CARVANA CO (NYSE:CVNA) – A High-Growth Momentum Stock with Strong Technical Setup

Carvana Co (NYSE:CVNA) stands out as a high-growth momentum candidate with a solid technical foundation. The company, an e-commerce platform for buying and selling used cars, has demonstrated impressive earnings acceleration alongside a bullish chart pattern.

Growth Momentum Highlights

• Exceptional Earnings Growth: CVNA reported a staggering 556.5% year-over-year EPS growth in the most recent quarter, with accelerating trends over the past four quarters.
• Strong Revenue Expansion: Sales grew by 38.3% year-over-year, supported by consistent beats on revenue estimates.
• Profit Margin Expansion: Quarterly profit margins improved to 5.1%, up from 0.5% three quarters ago, signaling operational efficiency.
• Positive Analyst Revisions: EPS estimates for the next year have been revised upward by 64.1% over the past three months, reflecting optimism.
• Free Cash Flow Growth: FCF per share surged by 184.7% year-over-year, reinforcing financial health.

Technical Strength

• Perfect Technical Rating (10/10): CVNA is in a strong uptrend across both short and long-term timeframes, outperforming 97% of stocks in the Specialty Retail sector.
• Bull Flag Pattern: The stock is consolidating after a sharp rally, presenting a potential entry point.
• Support Levels: Multiple support zones exist between $342 and $343, providing downside protection.
• Low Volume Pullback: Recent price consolidation has occurred on lower volume, a positive sign for continuation.

Setup Quality (7/10)

• Consolidation Phase: Prices have stabilized, reducing volatility and setting up for a breakout.
• Institutional Interest: Large players have shown buying interest, as indicated by volume analysis.
• Clear Entry & Exit Points: A breakout above $364 could signal further upside, with a stop-loss near $343.

For a deeper look at the technicals, review the full technical report for CVNA.

Our High Growth Momentum Breakout Setups Screen lists more stocks with strong growth and technical setups.

Disclaimer

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