Should Investors Trust The Upside Potential In Carvana Co. (CVNA)?

Carvana Co. (NYSE:CVNA) currently has a daily average trading volume of 4.52M but it saw 4942821 shares traded in last market. With a market cap of 12.24B USD, the company’s current market price of $104.67 came rising about 1.58 while comparing to the previous closing price of $103.04. In past 52 weeks, the stock remained buoying in the range of price level as high as $129.00 and as low as $14.32.

Taking a look at 20-day trading activity of Carvana Co. (CVNA) gives us an average price of $110.94, while its current price level is -18.86% below from 52-week high level whereas it is 630.94% above from lowest level seen by the stock during that period. Simple moving average of 50 days or SMA-50 of the stock’s closing price is $96.00 while that of 200 days or SMA-200 reads an average of $59.96. A closer look into the stock’s movement over the week reveals that its volatility is standing at 5.31% during that period while stretching the period over a month that decreases to 5.14%. It is also necessary to take a look into other indicators of a stock too, to get a better idea about its price movement. And in doing so, we find stock’s 14-day relative strength index (RSI) standing at 50.77 which implies that the stock is in neutral territory.

The company’s shares got several price updates from the analyst firms in past one month and most recent of them is from the JP Morgan which upgraded the stock as “Overweight” in its note to investors issued on May 02, 2024, recommending a price target of between $70 and $130 for it. Jefferies upgraded its recommendation for the stock as a “Hold” from “Underperform” on March 12, 2024 while assigning a price target range of $30-$85. RBC Capital Mkts also issued its recommendations for the stock as it upgraded the price target for the stock in the range of between $45 and $90.

Over the week, CVNA’s stock price is moving 2.23% up while it is -10.28% when we observe its performance for the past one month. Year-to-date it is 97.71% up and over the past year, the stock is showing an upside performance of 608.19%.

Currently, Carvana Co.’s total number of outstanding shares is 114.24M. Company’s return on investment (ROI) stands at 10.20% and return on equity (ROE) at -78.96%. It has a price to earnings ratio (P/E ratio) of 42.16. Stock’s beta reads 3.35. Stock has a price to book (P/B) ratio of 42.22 while price to sale or P/S ratio amounts to 1.09. Its return on asset (ROA) is 8.16% on average.