Yahoo Finance Why Carvana (CVNA) is a Top Momentum Stock for the Long-Term
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.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Carvana (CVNA)
Headquartered in Phoenix, AZ, Carvana Co. is a leading e-commerce platform for buying and selling used cars. The company, which had filed for its IPO in 2017, has had an amazing run ever since, with revenues jumping around 15-fold between 2017 and 2021. Revenues rose 6% in 2022. Carvana’s end-to-end online business model that covers every aspect of used-car retailing — including sales, financing, logistics, inspection and repair centers, as well as software development — has transformed traditional used-car sales in several ways.
CVNA boasts a Momentum Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Carvana has seen some interesting price action recently; the stock is down 3.3% over the past one week and up 50.4% over the past four weeks. And in the last one-year period, CVNA has gained 1016.9%. As for the stock's trading volume, 11,542,054 shares on average were traded over the last 20 days.
Momentum investors don't just pay attention to price changes; positive earnings play a crucial role, too. Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $4.47 to $0.71 per share. CVNA boasts an average earnings surprise of 63.9%.
Investors should take the time to consider CVNA for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.
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Carvana Co. (CVNA) : Free Stock Analysis Report
