2 Must-See Graphs Explaining Why This Top Stock Is 4,300% Higher -- and Why It Can Keep Soaring

Core Insights - Carvana has experienced a remarkable stock increase of approximately 4,300% over the past three years, significantly outperforming the S&P 500's 70% gain, raising questions about whether investors have missed the opportunity to invest further [1] Company Performance - Carvana has successfully transformed its business model from a growth-at-all-costs strategy to focusing on more profitable sales and growth, moving away from the brink of bankruptcy [2] - The company's net income and adjusted EBITDA margins are on an upward trajectory, indicating improved financial health [3] Operational Efficiency - Carvana's reconditioning costs were higher than expected in Q4 2025, particularly in locations with lower management tenure, suggesting potential areas for operational improvement [4] - If Carvana's production locations achieved per-unit costs in line with the top quartile, the reconditioning cost per unit could have been $220 lower, highlighting significant cost-saving opportunities [6] Industry Context - The automotive industry is a substantial part of the U.S. economy and is characterized by fragmentation, with Carvana being the second-largest used-car retailer, yet only capturing 1.6% of the market [7] - Carvana's e-commerce platform provides a competitive advantage by offering access to a vast inventory of vehicles, unlike traditional dealerships that limit consumers to their local inventory [8]