Valued at a market cap of $89.5 billion, Carvana Co. (CVNA) operates an online platform for buying and selling used cars, offering services such as vehicle acquisition, inspection and reconditioning, financing, logistics, and post-sale customer support. It also operates auction sites to support its operations.
Shares of the Tempe, Arizona-based company have surpassed the broader market over the past 52 weeks. CVNA stock has surged 53.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 15.6%. However, shares of the company are down 2.4% on a YTD basis, lagging behind SPX’s 1.7% rise.
Focusing more closely, shares of the used car retailer have outperformed the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 4.1% rise over the past 52 weeks.
Despite reporting better-than-expected Q3 2025 revenue of $5.65 billion on Oct. 29, shares of CVNA tumbled 13.8% the next day because earnings disappointed, with profit of $1.03 per share missing the Wall Street estimate and adjusted EBITDA margin slipping to 11.3%. Investors were also concerned about forward guidance, as management projected Q4 retail unit sales just above 150,000, implying a potential 4% quarter-on-quarter decline and a sharp deceleration in year-on-year growth despite Q3’s strong 44% increase to 155,941 units.
For the fiscal year that ended in December 2025, analysts expect CVNA’s EPS to increase 389.2% year-over-year to $4.99. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 23 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings, three “Moderate Buys,” and five “Holds.”
This configuration is more bullish than three months ago, with 12 “Strong Buy” ratings on the stock.
On Jan. 15, UBS analyst Joseph Spak maintained a “Buy” rating on Carvana and set a price target of $545.
The mean price target of $491.86 represents a premium of 19.6% to CVNA's current levels. The Street-high price target of $600 implies a potential upside of 45.9% from the current price levels.
On the date of publication, Sohini Mondal 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.
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