Bearish signals for Carvana (CVNA) from Tickeron’s A.I. Prediction tool
New-age car buying company Carvana (NYSE: CVNA) saw two potential bearish signs over the last few days. On March 1, the stock saw the daily stochastic readings make a bearish crossover as the indicators were in overbought territory. The 10-day RSI was also in overbought territory and fell that day.
The last time the RSI and stochastic readings were in overbought territory at the same time was in September. The stock was trading at an all-time high back then and then lost over half of its value in the fourth quarter. The stock has rallied since early February and that is what caused the oscillators to move in to overbought territory.
In addition to the bearish stochastics crossover, the Tickeron AI Prediction tool generated a bearish signal on Carvana on February 28. That signal had a confidence level of 66%, but the most impressive thing is that 94% of predictions of this kind have been accurate over the years.
Carvana’s fundamental indicators are all over the place. Earnings have been flat over the last three years and they were down 106% last quarter. Conversely, sales have increased by an average of 141% per year over the last three years.
The company doesn’t have a return on equity yet because it has been losing money ever since it went public. The profit margin is at -18.9%. The company just reported earnings on February 27 and the earnings missed estimates.
CVNA's Stochastic Oscillator sits in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CVNA advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
CVNA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 264 cases where CVNA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for CVNA moved out of overbought territory on June 12, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 12, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on CVNA as a result. In of 70 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CVNA turned negative on June 10, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CVNA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CVNA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (41.494) is normal, around the industry mean (10.858). CVNA has a moderately high P/E Ratio (115.720) as compared to the industry average of (34.733). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.738). CVNA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (1.616) is also within normal values, averaging (20.083).
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General Information
a car dealer
Industry SpecialtyStores
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