Carvana Co is an e-commerce platform for buying and selling used cars... Show more
Carvana Co. is a leading e-commerce platform for buying and selling used vehicles. Since launching in 2013, the company has built a vertically integrated, national infrastructure that lets customers shop, finance, trade in, and sell vehicles entirely online, with delivery or local pickup available as soon as the same day. Its business spans retail vehicle sales, wholesale vehicle sales, and complementary revenue streams such as financing and vehicle service contracts.
Carvana's competitive advantages stem from its purpose-built technology, proprietary reconditioning and inspection centers, and logistics and delivery network. The company has positioned itself as the fastest-growing automotive retailer in a largely flat industry, repeatedly pairing industry-leading retail unit growth with above-average profitability. Investors follow the stock closely because Carvana's scale, unit economics, and expanding market share make it a key barometer for the digital transformation of the used-car market.
Over the last 30 days, Carvana shares advanced approximately 12.9%. Using the closing price of $63.77 on October 2, 2026, as the reference point for the start of the window, the stock climbed to about $72.00 in early November trading. The move was concentrated around the company's third-quarter earnings release, with shares rising sharply from the $59.00 level in late October.
Over the broader trailing three-month period, the stock's gain was more modest at roughly 8.9%, reflecting a volatile path. Shares traded near $75.00 in mid-August before sliding to a late-October low around $56.00 amid rising benchmark interest rates and sector-wide pressure. The subsequent post-earnings rebound recovered those losses and pushed the stock back toward the upper portion of its recent range.
The primary catalyst was Carvana's record third-quarter 2026 report, released on October 28, 2026. Retail units sold increased 39% year over year to 217,385, the first quarter the company surpassed 200,000 units. Total revenue rose 42% to $8.04 billion, exceeding consensus expectations. Net income climbed to $483 million, and adjusted EBITDA reached a record $800 million.
Guidance also supported the move. Management said it expects a sequential increase in retail units sold and full-year adjusted EBITDA at the higher end of its $2.7 billion to $3.0 billion range, assuming a stable operating environment. The company's strengthened balance sheet added further confidence: Carvana refinanced $1.7 billion of senior secured notes due 2030 into a Term Loan B, reducing annual interest expense by about $45 million and bringing net leverage to a record-low 0.8 times trailing twelve-month adjusted EBITDA.
Analyst commentary was broadly constructive. Needham maintained a Buy rating while lowering its price target to $100 from $120, and BTIG kept a Buy rating while reducing its target to $82 from $87. Barclays and Citizens also maintained positive ratings with targets of $82 and $85, respectively. Management's discussion of agentic AI and digital commerce as a structural advantage reinforced the longer-term growth narrative.
The trailing three months reflected a tug-of-war between durable business momentum and external headwinds. Through much of the period, shares came under pressure as rapidly rising benchmark interest rates and elevated fuel costs weighed on unit economics. Management estimated these two factors reduced overall unit profitability by roughly $200 per unit in the third quarter, while adjusted EBITDA margin narrowed to 10.0% from 11.3% a year earlier.
At the same time, Carvana continued to execute its scaling strategy. The company integrated retail production capabilities at additional ADESA locations, bringing total integrated sites to 21, and produced more than 200,000 units in a single quarter for the first time. Its stated long-term goals of selling 3 million units annually at a 13.5% adjusted EBITDA margin, combined with record quarterly results, ultimately reasserted the growth story and drove the late-period recovery.
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Several factors are likely to shape Carvana's stock in the months ahead. Fourth-quarter retail unit sales will test whether the company can sustain its roughly 40% growth rate, and the company's next earnings report is expected in early 2027. Management has signaled that supply-chain scaling, particularly in inspection and reconditioning centers, remains a key constraint on growth and selection.
Macroeconomic conditions also matter. Benchmark interest rates influence Carvana's financing economics and consumer affordability, while fuel and logistics costs affect per-unit profitability. Investors will also monitor competitive dynamics, any shifts in analyst estimates and price targets, and progress toward the company's 3-million-unit and 13.5% adjusted EBITDA margin targets. These drivers are presented for informational purposes and do not constitute financial advice.
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CVNA moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend. In 28 of 30 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 90%.
The Momentum Indicator moved above the 0 level on October 28, 2026. You may want to consider a long position or call options on CVNA as a result. In 61 of 68 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 90%.
The Moving Average Convergence Divergence (MACD) for CVNA just turned positive on October 27, 2026. Looking at past instances where CVNA's MACD turned positive, the stock continued to rise in 40 of 49 cases over the following month. The odds of a continued upward trend are 82%.
Following a +1.55% 3-day Advance, the price is estimated to grow further. Considering data from situations where CVNA advanced for three days, in 268 of 332 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
CVNA broke above its upper Bollinger Band on October 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CVNA entered a downward trend on October 28, 2026. 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 SMR rating for this company is 19 (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 Price Growth Rating for this company is 46 (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 Valuation Rating of 79 (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: CVNA's P/B Ratio (12.205) is slightly higher than the industry average of (1.415). P/E Ratio (30.568) is within average values for comparable stocks, (11.741). CVNA's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (0.695). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. CVNA's P/S Ratio (2.960) is slightly higher than the industry average of (0.919).
The Tickeron Profit vs. Risk Rating rating for this company is 83 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CVNA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 92 (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.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a car dealer
Industry AutomotiveAftermarket