Carvana (CVNA), the online used-car disruptor with its vending machines and click-to-drive model, rewrote the dealership playbook. Once overlooked, it navigated market potholes with grit, braving pandemic shocks, supply-chain snarls, and economic whiplash.
Amid the turbulence still gripping the used car market, Carvana restructured, recalibrated, and raced ahead. It did so with its digital-first model, laser focus on efficiency, and strategic infrastructure bets, such as acquiring ADESA’s auction network.
Now in 2025, Carvana’s turnaround is gaining traction. With rising earnings, leaner operations, and renewed investor confidence, the company is a serious contender. Investors have warmed up to Carvana’s tech-powered vision, recently pushing shares to a fresh 52-week high of $364 and inching CVNA closer to its all-time peak.
Although the stock took a slight breather in the last session, should CVNA stock be on your buy list now?
About Carvana Stock
Based in Arizona, Carvana redefined the U.S. used-car game by moving it fully online — no haggling, no hassle, just tech-driven transactions. With artificial intelligence (AI) and big data running under the hood, Carvana fine-tunes pricing, streamlines inventory, and sharpens logistics, turning complexity into efficiency. Its market capitalization currently stands at around $74 billion.
CVNA stock has proved its mettle so far this year. Shares of the used-car disruptor have surged 72% year-to-date (YTD) amid growing margins and sharpened digital execution. Investors have taken note. In just the past three months, shares have sprinted 59%, peaking at $364 on July 8. Over the past 52 weeks, the stock has skyrocketed 179%, trouncing the S&P 500 Index’s ($SPX) gains and silencing skeptics.
The RSI has pulled back slightly, landing at 61.16 — signaling that CVNA’s bullish momentum remains intact without tipping into overbought territory. Volume has cooled after the latest climb, hinting at some hesitation from buyers, but nothing screams reversal. With the price now sitting just below its all-time high, CVNA sits right near a key resistance zone, keeping breakout watchers on alert.
Carvana trades at a lofty 71 times forward adjusted earnings and 5.6 times sales — a premium compared to its sector peers. The valuation reflects aggressive 2025 growth assumptions. While optimism fuels the premium, elevated multiples leave little room for error. Execution risks or macro shocks could jolt momentum, but for now, markets appear confident that Carvana’s rally still has room to run.
Carvana Surges After a Strong Q1 Earnings Report
Carvana shares surged more than 10% after the company released first-quarter earnings on May 7, which crushed records and silenced doubters. The results confirmed the company’s fierce resurgence and reignited momentum across the digital auto retail space. Revenue jumped 38% year-over-year (YOY) to $4.2 billion, fueled by 133,898 retail vehicle sales, a 46% annual leap.
It wasn’t just about volume. Profitability lit up the scoreboard, too. Net income clocked in at a record $373 million with an 8.8% margin, leaving the year-ago quarter’s $49 million profit and 1.6% margin in the dust. Adjusted EBITDA hit a new high of $488 million with an 11.5% margin. Plus, EPS grew significantly to $1.51, doubling analyst forecasts and coming in far above last year’s $0.23.
Looking ahead, management expects even more horsepower in fiscal Q2, guiding for sequential growth in retail sales and adjusted EBITDA. Plus, they are pursuing a medium-term target of 3 million annual vehicle sales, aiming for a 13.5% adjusted EBITDA margin within five to 10 years.
Carvana is gearing up to drop its Q2 earnings after hours on Wednesday, July 30, and Wall Street is watching closely. Analysts forecast Q2 revenue near $4.6 billion, with EPS expected to skyrocket 678% YOY to $1.09. Looking further down the road, earnings are anticipated to climb by 389% YOY to $4.99 per share in fiscal 2025, then rise another 23% to $6.14 in fiscal 2026.
What Do Analysts Expect for Carvana Stock?
CVNA stock recently got a turbo boost from Wall Street. Citizens JMP analyst Andrew Boone set a Street-high price target of $440 on the stock — up from $275 — while maintaining an “Outperform” rating. Boone is betting on the firm's high-octane customer experience which is backed by a stellar Net Promoter Score (NPS) of 69. Boone believes the high score is due to Carvana’s sleek, proprietary software and nationwide logistics and reconditioning network, which enables the firm to undercut traditional dealers. With these gears in motion, the analyst sees Carvana cruising toward its 13.5% EBITDA margin target and a lot more upside ahead.
Carvana stock has a consensus “Moderate Buy” rating overall. Out of 19 analysts covering the auto retail stock, nine recommend a “Strong Buy,” three give a “Moderate Buy,” and seven analysts stay cautious with a “Hold” rating.
Carvana’s sharp climb has already blown past its average price target of $327.19, implying that the stock is trading at a premium. However, the Street-high target of $440 suggests shares could rally as much as 25% from here.
The Bottom Line
Carvana offers compelling top-tier growth and a chart that is keeping traders interested. Its record sales and surging margins show the business has real strength under the hood. But, with the stock nearing key resistance, the next move could come down to timing. Whether you chase the breakout or wait for more pullback, CVNA stock looks like a name that’s still on the move.
On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
