Carvana's Growth Potential Boosted by Analyst Upgrades
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 31 2010
0mins
Should l Buy CVNA?
Source: SeekingAlpha
Carvana Co (CVNA) saw its stock rise by 4.29%, reaching a 20-day high amid positive market conditions, with the Nasdaq-100 and S&P 500 both showing gains.
The recent BTIG survey indicates a significant increase in consumer willingness to buy cars online, which has expanded Carvana's serviceable market by 3.5M to 4M units. Additionally, BTIG analyst Marvin Fong raised Carvana's FY26 retail unit forecast from 722,500 to 748,000 and adjusted EBITDA expectations from $2.9B to $3.08B, reflecting an optimistic outlook on the company's growth trajectory. This positive sentiment is further supported by Bank of America's identification of Carvana as a well-positioned company for growth, with an anticipated earnings report due in late February.
These developments suggest that Carvana is capitalizing on market trends and consumer preferences, which may lead to sustained growth and increased investor confidence in the upcoming earnings season.
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Analyst Views on CVNA
Wall Street analysts forecast CVNA stock price to rise
18 Analyst Rating
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 342.870
Low
395.00
Averages
497.94
High
550.00
Current: 342.870
Low
395.00
Averages
497.94
High
550.00
About CVNA
Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. The Company primarily acquires used vehicle inventory directly from customers, used car auctions, and wholesale used vehicle suppliers, including retail marketplace partners. Once it acquires a vehicle, the Company leverages its in-house logistics network or a vendor to transport the vehicle to one of its inspection and reconditioning centers (IRC) or auction locations with reconditioning capabilities, at which point the vehicle enters its inventory management system. It offers a mobile-optimized Website, where prospective retail car buyers can immediately begin browsing, researching, filtering, and identifying their vehicle of choice, where it offers an annotated virtual vehicle tour, which includes a 360-degree view of the interior and exterior of the actual vehicle. The Company also offers integrated financing using its loan origination platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Carvana Q4 Earnings Preview and Analyst Insights
- Revenue Growth Expectations: Analysts anticipate Carvana's Q4 revenue to reach $5.23 billion, a 47% increase from last year's $3.55 billion, indicating the company's ongoing improvement in sales performance, which could further bolster market confidence.
- Earnings Per Share Increase: Expected earnings per share are projected at $1.12, doubling from $0.56 in the same quarter last year, reflecting a significant enhancement in profitability, despite missing the most recent quarterly estimates.
- Market Volatility Warning: Freedom Capital Markets Chief Market Strategist Jay Woods highlights that Carvana's stock has historically averaged a 14.2% swing post-earnings, suggesting a potential $50 price fluctuation from current levels, urging investors to proceed with caution.
- Same-Day Delivery Expansion: Carvana recently launched same-day vehicle delivery in Eugene, Oregon, marking its expansion into over 20 states for a quicker buying experience, which is expected to drive sales growth and enhance customer satisfaction.
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Carvana Set to Release Q4 Earnings on February 18
- Earnings Announcement: Carvana is set to announce its Q4 earnings on February 18 after market close, with consensus EPS estimated at $1.16 and revenue expected to reach $5.26 billion, reflecting market focus on its profitability.
- Upward EPS Revisions: Over the past three months, Carvana's EPS estimates have seen three upward revisions with no downward adjustments, indicating increased analyst confidence in the company's profitability, which could positively impact its stock price.
- Revenue Estimate Adjustments: Similarly, revenue estimates have experienced ten upward revisions and one downward revision in the last three months, suggesting a bullish outlook on Carvana's sales growth, likely to attract investor interest and confidence.
- Market Environment Analysis: Despite concerns regarding the
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Market Preview: Earnings Reports from Major Companies Ahead
- Earnings Reports: Carvana, DoorDash, and eBay are set to release their earnings on February 18, with particular attention on Carvana's sales growth amidst a busy market day.
- Booking Holdings Performance: Analysts expect Booking Holdings to report a 12% revenue growth in Q4, driven by stable global leisure demand and the expansion of alternative accommodations, while management must address the potential threat from AI travel planning tools.
- Energy Sector Update: Occidental Petroleum is announcing its Q4 results, with analysts predicting stable production from its core US onshore assets despite declining oil prices, which may pressure earnings and free cash flow.
- Macro Economic Data: The Federal Reserve will release minutes from its January FOMC meeting, with market participants looking for clues on inflation and labor market policies, while housing starts are forecasted at an annualized rate of 1.31 million and building permits at 1.4 million, indicating the impact of elevated rates on the housing market.
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Pomerantz LLP Investigates Carvana for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Carvana and its executives have engaged in securities fraud or other unlawful business practices, indicating serious concerns among investors regarding corporate governance that could lead to legal liabilities and financial losses.
- Earnings Overstatement Allegations: On January 28, 2026, Gotham City Research LLC issued a report alleging that Carvana's 2023-2024 earnings are overstated by over $1 billion, revealing a lack of financial transparency that may undermine investor confidence.
- Significant Stock Price Drop: Following the report's release, Carvana's stock price fell by $67.68, or 14.17%, closing at $410.04, reflecting strong market concerns about the company's financial health, which could impact future financing capabilities.
- Potential Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, may initiate a class action lawsuit against Carvana, and if fraud is confirmed, it could have long-lasting negative effects on the company's reputation and shareholder value.
See More
Analysis and Outlook: Saved by the Bell
- Nasdaq Performance: The Nasdaq Composite ended its four-day losing streak today.
- Impact of AI Concerns: Despite the positive performance, concerns regarding AI continued to affect software stocks.
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Carvana Q4 Earnings Preview and Analyst Insights
- Revenue Growth Expectations: Analysts anticipate Carvana's Q4 revenue to reach $5.23 billion, a 47% increase from last year's $3.55 billion, indicating the company's ongoing improvement in sales performance, which could further bolster market confidence.
- Earnings Per Share Increase: Expected earnings per share are projected at $1.12, doubling from $0.56 in the same quarter last year, reflecting a significant enhancement in profitability, despite missing the most recent quarterly estimates.
- Market Volatility Warning: Freedom Capital Markets Chief Market Strategist Jay Woods highlights that Carvana's stock has historically averaged a 14.2% swing post-earnings, suggesting a potential $50 price fluctuation from current levels, urging investors to proceed with caution.
- Same-Day Delivery Expansion: Carvana recently launched same-day vehicle delivery in Eugene, Oregon, marking its expansion into over 20 states for a quicker buying experience, which is expected to drive sales growth and enhance customer satisfaction.
See More
Stock Movers: Nvidia, Meta, Palo Alto, Apple, Sandisk, Cadence Design, and Others
- Stock Market Movement: Stock futures were rising on Wednesday as investors showed renewed interest in tech shares.
- Investor Behavior: The increase in stock futures was attributed to investors buying the dip following a recent selloff.
See More
Carvana Set to Release Q4 Earnings on February 18
- Earnings Announcement: Carvana is set to announce its Q4 earnings on February 18 after market close, with consensus EPS estimated at $1.16 and revenue expected to reach $5.26 billion, reflecting market focus on its profitability.
- Upward EPS Revisions: Over the past three months, Carvana's EPS estimates have seen three upward revisions with no downward adjustments, indicating increased analyst confidence in the company's profitability, which could positively impact its stock price.
- Revenue Estimate Adjustments: Similarly, revenue estimates have experienced ten upward revisions and one downward revision in the last three months, suggesting a bullish outlook on Carvana's sales growth, likely to attract investor interest and confidence.
- Market Environment Analysis: Despite concerns regarding the
See More
Market Preview: Earnings Reports from Major Companies Ahead
- Earnings Reports: Carvana, DoorDash, and eBay are set to release their earnings on February 18, with particular attention on Carvana's sales growth amidst a busy market day.
- Booking Holdings Performance: Analysts expect Booking Holdings to report a 12% revenue growth in Q4, driven by stable global leisure demand and the expansion of alternative accommodations, while management must address the potential threat from AI travel planning tools.
- Energy Sector Update: Occidental Petroleum is announcing its Q4 results, with analysts predicting stable production from its core US onshore assets despite declining oil prices, which may pressure earnings and free cash flow.
- Macro Economic Data: The Federal Reserve will release minutes from its January FOMC meeting, with market participants looking for clues on inflation and labor market policies, while housing starts are forecasted at an annualized rate of 1.31 million and building permits at 1.4 million, indicating the impact of elevated rates on the housing market.
See More
Pomerantz LLP Investigates Carvana for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Carvana and its executives have engaged in securities fraud or other unlawful business practices, indicating serious concerns among investors regarding corporate governance that could lead to legal liabilities and financial losses.
- Earnings Overstatement Allegations: On January 28, 2026, Gotham City Research LLC issued a report alleging that Carvana's 2023-2024 earnings are overstated by over $1 billion, revealing a lack of financial transparency that may undermine investor confidence.
- Significant Stock Price Drop: Following the report's release, Carvana's stock price fell by $67.68, or 14.17%, closing at $410.04, reflecting strong market concerns about the company's financial health, which could impact future financing capabilities.
- Potential Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, may initiate a class action lawsuit against Carvana, and if fraud is confirmed, it could have long-lasting negative effects on the company's reputation and shareholder value.
See More
Analysis and Outlook: Saved by the Bell
- Nasdaq Performance: The Nasdaq Composite ended its four-day losing streak today.
- Impact of AI Concerns: Despite the positive performance, concerns regarding AI continued to affect software stocks.
See More
