Group 1: Stock Performance - Carvana (CVNA) closed at $345.92, reflecting a -3.19% change from the previous day, underperforming the S&P 500's daily loss of 0.07% [1] - Over the last month, Carvana's shares increased by 5.12%, outperforming the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 3.94% [1] Group 2: Earnings Forecast - Carvana is expected to release earnings on July 30, 2025, with a forecasted EPS of $1.09, representing a 678.57% increase from the same quarter last year [2] - The consensus estimate projects revenue of $4.57 billion, indicating a 34% rise from the equivalent quarter last year [2] Group 3: Fiscal Year Estimates - For the entire fiscal year, earnings are predicted to be $4.99 per share, and revenue is expected to reach $18.08 billion, reflecting changes of +213.84% and +32.23% respectively from the previous year [3] Group 4: Analyst Estimates - Recent changes in analyst estimates for Carvana are crucial as they often indicate shifts in near-term business trends, with upward revisions suggesting analysts' positive outlook on the company's operations [4] Group 5: Zacks Rank and Valuation - Carvana currently holds a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 71.58, which is a premium compared to the industry average Forward P/E of 25 [6] - The Zacks Consensus EPS estimate has increased by 1.66% over the past month [6] Group 6: PEG Ratio and Industry Ranking - Carvana has a PEG ratio of 1.39, which is lower than the industry average PEG ratio of 1.44 [7] - The Internet - Commerce industry, part of the Retail-Wholesale sector, ranks in the top 26% of all industries according to the Zacks Industry Rank [7]

Group 1 - Carvana is favored for long-term investment, with potential for a pullback to buy more shares at a discount [1][3] - The stock has shown strong performance recently, approaching its 2021 peak, and reached a new 52-week high before closing down slightly [1][2] - The company's recent earnings report exceeded Wall Street expectations, and management has set new long-term financial targets [2] Group 2 - Carvana's sales methodology is convenient, allowing customers to buy, sell, finance, and trade cars online, which positions the company to capture more market share in a fragmented auto sales space [2] - The stock is seen favorably by investors anticipating interest rate cuts, which would make financing easier [2] - Carvana's business model is considered best-in-class, with management on track for strong growth and rising profitability [3]

Group 1: Meme-Stock Trend - The meme-stock phenomenon is resurging in 2025, with investors focusing on unprofitable companies for investment opportunities [1] - Among the Russell 3000 stocks, 10 out of 14 that have tripled since the market bottom on April 8 are unprofitable [1] - By late June, the 858 money-losing stocks in the index gained an average of 36%, outperforming profitable stocks [1] Group 2: Avis Budget Group - Avis Budget Group has seen a significant stock increase of 161% since April, driven by operational improvements and tariff-driven demand shifts [2][6] - In Q1, Avis reported a 4.7% year-over-year revenue decline to $2.43 billion but exceeded EBITDA expectations with a smaller loss of $93 million [6] - Q2 adjusted EBITDA is projected to exceed $200 million, supported by a focus on higher-margin rentals and better vehicle utilization [6] Group 3: Carvana - Carvana's stock has surged 108% since April, with Q1 revenue increasing by 38% to $4.2 billion and retail sales up 46% to nearly 134,000 vehicles [2][10] - The company achieved a net income of $373 million and a record adjusted EBITDA of $488 million in Q1, while operating with lower inventory and reduced costs [10] - Carvana's stock was up 73% for 2025, trading at $346, benefiting from the proposed 25% tariff on imported cars, which is expected to boost used-car demand [11]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell even higher, with the expectation that established trends will continue [1] Group 1: Company Overview - Carvana (CVNA) currently holds a Momentum Style Score of B, indicating a positive momentum characteristic [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Group 2: Price Performance - Over the past week, CVNA shares increased by 9.11%, outperforming the Zacks Internet - Commerce industry, which rose by 1.42% [5] - In a longer timeframe, CVNA shares have risen by 74.53% over the past three months and 192.12% over the last year, significantly outperforming the S&P 500's gains of 23.56% and 13.28%, respectively [6] Group 3: Trading Volume - The average 20-day trading volume for CVNA is 3,378,263 shares, which serves as a bullish indicator when combined with rising stock prices [7] Group 4: Earnings Outlook - In the last two months, four earnings estimates for CVNA have been revised upwards, increasing the consensus estimate from $4.48 to $4.99 [9] - For the next fiscal year, five estimates have moved higher while one has been revised downwards, indicating a generally positive earnings outlook [9] Group 5: Conclusion - Given the positive momentum indicators and earnings outlook, CVNA is positioned as a promising stock for near-term investment [11]

Core Viewpoint - Carvana's stock has shown significant growth, outperforming both the retail-wholesale sector and the internet-commerce industry, with a year-to-date increase of 75.7% compared to 5.2% and 7.4% respectively [1] Financial Performance - Carvana has consistently exceeded earnings expectations, reporting an EPS of $1.51 against a consensus estimate of $0.75 in its last earnings report [2] - For the current fiscal year, Carvana is projected to achieve earnings of $4.99 per share on revenues of $18.08 billion, reflecting a 213.84% increase in EPS and a 32.23% increase in revenues [3] - The next fiscal year forecasts earnings of $6.14 per share on revenues of $22.66 billion, indicating year-over-year growth of 22.96% in EPS and 25.33% in revenues [3] Valuation Metrics - Carvana's stock trades at a high valuation, with a current fiscal year EPS estimate of 71.6 times, compared to a peer industry average of 25 times [7] - The trailing cash flow basis shows a valuation of 167.2 times, significantly higher than the peer group's average of 15.9 times [7] - The stock has a PEG ratio of 1.39, which does not place it among the top value stocks [7] Zacks Rank and Style Scores - Carvana holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend [8] - The company has a Value Score of D, while its Growth and Momentum Scores are A and B respectively, resulting in a VGM Score of B [6][8] - Carvana meets the criteria for investment selection based on Zacks Rank and Style Scores, suggesting potential for further stock price appreciation [8]

Core Insights - Carvana Inc. (CVNA) is trading at a forward sales multiple of 3.65, significantly higher than its peers and its own five-year average [1][7] - Despite appearing expensive, Carvana's strong sales momentum and operational improvements may justify the premium valuation [3][14] Sales Performance - Carvana's retail sales increased by 33.1% year-over-year to 416,348 units last year, with Q1'25 sales rising 45.7% due to strong demand [4][7] - The company anticipates further sequential growth in retail unit sales for Q2 and expects substantial growth for the full year 2025 [4] Operational Efficiency - Carvana is enhancing operational efficiency through various technology and process initiatives, including cost reductions in reconditioning and transport [5] - The company reported record adjusted EBITDA of approximately $488 million in Q1'25, more than doubling from the previous year, with an adjusted EBITDA margin of 11.5%, the highest among public car dealers [6][7] Market Performance - Carvana's stock has surged over 70% year-to-date, contrasting with a 13.8% decline in the auto sector, while competitors like CarMax and Lithia Motors have seen declines [10] - The Zacks Consensus Estimate projects a 214% increase in annual earnings to $4.99 per share for 2025, with a further 23% increase expected in FY26 [12] Investor Sentiment - Investors are responding positively to Carvana's results, indicating that the market is betting on continued growth rather than mere speculation [14] - As long as the growth narrative remains intact, Carvana's elevated valuation multiple appears justified [14]

Core Insights - Moretus Research specializes in high-quality equity research aimed at serious investors, focusing on clarity, conviction, and alpha generation [1] - The firm employs a strategy of "positive paranoia" to analyze investments, emphasizing sentiment analysis and competitive positioning to predict future performance [1] - A notable investment recommendation was made at the beginning of 2023, where Carvana was purchased at $5 per share, highlighting an 88% short interest that was deemed excessive, leading to a significant turnaround [1] - The investment in Carvana yielded over 60 times returns over three years, showcasing the firm's ability to identify substantial opportunities [1] - Moretus Research aims to uncover data advantages through alternative data sources, covering both current holdings and potential future investments [1]

Group 1: Company Performance - GMS has gained approximately 28.2% year-to-date, significantly outperforming the average gain of 4.8% in the Retail-Wholesale group [4] - GMS currently holds a Zacks Rank of 2 (Buy), indicating strong analyst sentiment and a positive earnings outlook [3] - The Zacks Consensus Estimate for GMS' full-year earnings has increased by 3.5% over the past 90 days, reflecting improved analyst sentiment [3] Group 2: Industry Context - GMS is part of the Building Products - Retail industry, which consists of 4 individual stocks and currently ranks 11 in the Zacks Industry Rank [5] - The average performance of stocks in the Building Products - Retail industry has declined by 5.4% this year, highlighting GMS's superior performance [5] - Another outperforming stock in the Retail-Wholesale sector is Carvana (CVNA), which has returned 66.3% year-to-date [4][6]

Market Overview - U.S. stock markets experienced a successful June, with the Dow, S&P 500, and Nasdaq Composite increasing by 4%, 5.7%, and 5.7% respectively, closing at record-high levels for the first half of 2025 [1] - Despite this success, the first half of 2025 marked the weakest performance for the indexes since 2022, with potential catalysts for the second half including a U.S.-China trade deal, anticipated interest rate cuts by the Fed, and reduced recession fears [2] Imaginary Portfolio - An imaginary diversified portfolio was created, consisting of five stocks that each gained over 50% in the first half of 2025, with further upside potential indicated by favorable Zacks Ranks [3][4] Company Highlights Jabil Inc. (JBL) - Jabil is benefiting from strong momentum in capital equipment, AI-powered data center infrastructure, and digital commerce, with a focus on product diversification [7] - Expected revenue and earnings growth rates for Jabil are 5.9% and 18.5% respectively for the next year, with a 9% improvement in the Zacks Consensus Estimate for next-year earnings over the last 30 days [9] Howmet Aerospace Inc. (HWM) - Howmet Aerospace is experiencing growth in the commercial aerospace market, supported by robust build rates and recovery in wide-body aircraft, along with strength in its defense aerospace business [10] - Expected revenue and earnings growth rates for Howmet are 8.5% and 29% respectively for the current year, with a 0.3% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [11] CVS Health Corp. (CVS) - CVS Health is investing in technology to reduce costs and enhance customer experience, with improved Medicare Advantage star ratings aiding its position [12] - Expected revenue and earnings growth rates for CVS are 3.5% and 12.6% respectively for the current year, with a 2.3% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [14] Carvana Co. (CVNA) - Carvana's acquisition of ADESA's U.S. operations has strengthened its logistics and auction capabilities, with expectations for year-over-year growth in retail unit sales [15][16] - Expected revenue and earnings growth rates for Carvana are 32.1% and over 100% respectively for the current year, with a 7.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [17] NRG Energy Inc. (NRG) - NRG Energy operates in the energy and home services sector, producing electricity from various sources and expanding operations through both organic and inorganic initiatives [18][19] - Expected revenue and earnings growth rates for NRG are 2.6% and 17% respectively for the current year, with a 2.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [20]

Key Takeaways CVNA aims to reach 3 million annual vehicle sales, citing four quarters of 30% retail unit growth. To hit the target in 10 years, Carvana must grow production by 90 units per week,180 for a 5-year goal. CVNA has added 80 units of weekly production over the past year, driven by higher demand and inventory.Carvana Co. (CVNA) reconditions used vehicles through a sophisticated, technology-driven, assembly-line process it refers to as its production process. This operational model enables the com ...