Oversold Stocks in Consumer Discretionary Sector Present Buying Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Oversold Stock Overview: Kohls Corp's relative strength index (RSI) stands at 29.6, indicating a 17% decline over the past month and a 52-week low of $6.04, suggesting it is undervalued and may attract investor interest.
- Analyst Rating: Jefferies analyst Blake Anderson assigned a Hold rating to Kohl's on January 14, and despite the stock's decline, the rating may provide a relatively stable investment signal for investors.
- Market Performance: Kohls shares fell 3.2% to close at $17.22 on Wednesday, and with an 86.20 momentum score and a 96.75 value score, it indicates potential rebound opportunities in the market.
- Industry Dynamics: As consumer spending gradually recovers, oversold stocks like Kohls may become focal points for investors to reassess, especially in the context of economic recovery, which could yield higher returns.
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Analyst Views on CVNA
Wall Street analysts forecast CVNA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVNA is 475.88 USD with a low forecast of 360.00 USD and a high forecast of 550.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 410.040
Low
360.00
Averages
475.88
High
550.00
Current: 410.040
Low
360.00
Averages
475.88
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 Faces Regulatory Risks as Stock Plummets Amid Accounting Concerns
- Accounting Warning: Gotham City Research's report claims Carvana's earnings are overstated by over $1 billion, potentially leading to regulatory troubles, indicating that the company's profitability is far less than believed, increasing investor risk.
- Stock Price Plunge: Following Gotham's report, Carvana's shares plummeted 10% on Wednesday, reflecting market concerns over its financial transparency and business practices, which may impact future financing capabilities.
- Analyst Optimism: Despite challenges, JPMorgan raised Carvana's price target from $490 to $510, expecting a 'solid beat and raise' in Q4, reflecting confidence in the company's unit growth assumptions.
- Sales Expectations Rise: Carvana anticipates selling over 150,000 units in Q4, an increase from 114,379 units sold in the same quarter last year, indicating strong market demand remains robust in a stable operating environment.
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Carvana Shares Rebound Amid Financial Concerns Raised by Gotham City Research
- Financial Allegations: Gotham City Research claims that Carvana overstated its earnings by over $1 billion for 2023-2024 and expressed concerns about the company's reliance on related parties, which may undermine investor confidence.
- Stock Performance: Carvana shares rose 3.48% to $422.43 on Thursday, although currently trading 4.2% below the 20-day simple moving average, they are 11.4% above the 100-day SMA, indicating some long-term strength.
- Future Earnings Expectations: Analysts predict Carvana's upcoming earnings report will show an EPS of $1.11, a significant increase from $0.56 YoY, with revenue estimates at $5.24 billion, up from $3.55 billion YoY, reflecting strong market confidence in its growth potential.
- Analyst Ratings: The stock carries a
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