carvana has outperformed the Zacks Internet – Commerce industry year to date. CVNA shares have gained 56.9% compared with the industry's growth of 4.3%. Image Source: Zacks Investment ResearchFrom a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.41, higher than its industry's 1.98. Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for 2025 and 2026 EPS has moved up 28 cents and 48 cents, respectively, in the past 30 days. Image Source: Zacks Investment Research 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 Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
