For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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.
Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
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 is a Zacks Rank #1 (Strong Buy) stock, with a Growth Style Score of A and VGM Score of B. Earnings are expected to grow 79.3% year-over-year for the current fiscal year, with sales growth of 18.8%.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.19 to $2.85 per share. CVNA boasts an average earnings surprise of 119.2%.
Looking at cash flow, Carvana is expected to report cash flow growth of 243% this year; CVNA has generated cash flow growth of 52.5% over the past three to five years.
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.
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Carvana Co. (CVNA) : Free Stock Analysis Report
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