Since February 2026, Carvana has been in a holding pattern, posting a small loss of 3% while floating around $70.14. The stock also fell short of the S&P 500’s 13.1% gain during that period.
Is now the time to buy CVNA? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.
Why Is Carvana a Good Business?
Known for its glass tower car vending machines, Carvana (NYSE: CVNA) provides a convenient automotive shopping experience by offering an online platform for buying and selling used cars.
1. Retail Units Sold Skyrocket, Fueling Growth Opportunities
As an online retailer, Carvana generates revenue growth by expanding its number of users and the average order size in dollars.
Over the last two years, Carvana’s retail units sold, a key performance metric for the company, increased by 37.7% annually to 197,325 in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction. 
2. Eye-Popping Growth in Customer Spending
Average revenue per unit (ARPU) is a critical metric to track because it measures how much customers spend per order.
Carvana’s ARPU growth has been exceptional over the last two years, averaging 10.7%. Its ability to increase monetization while growing its retail units sold at an impressive rate reflects the strength of its platform, as its units are spending significantly more than last year. 
3. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Carvana’s full-year EPS flipped from negative to positive over the last three years. This is a good sign and shows it’s at an inflection point.
Final Judgment
These are just a few reasons Carvana is a high-quality business worth owning. With its shares lagging the market recently, the stock trades at 17.6× forward EV/EBITDA (or $70.14 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
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