2 Risky Stocks That Could Plunge
Carvana has set an audacious goal of selling 3 million retail vehicles annually within five to 10 years, along with an adjusted EBITDA margin of 13.5%. To reach that target, the company would need to increase its current retail unit annual run rate by a factor of 6. For comparison, CarMax sold around 766,000 retail vehicles in fiscal 2025. Here's the problem: Carvana's valuation practically requires the company to hit or exceed that goal. The stock currently trades for around 110 times earnings, and those e ...