Carvana Co (NYSE:CVNA) Emerges as a Top Growth and Momentum Stock Candidate

Carvana Co (NYSE:CVNA) has appeared as a notable candidate for investors using systematic growth strategies. The stock recently appeared through a screening method that joins Mark Minervini's Trend Template with high growth momentum standards. This two-part filter finds companies displaying both solid technical momentum and improving fundamental performance, traits often seen in stocks positioned for notable price gains.

Technical Strength and Trend Template Alignment

Carvana displays a strong technical profile that matches Minervini's Trend Template needs. This methodical process finds stocks in clear uptrends by assessing several moving average relationships and momentum indicators.

The stock currently trades at $375.72, placing it well against important moving averages:

• Above the 50-day SMA ($363.71)
• Above the 150-day SMA ($300.75)
• Above the 200-day SMA ($284.08)

More significantly, the moving averages show the layered setup Minervini highlights:

• The 50-day SMA is positioned above both the 150-day and 200-day SMAs
• The 150-day SMA moves above the 200-day SMA
• All moving averages point upward, confirming continued momentum

The 52-week measures further support the positive technical structure:

• Current price is 153% above the 52-week low of $148.25
• Trading within 9% of the 52-week high of $413.34
• Relative strength ranking of 92.41, showing better performance than 92% of the market

These technical features meet the main needs of Minervini's method, which looks for stocks showing leadership through relative strength while staying close to new highs.

Fundamental Acceleration and Growth Metrics

Beyond technicals, Carvana shows the fundamental improvement that high growth momentum investors look for. The company's earnings path displays notable betterment across several time periods.

Recent quarterly performance emphasizes the operational recovery:

• Current quarter EPS growth: 814% year-over-year
• Previous quarter EPS growth: 557% year-over-year
• Two quarters prior EPS growth: 156% year-over-year
• Three quarters prior EPS growth: 239% year-over-year

The annual earnings view confirms maintained betterment:

• Trailing twelve-month EPS growth: 466%
• Most recent full-year EPS growth: 145%
• Four straight quarters of earnings surprises, averaging 96% above estimates

Revenue growth supports the earnings momentum:

• Current quarter revenue growth: 42% year-over-year
• Trailing twelve-month revenue growth: 39%
• Four straight quarters of revenue beats, averaging 4% above expectations

Profitability measures display steady widening:

• Current quarter profit margin: 3.8%
• Previous quarter profit margin: 5.1%
• Full-year profit margin betterment from negative to positive area

Analyst sentiment shows increasing confidence, with next-year EPS estimates adjusted upward by almost 11% over the last three months.

Risk Management Considerations

While the growth story seems strong, careful risk management is still important. The technical analysis finds clear support and resistance points that can direct position sizing and stop-loss placement.

Key support areas group around:

• $364-365 range (joining moving average and trendline support)
• $326 level (horizontal support)
• $213 level (longer-term trendline support)

Resistance is seen in the $376-382 range, with more resistance close to the recent highs around $391-395. The Average True Range of $17.07 indicates normal daily volatility, which should help position sizing calculations.

Technical Assessment Summary

The full technical report gives Carvana a complete technical rating of 10/10, reflecting outstanding technical health across all measured areas. The setup rating of 8/10 shows the stock presents a good consolidation pattern with set support levels. Both short-term and long-term trends stay positive, with the stock showing leadership within the specialty retail sector by performing better than 94% of industry peers.

View the complete technical analysis report for detailed chart analysis and more trading insights.

Discovering Similar Opportunities

For investors looking for more candidates that meet related growth and momentum standards, the High Growth Momentum + Trend Template screen methodically finds stocks displaying both solid technical trends and improving fundamental performance.

Disclaimer: This analysis is for informational and educational purposes only and should not be taken as investment advice. All investment decisions involve risk, including possible loss of principal. Investors should do their own research and talk with a qualified financial advisor before making any investment decisions. Past performance does not guarantee future results.