CARVANA CO (NYSE:CVNA) – A Strong Contender for Growth Investors

CARVANA CO (NYSE:CVNA) stands out as a potential candidate for investors following Louis Navellier’s growth strategy. The company, an eCommerce platform for buying and selling used cars, meets several key criteria outlined in Navellier’s "The Little Book That Makes You Rich." Below, we examine why CVNA aligns with these principles.

Key Growth Metrics

• Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 37% over the past three months. CVNA has also beaten earnings expectations in all of the last four quarters, with an average surprise of 169%.
• Sales & Earnings Growth: Revenue grew 32% year-over-year, while quarterly sales increased 38%. EPS surged 260% over the past year, with quarterly EPS up 557%.
• Operating Margin Expansion: Operating margins expanded by 392% year-over-year, signaling improving profitability.
• Cash Flow Strength: Free cash flow grew 185% in the past year, reflecting strong financial health.
• High Return on Equity: CVNA’s ROE of 26.5% outperforms most peers in the specialty retail industry.

Fundamental Snapshot

CVNA’s fundamental rating of 5/10 reflects mixed strengths. While profitability is average, the company excels in growth, with revenue and earnings expanding rapidly. Valuation remains expensive, but high growth rates may justify the premium. The balance sheet shows solid liquidity, though debt levels are elevated.

For a deeper look, review the full fundamental analysis report.

Our Little Book Growth screener lists more stocks matching this strategy and is updated regularly.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.