Carvana (US:CVNA) Benzinga·2025-12-08 09:05Core Viewpoint - Carvana Co. will be added to the S&P 500 index as part of the quarterly rebalance, surprising many investors who expected larger tech companies or major crypto entities to be included [1][3]. Group 1: S&P 500 Rebalance - Carvana will join the S&P 500 index in the next two weeks, along with CRH Plc and Comfort Systems USA, while LKQ Corp, Solstice Advanced Materials, and Mohawk Industries will be removed [2]. - Carvana's stock surged 9.81% in premarket trading following the announcement of its inclusion in the index [2]. Group 2: Company Performance - Carvana's inclusion follows a period of strong performance, with shares rising after an upgrade from Wedbush analyst Scott Devitt, who highlighted the company's potential to reach three million annual unit sales by 2033 [4]. - Carvana holds a momentum rating of 84.70% and a growth rating of 99.15%, indicating strong historical earnings and revenue expansion [6]. Group 3: Market Conditions - Carvana's business model is closely tied to borrowing costs, particularly for subprime and lower-prime borrowers, and the anticipation of lower interest rates by the Federal Reserve has improved the company's outlook [5]. - Year-to-date, Carvana's stock has climbed 100.33% [6].