Polarizing activist short-seller Hindenburg Research—known for its bombshell reports alleging corporate fraud and other malfeasance by companies including Nikola Corp. NASDAQ: NKLA and India's Adani Group—published on January 2, 2025, an article about its latest target: Carvana Co. NYSE: CVNA. Carvana TodayCVNACarvana$194.82 -4.74 (-2.38%) 52-Week Range$40.21▼$268.34P/E Ratio19,501.50Price Target$229.18Add to WatchlistIn the report, Hindenburg alleges that the $44-billion online car dealer's stock spike of ...

Core Insights - Carvana Co. has experienced a significant 327% rally over the past year, but recently faced a 21.97% decline in the last month, indicating volatility in its stock performance [1] - The stock is showing signs of fatigue, having dropped below key simple moving averages, which is a classic indicator of a bearish trend [1] - Hindenburg Research's critical report has intensified bearish sentiment, accusing Carvana of accounting manipulation and lax underwriting, while claiming the company is inflating its valuation through $800 million in loan sales [2] - Carvana has dismissed the report as misleading, maintaining confidence in its growth plan for 2025 [3] Technical Analysis - Carvana's stock has fallen below its eight-day, 20-day, and 50-day simple moving averages, indicating bearish short-term momentum [6] - The stock price of $199.56 is significantly below the eight-day SMA of $212.33, with further gaps to the 20-day SMA at $231.15 and the 50-day SMA at $235.49 [6] - The 200-day SMA at $154.62 suggests a bullish longer-term outlook, but offers little comfort for short-term traders facing current challenges [6] Market Sentiment - Despite the negative report, Carvana shares showed some resilience, bouncing back over 3% after a brief dip [4] - The ongoing bearish signals and fundamental concerns suggest that Carvana may struggle to maintain its gains, raising questions about whether the recent bounce is sustainable [4] - The forward P/E ratio of 101 indicates a significant premium compared to competitors like CarMax Inc and AutoNation Inc, with sales multiples 845% higher than its peers [7]

Carvana Co (NYSE:CVNA) stock is 2.2% lower at $227.97 at last glance, after sector peer CarMax (KMX) smashed third-quarter earnings estimates. The equity is in the midst of a pullback, pacing for its third-straight loss and shedding 13.5% so far in December. It might be time to buy the dip, however, as history shows the online used car retailer's shares are near a historically bullish trendline.According to data from Schaeffer's Senior Quantitative Analyst Rocky White, CVNA is within striking distance of it ...

There's no need to sugarcoat it. Investors putting money to work in the stock market undoubtedly want to become rich over time. Perhaps the specific monetary goal is to achieve a portfolio value of $1 million.Some businesses, like Carvana (CVNA 0.19%), have already done that. This used car e-commerce stock is up a jaw-dropping 5,120% since the start of 2023 (as of Dec. 12). That would've turned a $20,000 investment into a cool $1 million in less than two years, a phenomenal return.If you missed the Carvana ...

After 43+ years working for one investment research company or another, I finally retired. So now, I’m completely independent. And for the first time on Seeking Alpha, I won’t be working based on anybody else’s product agenda. I have only one goal now… to give you the best actionable investment insights I can.I have long specialized in rules/factor-based equity investing strategies. But I’m different from others who share such backgrounds. I don’t serve the numbers. Instead, the numbers serve me… to inspire ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Viewpoint - Carvana reported strong third-quarter earnings, surpassing estimates and showing significant year-over-year growth in revenue and profit metrics [2][3][4][5]. Financial Performance - Carvana's Q3 earnings were 64 cents per share, exceeding the Zacks Consensus Estimate and up from 23 cents in the previous year [2]. - Revenues reached $3.66 billion, beating the Zacks Consensus Estimate of $3.47 billion and reflecting a 32% increase year over year [2]. - Total gross profit was $807 million, a 67.4% increase year over year, with gross profit per unit (GPU) rising to $7,427 from $5,952 [3]. Segmental Performance - Retail vehicle sales totaled $2.54 billion, a 30.5% increase year over year, with the number of vehicles sold rising 34.2% to 108,651 units [4]. - Wholesale vehicle sales reached $786 million, up 28.9% year over year, with unit sales increasing 38.2% to 56,487 [5]. - Other sales and revenues grew 52.3% year over year to $326 million, although GPU in this segment was slightly below estimates [6]. Financial Position - As of September 30, 2024, Carvana had cash and cash equivalents of $871 million, up from $530 million at the end of 2023 [7]. - Long-term debt stood at $5.43 billion, a slight increase from $5.41 billion at the end of 2023 [7]. Outlook - Carvana anticipates a sequential increase in year-over-year growth of retail unit sales in Q4 2024 and expects adjusted EBITDA for the full year to exceed the previous guidance of $1-$1.2 billion [8]. - Recent estimates for Carvana have shown a significant upward trend, with a consensus estimate shift of 331.03% [9][10]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [11].

Core Insights - The discussion emphasizes the importance of maintaining a consistent investment strategy, particularly in small-cap stocks, despite market volatility and macroeconomic concerns [3][4]. - The speaker highlights specific companies such as Carvana, Zeta, CuriosityStream, and Cineverse as key investment opportunities, showcasing their growth potential and market positioning [3][4][5]. Company Insights - **Carvana (CVNA)**: The stock has seen significant appreciation, rising from a range of $22 to $30 to a tenfold increase, driven by a strong consumer preference for its business model and strategic acquisitions like ADESA [3][4]. - **Zeta (ZETA)**: The company reported impressive earnings, with a 60% increase in its RFP business. The CEO's confidence and insider buying have attracted attention, despite a recent short report that caused volatility [4][5]. - **CuriosityStream (CURI)**: The company announced a dividend while showing signs of improving cash flow and reduced cash burn, making it an attractive investment at a low price point [5]. - **Cineverse (CNVS)**: The company is positioned to benefit from its rights to the successful "Terrifier 3" film, with expectations of significant cash inflow and a strong content library, making it a compelling investment opportunity [5][6]. Industry Insights - The airline industry is facing challenges, with Spirit Airlines filing for bankruptcy due to high debt and operational costs. The analysis of Mesa Air's relationship with United Airlines provides insights into competitive dynamics in the sector [7][8]. - The podcast and streaming sectors are highlighted as areas of growth, particularly with BuzzFeed's potential to leverage its popular content and upcoming events to drive revenue [6][7]. Investment Strategy - The investment approach focuses on identifying undervalued companies with strong fundamentals and potential for growth, emphasizing the importance of thorough research and situational awareness [4][5][6]. - The speaker advocates for a concentrated portfolio strategy, suggesting that a few well-researched investments can yield significant returns, rather than spreading resources too thin across many positions [6][7].

Carvana (CVNA) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earni ...

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. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium also includes the Zacks Style Scores. What ...