Carvana About To Turn A Profit

Summary

• Carvana (CVNA) has shown strong technical indicators, including a 100% technical buy signal, 327.59+ Weighted Alpha, and a 617.91% gain in the last year..

• The company's e-commerce platform for buying and selling used cars has driven significant growth, with revenue expected to grow 21.90% this year and 16.00% next year.

• Analysts are mixed with 5 strong buy, 3 buy, 13 hold, and 2 sell ratings; price targets range between $72 and $250..

• Despite volatility, Carvana's long-term prospects appear favorable, with earnings projected to increase at a compounded annual rate of 67.90% over the next 5 years.

The Chart of the Day belongs to the on-line used car dealership Carvana (CVNA) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 9/18 the stock gained 26.76%.

CVNA Price vs Daily Moving Averages

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals

• 327.59+ Weighted Alpha

• 617.91% gain in the last year

• Trend Seeker buy signal

• 3.44 - 60 month Beta

• Above its 20, 50 and 100 day moving averages

• 15 new highs and up 20.85% in the last month

• Relative Strength Index 79.56%

• Technical support level at $198.53

• Recently traded at $205.02 with 50 day moving average of $169.03

Fundamental Factors:

• Market Cap $41.02 billion

• Revenue expected to grow 21.90% this year and another 16.00% next year

• Earnings are estimated to increase an additional 129.60% next year and continue to increase at a compounded annual rate of 67.90% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analyst gave 5 strong buy, 3 buy, 13 hold and 2 sell opinion on the stock

• Analysts' price targets are between $72 and $250

• Value Line rates the stock its average rating of 3 with a price target of $165 or 20% below todays close but comments:" Long-term prospects for Carvana appear favorable, as its turnaround plan progresses."

• CFRAs MarketScope rates the stock a hold

• MorningStar gives the stock its average rating of 3 with a fair value of $181 or 11% over valued

• 27,520 investors monitor the stock on Seeking Alpha

• Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.