Carvana (CVNA, $283.57) gets rating boost from Morgan Stanley analyst
Carvana got a rating upgrade from Morgan Stanley analyst Adam Jonas who also almost doubled his price target on the online used-car retailer’s shares.
Jonas raised his rating on Carvana to overweight from equal weight. He boosted price target to a Wall Street high of $420 from $225.
This followed Carvana’s earnings report that showed +65% year-over-year growth in revenue to $1.83 billion for the fourth quarter, beating analysts’ forecast of $1.6 billion. Net loss widened to -87 cents a share from -82 cents in the year-ago quarter.
According to Jonas, Carvana "is uniquely positioned to serve an automotive and transportation [addressable market] that goes far beyond the used-car market, driving potentially far higher growth that is not reflected in today’s share price.” He added, “In our opinion, describing Carvana as just a ‘used car dealer’ is like describing Amazon nearly two decades ago as just an online bookseller.”
CVNA's Stochastic Oscillator stays 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 327 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.
Bearish Trend Analysis
The 10-day RSI Indicator for CVNA moved out of overbought territory on November 26, 2024. 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 December 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CVNA as a result. In of 71 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
CVNA moved below its 50-day moving average on December 19, 2024 date and that indicates a change from an upward trend to a downward trend.
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 Aroon Indicator for CVNA entered a downward trend on December 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 75, 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 (12.393). CVNA has a moderately high P/E Ratio (115.720) as compared to the industry average of (36.657). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.650). 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 (19.235).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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General Information
a car dealer
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