CARVANA CO (NYSE:CVNA) – A Strong Growth Stock with Bullish Technical Setup

CARVANA CO (NYSE:CVNA) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a bullish chart pattern, making it worth a closer look for investors seeking growth opportunities.

Fundamental Strengths

• Strong Growth Metrics: CVNA has demonstrated impressive revenue growth, with a 32.23% increase over the past year and an expected 18.05% annual growth moving forward. Earnings per share (EPS) surged by 260.11% in the last year, signaling accelerating profitability.
• Healthy Financial Position: The company holds a solid liquidity position, with a current ratio of 3.81 and a quick ratio of 2.70, outperforming most peers in the Specialty Retail industry.
• Improving Margins: Operating margins stand at 8.42%, placing CVNA in the top 20% of its industry, while gross margins have shown recent improvement.

Technical Outlook

• Bullish Trend: Both short-term and long-term trends are positive, with the stock trading near its 52-week high.
• Bull Flag Pattern: The recent pullback after a strong upward move suggests a potential continuation of the uptrend, offering a possible entry point.
• Support Levels: Multiple support zones exist below the current price, including a key area around $342-$343, providing downside protection.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics and is updated daily.
For a deeper analysis, check the full fundamental report for CVNA and the technical report.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.