Carvana Stock Is Still Rising Days After Earnings as Growth Momentum Holds

Carvana Co. (NYSE:CVNA) shares rose Monday as investors assessed the used-car retailer’s third-quarter performance, updated outlook and recent analyst commentary.

The used-car retailer reported stronger-than-expected third-quarter revenue, record retail unit sales and guidance pointing to adjusted EBITDA near the top of its full-year range.

Revenue Beat, Record Unit Sales Support Shares

Carvana reported third-quarter revenue of $8.04 billion, topping expectations of $7.70 billion, while earnings of 39 cents per share missed the 44-cent estimate.

Revenue rose 42% year over year, while retail units sold increased 39% to a record 217,385.

The company also guided full-year adjusted EBITDA toward the high end of its $2.7 billion to $3 billion range.

Monday’s gains came even as some analysts lowered their price targets after earnings, suggesting investors focused more on growth and guidance than on post-results target resets.

A broader risk-on market backdrop also supported the move, with consumer discretionary stocks outperforming Monday.

Analysts Stay Constructive Despite Forecast Cuts

Needham maintained its Buy rating but cut its price forecast to $100 from $120. BTIG also kept its Buy rating while lowering its forecast to $82 from $87.

The stock currently carries a Buy consensus rating with an average price forecast of $82.67.

Recent analyst actions also include Barclays raising its forecast to $82 with an Overweight rating and Citizens raising its forecast to $85 with a Market Outperform rating.

BNP Paribas lowered its forecast to $67 while maintaining a Neutral rating.

Growth Remains Key to the Bull Case

Carvana’s retail vehicle business remains its main revenue driver, with additional income from wholesale sales, financing, vehicle service contracts and GAP waiver coverage.

Management has identified reconditioning capacity as a key operating constraint as volumes expand.

The company also refinanced $1.7 billion of senior secured notes due 2030 with a term loan, targeting about $45 million in annual interest savings.

Carvana’s Benzinga Edge scorecard reflects a growth-heavy profile. The company carries a Growth score of 95.25, compared with a Value score of 3.31 and a Momentum score of 55.9.

Technical Setup

Carvana is trading above its key moving averages, sitting 18.9% above its 20-day SMA, 10.3% above its 50-day SMA, and 9.1% above its 100-day SMA.

The RSI stands at 62.89, keeping the stock below overbought territory, while MACD remains above its signal line.

Key Resistance: $76.50
Key Support: $59.50

Carvana still carries a longer-term bearish technical signal after forming a death cross in March, when its 50-day SMA fell below the 200-day SMA.

The stock has gained 9.06% over the past 12 months and currently sits at 42.2% of its 52-week range.

CVNA Stock Price Activity: Carvana shares are trading higher by 5.33% at $71.93 at the time of publication on Monday, according to Benzinga Pro data.

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