CARVANA CO (NYSE:CVNA) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template criteria. The company, an e-commerce platform for buying and selling used cars, demonstrates strong technical and fundamental characteristics that make it a candidate for further analysis.
Why CVNA Fits the Minervini Trend Template
Minervini’s Trend Template focuses on stocks exhibiting strong uptrends with specific technical criteria. CVNA meets these requirements:
- Price Above Key Moving Averages: The stock is trading at $307.91, well above its 50-day ($276.13), 150-day ($243.49), and 200-day ($228.27) moving averages.
- Rising Moving Averages: The 50-day, 150-day, and 200-day MAs are all trending upward, confirming long-term strength.
- Relative Strength: With a ChartMill Relative Strength score of 98.07, CVNA outperforms nearly all other stocks in its sector.
- Price Near 52-Week High: The stock is within 12% of its 52-week high ($351.43) and has surged 172% over the past year.
High-Growth Momentum Fundamentals
Beyond technicals, CVNA shows strong growth metrics:
- Earnings Growth: EPS surged 260% year-over-year (TTM), with quarterly growth accelerating (Q2Q up 556%).
- Revenue Growth: Sales increased 38% in the latest quarter, with full-year revenue up 27%.
- Profit Margins Expanding: Quarterly profit margins improved to 5.1%, up from 0.5% a year ago.
- Analyst Upgrades: EPS estimates for next year have been revised upward by 98% over the past three months.
Technical Outlook
CVNA’s technical rating is a perfect 10, reflecting its strong uptrend. However, the setup rating is currently 3, suggesting the stock may need a consolidation phase before another breakout. Key support levels are at $297 and $290, while resistance sits near $341-$346.
For more details, review the full technical analysis report.
Our High Growth Momentum + Trend Template screener lists more stocks meeting these criteria.
Disclaimer
This is not investment advice. Always conduct your own research before making any investment decisions.
