Valued at a market cap of $76.7 billion, Carvana Co. (CVNA) operates an online platform for buying and selling used cars, offering services such as vehicle acquisition, inspection and reconditioning, financing, logistics, and post-sale customer support. It also operates auction sites to support its operations.
Shares of the Tempe, Arizona-based company have lagged behind the broader market over the past 52 weeks. CVNA stock has gained 13.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 27.3%. In addition, shares of the company are down 17.9% on a YTD basis, compared to SPX’s 9.6% rise.
However, shares of the used car retailer have outperformed the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 10.3% return over the past 52 weeks.
Carvana reported record Q1 2026 results on Apr. 29 that significantly exceeded expectations, including a 40% year-over-year increase in retail units sold to 187,393 vehicles and a 52% surge in revenue to a record $6.43 billion. The company also posted record profitability metrics, including net income of $405 million with a 6.3% margin, adjusted EBITDA of $672 million with a 10.4% adjusted EBITDA margin, and operating income of $581 million. In addition, Carvana forecasts sequential increases in both retail units sold and adjusted EBITDA in Q2 2026, which would mark new all-time company records for both metrics.
Nevertheless, the stock fell marginally the next day.
For the fiscal year that ended in December 2026, analysts expect CVNA’s EPS to decrease 21.9% year-over-year to $1.32. 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 22 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 13 “Strong Buy” ratings, three “Moderate Buys,” and six “Holds.”
On May 14, Barclays analyst John Babcock lowered the price target on Carvana to $93 while maintaining an “Overweight” rating.
The mean price target of $94.87 represents a premium of 35.6% to CVNA's current levels. The Street-high price target of $120 implies a potential upside of 71.5% 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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