Olivier Le Moal The following segment was excerpted from The Optimist Fund Q1 2025 Quarterly Letter. Top Contributors ThredUp (TDUP) As highlighted in our Q4 letter, ThredUp preannounced strong results in January, pointing to a meaningful acceleration in both revenue growth ...

Core Viewpoint - Brokerage recommendations, particularly for Carvana (CVNA), suggest a favorable outlook, but reliance solely on these recommendations may not be prudent due to potential biases from brokerage firms [5][10]. Group 1: Brokerage Recommendations for Carvana - Carvana has an average brokerage recommendation (ABR) of 1.87, indicating a position between Strong Buy and Buy, based on 19 brokerage firms [2]. - Out of the 19 recommendations, nine are Strong Buy and three are Buy, accounting for 47.4% and 15.8% of total recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often do not effectively guide investors towards stocks with the highest potential for price appreciation [5]. - Analysts from brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Group 3: Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [8][11]. - The Zacks Rank is updated more frequently than the ABR, making it a more timely indicator of future price movements [12]. Group 4: Carvana's Earnings Estimates - The Zacks Consensus Estimate for Carvana has increased by 5.8% over the past month to $3.58, reflecting analysts' growing optimism about the company's earnings prospects [13]. - This increase in consensus estimates has contributed to a Zacks Rank of 2 (Buy) for Carvana, suggesting a positive outlook for the stock [14].

Carvana (CVNA 7.33%) stock is surging higher Tuesday. The auto retail specialist's share price was up 9.3% as of 3:30 p.m. ET. Meanwhile, the S&P 500 was up 2%, and the Nasdaq Composite was up 2.3%.The stock market is recovering from yesterday's sell-off thanks to recent comments from U.S. Treasury Secretary Scott Bessent suggesting that the trade war between the U.S. and China could cool off in the not-too-distant future. Carvana stock is also seeing a big uptick in bullish trading thanks to positive analy ...

Carvana (CVNA) has staged a jaw-dropping comeback from once being on the verge of collapse. Year 2023 marked Carvana’s remarkable revival after a 98% plunge in 2022, and the rally continued in 2024 as well.  The used-car e-commerce player defied the odds, bouncing back through deep cost cuts and a debt overhaul—reviving investor interest in one of the pandemic era’s most dramatic stories.Over the past year, CVNA stock has rocketed 196%. In contrast, its closest competitor CarMax (KMX) declined 5% in the sam ...

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, helping investors identify securities with high potential for market outperformance [2][3] Company Overview - Carvana Co. is a leading e-commerce platform for buying and selling used cars, with significant revenue growth, increasing approximately 16-fold from 2017 to 2024 [11] - The company has transformed traditional used-car sales through its comprehensive online business model, which includes sales, financing, logistics, and software development [11] Investment Ratings - Carvana holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential for growth investors [12] - The company is forecasted to achieve year-over-year earnings growth of 118.9% for the current fiscal year, with upward revisions from six analysts in the last 60 days [12] - The Zacks Consensus Estimate for Carvana's earnings has increased by $0.51 to $3.48 per share, with an average earnings surprise of 119.2% [12][13]

Carvana NYSE: CVNA presents a complex picture for investors navigating the current stock market volatility. The online used car retailer has staged a comeback over the past year, with its stock price surging up over 100%. However, this rally has recently encountered resistance.  Year-to-date metrics show a decline in Carvana’s stock price performance, bringing into sharp focus a collection of contradictory signals: evidence of a successful operational turnaround clashing with cautious price target revisions ...

Core Insights - Carvana Co. is establishing an integrated auction and reconditioning Megasite in Phoenix, merging its Inspection and Reconditioning Center operations with the ADESA Phoenix wholesale auction facility, enhancing processing capacity and services for retail and wholesale clients [1][3] Group 1: Facility and Operations - The ADESA Phoenix site, located in Chandler, AZ, spans nearly 100 acres and has over 5,000 parking spaces, supporting local wholesale auto auctions for over two decades [2] - The integration of IRC capabilities at ADESA Phoenix will increase Carvana's vehicle reconditioning output, improving selection for customers and operational efficiency, enabling faster delivery for local car buyers [3][4] Group 2: Technology and Infrastructure - The transformation into an auction-IRC Megasite will leverage the site's expansive infrastructure and Carvana's proprietary CARLI software, which is designed to streamline operations and maintain consistency across the IRC network [4] Group 3: Expansion Plans - Carvana has announced a similar Megasite plan in central New Jersey, integrating reconditioning services into the ADESA New Jersey auction facility, which also spans roughly 100 acres and has been a staple in the local wholesale auction market for nearly 30 years [5]

Group 1 - Carvana (CVNA) shares have increased by 2.4% over the past four weeks, closing at $176.32, with a mean price target of $276.88 indicating a potential upside of 57% [1] - The mean estimate is based on 16 short-term price targets with a standard deviation of $45.35, where the lowest estimate is $200 (13.4% increase) and the highest is $340 (92.8% increase) [2] - Analysts show strong agreement on Carvana's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][10] Group 2 - Recent trends indicate that four earnings estimates for Carvana have been revised higher in the last 30 days, leading to a 4.6% increase in the Zacks Consensus Estimate [11] - Carvana holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside [12] - While the consensus price target may not be a reliable indicator of the stock's gain, it does provide a directional guide for price movement [12]

Carvana (CVNA) shares rallied 5% in the last trading session to close at $176.32. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2.2% loss over the past four weeks.Carvana shares surged yesterday after the company announced its plan to develop a large-scale auction and reconditioning “Megasite” in Phoenix, AZ. This facility will enhance the dealership’s ability to process more vehicles and increase inventory ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Carvana (CVNA) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Carvana currently has an average brokerage ...